Marketing process and marketing evolution by liuhongmei

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									Marketing process and

     Lect. Aistė Miliūtė
Welcome to a “Brand You”
 You are a product and have “market value”
  as a person
 You “position” yourself for a job interview
 Don’t “sell yourself short”
 Personal image consultants often help
  people to devise a “marketing strategy”
 Your choice of goods and services allows you
  to package and promote yourself
  UEFA – Expert Marketers?

Public relations                                             Competition
                                   Marketing and
                                   Media Rights               strategy
Social marketing
  programme                                              Broadcasting rights
 management                                              – prices, terms and

                   Communicatio                    Marketing &
                   ns and Public                      Media
                      Affairs                      Management

  Multimedia content
     for partners                                              Sponsorships,
   Management of                                            licensing deals and
   online presence                    Media                     merchandise
Marketing Meets Needs

 Marketing meets the needs of diverse
   Stakeholders are buyers, sellers,
   investors, community residents, citizens
 Marketing concept
   Identifying and satisfying consumer
   needs to ensure long-term profitability
Marketing Meets Needs
 The modern marketplace
   Takes many forms, including a mall,
   eBay auction, e-commerce Web site
Marketing Is about Creating
The sum of the benefits we receive
from using a product/service
  Form utility
  Place utility
  Time utility
  Possession utility
    Marketing Is about
  Exchange Relationships
An exchange occurs when something
is obtained for something else in
return, like cash for goods or services
  Buyer receives an object, service, or idea
  that satisfies a need
  Seller receives something of equivalent
    Example: money, barter of services or
    goods, trade-ins
Exchange Relationships
                       The online game
                       Second Life
                       allows players to
                       engage in virtual
                       exchanges, in
                       which players can
                       purchase clothing
                       or other goods in
                       exchange for
                       currency the
           Ron Jon’s   game maker
The Evolution of Marketing
 The Production Era
   Production orientation
 The Sales Era
   Selling orientation
 The Relationship Era
   Consumer orientation
   Total quality
                     lets girls
                            create their own fashions,
 The Triple Bottom Line       or dress celebrities in
 Era                             different outfits
The Production Era
 Dominated by production orientation:
   A management philosophy that
   emphasizes the most efficient ways to
   produce and distribute products
 Marketing played an insignificant role
 Henry Ford’s Model T and Ivory soap
 are examples of products that were
 created under a production orientation
The Selling Era
 When product availability exceeds
 demand, businesses may focus on
 a one-time sales of goods rather
 than repeat business
 Dominated by selling orientation:
   Managerial view of marketing as a
   sales function, or a way to move
   products out of warehouses
   to reduce inventory
The Relationship Era
 Focused on a customer orientation:
   A management philosophy that
   emphasizes satisfying customers’ needs
   and wants
 Marketing becomes more important in
 the firm
 Total Quality Management (TQM) is
 widely followed in the marketing
      The Selling and Marketing
        Concepts Contrasted
                        Focus       Means           Ends

   The                                               Profits
                        Existing   Selling and
  selling     Factory
                        products   promoting
                                                 through sales

   The                                               Profits
                        Customer   Integrated       through
marketing     Market
                         needs     marketing       customer
 concept                                          satisfaction
 The Triple Bottom Line Era:
Make Money and a Contribution

                            Focuses on building
                            long-term bonds
                            with customers
                              Triple orientation
                              seeks to maximize
                              the financial, social,
                              and environmental
                              bottom lines
This ad focuses on the
environmental bottom line
The Triple Bottom Line Era: Make
   Money and a Contribution

 Marketing uses customer relationship
 management (CRM)
   CRM involves systematically tracking
   consumers’ needs in ways that also benefit
   society and delivers profit to the firm
 Social marketing concept:
   Management philosophy that              (RED)
   marketers must satisfy customers’       Video
   needs in ways that also benefit
   society and deliver value to the firm
The Triple Bottom Line Era: Make
   Money and a Contribution

