Marketing Promotion Advertising JOMC 170 Principles of Advertising 01 MKT PROMO ADV ppt Marketing 1 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 goals AMA 1985 Marketing 2 Marketing is the core business philosophy which directs the processes of identifying and fulfilling the needs of individuals and organizations through exchanges which create superior value for all parties World Marketing Association Marketing 3 Marketing is the management process for identifying anticipating and satisfying customer requirements profitably Chartered Institute of Marketing UK Marketing 4 Marketing means solving customers problems profitably Randall Chapman 2003 Marketing 5 Marketing and innovation are the two chief functions of business You get paid for creating a customer which is marketing And you get paid for creating a new dimension of performance which is innovation Everything else is a cost center Peter Drucker Marketing 6 Marketing is an organizational function and a set of processes for creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders AMA adopted 2004 Value The power of any good to command other goods in peaceful and voluntary exchange AMA Create Value Communicate Value Deliver Value Customer The actual or prospective purchaser of products or services AMA Create value for customers Communicate value to customers Deliver value to customers Organization When used as a noun organization implies the framework or structure within which people are assigned to positions and their work coordinated in order to carry out plans and achieve goals AMA Marketing benefits the organization in addition to the customer Stakeholder One of a group of publics with which a company must be concerned Key stakeholders include consumers employees stockholders suppliers and others who have some relationship with the organization AMA Marketing benefits other stakeholders in addition to the customer 4 Key Points Marketing is a process function Marketing is value oriented Marketing is consumer oriented Marketing seeks to satisfy organizational objectives Marketing Mix The mix of controllable marketing variables that the firm uses to pursue the desired level of sales in the target market AMA The most common classification of these factors is the four factor classification called the Four Ps price product promotion and place or distribution AMA Marketing Mix cont Optimization of the marketing mix is achieved by assigning the amount of the marketing budget to be spent on each element of the marketing mix so as to maximize the total contribution to the firm AMA Contribution may be measured in terms of sales or profits or in terms of any other organizational goals AMA Product A bundle of attributes features functions benefits and uses capable of exchange or use usually a mix of tangible and intangible forms Thus a product may be an idea a physical entity a good or a service or any combination of the three It exists for the purpose of exchange in the satisfaction of individual and organizational objectives AMA Product cont Occasional usage today implies a definition of product as that bundle of attributes for which the exchange or use primarily concerns the physical or tangible form in contrast to a service in which the seller buyer or user is primarily interested in the intangible Though to speak of products and services is convenient it leaves us without a term to apply to the set of the two combined The term for tangible products is goods and it should be used with services to make the tangible intangible pair as subsets of the term product AMA An Example Products Goods General Motors Cars Trucks Parts Buick Pontiac etc Packaged goods AC Delco parts Durable goods Hummer H3 Services Mr Goodwrench GMAC OnStar Price The formal ratio that indicates the quantities of money goods or services needed to acquire a given quantity of goods or services AMA Place Distribution marketing definition The marketing and carrying of products to consumers AMA business definition The extent of market coverage AMA Promotion Mix The various communication techniques such as advertising personal selling sales promotion and public relations product publicity available to a marketer that are combined to achieve specific goals AMA Personal Selling Selling that involves a face to face interaction with the customer AMA Sales Promotion The media and nonmedia marketing pressure applied for a predetermined limited period of time at the level of consumer retailer or wholesaler in order to stimulate trial increase consumer demand or improve product availability AMA Public Relations That form of communication management that seeks to make use of publicity and other nonpaid forms of promotion and information to influence the feelings opinions or beliefs about the company its products or services or about the value of the product or service or the activities of the organization to buyers prospects or other stakeholders AMA Publicity The non paid for communication of information about the company or product generally in some media form AMA Advertising Advertising may be described as the science of arresting human intelligence long enough to get money from it Stephen Leacock Advertising is the rattling of a stick inside a swill bucket George Orwell Advertising is legalized lying H G Wells Advertising The placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms nonprofit organizations government agencies and individuals who seek to inform and or persuade members of a particular target market or audience about their products services organizations or ideas AMA Advertising Any paid form of nonpersonal communication about an organization product service or idea by an identified sponsor Belch Belch Marketing messages in paid media Bendinger et al A paid mass mediated attempt to persuade O Guinn Allen Semenik Key Points Paid Mediated Identified Marketing message Recommended Resource AMA American Marketing Association For an excellent dictionary of marketing promotion and advertising terms go to http www marketingpower com mg dictionary php