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Introduction to Marketing Lec 1a Week 1a BBA 2K10 (A)

Class Today!!
Welcome on board session Review of the course outline Group formation Brain storming session Introduction to marketing

What is marketing Marketing management orientations The marketing process

Your Idea!!!!

About marketing????

70% 0f the people think it is all about Advertising & Publicity Selling it is . Making products available in stores

Yes all of the above plus much more.


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What is Marketing?
A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution

What is Marketing?
American Marketing Association 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 goals.

What is Marketing?
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

Goals:
1.

Attract new customers by promising superior value.


Keep and grow current customers by delivering satisfaction.

2.

OLD view of marketing:


Making a saletelling and selling

NEW view of marketing:


Satisfying customer needs + building long term relationships
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Concepts

Customer Value: The ratio of benefits to the sacrifice necessary to obtain those benefits

Benefits Cost = Value Customer Value Requirements:


Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support
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Exchange:

The idea that people give up something to receive something they would rather have. Satisfaction: The feeling that a product has met or exceeded the customers expectations.

Customer

Maintaining Customer Satisfaction:


Meet or exceed customers expectations Focus on delighting customers Provide solutions to customers problems

Relationship

Marketing: The name of a strategy that entails long-term partnerships with customers, both individuals and firms

Relationship Marketings Importance:


Attracting a new customer may be TEN TIMES the cost of keeping an old customer
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Building Long-Term Relationships:


Customer-oriented personnel Effective training programs Empowered employees Teamwork Building an emotional link with the customer by fully understanding your consumer Effective use of technology such as: CRM systems, scanner based research, loyalty cards and other IS systems.
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The Marketing Concept:


Summary

Creating customer value


Maintaining customer satisfaction

Building long-term relationships

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Marketing Management Orientations


Philosophy Key Ideas is the idea that consumers will favor products that are available or highly affordable. Focus is on efficiency of internal operations. May lead to Marketing Myopia
is the idea that consumers will favor the products that will offer the most quality, performance and features. Therefore the organization should devote its energy to making continuous improvements. May also lead to Marketing Myopia is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort. Focus on aggressive techniques for overcoming customer resistance to buy

Production Concept Product Concept

Sales Concept
Marketing Concept

Focus on satisfying customer needs and wants and delivering the desired satisfaction better than competitors do
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Philosophy

Key Ideas
Focus on satisfying customer needs and wants while enhancing individual and societal well-being

Societal Marketing Concept

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Marketing Myopia

Marketing myopia:
Occurs when sellers pay more attention to

the specific products they offer than to the benefits and experiences produced by the products.

Marketing Management Orientations

Marketing Management Orientations

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Case Study
P&Gs Tide Building Relationships
Value Creation for Tide

Building Relationships

History: Tide is an innovative brand, historically positioned on the basis of superior functional performance. At Issue: Competitors can copy product benefits quickly, but can not copy feelings toward the brand. Challenge: Understand what the brand means to consumers and how it fits into their lives. Goal: Speak eye-to-eye with consumers.

Research Process: Explored the emotional connections women have with their laundry via consumer immersion.
Findings: Women are linked emotionally to clothing. Fabrics allow women to express their attitudes, personality, and multiple facets of being female.

Tide Knows Fabrics Best campaign featured rich visual imagery and meaningful emotional connections.
Result: 7% sales increase.
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What is marketing?
The Marketing Process

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Class Next Week!!!


Recap session Term Project outline discussion

Exploring the marketing process Introduction to the 4Ps of marketing

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