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Marketing:RealPeople,RealDecisionsTheWorldofMarketingChapter1LectureSlidesSolomon,Stuart,Carson,&SmithYournamehereCoursetitle/numberDateMarketing:RealPeople,RealDecisions1-2ChapterLearningObjectivesWhenyouhavecompletedyourstudyofthischapter,youshouldbeableto:•Definethemarketingconcept.•Definetheobjectiveofmarketing.•Understandthebasicsofmarketingplanning.•Describetheevolutionofthemarketingconcept.•Explainhowmarketingisimportanttobothindividualandbusinesscustomersinthemarketplace,inourdailylives,andinsociety.•Explainmarketing’srolewithinanorganization.Marketing:RealPeople,RealDecisions1-3IntroductiontotheTopic•Whatismarketing?•Isisadvertising?Sales?Goingtothegrocerystore?•Itisafunctionalareawithinabusiness,butwhatdoesitdo?•AusefuldefinitionfromtheAmericanMarketingAssociation:•Marketing:theprocessofplanningandexecutingtheconception,pricing,promotion,anddistributionofideas,goods,andservicestocreateexchangesthatsatisfyindividualandorganizationalobjectives.•Notethemanycomponentparts(includingthe4P’s)tothisdefinition,whichwillallbediscussedingoodtime.Marketing:RealPeople,RealDecisions1-4NeedsversusWants•Marketingattemptstosatisfytheneedsofconsumers.•Consumer:theultimateuserofagoodorservice•Couldbeanindividual,business,ororganization•Need:recognitionofanydifferencebetweenaconsumer’sactualstateandsomeidealordesiredstate.•Want:thedesiretosatisfyneedsinspecificwaysthatareculturallyandsociallyinfluenced.•Whyisthedifferencebetweenthesetworelevanttomarketers?•Ifconsumersmustlearnhowtosatisfyneeds,thentheycanbeinfluencedintheprocess.Marketing:RealPeople,RealDecisions1-5ExchangeofValue•Ifmarketingisallaboutexchangesofvalue,whatisvalue?•Customervalue:whatthecustomergetsinthepurchase,use,andownershipofaproductrelativetothecostsandsacrificesincurred.•Exchange:theprocessbywhichsometransferofvalueoccursbetweenabuyerandseller.•Mostexchangesareintheformofmoney,butbartercanalsobepopularonalocalbasis.•Whatistherelationshipbetweenvalueandprice?•Customerswillpayforvaluereceived;themorereceived,themoretheywillpay.•Agooddealis,therefore,astateofmind?Marketing:RealPeople,RealDecisions1-6ExchangeofValue(continued)•Tobemeaningfultomarketers,wantsneedresources.•Demand:customers’desireforproductscoupledwiththeresourcestoobtainthem.•Market:allofthecustomersandpotentialcustomerswho:–shareacommonneedthatcanbesatisfiedbyaspecificproduct,–havetheresourcestoexchangeforit,–arewillingtomaketheexchange,and,–havetheauthoritytomaketheexchange.•Notethatthesefourconditionsalsomakeagooddefinitionofacustomer.•Marketplace:anylocationormediumusedtoconductanexchange.Marketing:RealPeople,RealDecisions1-7(Almost)AnythingCanBeMarketed•Product:atangiblegood,aservice,anidea,orsomecombinationofthesethat,throughtheexchangeprocess,satisfiesconsumerorbusinesscustomerneeds;abundleofattributesincludingfeatures,function,benefits,anduses.Productshave:•Features:characteristicsoftheproduct,suchasmaterials,construction,andwhatitdoes.Afeatureofacomputeristhatithas512MbofRAM•Advantages:whatthefeaturesdofortheuseroftheproduct.MoreRAMallowsforgreatercomputingpower.•Benefits:theoutcomesoughtbyacustomerthatmotivatesbuyingbehaviour.ThecustomerwantsmoreRAMtorunthelatestversionofasoftwareprogram.Marketing:RealPeople,RealDecisions1-8(Almost)AnythingCanBeMarketed•Ideamarketing:manyorganizations,includinggovernmentsusemarketingtosellideas,suchasnotsmoking,responsiblealcoholconsumption,safesex,andusingrecyclingprograms.•Placemarketing:usingmarketingtosellplacesasadestinationfortouristsorforindustriestochoosetolocatein.•TourismisbigbusinessinCanada.•Peoplemarketing:usingmarketingtosellpeopleandtheirimages,suchascelebritiesendorsingproductsorrepresentingorganizations.•WhywouldNikepayTigerWoods$40millionover5yearsjusttoweartheirclothingandfootwear?Marketing:RealPeople,RealDecisions1-9TheMarketingConcept•Marketingconcept:amanagementorientationthatfocusesonachievingorganizationalobjectivesbyunderstandingconsumerneedsandwantsandtheassociatedcostsofsatisfyingthem.•Whichcomesfirst,theconsumerneedortheproducttosatisfyit?•Itisimportanttorecognizethatmarketingdoesnotexistinisolationfromtheworldaroundit.•Socialmarketingconcept:anorientationthatfocusesonsatisfyingconsumerneedsandwantswhilealsoaddressingtheneedsofthelargersociety.•“It’snoteasybeinggreen.”–KermitthefrogMarketing:RealPeople,RealDecisions1-10MarketingPlanning•Strategicplanning:theprocessofidentifyingandanalyzingalternativewaysofachievingobjectives.FavourableTypeoffactorLocationoffactorUnfavourableInternaltothecompanyExternaltothecompany•Industryposition•Productinnovation/design•Brandawareness•Distributionchannels•Historyofsuccess•Pricingposition•Limiteddistribution•Limitedrangeofproducts•Leadership/direction•Resourceconstraints•Newmarkets•Newbrandingstrategies•Expandglobally•Expandaccessoriesline•Formstrategicpartnerships•Fiercecompetition•Brandnamemaybecomethegenericforthecategory•Paceoftechnology•RegulatoryenvironmentStrengthsThreatsWeaknessesOpportunitiesMarketing:RealPeople,RealDecisions1-11MarketingPlanning(continued)•Marketsegmen