Marketing Overview: Customer Value, Satisfaction, Relationships and Experiences through Marketing 9/5/2013 6:06:00

Goods = tangible Services = intangible Experiences = customer is involved (e.g. bungee jumping: there is equipment but customer is performing the jump will seek for younger thrill seeking people) WHAT MARKETING IS AND WHAT IT IS NOT Marketing Defined: The activity for creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders and society at large Note that the emphasis is on delivering genuine benefits in offering good, services, ideas and experiences marketed to customer Requirements for Marketing to Occur o Two or more parties with unsatisfied needs o Desire and ability to satisfy these needs o A way for the parties to communicate Information has to flow from supplier to buyer improving products want to constantly increases concept of value in order for customer to consider our other products too o Something to exchange In most cases, money The Breadth and Depth of Marketing 5 Issues: What is a Market? Ultimately, the people, but also organizations with a desire to buy Who Markets? Almost all organizations What is Marketed? Goods (tangible), services (intangible) and ideas for profit or social causes (e.g. anti-smoking campaigns, breast cancer society). o Social Marketing. Marketing cause and programs and programs designed to influence the behaviour of individuals and benefit the society as a whole, but not the marketer

Who o o Who o

Buys and Uses what is Marketed? Ultimate Customers: Individuals Organizational Buyers: Organizational units Benefits? Buyers (Customers) and Society Competition rewards and punishes

HOW MARKETING DISCOVERS AND SATISFIES CONSUMER NEEDS Marketings first objective is Discovering Consumer Needs Consumer Needs and Consumer Wants o A need occurs when a person feels deprived of basic necessities (physiological: air, food, clothing, shelter ; psychological: self-esteem, respect) o A want is a need that is shaped by a persons knowledge, culture, and individual personality. Do consumers know what they need and want? o Needs: Physiological, food, clothing, shelter etc. o Wants: felt need shaped by knowledge, information, culture, personality, etc. Satisfying Consumer Needs Of all Customers (Organizations resources and size?) MISSING NOTES THE MARKETING PROGRAM Our Challenge We need to translate ideas for Constrained optimization not maximization HOW DID MARKETING BECOME SO IMPORTANT? Evolution of North American Business 7 Eras: 1. Production Era: Because goods were scarce, it was assumed products would sell themselves, so buyers would accept almost anything 2. Sales Era 3. Marketing Concept Era 4. Market Orientation

5. Customer Experience Management Era (CEM) 6. Social Media Marketing Era

Chapter 9
Part One: Market Segmentation, Targeting, and Positioning:

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WHAT DOES MARKET SEGMENTATION MEAN? Market segmentation involves aggregating prospective buyers into groups that: Have common needs, and Will respond similarly to a marketing action. Segmentation leads to homogeneous groupings And marketers have responded with product differentiation

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