September 10th, 2010
Marketing and Media
Last 100 Years of Marketing:
Production Era: 1900-1930s --- consumers take whatever is available, marketing
insignificant as goods literally sell themselves because of lack of options. Production
elevated as they focused on most efficient ways to produce and distribute goods.
Selling Era: 1930-1960s --- marketing becomes a sales function as businesses try to
move products any way they can and as fast as they can due to large inventories.
Consumers become more selective as WWII ended and sales became aggressive.
Consumer Era: 1970s-1990s --- satisfy consumer wants and needs. Marketing
importance highly elevated and required research to understand the needs of
different consumers. Led to the development of the marketing concept.
New Era: 2000s-present --- building long-term bonds with customers rather than
merely selling them stuff today. Internet becomes juggernaut of sales. A
commitment to quality and value but also a concern for both economic and social
Marketing: 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 about meeting the needs of everyone involved in the marketing
process, aka stakeholders.
Stakeholder: buyers, sellers, investors in a company, community residents and
even citizens of the nations where the goods and services are made or sold—any
person or organization that has a stake in the outcomes.
Primary stakeholder: the consumer—ultimate user of a good or service.
Marketing Concept: identify consumer needs and then provide products that
satisfy those needs.
A need is the difference between a consumer’s actual state and some ideal or
desired state. Needs are physical (food) or psychological (appearance)
A want is a desire for a particular product to satisfy a need in specific ways that are
culturally and socially influenced.
A product delivers a benefit when it satisfies a need or want.
The challenge is to identify what benefits people look for, then develop a product
that delivers those benefits while also convincing consumers that their product is
better than a competitor’s product making the choice of which product to buy
At the heart of every marketing act is “exchange relationship.”
Goods: goods purchased by individual consumers for personal or family use.
Services: intangible products that are exchanged directly from the producer to the
B2B and NFP marketing
The Marketing of Value:
Value: the benefits a customer receives from buying a product or service.
Value proposition: a marketplace offering that fairly and accurately sums up the
value that will be realized if the product or service is purchased.
Goal: lifetime value of a customer---going beyond a single transaction.
1. Analyzing the marketing environment---understanding the current strengths
and weaknesses and taking into account opportunities and threats the firm
will encounter in the marketplace.
a. What product benefits will our customers be looking for in 3-5 years?
b. What capabilities does our firm have that set it apart from the
c. How will changes in technology affect our production process, our
communication strategy, and our distribution strategy?
d. How will consumers’ awareness of environmental issues affect their
attitudes toward our manufacturing facilities?
Answers to these questions come from forming a Marketing Plan.
A document that describes the marketing environment, outlines the
marketing objectives and strategy, and identifies who will be responsible
for carrying out each part of the marketing strategy.
Market segment: a distinct group of customers within a larger market
who are similar to one another in some way and whose needs differ from
other customers in the larger market.
Target market: the market segments on which an organization focuses
its marketing plan and efforts
Market position: the way in which the target market perceives the
product in comparison to competitor’s brands.
Product: a good, service, idea, place, person—whatever is offered for sale in
exchange. Includes the design and packaging as well as associated services.
Price: the assigned value to the product or the amount the consumer will exchange
to receive the product.
Promotion: all the activities marketers undertake to inform consumers about their
products and to encourage potential customers to buy these products.
Place: the availability for the customer to get the product at the desired time and