Slide 1What is Marketing?Marketing DefinedA Simple Model of the Marketing ProcessSo What Do We Mean by Consumer Needs, Wants, and Demand?This is a NeedThis is a WantBut Not All Wants Represent Real DemandSo what does all this have to do with Marketing?Wait a second, what’s a Market??Slide 11Slide 12Slide 13A Value Proposition Is:Now, what else do Marketing Managers do?The Marketing MixSlide 17Chapter 1Marketing: Creating and Capturing Customer ValueBusiness Administration 332Dr. Mark MoonWhat is Marketing?Simple definition: managing profitable customer relationships Goals of Marketing activity:1. attract new customers by promising superior value 2. keep and grow current customers by delivering customer satisfaction 2Marketing Defined3A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.A Simple Model of the Marketing Process4Understand the marketplace and customer needs and wantsUnderstand the marketplace and customer needs and wantsCapture value from customers to create profits and customer equityCapture value from customers to create profits and customer equityCreate value for customers and build customer relationshipsCapture value from customers in return build profitable relationships and create customer delight build profitable relationships and create customer delight Construct a marketing program that delivers superior valueConstruct a marketing program that delivers superior valuedesign a customer driven marketing strategySo What Do We Mean by Consumer Needs, Wants, and Demand?5This is a Need6•A Need is a state of felt deprivation •Needs can be:• physical •Social belonging • individualThis is a Want7A Want is a form that a human need takes, as shaped by culture, individual personality, and (very importantly) marketing activity.But Not All Wants Represent Real Demand8DemandWantsBuying PowerSo what does all this have to do with Marketing?Needs and wants are fulfilled through a Marketing OfferSome combination of products, services , information, or experiences offered to a market to satisfy a need or a want.9These are all Marketing Offers, offered to a market, in order to satisfy individual or group needs or wantsWait a second, what’s a Market??A Market is the set of actual or potential buyers of a product or service These people share a need or want that can be satisfied through an exchange.10In this course, we’ll be describing the tasks of Marketing ManagersMarketing Managers have to address two very fundamental questions before they do anything else:1. What customers will we serve?(Which is the same as asking “ Who is in our target market?”)11This question is answered through the tasks of Segmentation and Targeting12Divide the market into segments of customers Market Segmentation:Select the segment to cultivate Targeting:#1 #2In this course, we’ll be describing the tasks of Marketing ManagersMarketing Managers have to address two very fundamental questions before they do anything else:2. How can we best serve these customer?13A Value Proposition Is: set of benefits or values that a company promises to deliver to consumers to satisfy their needs. Think about it this way:what does BMW offer its customer? 14Now, what else do Marketing Managers do?Well, once they’ve decided who the target market is, and what the value proposition should be, they have to figure out how to execute their marketing strategy.They execute this marketing strategy through set of tools known as the Marketing Mix15The Marketing Mix16Price Price Promotion Promotion Place Place (Distribution ) Place Place (Distribution ) Product CustomerNeedsFinally, here are some trends we’ll be touching on throughout the semester17Rapid GlobalizationThe Digital
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