The Marketing Environment

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Mktg351Principles of Marketing
David R. Lambert
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The Professor Buys a Vacuum Cleaner

• The decision arena
• Many brands--Oreck to Electrolux
• Many pricesunder 60 to 1699.99
• Complex product
• Upright or canister?
• Bagless?
• Power500 to 1100 watt
• Self propelled?
• 1 to 6 speeds
• HEPA filter?
• Warranty length (1 to 5 years)?

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A Decision-Making Process
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Alternatives Evaluated for Choice

• those which satisfy a need (configuration)
• those in an acceptable price range (valuation)
• those we are aware of, and appreciate in some
  sense (symbolization)
• those available to us, in terms of time and place
  (facilitation)

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Marketing

• Marketing is about exchanges--facilitating and
  consummating them.

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These are marketing functionswhich is not the
most important thing.
What is important is not what marketers do, but
marketing as a philosophy for the firm.
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The Marketing Concept

• All the firms activities should be focused upon
  providing satisfaction to the market.

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In other words, you should all be marketers,
whatever your functional area.
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Definition of Marketing
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
objectives. (American Marketing Association,
1985)
Others
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Summary

• Marketing as interface activities
• The focus of marketers
• Marketing as philosophy vs.
  marketing as function

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Satisfaction, Quality, and Value

• Lets take a look at purchase determinants

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Satisfaction
Expected Outcomes
Compare
Actual Outcomes
Satisfaction
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Expectations
When we buy something, what is in our
expectations set? What about quality? What is
quality?
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A Listing of High quality Products

• Rolls Royce Motorcars
• IBM Computers
• Saville Row mens suits
• Louis XIV furniture
• Birds Eye frozen peas
• Bic pens
• M Ms
• What do these products have in common?

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The Eight Dimensions of Quality

• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality

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Value

• What is value?
• Can you offer cheap value?
• Can you offer expensive value?
• Is there an isovalue function?

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A Model of Value
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How do expectations set, price, and value affect
purchase intent?
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Using these terms a caveat.
Avoid the awesome of the business world.
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What role does marketing play in this?
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Summary
Shopping is a search for value. Value is a
perceptual attribute, with the idiosyncratic
character that implies. Marketings task
vis-a-vis its markets is to determine the
markets definition of value, and try to match it.
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Definitions of Marketing
We may talk as long as we please about
manufacturers and wholesalers and retailers. But
in the last analysis, the consumer is king. The
whim of the consumer makes and unmakes the
manufacturers, the jobbers, and the retailers.
Whoever wins the confidence of the consumer wins
the day and whoever loses it, is lost.
(Charles Parlin 1916)
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Definitions of Marketing
Marketing is a social and managerial process
whereby individuals and groups obtain what they
need and want through creating and exchanging
products and value with others. (Kotler,
1997) (also Armstrong Kotler, 2003)
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Definitions of Marketing
the performance of activities that seek to
accomplish an organizations objectives by
anticipating customer or client needs and
directing a flow of need-satisfying goods and
services from producer to customer or client.
(Perreault and McCarthy, 1999)
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Marketing is...

• art, science,
• shades of gray,
• full of questions, less full of answers,
• a way to look at problems

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Given these perspectives, and in your own words,
what is marketing?
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