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Information Sheets

Name

Major

Where you work

Any marketing-related job experience

Career goals Something unique about yourself/what

you like to do in Missoula/where youre

from

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Marketing Careers

Marketers:

May have a wide variety of job

titles Work cross-functionally within

the firm

Work in a wide variety of typesof organizations

See Table 1.1, p. 7-8

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The Value of Marketing

What is marketing?

The activity, institutions, and functions/ processesfor

Creating, communicating, and delivering value tocustomers

Managing customer relationships to benefit the firm(organization) and its stakeholders (customers,clients, partners, society).

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Marketing Meets Needs

Marketing meets the needs of diversestakeholders

Stakeholders are buyers, sellers, investors,community residents, citizens

Marketing concept

First identify customer needs

Then provide products that satisfy thoseneeds

While making a profit/remaining in business

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Marketing Is about

Exchange Relationships Exchange - the heart of every marketing act

An exchange occurs when something is

obtained for something else in return Nonprofits: motivating, educating, or delighting the

public

Value is in the eye of the beholder

Marketers must create an attractive valueproposition

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The Evolution of Marketing

The Production Era Production orientation

The Sales Era Selling orientation

The Relationship Era

Consumer orientation Total quality management

The Triple Bottom Line Era

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The Evolution of Marketing:The Production Era

Dominated by production orientation:

A management philosophy that emphasizesthe most efficient ways to produce anddistribute products

Marketing played an insignificant role

Examples of products created under aproduction orientation:

Henry Fords Model T and Ivory soap

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The Evolution of Marketing:The Selling Era

When product availability exceedsdemand, businesses may focuson a one-time sale of goods ratherthan repeat business

Dominated by selling orientation:

Managerial view of marketing as asales function, or a way to moveproducts out of warehousesto reduce inventory

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The Evolution of Marketing:The Relationship Era

Focused on a customerorientation/marketing concept:

A management philosophy that emphasizes

satisfying customers needs and wants

Marketing becomes more important inthe firm

Total Quality Management (TQM) iswidely followed in the marketingcommunity

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The Evolution of Marketing:The Triple Bottom Line Era

Focuses on building long-term bonds withcustomers: CRM

Seeks to maximize the financial, social, and

environmental bottom lines (profit, people, planet) Make Money and a Contribution = Corporate Social

Responsibility(CSR) company supports social causes

Sustainability: Creating products that meet present needs

and ensuring that future generations can have their needsmet

Greater focus on accountability-marketing metrics

ROI (Return on Investment) is the direct financial impact of a

firms expenditure of resources such as time or money

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What Can Be Marketed?

From serious goods/services to fun things

Product: any good, service, or idea Consumer goods/services

Business-to-business goods/services

Not-for-profit marketing

Idea, place, and people marketing

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The Marketing of Value

Value: The benefits a customer receives from buying

a good or service JM: relative to price paid + non-monetary

costs

Marketing communicates the value

proposition: A [statement] that fairly and accurately sums

up the value that the customer will realize ifhe/she purchases product/service

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Value from

the Customers Perspective Customer perspective:

Value is the ratio of costs(price) to benefits

(utilities) Value proposition includes the whole bundle

of benefits the firm promises to deliver, notjust the benefits of the product itself

Brand image is a critical component

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The Value of a Customer to the Firm:A CRM Perspective

Customer Relationship Marketing Transaction vs. relationship focus

Lifetime value of a customer

Cheaper to retain current customers thanattract new ones

80/20 rule: Not all customers are createdequal

Company may sacrifice short-term gains forlife-time value

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More on CRM

Permission-based marketing: opt-in

Individualized offers

Database used for Tiering

Tailoring

Also: cross-sell; up-sell; bundle

18

More in Ch. 4, Ch. 7, Ch. 12

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Providing Value Through

Competitive Advantage Creating a competitive advantage

requires:

Identification of a distinctive competency:The ability of a firm to outperform thecompetition by providing customers with a

benefit the competition cannot provide

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Value Chain vs. Supply Chain

(p. 467)

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Consumer-Generated Value:

Facilitated by Web 2.0 User-generated content

Everyday people functioning in marketing

roles such as: Creating ads

Providing input into new product development

Serving as retailers

Social networking is growing explosively

Wisdom of crowds

Open source business models

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Value from Societys Perspective

Marketing transactions and companyactivities influence the world and add

or subtract value from society Stressing ethical or socially

responsible decisions is often good

business in the long run

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The Dark Side of Marketing

Marketing is often criticized

Illegal practices do occur

Some marketing activities havedetrimental effects on society

The dark side of consumer behavior:

Terrorism, addictive consumption,exploitation, illegal activities, shrinkage,anticonsumption

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Its Debatable

Class Discussion Question

Some people feel that marketersmanipulate consumers, while othersargue that people should be heldresponsible for their own choices.This ad is critical of the current trendof lawsuits brought against fast-foodcompanies by people who blame

their health problems on the fastfood industry. Where do you stand?

VisitConsumerFreedom.com

http://www.consumerfreedom.com/http://www.consumerfreedom.com/http://www.consumerfreedom.com/

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Marketing as a Process

Marketing planning (thinkingcarefully and strategically about the

big picture) Analyzing the marketing environment

Developing a marketing plan

Deciding on a market segment Choosing the marketing mixproduct,

price, promotion, and place

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Figure 1.3 -The Marketing Mix

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Marketers Strategic Toolbox:

The Marketing Mix (4 Ps) Product

Place

Price: Value = Benefits (functional + symbolic)/Price ($ + Non-monetary)

Promotion (Marketing Communications) advertising,

public relations,

personal selling,

sales promotion

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More on the 4Ps

Each is a piece in a puzzle and must fittogether

Consistency Synergy

Examples:

Godiva vs. Hershey Bud vs. __?

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Market Position

Image of the product in the mind of thecustomer relative to competition based

on important attributes Note: company/product may be perceived

as stated in the value proposition orconsumer perceptions may be different

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More Terminology

Mass market

Market segments

Target market

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A Bit more on CSR/ESR

Impact of social & environmentalstewardship on business profitability

Profit = TR TC

Companies who engage in CSR believe they

have higher profits as a result of their stancetowards social & environmental responsibility

3 C i i E l S i l

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3 Criteria to Evaluate SocialResponsibility

Does the mission of the company match themission/image of the cause?

Pharmaceutical company/health care causes

Telecommunications/access to Internet

Does the companys target market have a vested

interest in the cause?

Avon/Breast cancer

Yoplait/Breast cancer Will the company gain broad-based awareness

and goodwill (arising from publicity/PR) fromdonating to the cause?

Caveat: 32