MKTG 303 Chapter 01 Overview of Marketing 22 Jan 2019 Vineet Chhabra Plan for the Day Introductions Class Norms Syllabus Review Groups Chapter 01 Class Norms Attendance Breaks Phone usage Laptop usage Group Work Honor code Class Discussion End of Chapter Questions & Cases Anything else? Syllabus Review Group Project Lets Get Started Chapter 01 ‐ Learning Goals 1. Define the role of marketing in organizations 2. Describe how marketers create value for a product or service 3. Understand why marketing is important both within and outside the firm What is Marketing? Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Other Descriptors Satisfying customer needs and wants through an exchange process better than your competitors Create, keep and satisfy the customer Core Aspects of Marketing Creates Value Affects Stakeholders & Enriches Society Satisfy Customer Needs & Wants MARKETING Exchange B2B/B2C 4-P Decisions Marketing Entails an Exchange The 4 Ps of Marketing Product – Creating Value Goods Services Ideas Price – Capturing Value What the buyer gives up in the exchange What is the customer willing to pay, and are you willing to accept that? Money, time, energy, etc. We Make Pricing Decisions Every Day Not just across products, and also within a product set ‐ Buying a car (“Technology package”) ‐ Airline tickets and seats (“free checked bags and priority boarding”) ‐ Ordering food (“make it a combo meal”) Place – Delivering Value Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it ‐ Channel of choice Promotion – Communicating Value Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service so as to influence their opinions or elicit a response. Who Performs Marketing B2B B2C C2C Marketing Impacts All Stakeholders Society Employees Customers Supply Chain From Production to Value Based Marketing Photos (left to right): © Ryan McVay/Getty Images RF; © CMCD/Getty Images RF; © Ryan McVay/Getty Images RF; © Ted Dayton Photography/Beateworks/Corbis RF; © McGraw-Hill Education/Mark Dierker, photographer From Production to Value Based Marketing Production Oriented Innovation, keep costs low, efficiency It you make it, they’ll come buy it Sales Oriented Response to lower consumption Personal selling and advertising Marketing Oriented Post WW‐II expansion More sophistication, and more choices Focus on needs & wants, marketing mix elements, customer is king Value Oriented Holistic view, better vale than competitors Focus on customer analytics, building relationships, balance costs & benefits, leverage technology in interconnected world How Do Firms Become Value Driven? Sharing information Balancing benefits with costs Building relationships with customers Connecting with customers using social and mobile media Why Is Marketing Important? Recap Marketing 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 satisfying customer needs and wants Marketing helps create value Marketing entails an exchange Marketing requires product, price, place, and promotion decisions (a.k.a. the Marketing Mix) Recap Marketing can be performed by both individuals and organizations Production, sales, market, and value‐based eras of marketing Marketing affects various stakeholders (customers, employees, suppliers, society) It helps expand global presence, pervasive across organization, pervasive across supply chain, makes life easier, enriches society, can be entrepreneurial.