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1、The World of Marketing,Chapter 1 Lecture Slides Solomon, Stuart, Carson, the more received, the more they will pay. A good deal is, therefore, a state of mind?,1-6,Exchange of Value (continued),To be meaningful to marketers, wants need resources. Demand: customers desire for products coupled with th
2、e resources to obtain them. Market: all of the customers and potential customers who: share a common need that can be satisfied by a specific product, have the resources to exchange for it, are willing to make the exchange, and, have the authority to make the exchange.,Note that these four condition
3、s also make a good definition of a customer. Marketplace: any location or medium used to conduct an exchange.,1-7,(Almost) Anything Can Be Marketed,Product: a tangible good, a service, an idea, or some combination of these that, through the exchange process, satisfies consumer or business customer n
4、eeds; a bundle of attributes including features, function, benefits, and uses. Products have:,Features: characteristics of the product, such as materials, construction, and what it does. A feature of a computer is that it has 512 Mb of RAM Advantages: what the features do for the user of the product
5、. More RAM allows for greater computing power. Benefits: the outcome sought by a customer that motivates buying behaviour. The customer wants more RAM to run the latest version of a software program.,1-8,(Almost) Anything Can Be Marketed,Idea marketing: many organizations, including governments use
6、marketing to sell ideas, such as not smoking, responsible alcohol consumption, safe sex, and using recycling programs.,Place marketing: using marketing to sell places as a destination for tourists or for industries to choose to locate in. Tourism is big business in Canada. People marketing: using ma
7、rketing to sell people and their images, such as celebrities endorsing products or representing organizations. Why would Nike pay Tiger Woods $40 million over 5 years just to wear their clothing and footwear?,1-9,The Marketing Concept,Marketing concept: a management orientation that focuses on achie
8、ving organizational objectives by understanding consumer needs and wants and the associated costs of satisfying them.,Which comes first, the consumer need or the product to satisfy it? It is important to recognize that marketing does not exist in isolation from the world around it. Social marketing
9、concept: an orientation that focuses on satisfying consumer needs and wants while also addressing the needs of the larger society. “Its not easy being green.” Kermit the frog,1-10,Marketing Planning,Strategic planning: the process of identifying and analyzing alternative ways of achieving objectives
10、.,Favourable,Type of factor,Location of factor,Unfavourable,Internal to the company,External to the company,Industry position Product innovation/design Brand awareness Distribution channels History of success,Pricing position Limited distribution Limited range of products Leadership/direction Resour
11、ce constraints,New markets New branding strategies Expand globally Expand accessories line Form strategic partnerships,Fierce competition Brand name may become the generic for the category Pace of technology Regulatory environment,Strengths,Threats,Weaknesses,Opportunities,1-11,Marketing Planning (c
12、ontinued),Market segment: a distinct group of customer within a larger market, who are similar to one another in some way and whose needs differ from other customers in the larger market.,Target market: the market segment on which and organization focuses its marketing plan and toward which it direc
13、ts its marketing efforts. Market position: the way in which the target market perceives the product in comparison to competitors brands. To be effective, organizations will do all three steps, one after the other, as each one builds on the step previous. How do marketers achieve positioning?,1-12,Ma
14、rketings Tools,Marketing mix: A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to the consumers, which creates a desired response among a set of predefined consumers.,Figure 1-1,1-13,Marketing Planning (continue
15、d),Relationship marketing: a marketing philosophy that focuses on building long-term relationships with customers, suppliers, distributors, and other key stakeholders to satisfy mutual needs.,This philosophy recognizes that it is more efficient to keep existing customers happy and buying, than to be
16、 constantly trying to find new ones to replace those who have left. It also recognizes the value of teamwork, when it comes to the supply chain. Stakeholders: individuals or organizations who affect, or are affected by, the activities of a firm. Society as a whole have a stake in what organizations
17、do.,1-14,The Evolution of a Concept,Product orientation: a management philosophy that emphasizes the most efficient ways to produce and distribute products. This philosophy focuses on developing products through research and development activities.,This approach works best in a sellers market, where
18、 demand is greater than supply. Selling orientation: a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory. Also known as the hard sell, this approach is necessary in times of a buyers market, where product availability exceeds demand. Th
19、ink aluminum siding in the early 60s, home security systems today, and other unsought goods.,1-15,The Evolution of a Concept (continued),Consumer orientation: a management philosophy that focuses on being proactive and responsive in identifying and satisfying consumer needs and wants. Focusing on wh
20、at the consumer wants makes for good business, as Mattel does with the Barbie product line.,New era orientation: a management philosophy in which marketing decision making means a devotion to excellence in designing and producing products that benefit the customer plus the firms employees, sharehold
21、ers, and fellow citizens.,1-16,Marketing Creates Value,Functional value: consumer benefits relating to product features, characteristics, utility, performance, and outcomes. What will the product do for me?,Utility: the usefulness or benefit received by consumers from a product. Utility can based on
22、 form, place, time, and possession. Buying snow tires after the first snowfall in winter qualifies for all four! Experiential value: consumer benefits relating to sensory, emotional, relational, and epistemic experiences. Live theatre and sports are experiences enjoyed for many different reasons.,1-
23、17,Marketing Creates Value,Symbolic (expressive) value: consumer benefits relating to self-concept or self-identity, self-expression, social meaning, personal meaning, or conditional meaning. Some products or services we consume for what we believe they say about us to others. Luxury products are a
24、good example.,Cost (sacrifice) value: consumer benefits relating to economic costs, psychological costs, personal investment, and risk. Warehouse retailers and e-tailers appeal to those consumers who appreciate value created by low prices, selection, and convenience of shopping.,1-18,Marketing and C
25、ulture,Popular culture: the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market. Marketing of celebrities is pervasive in North American culture, much to the chagrin of many observers.,Cultural activities can be differentiated and targeted to particular market segments. Myths: stories containing symbolic elements that express the shared emotions and ideals of a culture. There are only so many plot and story lines out there to be used, and un
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