BCPC 205 Elements of Marketing Lecture Notes PDF

BCPC 205 ELEMENTS OF MARKETING LECTURE ONE AND TWO OVERVIEW OF MARKETING What Is Marketing? The American Marketing Association (AMA’s) definition of marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings t...

BCPC 205 ELEMENTS OF MARKETING LECTURE ONE AND TWO OVERVIEW OF MARKETING What Is Marketing? The American Marketing Association (AMA’s) definition of marketing Marketing is 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. (Approved July 2013) What is Marketing? Marketing is the management process responsible for identifying, anticipating, and satisfying consumer requirements profitably (CIM-UK) How will you determine or anticipate the needs of consumers within your area? Identifying and Anticipating Consumer Requirements Identifying and Anticipating consumer requirements may Involve the following activities: Market research Strategic marketing planning, etc. How can a business satisfy consumer requirements profitably? Satisfying Consumer Requirements Satisfying consumer requirements include the ff activities: Product development Pricing, promotion, distribution Personal selling, etc  The Nature of Marketing It is a concept Marketing is a function of business Marketing is an umbrella term for a range of techniques Marketing is an ongoing process Marketing operates as a system  Assumptions About Marketing Marketing is advertising Marketing is selling Marketing is getting people to buy products they do not really want  Why Study Marketing Marketing offers many career opportunities, including opportunities in advertising, sales, product management, retail store management, customer relationship management, and so on. The study of marketing principles can help you become a more productive, valuable co-worker.  Why Study Marketing In addition, many of the skills and tools of marketing can be applied in other functional areas of business. Marketing skills can also help you become a more knowledgeable consumer, as you will better understand the marketing practices that influence your purchases.  Functions of Marketing Distribution Financing Marketing Information Management Product/service management Promotion Selling The Marketing Process Understanding the Marketplace and Customer Needs Examination of five core customer and marketplace concepts: Needs, wants, and demands; Marketing offerings (products, services, and experiences); Value and satisfaction; Exchanges and relationships; and Markets. Understanding the Marketplace and Customer Needs States of deprivation Needs Physical—food, clothing, warmth, safety Social—belonging and affection Individual—knowledge and self-expression Wants Form that needs take as they are shaped by culture and individual personality Deman Wants backed by buying power ds  Market Offerings-Products, Services, and Experiences Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs  Customer Value and Satisfaction Consumers usually face a broad array of brands products and services that might satisfy a given need. How do they choose among these many market offerings? Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly. Dissatisfied customers often switch to competitors and disparage the products to others  Customer Value and Satisfaction Customers Value and satisfaction Marketers Set the right level of expectations Not too high or low Exchanges and Relationships Exchange is the act of obtaining a desired object from someone by offering something in return  Markets Markets are the set of actual and potential buyers of a product  Markets The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange relationships. Marketing means managing markets to bring about profitable customer relationships. However, creating these relationships takes work. Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them  Designing a Customer-Driven Marketing Strategy Value proposition Set of benefits or values a company promises to deliver to customers to satisfy their needs  Marketing Management Orientations Product Marketi Product Selling Societal ion ng concept concept concept concept concept  Marketing Management Orientations Production concept is the idea that consumers will favor products that are available or highly affordable  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.  Marketing Management Orientations Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort 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 satisfactions better than competitors do  Marketing Management Orientations Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests Designing a Customer-Driven Marketing Strategy  Preparing an Integrated Marketing Plan and Program The marketing mix: a set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Integrated marketing program: a comprehensive plan that communicates and delivers the intended value to chosen customers.  Building Customer Relationships Partner relationship management involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers  Building Customer Relationships Partners inside the company in every function area interacting with customers – Electronically – Cross-functional teams Partners outside the company are how marketers connect with their suppliers, channel partners, and competitors by developing partnerships Building Customer Relationships The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction