Kenton Larsen's presentation on "What is Marketing?"

1. What is Marketing?
KENTON LARSEN

2. Marketing is:
 Product, place, price, promotion
 Goods and services
 Exchanges
 To satisfy wants and needs
 In order to…MAKE MONEY

3. Utility
 The ability to satisfy consumers’ wants and needs:
 Glamour
 Sex appeal
 Status
 Functionality
 Form – tangible
 Task – service
 Possession – “for sale”
 Time/place – where and when consumers want it.

4. Psychology
 Exchanges:
 based on “value”
 Perception:
 based on “equal exchange”
 Satisfaction:
 based on prior experience

5. Customers
 Current:
 buy the product
 Prospective:
 considering buying the
product
 Opinion leaders:
 influence others to buy
the product

6. Markets
 Consumer:
 buy for their own use
 Government:
 buy for civic, provincial, federal use
 Local/Regional/International:
 Business:
 Resellers – buy to resell
 Industrial – buy to build something else

7. Marketers
 True or false: Everybody sells.
 Men Without Hats - Everybody's Selling Something
 Marketer: Anyone with an idea, product, or service
to sell.

8. Consumer psychology
 Personal processes:
 Perception – learning – motivation
 Interpersonal influences:
 Family – Society – Culture
 Non-personal influences:
 Time – Place – Environment
 Purchase decisions:
 Alternatives
 Post-purchase feelings:
 Positive or negative

9. Personal processes
 Perception:
 the product exists.
 Learning:
 the product is compelling.
 Persuasion:
 you need to buy the product.
 Motivation:
 you need to buy it now!

10. Learning and persuasion
 Learning:
 Change in thought or behavior caused by experience.
 Persuasion:
 Change in thought or behavior caused by promotional
activities.

11. Persuasion
 Central route:
 High involvement.
 Peripheral route:
 Low involvement.
 Most advertising is peripheral:
 People don’t pay close attention to ads, unless they
deeply desire the product, are considering buying it, or
have already bought it.

12. Interpersonal influences
 Family:
 Early, long-lasting influence
 Society:
 Opinion leaders, reference groups
 Cultural:
 Needs and wants handed down from generation to
generation
 Heroes:
 Celebrities, sports figures, etc.

13. Non-personal influences
 Time:
 When do you need the product?
 Place:
 Where?
 Financial:
 Can you afford it?
 Social:
 Will you be rewarded for buying it?
 Political:
 Will the GST stop you from buying it?
 Economic:
 Good or bad economy?

14. The purchase decision
 Evoked set:
 The brands you mull over
 Evaluative criteria:
 Your standards
 Purchase decision:
 Buy, don’t buy, think about it

15. Cognitive dissonance
Why did I buy this #@$!?
 Justifying behavior, usually after you make a
purchase.
 The more costly the exchange, the greater the
dissonance.
 The more satisfying, the less the dissonance.
 Form long-term brand perceptions: positive and
negative.

16. Sources
 All images: from Microsoft PowerPoint clip art, 2008
 Song: Doroschuk, I. (1989). Everybody's Selling
Something. In YouTube. Retrieved June 16, 2012,
from http://www.youtube.com/watch?v=jivSbcj82tA.