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:One Important Fact I Want You to ALWAYS REMEMBERNow, what else do Marketing Managers do?The Marketing MixSlide 18Slide 19Chapter 1Marketing: Creating and Capturing Customer ValueDr. Mark MoonWhat is Marketing?Simple definition: Marketing is managing profitable customer relationshipsGoals of Marketing activity:1. 2. Keep and grow current customers by delivering customer satisfaction2Marketing 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 returnConstruct a marketing program that delivers superior valueConstruct a marketing program that delivers superior valueDesign a customer driven marketing strategyDesign a customer driven marketing strategyBuild profitable relationships and create customer delightBuild profitable relationships and create customer delightSo 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 (food, clothing, shelter, safety)• Social (belonging, affection)•Individual (learning, knowledge, self-expression)Hunger is a need. A piece of white toast will do just fine to satisfy this need.This is a Want7A Want is a form that a human need takes, as shaped by culture, individual personality, and (very importantly) marketing activityWhile white toast might satisfy my hunger need, I might really want a piece of that raspberry torte or chocolate cake!But Not All Wants Represent Real Demand8DemandBuying PowerWantsSo what does all this have to do with Marketing?Needs and wants are fulfilled through a Marketing OfferSome combination of products, services, experiences, 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 ManagersMarketing 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 Targeting12Market Segmentation:Targeting:#1 #2In this course, we’ll be describing the tasks of Marketing ManagersMarketing 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 ___________ ______________?”)2. How can we best serve these customer?(Which is the same as asking “What is our ______________ _________________?”)13A Value Proposition Is:The set of benefits or values that a company promises to deliver to consumers to satisfy their needs.14One Important Fact I Want You to ALWAYS REMEMBERCUSTOMERS NEVER BUY PRODUCTSTHEY BUY WAYS TO GET WHAT THEY WANTTO SOLVE PROBLEMSTO ACHIEVE GOALSNow, 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 Mix16The Marketing Mix17CustomerNeedsProductPricePromotionPlace(Distribution)Pay Particular Attention to Who Is In the Center of the Universe if You Are a Marketer18The CustomerFinally, here are some trends we’ll be touching on throughout the semester19The Digital Age Rapid