MKTG 2030 – Section V Jan. 3, 2012
Part I – Identifying & Specifying Value Opportunities:
- Marketing is first and foremost a decision making process – one that is focused on identifying, creating, and
delivering value for customers and other stakeholders.
- Leading businesses achieve their success not only by creating economic value, but also by creating social and
Chapter 1 – What is Marketing?
WELCOME TO BRANDED YOU:
- Marketing is all around us – YOU are a product companies like Monster and Facebook couldn’t exist if you
weren’t a product with value.
- Value – the benefits a customer receives from buying and using a good/service in relation to the costs and
sacrifices of buying and using it.
- You have “MARKET VALUE” as a person – you have qualities that set you apart from others and abilities other
people want and need.
- Marketing is a fundamental part of our lives both as consumers and as business people.
THE WHO AND WHERE OF MARKETING:
- Fashion retailers may have training in design; advertising creative executives often have a fine arts background
while copywriters often have degrees in English; E-marketers who design interactive WebPages for products and
companies may have studied Computer Science; accountants often end up in marketing roles, as someone
needs to make marketing decisions for actg firms.
- Marketers work in a variety of locations consumer good companies, services companies, retail organizations,
companies that manufacture products for other companies, gov’t organizations, not for profit organizations,
large organizations, small start up companies, etc.
- Marketing principles used to get people to endorse ideas/change their behaviours in positive ways.
- 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
- Marketing is the process of achieving individual and organizational objectives by creating superior customer
value for one or more target markets with a sustainable strategy.
Prime directive of marketing is to achieve objectives.
Focuses on the idea of creating value for specific target markets, groups of people that have different
needs, wants, or preferences from other groups of people.
Develop a sustainable strategy in the sense of making a set of decisions that will allow us to compete
effectively until our objectives have been achieved (usually a long term perspective)
- Customer Value –what the customer gets in the purchase, use, and ownership of a product relative to the costs
and sacrifices incurred.
- To create a transaction/economic exchange of value, both parties need to believe that the exchange is FAIR.
- Challenge to marketer is to create, price, distribute and communicate an attractive value proposition to the
customer to get the most value in return.
MARKETING IS ABOUT CREATING CUSTOMER VALUE:
- Stakeholder – people/organizations who influence or are influenced by mktg decisions. MKTG 2030 – Section V Jan. 3, 2012
- Exchange – the process by which some transfer of value occurs b/w a buyer and a seller.
- Consumer – the ultimate user of a good/service.
- Marketing concept – business orientation that focuses on achieving org. objectives by understanding customer
needs, creating and delivering value in exchanges that satisfy the needs of all parties.
- Need – recognition of any difference b/w a consumer’s actual state and some ideal or desired state.
- Want – desire to satisfy needs in specific ways that are culturally and socially influenced.
- Benefit – outcome sought by a customer that motivates buying behaviour (that satisfies a need/want)
- Consumers are motivated by needs, but make purchase decisions based on wants.
- Demand – customers’ desire for products coupled with the resources to obtain them
- Marketplace – any location or medium used to conduct an exchange.
MARKETING IS ABOUT EXCHANGE RELATIONSHIPS:
- For an EXCHANGE to occur, at least 2 people/organizations must be willing to make a trade, and each must have
something the other wants both must agree on the value of the exchange and how it will be carried out
must be free to accept or reject the other’s terms for the exchange.
- The marketing decision process:
Understand the opportunity Marketing Strategy: specify the value Marketing Mix: create the value
Implementation & Evaluation: Realize the value.
Understand the Opportunity:
- Identify opportunities to create value for the organization by creating value for customers.
- First, involves understanding factors relating to the markets in which an org. competes (understanding general
trends in that market, consumer/organizational buying behaviour, industry dynamics, and the strategies and
likely reactions of competitors.
- Then marketing decision makers need to assess factors relating to their own org. and their ability to create value
and compete effectively in those markets (internal factors include understanding relative effectiveness of
current mktg strategy, resources, competencies, expertise and values/mission of org.
Marketing Strategy: Specify the Value:
- Marketers make mktg strategy decisions to achieve the objectives of their org. which usually include both
financial and mktg objectives.
- Market segment – distinct group of customers within a larger market who have similar needs, wants,
preferences, and behaviours, who seek similar product solutions, and whose needs differ from other customers
in the larger market.