Slide 1MarketingEvolution of ‘The Customer Orientation’The Marketing EnvironmentCustomer ‘Utility Functions’Utility Value Theory - Functions‘Exchange of Value’ Marketing Theory‘Exchange of Value’ - the Exchange Functions -Slide 9Slide 10MarketsConsumer Buying BehaviorMarketing SegmentationRoles of the Marketing Environment & ‘Marketing Mix’Undifferentiated Approach for Selecting Target MarketsConcentrated Approach for Selecting Target MarketsDifferentiated Market Segment ApproachThe ‘PPPP’ Marketing MixSlide 19What is a Product?Product BenefitsConsumer and Business ProductsCharacteristics of Consumer ProductsThe Product Life-CycleThe Product Life-CycleProduct Line and Product MixManaging the Product MixPhases of New-Product DevelopmentWhy Do Products Fail ?BrandingTypes of BrandsChoosing and Protecting a BrandBranding StrategiesBuilding BrandsBenefits of BrandingPackagingLabelingSlide 38PricingPerceived ValueImpact of Elasticity on DemandPricing ObjectivesMore Pricing ObjectivesPricing Method ExamplesBreakeven AnalysisLimits to Price SettingProfit OptimizationTypes of Pricing StrategiesConsiderations in Pricing ProductsSlide 50Slide 51Marketing Channels or Channels of DistributionConsumer Products ‘Channels’ & ‘Middlemen’Business Products ‘Channels’ & ‘Middlemen’Access and Efficiencies Provided by ‘Middlemen’Marketing ‘Middlemen’Market CoverageThe Role of RetailingNon-store RetailingMore Non-store RetailingIn-store RetailersMore In-store RetailersTypes of WholesalersPartnering through Supply Chain ManagementPhysical DistributionPhysical Distribution (2)Physical Distribution (3)Managing Marketing ChannelsSlide 69PromotionRoles of PromotionThe Promotion MixIngredients for a Promotional MixAdvertisingAdvertising MediaWorldwide Ad Spending by Medium – Internet is Now #2Advertising Development and EvaluationSales PromotionImportant Sales Promotion MethodsPersonal Selling and Kinds of SalespersonsThe Personal-Selling ProcessPublic RelationsPublicityUses of Public RelationsMarketing Communications PlanningIntegrated Marketing CommunicationsSlide 87Marketing Strategy Implementation StepsMarketing InformationMarketing Information Flows Into & Out of an OrganizationStages of the Marketing Research ProcessThe Customer Experience RevolutionRelationship MarketingCustomer SatisfactionCustomer ServiceBuilding a ‘Service Climate’Marketing SegmentsCriteria for Effective SegmentationCriteria for Effective SegmentationDeveloping a Segmentation StrategyThe ‘Marketing Mix’Marketing PlanView to the MarketMeasuring Market ShareMarketing Implementation SummarySlide 106X100 ©2016 KEAW R4 X100Introduction to BusinessX100Introduction to BusinessMarketing Review for Exam #4 Lectures 16 thru 21 Marketing Review for Exam #4 Lectures 16 thru 21 Professor Robert L GrimmProfessor Kenneth EA Wendeln Professor Robert L GrimmProfessor Kenneth EA WendelnX100 Marketing Introduction - Utility, Customers & Markets R4-2 MarketingThe process of determining customer wants and needs . . . . then providing customers with goods and services that meet or exceed their expectations." Find a Need . . .. . . and Fill It "X100 Marketing Introduction - Utility, Customers & MarketsEvolution of ‘The Customer Orientation’Business managers recognized they were not primarily producers or sellers – but rather were in the business of satisfying customers’ needsProduct Orientation•Take orders•Distribute goodsSales Orientation•Increase advertising•Enlarge sales force•Intensify sales techniquesCustomer Orientation•Determine customer needs•Develop products to fill these needs•Achieve organization’s goalsR4-3X100 Marketing Introduction - Utility, Customers & MarketsMarketingEnvironmentMarketingMixThe Marketing EnvironmentEconomic• GDP• Disposable incomeCustomersGlobal• Trade agreements• Internet Regulatory• Legal• Codes Technology• Computers• Communications• Biomedical Sociocultural• Attitudes• Populations• Trends/Shifts Competitive• Selection• Price• Service Political• Taxation• Incentives• Spending R4-4X100 Marketing Introduction - Utility, Customers & MarketsCustomer ‘Utility Functions’Utility ValueCustomersFormUtilityPlaceUtilityTimeUtilityPossessionUtilityR4-5X100 Marketing Introduction - Utility, Customers & MarketsUtility ValueTheory - FunctionsFORM Utility — created by converting production inputs into finished products (or services) that can be used by customers.PLACE Utility — created by making a product available at a location where customers wish to purchase it.TIME Utility — created by making a product available when customers wish to purchase it.POSSESSION Utility — created by transferring title (or ownership) of a product to the buyer.Utility is the ability of a good or service to satisfy a human need.R4-6X100 Marketing Introduction - Utility, Customers & Markets‘Exchange of Value’ Marketing TheoryExchange FunctionsPhysical Distribution FunctionsFacilitating FunctionsMarketing involves an exchange of value – between the buyer & the seller – and how to maximize the value of the exchange.Marketing facilitates & attempts to satisfy these needs profitably !R4-7X100 Marketing Introduction - Utility, Customers & Markets‘Exchange of Value’ - the Exchange Functions -1. Buying – includes obtaining raw materials and services to make productsKnowing which and how much merchandise to keep on handSelecting suppliers2. Selling –Creates ‘possession’ utilityTransfers title of product from seller to customerAll companies – manufacturers, wholesalers and retailers – buy and sell to market their merchandise and services.R4-8X100 Marketing Introduction - Utility, Customers & Markets‘Exchange of Value’ -Physical Distribution Functions-3. Inventory and storing –Often necessary to sell goods at the best timeAlso important to the level of customer service4. Transporting – Selection and mode of transportProvides an acceptable delivery at and acceptable priceInvolves the flow of goods and services from producers to customers. Transportation & storage provide time and place utilities.R4-9X100 Marketing Introduction - Utility, Customers &