Marketing

Marketing is Everything
- Regis McKenna, HBR, 1991

The End of Marketing

- Regis McKenna, Business 2.0, 2000

An Introduction to Marketing
Marketing defined: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. - American Marketing Association
(And hereafter regarding definitions)

Organizational Functions What do firms really do? Theories:

Economic - Financial Agency - Managerial Resource Allocation -Managerial Competitive Rationality - Marketing Adaptive Organization Managerial Transaction Function - Economic Knowledge-Based Cross-Functional
Information Processing Learning/Teaching

Where is MARKETING in all this?

Organizational Functions What do firms really do? Theories:

Economic - Financial Agency - Managerial Resource Allocation -Managerial Competitive Rationality - Marketing Adaptive Organization Managerial Transaction Function - Economic Knowledge-Based Cross-Functional
Intelligence Cycle Learning/Teaching

MARKETING

Knowledge-Based Theory of the Firm

An Introduction to Marketing
Marketing defined: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

The Fundamental Model

Value culture

VISION

Value creation and destruction

STRATEGY
Build FOCUS and Mind Share Segmentation Macro/Micro Methodology Targeting Size Dynamic Leverage Positioning Reason for Being Offering

OPERATIONS
Build TRUST and Access Share IT/IM Research/DD Distribution/Logistics

TACTICS
Build CAPABILITY and Market Share Four Ps (Concept/Creativity) Product/Promo/Price Place/ plus 1 + People Selling (Capture) B2B (Buyer-Seller/Promo) B2C (Advertising) C2C (Buzz/Virus/Referral) Differentiation Content (What) Context (How) Infrastructure (Enables)

VALUE
Build FRANCHISE and Heart Share Process Service Branding Value Indicator

Loyalty/Love

Belief/Behavior

Custom/Habituation

An Introduction to Marketing
Marketing defined: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

The Communication Process

Firm Intermediary; Customer

SENDER

MEDIUM

RECEIVER

Attitude: Self-Referencing Issues

Noise

Attitude: Cultural Filter Issues

Sponsor (sender) encodes message properly (or NOT) Sponsor sends message through the channel (medium) to the consumer (receiver). Consumer receives the message and decodes it into meaningful information (or NOT)

An Introduction to Marketing
Marketing defined: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Value can be expressed several ways. Three of the clearest are:

Benefits (total get) ---------Price (total give) Fb + Eb --------P + Oe or more specifically,

Value =

Value =

where,

Fb = Eb = P = Oe = Value =

Functional benefits (utility) Emotional benefits (psychology) Price (charged) for acquisition Other expenses/costs of acquisition and finally You answered my question! Solved my problem!

Classic Marketing Development Sequence

Time/Space

1930s Today

An Introduction to Marketing
Marketing defined: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

customer relationship management

A discipline in marketing combining database and computer technology with customer service and marketing communications.

Customer relationship management (or CRM) seeks to create more meaningful one-on-one customer communications by applying customer data (demographic, industry, buying history, etc.) to every communications vehicle.
At the simplest level, this would include personalizing e-mail or other communications with customer names. At a more complex level, CRM enables a company to produce a consistent, personalized marketing communication whether the customer sees an ad, visits a Web site, or calls customer service.

CRM

American Marketing Association

An Introduction to Marketing
Marketing defined: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Stakeholders
One of a group of publics with which a company must be concerned. Key stakeholders include consumers, employees, stockholders, suppliers, and others who have some relationship with the organization.

Overall Discussion and Questions

Syllabus and assignments Textbook Objectives What marketing is Who is involved in the course ____________________ ____________________ ____________________