1、Marketing: Real People, Real Decisions1-1The World of MarketingChapter 1 Lecture SlidesSolomon, Stuart, Carson, & SmithYour name hereCourse title/numberDateMarketing: Real People, Real Decisions1-2Chapter Learning ObjectivesWhen you have completed your study of this chapter, you should be able to:De

2、fine the marketing concept.Define the objective of marketing.Understand the basics of marketing planning.Describe the evolution of the marketing concept.Explain how marketing is important to both individual and business customers in the market place, in our daily lives, and in society.Explain market

3、ings role within an organization.Marketing: Real People, Real Decisions1-3Introduction to the TopicWhat is marketing?Is is advertising? Sales? Going to the grocery store?It is a functional area within a business, but what does it do?A useful definition from the American Marketing Association: Market

4、ing: the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.Note the many component parts (including the 4 Ps) to this definition, which will all be discussed i

5、n good time.Marketing: Real People, Real Decisions1-4Needs versus WantsMarketing attempts to satisfy the needs of consumers. Consumer: the ultimate user of a good or serviceCould be an individual, business, or organization Need: recognition of any difference between a consumers actual state and some

6、 ideal or desired state. Want: the desire to satisfy needs in specific ways that are culturally and socially influenced.Why is the difference between these two relevant to marketers?If consumers must learn how to satisfy needs, then they can be influenced in the process.Marketing: Real People, Real

7、Decisions1-5Exchange of ValueIf marketing is all about exchanges of value, what is value? Customer value: what the customer gets in the purchase, use, and ownership of a product relative to the costs and sacrifices incurred. Exchange: the process by which some transfer of value occurs between a buye

8、r and seller.Most exchanges are in the form of money, but barter can also be popular on a local basis.What is the relationship between value and price?Customers will pay for value received; the more received, the more they will pay.A good deal is, therefore, a state of mind?Marketing: Real People, R

9、eal Decisions1-6Exchange of Value (continued)To be meaningful to marketers, wants need resources. Demand: customers desire for products coupled with the resources to obtain them. Market: all of the customers and potential customers who: share a common need that can be satisfied by a specific product

10、, have the resources to exchange for it, are willing to make the exchange, and, have the authority to make the exchange.Note that these four conditions also make a good definition of a customer. Marketplace: any location or medium used to conduct an exchange.Marketing: Real People, Real Decisions1-7

11、(Almost) Anything Can Be Marketed Product: a tangible good, a service, an idea, or some combination of these that, through the exchange process, satisfies consumer or business customer needs; a bundle of attributes including features, function, benefits, and uses. Products have: Features: characteri

12、stics of the product, such as materials, construction, and what it does. A feature of a computer is that it has 512 Mb of RAM Advantages: what the features do for the user of the product. More RAM allows for greater computing power. Benefits: the outcome sought by a customer that motivates buying be

13、haviour. The customer wants more RAM to run the latest version of a software program.Marketing: Real People, Real Decisions1-8(Almost) Anything Can Be Marketed Idea marketing: many organizations, including governments use marketing to sell ideas, such as not smoking, responsible alcohol consumption,

14、 safe sex, and using recycling programs. Place marketing: using marketing to sell places as a destination for tourists or for industries to choose to locate in.Tourism is big business in Canada. People marketing: using marketing to sell people and their images, such as celebrities endorsing products

15、 or representing organizations.Why would Nike pay Tiger Woods $40 million over 5 years just to wear their clothing and footwear?Marketing: Real People, Real Decisions1-9The Marketing Concept Marketing concept: a management orientation that focuses on achieving organizational objectives by understand

16、ing consumer needs and wants and the associated costs of satisfying them.Which comes first, the consumer need or the product to satisfy it?It is important to recognize that marketing does not exist in isolation from the world around it. Social marketing concept: an orientation that focuses on satisf

17、ying consumer needs and wants while also addressing the needs of the larger society.“Its not easy being green.” Kermit the frogMarketing: Real People, Real Decisions1-10Marketing Planning Strategic planning: the process of identifying and analyzing alternative ways of achieving objectives.Favourable

