Intro to Marketing

Marketing (AMA definition 1985-2005)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 objectives.

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Marketing (AMA definition-2005)An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing is creating a product, pricing it, promoting it, and distributing it in order to satisfy needs.

The Basics

Market – a collection of buyers and sellers

Marketplace – a physical location where buyers and sellers meet to conduct transactions

Marketspace – an electronic marketplace not bound by time or space

Metamarket – a cluster of closely related goods and services that centers on a specific consumption activity

Metamediary — a single access point where buyers can locate and contact many different sellers in a metamarket

Types of Marketing

RelationshipRetentionLong termHigh customer service priorityValue

TransactionalCustomer acquisitionShort termLow customer service priorityCreating exchange

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1st rule of marketing “People don’t buy products, they buy solutions to problems.”

BE A PROBLEM SOLVER.

Marketing professionals strive to discover consumer problems so they can solve them.

When we think about product benefits rather than product features, it’s easier to see that these benefits solve problems for customers.

Feature Something intrinsic about your productBenefitWhat the feature does for the buyer or what problem it solves

A Quick Overview of MarketingSituation Analysis– Internal Analysis– External Analysis

Industry AnalysisCompetitive AnalysisEnvironmental Analysis

Developing Goals and Objectives– SWOT Analysis

Segmentation and Target MarketingPositioningThe 4 P’s in Marketing MixStrategic vs. Tactical Planning

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Marketing Timeline

Pre-industrial Revolution—Little need for marketing because few goods exchangedProduction Era—Production efficiencies make many things cheaper to buy than to makeSales Era—Needed to create demand in order to keep the economy expanding; beginning of consumer credit; hard sell tacticsConsumer Era—Post-war era; more competition; softer sell; focus on service and experience rather than productToday—Product quality; more subtle approach; social responsibility

Criticisms of Marketing

Creates an artificial need

Creates a materialistic society

Promises miracles and creates unrealistic expectations

Good marketers don’t do this - they manage expectations in order to minimize disappointment and hence product returns.

Marketing Challenges

Constant changePower shift to consumersIncreasing expectations of customersIncreasing price sensitivityCustomer cynicism about marketingDecline in brand loyaltyIncrease in product selectionMature marketsLittle differentiationGlobalization

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