Workshop #1

What is Marketing?
Marketing is an organizational function and a set of processes for: Creating, communicating, and delivering value to customers, and Managing customer relationships in ways that benefit the organization and its stakeholders. In short: meeting customer wants and needs profitably

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What Is Marketing?
The Marketing Process

Figure 1.2 A Simple Marketing System

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What is Marketed?
Goods Services Events Experiences Persons

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What is Marketed?
Places Properties Organizations Information Ideas

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What makes a good marketer?

Ability to put yourself in the shoes of the consumer
Understand what they want and need, not just what the company wants and needs (profits)

Have an external rather than internal perspective My estimate: at least 90% of business education is concerned with processes internal to the company Marketing is the one function that is primarily concerned with forces outside the company
And the only one concerned with the people buying the companys products!

What makes the marketing function unique in the company?

Profit = Revenue Costs Most business education is concerned with the Costs part of this equation But the company cant exist without revenue How do we get the most revenue possible? Through applying the principles of marketing effectively
Meeting customer needs profitably

The focus for this course

We will focus on learning fundamental marketing principles
Less focus on Marketing Management, as per the textbook

We will focus on marketing at its simplest: marketing goods and services that people actually pay for
Not free aps!

Focus on yourself as a consumer:

What goods and services do you buy? How do you react to marketing aimed at you by these companies? What is the value relationship between you and these companies?

The focus for this course

You are only responsible for what we cover in class
Not responsible for everything in the textbook Will try to make that clear through the reading assignments Will supplement the text with articles posted in the Forum

Try to observe and make note of marketing in your environment

Ill expect you to bring in examples of marketing strategies and tactics you see occurring in India

Pencils jigsaw puzzle as marketing inspiration?

Marketing at its most basic

Victor Coffee: The Ripe Coffee The flavor sings

Marriott Hotels example

Association meeting Service business (hotel), but also includes products (bed, amenities) Pricing Brand management role Marketing research Target marketing, market segmentation Customer relationship, loyalty programs

Key Customer Markets

Consumer markets Business markets Global markets Nonprofit/Government markets

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Understanding the Marketplace and Customer Needs

Markets are the set of actual and potential buyers of a product

Holistic Marketing

We will focus on Integrated and Relationship Marketing. Within Performance Marketing, we will cover sales revenue certainly, as well as brand equity. We will not cover Internal Marketing in this course.

The Marketing Mix

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations

Production concept Product concept Selling concept Marketing concept

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations

Production concept is the idea that consumers will favor products that are available or highly affordable

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations

Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.
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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations

Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

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Designing a Customer-Driven Marketing Strategy

Marketing Management Orientations

Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfaction and value better than competitors do

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Product Orientation vs. Market Orientation

Company
Missouri-Pacific Railroad Xerox Standard Oil

Product
We run a railroad

Market
We are a peopleand-goods mover We improve office productivity We supply energy

We make copying equipment We sell gasoline

Columbia Pictures

We make movies

We entertain people

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Core Marketing Concepts

Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction

Marketing channels Integrated marketing communications Supply chain Competition Marketing environment Marketing planning
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Major Societal Forces

Network information technology Globalization Deregulation Privatization Heightened competition

Industry convergence Retail transformation Disintermediation Consumer buying power Consumer participation Consumer resistance

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The Changing Marketing Landscape Digital Age

People are connected continuously to people and information worldwide Marketers have great new tools to communicate with customers But consumers can also communicate to others about companies and products! Internet + mobile communication devices creates environment for online marketing
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So, What Is Marketing? Pulling It All Together

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Companywide Strategic Planning

Developing Strategies for Growth and Downsizing Market penetration is a growth strategy increasing sales to current customers without changing the product: getting them to buy more of your product Market development is a growth strategy that identifies and develops new customers for current products

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Companywide Strategic Planning

Developing Strategies for Growth and Downsizing Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the companys current products and markets

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Managing the Marketing Effort

Marketing Analysis SWOT Analysis

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Assignment for next time

Choose a brand you buy/use frequently Prepare a SWOT analysis for that brand

http://www.marketingteacher.com/lesson-store/lessonswot.html#

Concentrate on the external factors (Opportunities and Threats), but

Try to find out as much as possible about internal factors (Strengths and Weaknesses), so that you can evaluate the Opportunities and Threats

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Assignment for next time

Format: An annotated list, not just bullet points

Paragraphs, not PowerPoint See the examples in the lesson from MarketingTeacher (link on previous slide)

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Group Paper #1

Consumer research to identify opportunities in a product category May build off the SWOT of a team member Will post the details on the forum and we will discuss next time This paper will involve secondary and primary consumer research Covered in Workshop #3, #4, and #5

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Possible product/service categories

Cameras Espresso makers Washing machines Package delivery to homes Bicycles Motorcycles Fitness centers Fitness clothing: yoga, running, bicycling, dance, etc. Hair salons Movie theaters Spas

Hotels Stereo equipment Furniture, home goods Wallets, purses Tour companies Sporting equipment Anything related to a hobby or interest you have Has to be something you actually pay for NOT smartphones or tablets, sorry!

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For next time:

Form into groups of 3 to 4 Decide on a product/service category Email to me for approval

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