Chapter 5 Consumer Behavior - Jenne Meyer PhD_4_ by hcj


									OAD31863 Marketing

Dr Jenne Meyer
Week 1
OAD31863 Marketing

 Introductions
   —Who are you?
   —Where do you work?
   —Experience with Marketing, Communications or Public
   —Expectations of this course?
   —Fun fact
OAD31863 Marketing

 Faculty Expectations
 Syllabus
   —Article presentations
   —Team Assignment
Chapter 1
Marketing: The Art and
Science of Satisfying
Chapter Objectives

1.   Define marketing, explain how it creates utility, and describe its role in
     the marketplace.
2.   Contrast marketing activities during the four eras in the history of
3.   Explain the importance of avoiding marketing myopia.
5.   Identify and briefly explain each of the five types of nontraditional
6.   Explain the shift from transaction-based marketing to relationship
7.   Identify the universal functions of marketing.
8.   Demonstrate the relationship between ethical business practices, social
     responsibility, and marketplace success.
What is Marketing?

 Production and marketing together create utility
 Utility - The want-satisfying power of a good or

“Marketing is 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 goals.” (Marketing Power)
Marketing is 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 (AMA)
Marketing is about identifying and meeting human and social
  needs. One of the shortest good definitions of marketing is
  “meeting needs profitably.” (Kotler)
A Definition of Marketing

 Marketing - An organizational function and a set of
  processes for:
   —Creating, communicating, and delivering value to
   —Managing customer relationships in ways that benefit
    the organization and its stakeholders
Four Eras in the History of Marketing

 Exchange process - Activity in which two or more
  parties give something of value to each other to
  satisfy perceived need
The Production & Sales Era

 Production orientation - Stressing efficiency in
  producing a quality product, with the attitude
  toward marketing that “a good product will sell
   —Characterized by production shortages and intense
    consumer demand
 Sales orientation - Customers will resist purchasing
  nonessential items
   —Task of personal selling and creative advertising is to
    persuade them to buy
The Marketing Era

 Emergence of the marketing concept
    —Shift from a seller’s market to a buyer’s market
    —A strong buyer’s market created the need for
     consumer orientation
    —Marketing concept - A companywide consumer
     orientation to achieve long-run success
    —A strong market orientation improves market
     success and overall performance
The Relationship Era

 Relationship marketing - Developing long-term,
  value-added relationships over time with customers
  and suppliers
 Strategic alliances and partnerships benefit everyone
Nontraditional Marketing
From Transaction-Based Marketing
to Relationship Marketing
 Transaction-based marketing - Buyer and seller
  exchanges characterized by limited communications
  and little or no ongoing relationships between the
 Marketers realize that consumers are becoming more
  and more sophisticated
 Relationship marketing gives a company new
  opportunities to gain a competitive edge by moving
  customers up a loyalty ladder
   —It starts with determining what customers need
     and want, then developing high-quality products
     to meet those needs
Using Interactive and Social Marketing to
Build Relationships
 Mobile marketing - Marketing messages transmitted
  via wireless technology
 Interactive marketing - Buyer–seller communications
  in which the customer controls the amount and type
  of information received from a marketer
 Social marketing - The use of online social media as a
  communications channel for marketing messages
 Buzz marketing - Word of mouth messages that
  bridge the gap between a company and its products
Partnerships and Strategic Alliances

 Relationship marketing extends to business-to-
  business relationships with suppliers, distributors,
  and other partners
 Strategic alliances provide firms competitive
 Forms of alliances
   —Product development partnerships
   —Vertical alliances
Eight Universal Marketing Functions
Ethics and Social Responsibility

 Ethics - Moral standards of behavior expected in a
 Most businesses follow ethical practices, although
  there have been breaches at times
 Social responsibility - Marketing philosophies,
  policies, procedures, and actions whose primary
  objective is to enhance society
Ethics and Social Responsibility

 Sustainable products - Products that can be
  produced, used, and disposed of with minimal
  impact on the environment
 Firms stand to gain needed credibility from their
  efforts to protect the environment

             Watch Marketing: Satisfying
              Customers at Flight 001

 How important are Flight 001’s strategic alliances to
  their marketing?
 What other companies or industries would be a good
  fit with Flight 001?
 What role does the design of the store play in
  marketing Flight 001?

 Key learnings?
 Next weeks assignments.

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