Marketing Overview

Marketing Overview

Marketing Orientations and the Process of Marketing for Spring 2013 Section of BUS M201 - Marketing for the Small Business.

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Jerry Richardson

January 15, 2013
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  1. 1.

    Marketing: Creating and Capturing Value M201 Marketing for the Small

    Business Jerry Richardson @jerry Principles of Marketing 14e Philip Kotler and Gary Armstrong
  2. 2.

    #ipfwm201 What is Marketing? The process by which companies create

    value for customers and build strong customer relationships in order to capture value from customers in return.
  3. 6.

    #ipfwm201 Marketing Orientations The design of our marketing strategy is

    guided by our marketing orientation or philosophy – our 30,000-foot perspective.
  4. 7.

    #ipfwm201 1.  Production Concept - the idea that consumers will

    favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency (Lenovo, Walmart) Orientations - The 30,000-foot view of Marketing
  5. 8.

    #ipfwm201 2.  Product Concept - the idea that consumers will

    favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements. (better mousetrap - Apple?) Orientations - The 30,000-foot view of Marketing
  6. 9.

    #ipfwm201 3.  Selling Concept - The idea that consumers will

    not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort (insurance, blood donations) Orientations - The 30,000-foot view of Marketing
  7. 10.

    #ipfwm201 4.  Marketing Concept - A philosophy that holds that

    achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do Orientations - The 30,000-foot view of Marketing
  8. 11.

    #ipfwm201 5.  Societal Marketing Concept - The idea that a

    company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests Orientations - The 30,000-foot view of Marketing
  9. 12.

    #ipfwm201 The marketing process 1.  Understand the marketplace and customer

    needs 2.  Design a customer-driven marketing strategy 3.  Construct an integrated marketing program that delivers superior value 4.  Building profitable relationships and create customer delight 5.  Capture Value from customers to create profits and customer equity
  10. 13.

    #ipfwm201 1. Understand the marketplace and customer needs •  Needs

    - States of felt deprivation •  Wants - Form of human needs as shaped by culture and individual personality •  Demands - Human wants that are backed by buying power Customer Needs, Wants and Demands
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    #ipfwm201 1. Understand the marketplace and customer needs •  Market

    offerings - Some combination of products, services, information, or experiences offered to satisfy a need or want •  Marketing myopia - The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products Market Offerings - Products Services and Experiences
  12. 16.

    #ipfwm201 1. Understand the marketplace and customer needs •  Exchange

    - The act of obtaining a desired object from someone by offering something in return •  Market - The set of all actual and potential buyers of a product or service Exchanges and Relationships
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    #ipfwm201 2. Designing a Customer-Driven Marketing Strategy With our marketing

    orientation understood, we can develop our company and marketing strategies as our answers to the two important questions of Marketing Management: 1.  What customers will we serve?
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    #ipfwm201 3. Preparing an integrated marketing plan and program that

    delivers superior value The Four P`s Product, Price, Place, Promotion Marketing Tactics – the 1,000-foot view of the marketing process
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    #ipfwm201 4. Building Customer Relationships •  Customer relationship management -

    The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
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    #ipfwm201 4. Building Customer Relationships •  Customer-perceived value - The

    customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers • Customer satisfaction - The extent to which a product's perceived performance matches a buyer's expectations Relationship Building Blocks
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    #ipfwm201 5. Capturing Value from Customers • Customer lifetime value -

    The value of the entire stream of purchases that the customer would make over a lifetime of patronage. • Share of customer - The portion of the customer's purchasing that a company gets in its product categories.
  18. 22.

    #ipfwm201 5. Capturing Value from Customers • Customer equity, the total

    combined customer lifetime values of all of the company's customers, can grow 2 ways… • Adding more customers • Growing our share of customer
  19. 23.

    #ipfwm201 The Changing Marketing Landscape •  The Great Recession • 

    lValuez is the magic word The Uncertain Economic Environment
  20. 24.

    #ipfwm201 The Changing Marketing Landscape •  Web 1.0 - connecting

    people with information •  Web 2.0 - connecting people with people •  Web 3.0 - connecting to people and information via mobile devices. The Digital Age
  21. 25.

    #ipfwm201 The Changing Marketing Landscape •  Nestlé, Nokia, Toyota, Samsung

    •  MCD - 65% of revenues come from overseas •  Nike - 66% •  Yum operates in 650 Chinese cities (3,200 KFCs, 500 Pizza Huts) Rapid Globalization