Marketing:
-the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
-processes that focus on delivering value and benefits to customers, not just selling goods and services
-Example: hospice care, women's story about father dying
Balancing Components of Marketing:
1) Value
2) Meeting organizational objectives
Value Exchange:
1) at least two parties
2) something of value
3) communication and delivery
4) freedom to accept or reject
5) desire to deal with other party
Four Marketing Management Philosophies:
1) Production-SODASTREAM MISSES THE MARK
2) Sales-IT SERVICE PROVIDERS SELL TOO HARD
3) Market-HOW IKEA UNDERSTANDS AND OWNS THE FURNITURE MARKET
4) Societal- EXAMPLES OF SOCIALLY RESPONSIBLE BUSINESS MODELS
1) internal capabilities of the firm
"What can we make or do best?"
2) aggressive sales technique and belief that high sales result in high profits
"How can we sell more aggressively?"
3) satisfying customer needs and wants while meeting objectives
"What do customers want and need?"
4) satisfying customer needs and wants while enhancing individual and societal well-being
"What do customers want/need and how can we benefit society?"
Achieving a Marketing Orientation:
1) Obtain information about customers, competitors, and markets and examine from a total business perspective
2) Determine how to deliver superior customer value
3) Implement actions to provide value to customers
Customers are informed selling in a digital economy
Societal Marketing Orientation:
An organization exits not only to satisfy customer wants but also to preserve or enhance individuals and society's long term best interests
#1 biggest problem- justifying premium prices
Comparing the Sales and Market Orientations
5 Characteristics:
1) Organization's focus
2) Firm's business
3) Those to whom the product is directed
4) Firm's primary goal
5) Tools the organization uses to achieve its goals
The Organization's Focus:
1) Sales Orientation
2) Market Orientation
1) Inward looking What the firm makes
2) Outward looking What the market wants
Customer Value Requirements:
-offer products that perform
-earn trust
-avoid unrealistic pricing
-give the buyer facts
-offer organization-wide commitment in service and after-sales support
-co-creation with customers
Customer Satisfaction:
The customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations
BENEFITS-COSTS=LEVEL OF SATISFACTION
Relationship Marketing:
-Strategy that focuses on keeping and improving relationships with customers
Successful Strategies need:
-Customer-oriented
-Effective Training Programs
-Empowered Employees
-Teamwork
Building Relationships in Marketing:
1)Customer-Oriented personnel
-every employee represents the firm in the eyes of the customers
2) Employee training programs
3) Empowered employees
-employees are given more authority to solve customer problems on the spot
4) Teamwork
-emphasizing cooperation over competition wile helping a customer
A Firm's Business:
1) Defining a firm's business
2) Knowing the firm's business
1) Defining a firm's Business
-Sales Orientation-goods and services
-Market Orientation- Benefits that customers seek
2) Knowing the Firm's Business
-Ensures a customer focus
-Encourages innovation and creativity
- Stimulates an awareness of changes in customer preferences
Marketing Orientations:
1) Organization's Focus: Outward
2) Firm's Business: Satisfying wants and needs
3) For Whom: Specific groups of people
4) Primary Profit Goal: Customer satisfaction
5) Tools to Achieve: Coordinated use of marketing activities
Sales Orientations:
1) Organization's Focus: Inward
2) Firm's Business: Selling good and service
3) For Whom: Everybody
4) Primary Profit Goal: Maximum sales volume
5) Tools to Achieve: Primarily promotion
Why Study Marketing?
MARKETING AFFECTS YOU EVERYDAY
1) Important to Society
2) Important to Business
3) Good Career Opportunities
What's the point of Marketing?
5 Observations:
1) Marketing knowledge is valuable, no matter your discipline.
"how to market to people, not like you"
(Where business and psychology meet)
2) Everyone has a customer, you need to know yours.
3) Marketing is about commitment to the customer and organizational objectives.
"Has to move like a shark, forward, or it dies."
4) Higher consumer information access means increased transparency for organizational decision making.
"Information now is harder to validate"
"Apple that doesn't turn brown...?" (harder to validate)
5) Success is not just a grade, real value is created when you can tie the classroom to the real world.
