K4

Marketing 101: Overview of Marketing

What is Marketing?

  • Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

  • Marketing encompasses everything that happens between ideation and CRM (customer relationship management)

Core Aspects of Marketing

  • Focuses on CUSTOMER NEEDS and WANTS.

  • Facilitates EXCHANGE.

  • CREATES VALUE through Product, Price, Place, and Promotion Decisions.

  • Can be performed by BOTH individuals and organizations.

  • Marketing affects various stakeholders.

Needs vs. Wants and Demand

  • Needs vs Wants: Needs are basic human requirements; Wants are the specific desires for products or services that satisfy those needs.

  • Relevance: Customer Needs AND Wants.

  • Demand: Needs~Wants + Buying Power = Demand.

  • Core concept: Marketing is about satisfying customer needs and wants.

The Marketing Mix (4Ps)

  • The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market:

    • Product

    • Price

    • Promotion

    • Place

  • Reference: Exhibit 1.3: The Marketing Mix.

Product: Creating Value

  • The fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

  • Offerings include:

    • Goods

    • Services

    • Ideas

  • Ideas include thoughts, opinions, and philosophies; intellectual concepts that can be marketed.

  • Example: Street Smart campaigns—bike-safety initiatives (speeches, helmet poster contests) targeting children as the primary market.

Price: Capturing Value

  • Price is everything a buyer gives up (money, time, energy) in exchange for the product or service.

Place: Delivering the Value Proposition

  • Place represents all the marketing processes necessary to get the product to the right customer when that customer wants it.

  • Often refers to retailing and marketing channel management, also known as supply chain management.

Promotion: Communicating the Value Proposition

  • Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their buying decisions and elicit a response.

Can Be Performed By Individuals and Organizations

  • Examples in Exhibit 1.4-ish (Core Aspects of Marketing 4/5):

    • Manufacturer (makes tablets) → B2B

    • Retailer (sells tablets & phones) → B2C

    • Consumer A → C2C

    • Consumer B

Marketing Impacts Various Stakeholders

  • Customers

  • Supply Chain Partners

  • Employees

  • Industry

  • Society

Progress Check (1 of 3)

  • Questions to review:

    • What is the definition of marketing?

    • Marketing is about satisfying blank and blank.

    • What are the four components of the marketing mix?

    • Who can perform marketing?

Exhibit 1.5 Marketing Evolution: Production, Sales, Marketing and Value

  • Four Eras of Marketing (left to right):

    • Production Era (Ind. Rev. – 1920)

    • Sales Era (1920–1950)

    • Marketing Era (mid-1950s–1990s)

    • Value-based Marketing Era (1990s to present)

  • Milestones include:

    • Mass production

    • Great Depression and WWII

    • More self-sufficient consumers

    • Surplus inventory

    • Increased competition

    • Attention to customer preferences

    • Emergence of the marketing department

    • Build long-term relationships

    • Meeting needs profitably

Production to Value-Based Marketing Eras (Overview)

  • Production Era: focus on efficiency and mass production.

  • Sales Era: focus on selling what was made.

  • Marketing Era: focus on meeting customer needs and delivering value.

  • Value-Based Marketing Era: focus on value creation and long-term relationships.

  • Note: The slide set also notes a visual narrative—telephone design evolution from large wall-mounted phones to smartphones (illustrative of changing consumer needs and marketing approaches).

Value-Based Marketing Era

  • What is Value?

    • Value = Co-creation; Relational Orientation; CRM (Customer Relationship Management).

  • Emphasis on delivering superior value to build durable relationships.

Progress Check (2 of 3)

  • Question: What are the various eras of marketing?

Value-Driven Marketing

  • Quote: "If marketers are to succeed, consumers must believe that the firm’s products and services are valuable." –Grewal & Levy

How Does Marketing Create Value and How Do Firms Become More Value-Driven?

  • Key actions:

    • Build relationships with customers.

    • Gather and analyze information.

    • Balance benefits and costs.

    • Connect with customers using social and mobile media.

Value Stems From Four Main Activities

  • Four activities:

    • Adding Value

    • Using Marketing Analytics

    • Embracing Social and Mobile Marketing

    • Ethical and Societal Dilemma: Engaging in Conscious Marketing

Marketing Analytics

  • Companies collect massive amounts of data about how, when, why, where, and what people buy.

Connecting With Customers Using Social and Mobile Marketing

  • Statistics:

    • 97% of marketers use social media tools for their businesses.

    • 4.2 billion people link to some social media sites through their mobile devices.

Resolving Ethical and Societal Dilemmas

  • Conscious Marketing

  • Socially Responsible Firms

  • Making socially responsible activities an integral component of corporate strategies.

Progress Check (3 of 3)

  • Questions to review:

    • Does providing a good value mean selling at a low price?

    • How are marketers connecting with customers through social and mobile media?

Glossary — Key Terms (selected)

  • Exchange: the trade of things of value between the buyer and the seller so that each is better off as a result.

  • Goods: items that can be physically touched.

  • Ideas: thoughts, opinions, and philosophies; intellectual concepts that can be marketed.

  • Services: intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

  • Supply chain: the group of firms that make and deliver a given set of goods and services.

  • Value: the relationship of benefits to costs.

  • List the four eras of marketing evolution in their chronological order, as discussed in the transcript.

    • The answer should accurately list the Production Era, Sales Era, Marketing Era, and Value-based Marketing Era in the correct sequence. Production, Sales, Marketing, Value-based Marketing

Text Alternatives and Exhibits (conceptual references)

  • Exhibit 1.1 Core Aspects of Marketing — Text Alternative:

    • Marketing is about satisfying customer needs and wants.

    • Marketing entails an exchange.

    • Marketing creates value through product, price, place, and promotion decisions.

    • Marketing can be performed by both individuals and organizations.

    • Marketing affects various stakeholders.

  • Exhibit 1.5 Marketing Evolution (Text Alternative):

    • Describes the four eras and the evolution of technology (e.g., telephone evolution) as a proxy for changing marketing approaches.

ext{Demand} = ext{Needs and Wants} + ext{Buying Power}