Marketing Overview

The New Economy

Consumer benefits from the digital revolution include:
Increased buying power. Greater variety of goods and services. Increased information. Enhanced shopping convenience. Greater opportunities to compare product information with others.

The New Economy

CNET is one of many sites that provides shopping comparison tools

The New Economy

Firm benefits from the digital revolution include:
New promotional medium. Access to richer research data. Enhanced employee and customer communication. Ability to customize promotions.

The New Economy

Amazon is known for customizing consumer promotions

Challenges and Opportunities In the New Economy

Power Shift to Customers Massive Increase in Product Selection Changing Value Propositions Shifting Demand Patterns New Sources of Competitive Advantage Privacy, Security, and Ethical Concerns

Discussion Question
The fact that customers have more power is one of the major shifts taking place in the new economy.

What Can Be Marketed?

Goods Services Experiences Events Persons Places Properties Organizations Information Ideas

Marketing Defined
Kotlers social definition:
Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Marketing Defined
The AMA managerial definition:
Marketing is 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.

Core Marketing Concepts

Target markets and market segmentation Marketplace, marketspace, metamarkets Marketers & prospects Needs, wants, demands Product offering and brand Value and satisfaction Exchange and transactions Relationship and networks Marketing channels Supply chain Competition Marketing environment Marketing program
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Basic Marketing Concepts

Market:
A collection of buyers and sellers

Shopping can take place in a: Marketplace (physical entity, Lowes) Marketspace (virtual entity, Amazon) electronic marketplaces that are
not bound by time or space

Metamarket:
A cluster of closely related goods and services that center around a specific consumption activity

Metamediary:
Provides a single access point where buyers can locate and contact many different sellers in the metamarket. Ex. Used and new car dealership

Marketers seek responses from prospects.

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Core Marketing Concepts

Target markets & segmentation
Differences in needs, behavior, demographics or psychographics are used to identify segments. The segment served by the firm is called the target market. The market offering is customized to the needs of the target market.

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Core Marketing Concepts

A Simple Marketing System

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Core Marketing Concepts

Needs describe basic human requirements such as

food, air, water, clothing, shelter, recreation, education, and entertainment. Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food) Demands are wants for specific products backed by an ability to pay.
A product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source. When offerings deliver value and satisfaction to the buyer, they are successful.
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Core Marketing Concepts

Exchange involves obtaining a desired product

from someone by offering something in return. Five conditions must be satisfied for exchange to occur. Transactions involve at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

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Core Marketing Concepts

Marketers can enhance the value of an offering to the customer by:
Raising benefits. Reducing costs. Raising benefits while lowering costs. Raising benefits by more than the increase in costs. Lowering benefits by less than the reduction in costs.

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Core Marketing Concepts

Two-Party Exchange Map

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Core Marketing Concepts

Relationship marketing aims to build long-

term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders.

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Core Marketing Concepts

Marketing Channels
Communication channels Distribution channels Service channels

Deliver messages to and receive messages from target buyers. Includes traditional media, non-verbal communication, and store atmospherics.

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Core Marketing Concepts

Marketing Channels
Communication channels Distribution channels Service channels

Display or deliver the physical products or services to the buyer / user.

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Core Marketing Concepts

Marketing Channels
Communication channels Distribution channels Service channels

Carry out transactions with potential buyers by facilitating the transaction.

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Core Marketing Concepts

A supply chain stretches from raw materials to components to final products that are carried to final buyers. Each company captures only a certain percentage of the total value generated by the supply chain.

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Core Marketing Concepts

Four Levels of Competition
Generic competition sees competitors as all
companies for same consumer $s

Form competition sees competitors as all companies

that manufacture products that supply same service

Industry competition sees competitors as

all companies that make same product. Brand competition- sees competitors as other companies that offer similar products and services at similar prices

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Core Marketing Concepts

The Four P Components of the Marketing Mix

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Why Study Marketing?

Between a fourth and a third of the civilian workforce in the U.S. performs marketing activities Marketing offers great career opportunities

Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling

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Why Study Marketing?

Half of every dollar spent pays for marketing costs Better-informed consumers
Demand for customer satisfaction

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Review: Why Study Marketing?

Why Study Marketing?

Important to Society

Important to Business

Good Career Opportunities

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Marketing affects you every day!
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Marketing Strategy in Action

Increasing expansion into foreign markets is becoming a necessity to compete in the global marketplace. What kinds of opportunities and threats are presented by the increasing global nature of the marketplace?

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