Opening Story Solve the Problem in a Marketing Way 2 What is Marketing 3 What Does CMO Do The Chief Marketing Officer CMO leads Sales management Product development Distribution channel ID: 649278
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Slide1
Session 1
Chapter 1-2
Marketing BasicsSlide2
Opening Story: Solve the Problem in a Marketing Way
2Slide3
What is Marketing?
3Slide4
What Does CMO Do?
The Chief Marketing Officer (CMO) leads:
Sales managementProduct developmentDistribution channel managementMarketing communications (including advertising and promotions
)
Pricing
Market research
Customer service
- From Wikipedia
4Slide5
What Do Others Say?
5Slide6
Various Definitions of Marketing
Meeting needs profitablyAn art and scienceDeliver a high standard of livingSeeking new ways to satisfy customer needs and beat competition
……6Slide7
A Formal Definition of Marketing
AMA Definition
Marketing is 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.7Slide8
Needs, Wants, and Demands
Needs:
The most basic concept underlying marketing is that of human needs.
Human needs are states of felt deprivation of some basic satisfaction.
Human have many complex needs:
8
Maslow’s Hierarchy of Needs, 1987Slide9
Needs, Wants, and Demands （
Cont.)
Wants:Want are the form taken by human needs as they are shaped by culture and individual personality.
People have almost unlimited wants but limited resources.
They want to choose products that provide the most value and satisfaction for their money.
Demands:
When backed by buying power, wants become demands.
Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.Slide10
What is Marketed?
Goods
(products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide11
What is Marketed?
Goods
(products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide12
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide13
A Combination of Goods & Services
13Slide14
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide15
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide16
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide17
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide18
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide19
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide20
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide21
What is Marketed?
Goods (products)
Services
Events
Experiences
Persons
Places
Properties
Organizations
Information
IdeasSlide22
What cannot be marketed?
22
What can be marketed?
Supply
Need
Where there is need and supply, there is a market!Slide23
1920’s
1930’s
1960’s
2000’s
2010’s
Cost
Quality
Sale
Consumer
Consumer
+
Society
生产观念
Production
产品观念
Product
销售观念
Selling
营销观念
Marketing
社会营销
Societal
Marketing
Evolution of Marketing ConceptSlide24
Production Concept
End of 19th century to 1920’s (1850s)
Assumption: Consumers
will favor products that are available and highly affordable
Management should therefore focus on cutting costs, and improving production and distribution efficiency
24Slide25
The New Beetle
Henry Ford on the Model T (early 1900s):
“You can get it in any color as long as it is black”
Coupe
Roadster
Sedan
Touring
TruckSlide26
Product Concept
~1930’s
Assumption: Consumers will favor high quality products
Management
should
focus on
quality,
developing innovative new products
26Slide27
Product Concept (examples)
Our basic function is to mill quality flour”
--Charles Pillsbury, Founder of Pillsbury
Dongfeng
motor partsSlide28
Selling Concept
~1960’sAssumption: Consumers
will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort.
“Sell
what we have. Creative advertising and selling will overcome consumers’ resistance and convince them to buy.”
Management should focus on
aggressive
selling efforts
28Slide29
Company
Product
Consumers
Hard Sell
Selling Concept (examples)
Slide30
Marketing Concept
2000’s~oversupply
Assumption:
“The consumer is king! Find a need and fill it (better than competitors can).”
Management should focus on
providing
greater value than competitors
30Slide31
Product vs. Marketing Orientation
Company
Product Concept
Marketing Concept
We make high-quality cameras.
We help preserve beautiful memories.
We offer the widest selection of books.
?
We produce high-quality OS and software for your desktop/laptop/server.
?
We make high quality, durable and fashionable blue jeans.
?Slide32
Societal Marketing Concept
2010’sAn organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being.
32
Consumers
Company
SocietySlide33
Societal Marketing
Concept
Example of Toms Shoes: One for One movement
Slide34
Societal Marketing
Concept
Example of Unilever: Sustainable Living Plan
Slide35
Two Basic Business Formulas
Consumer
Value = Benefits - Costs
Firm
Profit =
Sales
-
Costs
Product quality, packaging, gift, service, warranty…
Price (money)
Time
Effort (inconvenience)
Consumer seeks to maximize
value
.
Quantity × Price
=
Manufacturing cost
Service cost
Marketing cost
Other costs
Firm seeks to maximize
profit
.
35Slide36
How to Deliver Value – Value Chain
Porter, 1985
36Slide37
Implications from Value Chain Analysis
Competitive advantage results from superior performance in specific activitiesSelective focus
37Slide38
Core Competencies
A source of competitive advantageApplications in a wide variety of markets
Difficult to imitateSlide39
Marketing Process Activities
39
Understand the organization’s mission
Set marketing objectives
Gather, analyze, interpret “SWOT” information
Develop a marketing strategy
Implement the marketing strategy
Design performance measures
Evaluate marketing efforts--change if neededSlide40
Take Away
Think broadly! Open your eyes, open your MIND!USE marketing for your daily life!
40