   Creating products that meet present
   needs and ensuring that future
   generations can have their needs met
 Greater focus on accountability
   ROI (Return on Investment) is the direct
   financial impact of a firm’s expenditure
   of resources such as time or money
What Can Be Marketed?
 From ―serious‖ goods/services to fun things
   Products mirror changes in popular culture
   Marketing messages often communicate
 Product: any good, service, or idea
   Consumer goods/services
   Business-to-business goods/services
   Not-for-profit marketing
   Idea, place, and people marketing
The Marketing of Value
   The benefits a customer receives from
   buying a good or service
 Marketing communicates the value
   A marketplace offering that fairly and
   accurately sums up the value that the
   customer will realize if he/she purchases
Value from
the Customer’s Perspective
 Customer perspective:
   Value is the ratio of costs (price) to
   benefits (utilities)
   Value proposition includes the whole
   bundle of benefits the firm promises to
   deliver, not just the benefits of the
   product itself
     Brand image is a critical component
Value from
the Seller’s Perspective
 Value for the seller takes many forms
   Making a profitable exchange
   Earning prestige among rivals
   Taking pride in doing what a company
   does well
   Nonprofits: motivating, educating, or
   delighting the public
Providing Value Through
Competitive Advantage

 Creating a competitive advantage
   Identification of a distinctive competency:
   The ability of a firm to outperform the
   competition by providing customers with a
   benefit the competition cannot provide
 Turning distinctive competencies into
 differential benefits
Differential Benefit?
                Does this product provide a
                differential benefit that is
                important to consumers?
                Are the benefits provided to
                consumers unique and
                superior to those offered by
                the competition, and if so,
                is this competitive
                advantage sustainable?
Adding Value Through
the Value Chain
 Value chain:
 A series of activities involved in
 designing, producing, marketing,
 delivering, and supporting any
   Inbound logistics
   Outbound logistics
   Marketing final product
A Value Chain for the Apple iPod
 Consumer-Generated Value:
From Audience to Community
Consumer-generated value:
  Everyday people functioning in marketing
  roles such as:
    Creating ads
    Providing input into new product
    Serving as retailers
  Social networking is growing explosively
    Wisdom of crowds
  Open source business models
    Value from Society’s

Marketing transactions and company
activities influence the world and add
or subtract value from society
Stressing ethical or socially
responsible decisions is often good
business in the long run
The Dark Side of Marketing
 Marketing is often criticized
 Illegal practices do occur
 Some marketing activities have
 detrimental effects on society
 The dark side of marketing:
   Terrorism, addictive consumption,
   exploitation, illegal activities, shrinkage,
  It’s Debatable
  Class Discussion Question

Some people feel that marketers
manipulate consumers, while
others argue that people should
be held responsible for their own
choices. This ad is critical of the
current trend of lawsuits brought
against fast-food companies by
people who blame their health
problems on the fast food
industry. Where do you stand?
Marketing as a Process

 Marketing planning (thinking
 carefully and strategically about the
 big picture)
   Analyzing the marketing environment
   Developing a marketing plan
   Deciding on a market segment
   Choosing the marketing mix—product,
   price, promotion, and place
Preparing a Marketing Plan
and Programme
        The 4Ps - a gross over-
         simplification of what
          marketing is about
    • Need-satisfying?

    • How much?

    • How made available?

    • How communicated?
The Marketing Mix:
Product and Promotion

Product                 Promotion
 Development            Communication
 Management              mix
                         Advertising
 Features/benefits
                         Sales promotion
 Branding               Sales
 Packaging              Public relations
 After-sales service    Direct marketing
The Marketing Mix:
Price and Place
Price               Place
 Costs              Access to market
 Profitability      Channel structure
                     Channel
 Value for money      management
 Competitiveness    Retailer image
 Incentives         Logistics
Additional Ps
 Physical evidence
Marketing Scope

                    Consumer goods

 Industrial goods

                                     Small business
  Service goods

          Building Customer
           Relationships -
Customer Relationship Management
   The overall process of building and maintaining
  profitable customer relationships by delivering
  superior customer value and satisfaction
Relationship Building Blocks
  Customer Value – evaluation and perception of offer
  Customer Satisfaction – does performance meet or
  exceed expectation?
Customer Relationship Levels and Tools
  Stranger, acquaintance, friend, partner?
  Brands, clubs and cards
The Changing Nature of
Customer Relationships
          Customer Relationship

                                     Butterflies              True Friends
                   High              Good fit between          Good fit between
                profitability    company’s offerings and    company’s offerings and
                                  customers needs; high    customers needs; highest
                                      profit potential          profit potential
                                     Strangers                  Barnacles
                                   Little fit between         Limited fit between
                                  company’s offerings       company’s offerings and
                                 and customer’s needs;       customer’s needs; low
                                 lowest profit potential         profit potential

                                Short-term customers       Long-term customers
                                               Projected loyalty
              The New Marketing

                                 Ethics and
The Digital        Rapid                         Not-for-Profit
   Age          Globalisation                     Marketing
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