1-What is Marketing

1 Instructor: Dr. Irfan Butt (IB) Principles of Marketing.

Principles of Marketing ANTHONY FRANCESCUCCI,• JOANNE MCNEISH; AND NCJKHET TAYLOR RYERSON UNIVERSITY.

CHAPTER 1 - WHAT IS MARKETING? 1.1 Defining Marketing 1.2 Why Study Marketing? 1.3 Themes 1.4 Discussion Questions and Activities.

1.1 Defining Marketing Creating Value Communicating Value Delivering Value Exchanging Value The 4 Ps Product/Service Strategy Price Strategy Promotion Strategy Place (Distribution) Strategy Marketing Concept market oriented production oriented selling oriented product orientation market orientation value orientation Key Aspects of Marketing 1 Marketing helps create value 2 Marketing is about satisfying customer needs and wants 3 Marketing always entails an exchange between parties 4 Marketing requires marketing mix decisions 5 Marketing can be performed by both companies & individuals 6 Marketing occurs in many situations 1.2 Why Study Marketing Marketing Delivers Value 1.3 Themes Marketing's Role in the Organization Everything starts with customers IBM Coca-Cola Pfizer Interface Carpet and Flooring Products The Changing Environment Criticism of Marketing Sustainability Ethics and social responsibility Service-dominant logic Metrics A global environment.

5 What is Marketing?.

6 6 Copyright © 2015 Pearson Canada Inc. Marketing is Selling.

7 7 Copyright © 2015 Pearson Canada Inc. Marketing is Advertising.

8 8 Copyright © 2015 Pearson Canada Inc. Marketing is Sales Promotion.

9 Marketing is all around you Traditional Media.

10 Marketing is all around you Digital Media.

11 Marketing is defined by the American Marketing Association as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”.

12 Marketing is defined by the American Marketing Association as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” What is an Offering?.

13 What We Can Market 13 Offering.

14 Marketing is defined by the American Marketing Association as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” What is meant by Value?.

15 1 5.

16 1 6 What customers get What customers give up Fulfills the NEED for which the product/service was purchased.

17 1 7.

18 1 8 value = benefits received – [price + non-financial costs].

19 1 9 Will Exchange Take Place? No Why Not?.

20 2 0 Will Exchange Take Place? Yes Why?.

21 • Marketing is defined as a Process by which A. companies create value for customers, and B. build strong customer relationships C. in order to capture value from customers in return. Marketing Defined.

22 2 2 Companies create value for customers by offering products, services, and experiences that meet their needs, solve problems, or enhance their lives..

The traditional way of viewing the components of marketing is via the four Ps (marketing mix): ü Product ü Price ü Place (Distribution) ü Promotion.

Target Market.

A. Product: The goods or services offered by a business to meet the needs and desires of customers. B. Price: The amount of money customers must pay to purchase a product or service, reflecting its value, demand, and competitive positioning. C. Promotion: The activities and communication strategies used to inform, persuade, and remind customers about a product, including advertising, sales promotions, and public relations. D. Place: The distribution channels and locations through which a product or service reaches customers, ensuring its availability in the right place at the right time..

Preparing an Integrated Marketing Plan and Program Place Channels Coverage Transportation Logistics Location Promotion Advertising Personal Selling Sales Promotion Public Relations Digital Media Price List Price Discounts Credit Skimming Penetration Product Design Quality Brand Feature Services.

27 Marketing Management Orientation Marketing Management Philosophies.

28 Marketing Management Orientation.

Chapter 1 Marketing: Creating and Capturing Customer Value 29 29 Copyright © 2017 Pearson Canada Inc. Marketing Management Orientations • Selling and Marketing Concepts:.

Marketing helps create value • Value is always considered from the customers’ perspective. • Value is the difference between what the customer gets for what they give up. • The value equation is shaped by marketing efforts..

Crafting Customer Value Through Strategic Marketing Approaches Pricing Strategy Setting prices to reflect the value offered and influence customer perception. PRICE RÄR Distribution Decisions Determining how products reach customers to ensure availability and convenience. Product Development The process of creating products that meet customer needs and expectations. Promotional Communication Communicating value through marketing messages to inform and engage customers..

Marketing is about satisfying customer needs and wants.

Chapter 1 Marketing: Creating and Capturing Customer Value 33 33 Copyright © 2017 Pearson Canada Inc. Human Need 1.Physical Needs • Food, clothing, warmth, and safety 2. Social Needs • Belonging and affection 3. Individual • Knowledge and self-expression.

34 What is difference between Need and Want?.

35 What is your FAVORITE Food?.

36 36 Copyright © 2015 Pearson Canada Inc. HUMAN NEED § Difference between customers actual condition and their desired conditions. HUMAN WANTS § The form taken by human needs as they are shaped by the culture, society & individual personality. § Wants are the objects that will satisfy human needs..

37 37 Copyright © 2015 Pearson Canada Inc. A KEY LESSON § Same need can be satisfied in different ways § There is always an opportunity to offer a different product.

38 38 Copyright © 2015 Pearson Canada Inc. Demand § Human wants that are backed by buying power..

39 39 Copyright © 2015 Pearson Canada Inc. Knowledge Test.

40 1. Basic human requirements: air, food, water, clothing, shelter 2. Objects that might satisfy the needs 3. Wants for specific products backed by an ability to pay Needs, Wants, and Demands Need Want Demand.

Marketing always entails an exchange between parties.

The Dynamics of Value Exchange in Marketing Transactions Value Exchange The mutual benefit gained from Goods/Services The items or services exchanged between the parties. Buyer The party seeking goods or services in the exchange. Seller The party offering goods or services to the buyer..

Marketing requires marketing mix decisions.

How to optimize the marketing mix? Produce Strategy Focus on the features and benefits that meet customer needs. Price Strategy Set price that reflects value and attracts target customers. Place Strategy Ensure product availability in the right locations. Promotion Strategy Communicate value effectively to the target audience..

Marketing can be performed by both companies and individuals.

Market to Consumers Example: Dell Businesses Market to Other Businesses Example: Source Furniture Resale Sites Consumer-to- Consumer Marketing Examples: Kijiji, eBay, Craigslist.

Marketing occurs in many situations.

Diverse Marketing Strategies Industry-Wide Marketing Marketing campaigns coordinated by trade associations for member companies Non-Profit Marketing Marketing efforts by non-profit organizations to raise funds or awareness.

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Marketing Delivers Value.