“ Marketing”: What does it mean? Principles of Marketing – Spring 2008 Dr. Hila Riemer Unit 1

What is Marketing?

A Simple Model of the Marketing Process Create value for customers and build customer relationships Capture value from customers in return Understand the marketplace and customer needs and wants Capture value from customers to create profits and customer equity Design a customer-driven marketing strategy Build profitable relationships and create customer delight Construct a marketing program that delivers superior value

The Marketplace and Customer Needs

Let’s Talk! Does the ad shown at right promote consumer experiences? Explain. Offer a different example of a current advertising campaign that promotes a “consumer experience.” Do you believe the campaign is effective? Why or why not?

Marketing in Action Focused on selling prerecorded CDs, the record industry missed early opportunities to partner with music downloading services and manufacturers of digital MP3 type recording devices. Marketing Myopia in the Recording Industry

Elements of a Modern Marketing System

Marketing Management

The basic Marketing Tasks Countermarketing Destroy demand Unwholesome demand Demarketing Reduce demand Overfull marketing Maintenance marketing Maintain demand Full demand Synchoromarketing Synchronize demand Irregular demand Remarketing Revitalize demand Faltering demand Developmental marketing Develop demand Latent demand Stimulational marketing Create demand No demand Conversional marketing Disabuse demand Negative demand Formal Name Marketing Task Demand state

Marketing in Action Demarketing is often used to discourage undesirable behaviors. Is this ad effective? Visit the Office of National Drug Control Policy ad gallery. mediacampaign.org Demarketing

Marketing Management Orientations

Marketing and Sales Concepts Contrasted

A Simple Model of the Marketing Process Create value for customers and build customer relationships Capture value from customers in return Understand the marketplace and customer needs and wants Capture value from customers to create profits and customer equity Design a customer-driven marketing strategy Build profitable relationships and create customer delight Construct a marketing program that delivers superior value

C The Marketing Mix - The Four Ps

The Marketing Mix - The Four Ps C Product Place Price Promotion

Competitors Marketing Intermediaries Publics Suppliers Demographic- Economic Environment Technological- Natural Environment Political- Legal Environment Social- Cultural Environment The Marketing Process Target Consumers Product Place Price Promotion Marketing Implementation Marketing Planning Marketing Control Marketing Analysis

A Simple Model of the Marketing Process Create value for customers and build customer relationships Capture value from customers in return Understand the marketplace and customer needs and wants Capture value from customers to create profits and customer equity Design a customer-driven marketing strategy Build profitable relationships and create customer delight Construct a marketing program that delivers superior value

A Simple Model of the Marketing Process Create value for customers and build customer relationships Capture value from customers in return Understand the marketplace and customer needs and wants Capture value from customers to create profits and customer equity Design a customer-driven marketing strategy Build profitable relationships and create customer delight Construct a marketing program that delivers superior value

Customer Relationship Groups Projected loyalty High Profitability Low Long-term customers Short-term customers Good fit between company’s offerings and customer’s needs; high profit potential Limited fit between company’s offerings and customer’s needs; low profit potential Little fit between company’s offerings and customer’s needs; lowest profit potential Good fit between company’s offerings and customer’s needs; highest profit potential Strangers Butterflies True Friends Barnacles

Marketing in Action To keep customers coming back, Stew Leonard’s has created the “Disneyland of dairy stores.” Focus on Customer Lifetime Value

So, What is Marketing? Pulling it all together….

A Simple Model of the Marketing Process

A Simple Model of the Marketing Process Create value for customers and build customer relationships Capture value from customers in return Understand the marketplace and customer needs and wants Capture value from customers to create profits and customer equity Design a customer-driven marketing strategy Build profitable relationships and create customer delight Construct a marketing program that delivers superior value

Expanded Model of the Marketing Process