Marketing  Promotion  AdvertisingMarketing (1)Marketing (2)Marketing (3)Marketing (4)Marketing (5)Marketing (6)ValueCustomerOrganizationStakeholder4 Key PointsMarketing MixMarketing Mix (cont.)ProductProduct (cont.)An ExamplePricePlace (Distribution)Promotion MixPersonal SellingSales PromotionPublic RelationsPublicityAdvertisingSlide 26Slide 27Key PointsRecommended ResourceMarketing  Promotion  AdvertisingJOMC 170Principles of Advertising01-MKT-PROMO-ADV.pptMarketing (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 ValueCustomer•The actual or prospective purchaser of products or services. (AMA)–Create value for customers–Communicate value to customers–Deliver value to customersOrganization•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•General Motors–Cars, Trucks, Parts (Buick, Pontiac, etc.)•AC Delco parts•Hummer H3–Mr. Goodwrench, GMAC, OnStar•Products–Goods•Packaged goods•Durable goods–ServicesPrice•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