LECTURE #1
OVERVIEW
OF
STRATEGIC
MARKETING
MARKETING
FACILITATES EXCHANGE
BETWEEN BUYERS AND
SELLERS
MARKETING PROVIDES
INFORMATION ABOUT WHAT
CUSTOMERS WANT
• Marketing research
• Marketing information systems
• Data Analytics (“Big data”)
MARKETING
BRIDGES THE
PHYSICAL GAP
BETWEEN
COMPANIES AND
CUSTOMERS
COMMUNICATIO
N WITH
CUSTOMERS
• Advertising
• Social Media
• Sales Promotions
• Personal Selling
HOW MUCH
SHOULD WE
CHARGE?
• How much does it cost us to
make and sell the product?
• How much do we want to
make on each product we
sell (how much profit?)
• How much are customers
willing to pay?
WHAT DO
MARKETERS
DO?
Develop and manage products that
will satisfy customer needs.
Communicate with customers to help
them learn about products.
Make products available in the right
place and at the right time.
Price products in a way that is
acceptable to the buyer and
profitable for the company.
THE “MARKETING MIX”
THE “4P’S OF MARKETING”
(Distribution)
MARKETING CREATES
• Value = Benefits – Costs
VALUE
• Value=what customer perceives as the benefits of a
product.
• Benefits include anything a buyer receives in an
exchange.
• Costs include anything a buyer gives up to obtain the
benefits of the product
• Money
• Time
• Effort
• Risk
EXCHANGES BETWEEN BUYERS AND
SELLERS
MARKETING CAN INVOLVE SEVERAL
“STAKEHOLDERS”
Customers
Employees
Governments
Investors and
shareholders
Communities
Suppliers
Competitors
THE “MARKETING ENVIRONMENT”
FORCES THAT IMPACT BUYERS AND SELLERS
Competitive
forces
Economic
forces
Political
forces
Legal &
regulatory
forces
Technological
forces
Sociocultural
forces
STRATEGIC
MARKETING
THE ”MARKETING CONCEPT”
Customer satisfaction should
be the focus of the company
Long-term profits are derived
from satisfying customers
The company must continue to
keep up with changing
customer needs and wants
A LITTLE
BIT OF
HISTORY…
The Evolution of the
Marketing Concept
THE “BARTER ERA”
•
Self sufficiency
•
Exchange one resource for another
•
Trading posts
•
Traveling salespeople
•
General stores
•
Still practiced in lesser developed countries and in
developed economies in special cases
THE “PRODUCTION ERA”
•
Began for developed countries with the Industrial Revolution of the late
1800s.
•
For developing countries, efforts to industrialize are still ongoing.
•
Mass production
•
Better transportation
•
More efficient technology
•
Demand exceeds supply
•
Goal is to lift production to meet demand
THE “PRODUCTION
ERA”
“You can have any color you like, as long as it’s black”
—Henry Ford
THE “SALES” ERA
(1930’S-1950’S)
•
Supply can now meet demand
•
The selling process becomes a key focus of
business
•
Still, little consideration for consumer tastes.
•
The goal is to make consumers want what the
company sells
THE “SELLING” PHILOSOPHY
MARKETING
DEPARTMENT ERA
Supply exceed demand
(1960’S-1970’S)
•
•
Research is used to understand consumer needs and
wants
•
Increased competition
•
Marketing is viewed as a secondary function within the
firm.
THE MARKETING
CONCEPT ERA
Marketing has an integrated comprehensive role
(1970’S—PRESENT)
•
•
The linchpins of the marketing company era:
•
A company-wide focus on marketing
•
Customer service
•
Customer satisfaction
•
Relationship marketing
BUILDING
LONG-TERM
CUSTOMER
RELATIONSHIP
• Customer Relationship
S
Management
• Establishing a long-term mutually
satisfying buyer-seller relationship
• Continual effort to understanding
the changing needs of customers
• Based on trust
• Customer Lifetime Value (CLV)