Needs: The recognition of any difference between a consumer’s actual state and some ideal or desired stateWants: The desire to satisfy needs in specific ways that are culturally and socially influencedBenefit The outcome sought by a customer that motivates buying behavior that satisfies a need or wantExchange: The process by which some transfer of value occurs between a buyer and sellerDemand: Customers’ desires for products coupled with the resources needed to obtain themMarket: All of the customers who share a common need that can be satisfied by a specific product and who have the resources, willingness and authority to make the purchaseStakeholders: Any person or organizations that has a “stake” in the outcomeBuyers, sellers, investors, residents, and citizensConsumer: Ultimate user of a good or serviceMarketing Concept: A management orientation that focuses on identifying and satisfying consumer needs to ensure the organization’s long-term profitabilityUtility: The sum of the benefits we receive when we used a good or serviceUtility is what creates valuei. Types1. Form utilitya. The benefit marketing provides by transforming raw materials into finished products2. Place utilitya. The benefit marketing provides by making products available where customers want them3. Time utilitya. Storing products until they are needed4. Possession utilitya. Allowing the customer to own, use, and enjoy the productLecture 2Major Marketing OrientationsProduct OrientationEmphasizes the most efficient ways to produce and distribute productsDemand is greater than supplySeller’s marketMarketing plays an insignificant roleA good product will sell itselfHenry Ford Model TConsumers take whatever is availableFirms that focus on a production orientation view the market as a homogeneous group that will be satisfied with the basic function of a productSelling OrientationMarketing as a sales function or a way to move products out of warehouses to reduce inventoryWhen supply is greater than demandBuyer’s marketFocuses on company’s needsMarket: target everyoneMain goal: profits through salesAchieved by intensive promotion“hard sell”: salespeople aggressively push their waresGained in popularity in WWIICompanies that follow a selling orientation tend to be more successful at making one-time sales rather than at building repeat businessCustomer Orientation (consumer/market)Prioritizes the satisfaction of customer’s needs and wantsStrong buyer’s market created need for consumer orientationSatisfy customerMarket: target smaller segmentsProfit through customer satisfactionAchieved through coordinated marketingTotal Quality ManagementInvolves all employees from the assembly line onward in continuous product quality improvementNew Era Orientation (Triple Bottom Line)People, Planet, ProfitBuild long term relationships with customersCustomer relationship managementTracking preferences and tailoring the value proposition to each individual’s unique wants and needsSocial marketing conceptMarketers must satisfy customer’s needs in ways that also benefit society and also deliver profit to the firmSustainabilityGreen MarketingReturn on InvestmentLecture 3Products, services, people, places, business-to-business, and causes can all be marketedValueValue PropositionMarketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchasedTemporal Construal TheoryDifferences between distant future and near futureValues from different perspectivesValue from customers perspectiveSum of benefits we receive from a productValue from the sellers perspectiveProfitsPrestige, pride and making community happyLifetime value of a customerLong-term thinkingDevelop relationships with customerValue to stakeholdersCreated when company has competitive advantageDistinctive competencyA superior capability of a firm in comparison to its direct competitorsDifferential benefitValue that competitors don’t offerProvides unique customer benefitsValue to societyWhat is the impact of the product/service on society?Value ChainInbound logisticsBringing in materials to make the productOperationsConverting the materials into the final productOutbound logisticsShipping out the final productMarketingPromoting and selling the final productServiceMeeting the customer’s needs by providing any additional support requiredNeeds and ValuesMaslow’s Hierarchy of NeedsPhysiological, safety, social, esteem, self-actualizationMcClelland’s Trio of NeedsPowerIndividual’s desire to control environmentAchievementNeed for personal accomplishmentAffiliationNeed for friendship, acceptance and belongingDeci and Ryan’s Self-Determination TheoryAutonomyDesire freedom from external controlCompetenceNeed to feel one is competent at tasksRelatednessNeed to relate to othersSchwarts Value SystemSelf-transcendenceOpenness to changeSelf-enhancementConservationThe Marketing Mix consists of the tools the organization uses to create a desired response among a set of predefined consumersFour P’sProductWhatever is offered for sale in the exchangeIncludes the design and packaging of a good and delivery“What will we produce and for whom”PriceWhat is the charge?PromotionHow will we inform and encourage customers to buy our product?PlaceThe availability of the product to the customer at the desired time and locationSupply chainSet of firms that work together to get a product from a producer to a consumerWhy study marketing?Plays an important role in societyPromoted efficient transfer of desired products to meet needsCan be used to promote worthwhile social causesFundamental to the success of businessesAssessing needs, designing products, pricing product, promoting products, distributing strategies, servicing customerGreat career opportunities25-33% oh people perform marketing related activitiesMarketing affects your EverydayBecome a wiser consumerLecture 4The Business Pan- Ongoing process of making decisions that guides the firm both in the short term and for the long runStrategic PlanningManagerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival5 stepsDefine the MissionMissions StatementFormal statement in an organiation’s strategic plan that describes overall purpose of organization and what it plans to achieve in trems of customers, products, resourcesEvaluate internal and external environment