Value
COURSE #1
Daniela Ionita,
Lecturer - Marketing Department
Objectives
Define marketing and other key
concepts
Identify different marketing
orientations
Describe major trends and forces
What is marketing?
1935 1985
Marketing is
the
performance
of business
activities that
direct the flow
of goods and
services from
producers to
consumers.
1985 2004
Marketing is
the process of
planning and
executing the
conception,
pricing,
promotion,
and
distribution of
ideas, goods
and services
to create
exchanges
that satisfy
individual and
organizational
objectives.
2004 now
Marketing is
the activity,
set of
institutions,
and processes
for creating,
communicatin
g, delivering,
and
exchanging
offerings that
have value for
customers,
partners, and
society at
large.
The Product
Concept
The Selling
Concept
Consumers favor
products offering the
most quality,
performance, or
innovative features
(perfect product).
Bettermousetrap
fallacy (better
product will by itself
lead people to beat
a path to their door.
A new or improved
product will not
necessarily be
successful).
Consumers, if left
alone, wont buy
enough of the
organizations
products.
Based on hard
selling -> risky. It
assumes customers
coaxed into buying a
product not only
wont return or badmouth it but might
even buy it again.
Makes sense when
firms with
overcapacity aim
to sell what they
make, rather than
make what the
market wants.
The Societal
Marketing Concept
Conflicts between
consumer short-run
wants and consumer
long-run welfare.
Deliver value to
customers in a way that
maintains both
consumer and
society well being
Sustainable marketing
= socially and
environmentally
responsible marketing
that meets the present Company
needs while preserving (profits)
the ability of future
generations to meet
their needs.
Society
(human
welfare)
Societal
marketi
ng
concept
Consume
rs (want
satisfacti
on)
SERVICES - the work of airlines, hotels, car rental firms, barbers and beauticians,
maintenance and repair people, accountants, bankers, lawyers, engineers,
doctors, software programmers, and management consultants. Many market
offerings mix goods and services, such as a fast-food meal (advanced economies:
7030 services-to-goods mix)
EXPERIENCES
Americans have changed their lifestyles in many different ways to make ends
meet during this recession. Seventy-one percent have bought less expensive
brands, 57% have cut back or canceled vacation plans, 3 in 10 have cut back
on alcohol or cigarette consumption and 24% among adults ages 18 to 29
have moved back in with their parents. Coupled with this economic imperative
is a willful desire for a simpler, more meaningful and less acquisitive lifestyle
(www.forbes.com).
Companies have aligned their marketing strategies emphasizing value (value
for money, practicality, durability)
4) Rapid globalization
The world is shrinking rapidly with the
advent of faster communication
and transportation
->global trade grows
-> global competition intensifies
-> firms that stay at home to play it
safe might not only lose their
chances to enter other markets
but also risk losing their home
markets.
Challenges: unstable governments
and currencies, restrictive policies
and regulations, high trade
barriers
5)Sustainable marketing
the call for more social
responsibility
Consumerist + environmentalism movements are forcing
marketers to reexamine their relationships with social values
and natural environment
Some are practicing caring capitalism; others are resisting such
movements and comply only when forced by legislation
Sustainable marketing = an opportunity to do well by doing good.
E.g. Unilever Sustainable Living Plan (Dove, Lipton, Omo, Rexona,
Knorr, Cif, , Domestos, Rama, Signal)
Relationship vs Traditional
Model of Selling
(5) Markets
Traditionally, a market was a physical place
where buyers and sellers gathered to buy and sell
goods. Economists describe a market as a
collection of buyers and sellers who transact over a
particular product or product class.
Marketers use the term market to cover various
groupings of customers. They view sellers as
constituting the industry and buyers as
constituting the market. They talk about
product markets (the shoe market), demographic
markets (the youth market), and geographic
markets (the Chinese market);
A simple marketing
system
Business Markets
Companies selling business goods and services often face well-informed professional buyers
skilled at evaluating competitive offerings. Business buyers buy goods to make or resell a
product to others at a profit. Business marketers must demonstrate how their products will
help achieve higher revenue or lower costs. Advertising can play a role, but the sales
force, the price, and the companys reputation may play a greater one.
Evaluation system
100 points 35 points (seminars)
65 points (exam)
Seminars:
- 2 case studies (2 x 5 points)
= 10 points
- Mid-term project (mkt program) = 10 points
- Final project (product-market analysis) =
15 points
TOTAL = 35 points