Consumers Rule

1
Welcome to the World of Marketing Creating and
Delivering Value
2
Chapter Objectives

1. who are marketers?
2. where they work,
3. marketings role
4. in the firm
5. Explain marketing

3
Chapter Objectives

1. Marketings value
2. to everyone involved in the marketing process
3. range of services goods

4
Chapter Objectives

• Understand value
• Re customers, producers, and society
• marketing planning

5
Chapter Objectives

1. marketing mix tools
2. Product/price/promotion
3. Place (distribution)
4. evolution of the marketing concept

6
CHAPTER CONCEPTS
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Welcome to a Branded World

• Brand You
• You are a product
• You have market value
• as a person

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Welcome to a Branded World

• Brand You
• You position yourself for a job
• Dont sell yourself short
• You package promote yourself

9
Who Where of Marketing

• Marketers
• Are real people
• who make choices that affect
• themselves,
• their companies,
• millions of consumers

10
Who Where of Marketing

• Marketers
• Work cross-functionally
• within the firm
• Enjoy exciting, diverse careers

11
The Value of Marketing

• Definition of marketing (AMA, 2004)
• An organizational function
• and a set of processes
• for creating, communicating, and delivering
• value to customers

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The Value of Marketing

• Definition of marketing (AMA, 2004)
• and manages customer relationships
• in ways that
• benefit the organization
• and its stakeholders

13
Marketing Meeting Needs

• stakeholders
• Buyers,
• sellers,
• investors,
• community residents,
• citizens

14
Marketing Meeting Needs

• Marketing concept
• Identifying consumer needs
• providing products that satisfy those needs

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Marketing Meeting Needs

• The modern marketplace
• a mall,
• mail-order catalog,
• a TV shopping network,
• an eBay auction,
• or an e-commerce Web site

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Marketing Creating Utility

• Utility the sum of the benefits we receive from
  using a product/service
• Form utility
• Place utility
• Time utility
• Possession utility

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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 product that satisfies need
• Seller receives something of equivalent value

18
The Evolution of Marketing

• The Production Era
• The Selling Era
• The Consumer Era
• The New Era

19
The Production Era

• Focus most efficient ways to make and
  distribute products,
• like Henry Fords Model T Ivory soap
• Marketing plays an insignificant role

20
The Selling Era

• Focus one-time sales of goods
• rather than repeat business
• Marketing a sales function

21
The Consumer Era

• Focus satisfying customers needs and wants
• Marketing more important
• Total Quality Management (TQM)
• widely followed in marketing community

22
The New Era Profits Ethics

• Focus building long-term bonds
• with customers.
• Marketing uses customer relationship management
  (CRM)
• to track consumers preferences
• tailor value proposition to each individual

23
The New Era Focusing on Social Benefits

• Social marketing concept
• satisfy customers needs and
• also benefit society
• Sustainability
• meeting present needs and
• ensuring future generations can meet their needs

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The New Era Focusing on Accountability

• Measuring how much value is created by marketing
  activities
• ROI (Return on Investment)
• direct financial impact of firms expenditure of
  resources
• such as time or money

25
What Can Be Marketed?

• From serious goods and services
• to fun things
• Goods and services
• mirror changes in popular culture
• Marketing messages
• may communicate myths of a culture

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What Can Be Marketed?

• Product any good, service, or idea
• Consumer goods/services
• Business-to-business goods/services
• Not-for-profit marketing
• Idea, place, and people marketing

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The Marketing of Value

• Value
• the benefits a customer receives
• from buying a good or service

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The Marketing of Value

• Marketing communicates the value proposition
• a marketplace offering that
• fairly and accurately sums up the value
• that the customer will realize
• if he/she purchases product/service

29
Value from the Customers Perspective

• The ratio of costs to benefits
• Value proposition includes
• whole bundle of benefits
• the firm promises to deliver,
• not just the benefits of the product itself

30
Value Sellers Perspective

• 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

31
Calculating the Value of a Customer

• Single transactions
• dont provide companies with value they desire
• Lifetime value of a customer
• How much profit a company expects from ONE
  customers purchases now and in the future
• WalMart LTV 250,000

32
Providing Value to Stakeholders

• Competitive advantage
• ability of a firm to outperform the competition
• by providing customers with a benefit
• the competition cannot provide

33
Adding Value throughthe Value Chain

• a series of activities
• involved in designing, producing, marketing,
  delivering, and supporting any product

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Adding Value throughthe Value Chain

• a series of activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing final product
• Service

35
Consumer-Generated ValueFrom Audience to
Community

• Everyday people generating value
• instead of just buying it
• People functioning
• in marketing roles
• creating ads,
• providing input into new products, or
• serving as retailers

36
Value Societys Perspective

• How marketing transactions
• add or subtract value from society
• Stressing ethics/social responsibility
• is good business in long run

37
The Dark Side of Marketing

• Marketers
• Illegal activities
• such as bait and switch
• Products that encourage antisocial behavior

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The Dark Side of Marketing

• Consumers
• Terrorism
• Addictive consumption
• Exploited people
• Illegal activities
• Shrinkage
• Anticonsumption

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Marketing as a Process

• Marketing planning
• Analyzing the marketing environment
• Developing a marketing plan
• Deciding on a market segment
• Choosing the marketing mix
• product, price,
• promotion, place

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THE END
41
Keeping It Real Fast-Forward to Decision Time
at Qode

• Meet Rick Szatkowski of NeoMedia Technologies
• Qode links your cell phone to the Web when you
  enter a keyword or click a SmartCode.
• Example A code on a movie poster plays a trailer
  for the movie

42
Chapter case study

• Ron Jons Surf Shop
• See handout

43
Ron Jon Surf Shop, Inc.

• How to advertise Ron Jons at airports?
• Option 1 rental car advertising
• Option 2 wall-mounted backlit photographs
  (dioramas)
• Option 3 escalator gateways

44
How It Worked Out at Ron Jon Surf Shop

• Bill choose option 2 wall-mounted backlit
  photographs (dioramas)
• Opened a small store in the Orlando Airport
  adjacent to the very busy food court
• Surf and sales are up at Ron Jon!