Lecture 1 - Marketing Overview

7/28/2019 Lecture 1 - Marketing Overview

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Marketing Overview


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The New Economy

Consumerbenefits from the digital revolution

include:

Increased buying power. Greater variety of goods and services.

Increased information.

Enhanced shopping convenience.

Greater opportunities to compare product informationwith others.

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The New Economy

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CNET is one

of many sites

that providesshopping

comparison

tools
http://shopper.cnet.com/shopping/0-1257.html?tag=sb


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The New Economy

Firmbenefits from the digital revolution

include:

New promotional medium.

Access to richer research data.

Enhanced employee and customer

communication.

Ability to customize promotions.

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The New Economy

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Amazon is

known for

customizingconsumer

promotions


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Challenges and Opportunities

In the New Economy

Power Shift to Customers

Massive Increase in Product Selection

Changing Value Propositions

Shifting Demand Patterns

New Sources of Competitive Advantage

Privacy, Security, and Ethical Concerns

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Discussion Question

The fact that customers have more power

is one of the major shifts taking place in

the new economy.

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What Can Be Marketed?

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas

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Marketing Defined

Kotlers social definition:

Marketing is a societal process by which

individuals and groups obtain what they need and

want through creating, offering, and freelyexchanging products and services of value with

others.

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Marketing Defined

The AMA managerial definition:

Marketing is the process of planning and executingthe conception, pricing, promotion, and

distribution of ideas, goods, and services to createexchanges that satisfy individual andorganizational objectives.

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Core Marketing Concepts

Target markets andmarket segmentation

Marketplace, market-space, metamarkets

Marketers & prospects

Needs, wants, demands

Product offering andbrand

Value and satisfaction

Exchange andtransactions

Relationship and

networks Marketing channels

Supply chain

Competition

Marketing environment

Marketing program

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Basic Marketing Concepts

Market: A collection of buyers and sellers

Shopping can take place in a:

Marketplace(physical entity, Lowes)

Marketspace (virtual entity, Amazon) electronic marketplaces that arenot bound by time or space

Metamarket: A cluster of closely related goods and services that center around a

specific consumption activity

Metamediary: Provides a single access point where buyers can locate and contact many

different sellers in the metamarket. Ex. Used and new car dealership

Marketers seek responses fromprospects.

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Target markets & segmentation

Differences in needs, behavior, demographics orpsychographics are used to identify segments.

The segment served by the firm is called thetarget market.

The market offering is customized to the needs ofthe target market.

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A Simp le Marketing System


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Needs describe basic human requirements such asfood, air, water, clothing, shelter, recreation,education, and entertainment.

Needs become wants when they are directed tospecific objects that might satisfy the need. (Fastfood)

Demands are wants for specific products backed by anability to pay.

Aproductis any offering that can satisfy a need or want,while a brandis a specific offering from a known source.

When offerings deliver value and satisfaction to the buyer,they are successful.

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Exchange involves obtaining a desired productfrom someone by offering something in return.Five conditions must be satisfied for exchange tooccur.

Transactions involve at least two things of value,agreed-upon conditions, a time of agreement,

and a place of agreement.

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Marketers can enhance the value of an offeringto the customer by:

Raising benefits.

Reducing costs.

Raising benefits while lowering costs.

Raising benefits by more than the increase in costs.

Lowering benefits by less than the reduction incosts.

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Two-Party Exchange Map


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Relationship marketing aims to build long-

term mutually satisfying relations with keyparties, which ultimately results in

marketing networkbetween the company

and its supporting stakeholders.

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Marketing Channels

Communication channels

Distribution channels

Service channels

Deliver messages to and

receive messages from

target buyers. Includes traditional

media, non-verbal

communication, and

store atmospherics.

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Marketing Channels



Service channels

Display or deliver the

physical products or

services to the buyer /user.

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Marketing Channels



Service channels

Carry out transactions

with potential buyers by

facilitating thetransaction.

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A supply chain stretches from raw materials to

components to final products that are carried to

final buyers. Each company captures only a certain

percentage of the total value generated by the

supply chain.

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Brand competitionsees competitors asother companies that offer similar

products and services at similar prices

Industry competitionsees competitors asall companies that make same product.

Form competition sees competitors as all companiesthat manufacture products that supply same service

Generic competition sees competitors as all

companies for same consumer $s

Four Levels of Competition


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The Four P Components

of th e Marketing Mix


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Why Study Marketing?

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Between a fourth anda third of the civilianworkforce in the U.S.

performs marketingactivities

Marketing offersgreat careeropportunities

Profession al Sel l ing

Marketing Research

Advert is ing

Retai l Buyin g

Distr ibu t ion Management

Produ ct Management

Product Developm ent

Wholesal ing


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Half of every dollar spentpays for marketing costs

Better-informed consumers

Demand for customersatisfaction


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Review: Why Study Marketing?

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Important

to

Society

Important

to

Business

Good

Career

Opportunities

+Marketing affects you every day!


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Marketing Strategy in Action

Increasing expansion into

foreign markets is becoming a

necessity to compete in the

global marketplace.

What kinds of opportunities

and threats are presented by

the increasing global nature

of the marketplace?

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Lecture 1 - Marketing Overview