18、Type of factorLocation of factorUnfavourable Internal to the company External to the companyIndustry positionProduct innovation/designBrand awarenessDistribution channelsHistory of successPricing positionLimited distributionLimited range of productsLeadership/directionResource constraintsNew markets

19、New branding strategiesExpand globallyExpand accessories lineForm strategic partnershipsFierce competitionBrand name may become the generic for the categoryPace of technologyRegulatory environmentStrengthsThreatsWeaknessesOpportunitiesMarketing: Real People, Real Decisions1-11Marketing Planning (con

20、tinued) Market segment: a distinct group of customer within a larger market, who are similar to one another in some way and whose needs differ from other customers in the larger market. Target market: the market segment on which and organization focuses its marketing plan and toward which it directs

21、 its marketing efforts. Market position: the way in which the target market perceives the product in comparison to competitors brands.To be effective, organizations will do all three steps, one after the other, as each one builds on the step previous.How do marketers achieve positioning?Marketing: R

22、eal People, Real Decisions1-12Marketings Tools Marketing mix: A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to the consumers, which creates a desired response among a set of predefined consumers.Figure 1-1Mar

23、keting: Real People, Real Decisions1-13Marketing Planning (continued) Relationship marketing: a marketing philosophy that focuses on building long-term relationships with customers, suppliers, distributors, and other key stakeholders to satisfy mutual needs.This philosophy recognizes that it is more

24、 efficient to keep existing customers happy and buying, than to be constantly trying to find new ones to replace those who have left.It also recognizes the value of teamwork, when it comes to the supply chain. Stakeholders: individuals or organizations who affect, or are affected by, the activities

25、of a firm.Society as a whole have a stake in what organizations do.Marketing: Real People, Real Decisions1-14The Evolution of a Concept Product orientation: a management philosophy that emphasizes the most efficient ways to produce and distribute products.This philosophy focuses on developing produc

26、ts through research and development activities.This approach works best in a sellers market, where demand is greater than supply. Selling orientation: a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory.Also known as the hard sell, this

27、 approach is necessary in times of a buyers market, where product availability exceeds demand.Think aluminum siding in the early 60s, home security systems today, and other unsought goods.Marketing: Real People, Real Decisions1-15The Evolution of a Concept (continued) Consumer orientation: a managem

28、ent philosophy that focuses on being proactive and responsive in identifying and satisfying consumer needs and wants.Focusing on what the consumer wants makes for good business, as Mattel does with the Barbie product line. New era orientation: a management philosophy in which marketing decision maki

29、ng means a devotion to excellence in designing and producing products that benefit the customer plus the firms employees, shareholders, and fellow citizens. Marketing: Real People, Real Decisions1-16Marketing Creates Value Functional value: consumer benefits relating to product features, characteris

30、tics, utility, performance, and outcomes.What will the product do for me? Utility: the usefulness or benefit received by consumers from a product. Utility can based on form, place, time, and possession.Buying snow tires after the first snowfall in winter qualifies for all four! Experiential value: c

31、onsumer benefits relating to sensory, emotional, relational, and epistemic experiences.Live theatre and sports are experiences enjoyed for many different reasons.Marketing: Real People, Real Decisions1-17Marketing Creates Value Symbolic (expressive) value: consumer benefits relating to self-concept

32、or self-identity, self-expression, social meaning, personal meaning, or conditional meaning.Some products or services we consume for what we believe they say about us to others. Luxury products are a good example. Cost (sacrifice) value: consumer benefits relating to economic costs, psychological co

33、sts, personal investment, and risk.Warehouse retailers and e-tailers appeal to those consumers who appreciate value created by low prices, selection, and convenience of shopping.Marketing: Real People, Real Decisions1-18Marketing and Culture Popular culture: the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market.Marketing of celebrities is pervasive in North American culture, much to the chagrin of many observers.Cultural activities can be differentiated and targeted to