MKTG 360 1nd Edition Lecture 2 Outline of Last Lecture 1. What is Marketing2. American Marketing Association Definitions3. Needs, Wants, and StakeholdersOutline of Current Lecture 1. Utility and Value2. Value from different perspectives3. The value chain4. Needs and values5. What can be marketed?Current Lecture1. Utility and Valuea. Utility/Valuei. Sum of benefits we receive from a productii. Can be symbolic (prestige)b. Types of Utilityi. Form (Convert raw materials into product)ii. Place (Make product/service available when customers want them)iii. Time (storing product until customer needs it)iv. Possession (benefit from owning, using, enjoying product)c. Value Propositioni. Marketplace offering that fairly and accurately sums up value realized if customer buys product or serviced. Temporal Construal Theory- differentiates between distance future and near future2. Value from different perspectivesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a. Value (from Customer’s Perspective)i. Sum of benefits we receive from a productb. Value (from Seller’s Perspective)i. Profits…but also, prestige, pride, making community happyii. Lifetime value of a customeriii. How much is this customer worth to us in the long-term?iv. Long-term thinking à develop relationships with customersc. Value (to Stakeholders)i. Created when company has competitive advantage over rivalsii. Distinctive competency (company’s superior capability)iii. Differential benefit (unique benefit of product)d. Value (to Society)i. What is the impact of product/service on society?e. Triple Bottom Linei. Financial + social/community + environmental impacts3. The Value Chaina. In-bound logisticsi. Bringing in raw materialsb. Operationsi. Converting raw materials into productc. Outbound logisticsi. Shipping out final productd. Servicing product or customer4. Needs and Valuesa. Maslow’s Hierarchyb. McClelland’s Trioi. McClelland (1950s)1. Powera. Individual’s desire to control environment2. Achievementa. Need for personal accomplishment3. Affiliationa. Need for friendship, acceptance, and belongingii. Deci & Ryan (2000)1. Autonomya. Desire freedom from external control2. Competencea. need to feel one is competent at tasks3. Relatednessa. need to relate to othersc. Deci & Ryan’s Self-Determination Theoryd. Schwartz’s Universal Value Systemi. Self-Transcendenceii. Conservationiii. Self-enhancementiv. Openness to change5. What can be marketed?a. Productsb. Servicesc. Peopled. Placese. Business-to-Businessf. Not-for-profitg.