Marketing Chapter 1

PowerPoint

to accompany

Chapter 1Welcome to the

World of Marketing

Creating and Delivering Value

Copyright ©2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) –9781442525207/Solomon/Marketing/2nd edition

Objectives for Chapter 1

Know who marketers are and where they work and understand the role of marketing in the company.

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2 Define what marketing is, and describe how it provides value to everyone involved in the marketing process.

3 Discuss the range of services and goods that are marketed.


Objectives for Chapter 1 (continued)

Understand value from the perspectives of the customers, producers, and society.

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5 Understand the basics of marketing planning and the marketing mix tools used in the marketing process.

6 Describe the evolution of the marketing concept.


The Who and Where of Marketing


The Role of Marketing

Some companies take a broader view.

Others take a more limited view.


What is Marketing?

Marketing is about delivering value to everyone who is affected by a transaction.


Meeting the Needs of Stakeholders

Any person or organisation that has a ‘stake’ in the outcome.


Consumers – Needs and Wants


The Marketing Concept


Benefits Create Demand

Customers’ desire for products coupled with

the resources to obtain them.

The outcome sought by a

customer that motivates buying

behaviour.


What is a Market?

The Market:The Market:All current and potential customers who share a common need that can

be satisfied by a specific product, who have the resources to exchange

for it, who are willing to make the exchange and who have the authority

to make the exchange.

MarketplaceMarketplace = Any location or medium used to conduct an exchange


Marketing Creates Utility


Exchange

ExchangeThe process by which some transfer of value occurs between a buyer and a

seller.

An exchange occurs when something is obtained for something else in return.


Exchange Relationship

At least 2 people

Agreed value of exchange

Willing to trade

Free to accept or reject deal


What are Products?


Types of Products

Consumer goodsThe (tangible) goods purchased

by individual consumers for personal or family use.

ServicesIntangible products that are

exchanged directly from the producer to the customer.


More Types of Products

Business-to-businessFrom one organisation to another

Industrial goods are bought for use in business operations

Business-to-businessFrom one organisation to another

Industrial goods are bought for use in business operations

Not-for-profit

Includes charities, zoos, churches,

museumsAlso includes governments

Not-for-profit

Includes charities, zoos, churches,

museumsAlso includes governments

Ideas, places and people

Ideas include community behaviour (e.g. Don’t drink and drive)

Places includes tourist locations and attractions

People includes musicians, models, athletes and other celebrities

Ideas, places and people

Ideas include community behaviour (e.g. Don’t drink and drive)

Places includes tourist locations and attractions

People includes musicians, models, athletes and other celebrities


Not-for-Profit Marketing


The Marketing of Value

ValueThe tangible and intangible

benefits a customer receives from buying a product or service


Value of a Customer

Shift in focus – to see customers as “partners”Shift in focus – to see

customers as “partners”

Some companies calculate

the lifetime value of a customer

Some companies calculate

the lifetime value of a customer

This is the profit they expect to make from a

customer in the future

This is the profit they expect to make from a

customer in the future


Focus on Customer Relationships


Competitive Advantage

Differential BenefitProperties of products that set them apart from competitors’ products by providing unique

benefits

Competitive AdvantageA company’s ability to outperform the competition, thereby providing customers with a benefit the competition cannot

provide

Distinctive Competency

A company’s superior capability in comparison to

its direct competitors


The Value Chain

Inbound logistics

Outbound logistics

Marketing and sales ServiceOperations

A series of activities involved in designing, producing, marketing,

delivering and supporting any products

Each link in the chain has the potential to add or to remove

value from the product


Making and Delivering Value (Figure 1.2)

Making marketing value decisions

Understanding consumers’ needs

Communicating the value proposition

Delivering the value proposition

Creating the value proposition


Let’s View Some TVC’s

Australian Tourism

“Where the bloody hell are you?”

Ad highlighting reasons to holiday in Australia – where Australia itself is the product being marketed.

Unfortunately, the Aussie sense of humour did not travel well to other markets where some found the tag-line offensive.

Selling Beer

The Big Beer ad

Tied to an internet and cyber buzz campaign. Not designed to tell you much about the beer – instead tries to lift awareness and liking through media attention and word-of-mouth.

Australia – Where the bloody hell are you?

Carlton – Big Ad


Marketing Planning

What other customer groups might

become market segments for us in

the future?

What capabilities does our company

have?

What product benefits will our

customers be looking for in the future?

How will changes in technology affect us?

How will changes in social values affect us in future years?


The Marketing Plan


Market Segments

Mass MarketAll possible customers in a market, regardless of the differences in their specific needs and wants.

Market SegmentA distinct group of customers within a larger market who are similar to each other in some

way and whose needs differ from other customers in the larger market.

Target MarketThe market segments upon which an

organisation focuses its marketing plan and towards which it directs its marketing

efforts.


The Marketing Mix (the 4 Ps)


The Variables - Product

The product – the item being offered for exchange.

It includes:•The design and

packaging•Physical features•Any associated

services


The Variables - Price

The price – the value the customer gives up or exchanges in order to

obtain the desired product.

Can be used to:•Increase interest in a product

•Indicate quality

Non-monetary elements:•Time cost•Social cost

•Lifestyle cost


The Variables – Place (distribution)

Place – the availability of the product to the customer at the desired time

and location.

Related to the channel of distribution – the set of

companies of working together to get a product from a producer

to a consumer.


The Variables – Promotion

Promotion – all the activities marketers undertake to inform

customers about their products and to encourage potential consumers

to but those products.

Promotion includes:

•Personal selling•Advertising

•Sales promotion •Public relations

•Direct marketing •Online marketing

•Sponsorship•Word-of-mouth


Focus on Customer Relationships


Evolution of Marketing


Lecture Recap

Who marketers are, where they work and marketing’s role in the company

What marketing is and how it provides value to everyone involved in the marketing process

The range of services and goods that are marketed

Value from the perspectives of the customers, producers, and society

The basics of marketing planning and the marketing mix tools used in the marketing process

Describe the evolution of the marketing concept

Documents

Marketing Chapter 1