Defining Marketing

1. Defining Marketing • Marketing • The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment. • Practically speaking, what do you think is the most important aspect of this definition? • Customers • The purchasers of organizations’ products; the focal point of all marketing activities.

2. Componentsof Strategic Marketing What is the focus of marketing? What can the marketer (not) control? Why do marketers need to monitor the environment?

3. Marketing Focuses on Customers • Target Market • A specific group of customers on whom an organization focuses its marketing efforts • Large or small customer groups • Single or multiple product markets • Single or multiple products • Local to global markets • How would you describe the target market for championship wrestling?

4. Marketing Deals with Products, Distribution, Promotion, and Price • The Marketing Mix • Four marketing activities—product, distribution, promotion, and pricing—that a firm can control to meet the needs of customers within its target market TargetMarket Product Distribution Promotion Pricing

5. Marketing Mix Variables Product Goods, services, or ideas that satisfy customer needs The ready, convenient, and timely availability of products Distribution Promotion Activities that inform customers about the organization and its products Pricing Decisions and actions that establish pricing objectives and policies and set product prices Describe the marketing mix that Baylor is currently employing.

6. Marketing Builds Satisfying Exchange Relationships • Exchange: The provision or transfer of goods, services, or ideas in return for something of value • What do you give up & what do you get when you go to a game? FIGURE 1.2

7. Marketing Builds Satisfying Exchange Relationships (cont’d) Why don’t some people go to games? • Exchange Conditions • Two or more participants have something of value that the other party desires. • Each party has confidence in the exchange value of the other party’s offering. • Each party must meet the expectations of the exchange to become trusted by the other parties. • Exchange provides mutual benefit/satisfaction.

8. Marketing Occurs in a Dynamic Environment • Marketing Concept • A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals • Customer satisfaction • Analysis of customers’ current and long-term needs • Analysis of competitors’ capabilities • Integration of firm’s resources • If a firm is using the marketing concept, what firm activities does it affect?

9. Evolution of the Marketing Concept ProductOrientation Late 19th century: efficient production of goods allowed firms to meet strong customer demand. Mid-1920s–early 1950s: weakened demand required that products would have to be “sold.” (personal selling, advertising, and distribution was the focus) SalesOrientation MarketingOrientation Early 1950s–2000s: adopting a customer focus means a commitment to researching and responding to customer needs. Sports organizations are behind the curve…many still in sales era..

10. Implementing the Marketing Concept • Becoming marketing oriented requires • Generation of market intelligence pertaining to current & future customer needs • Dissemination of the intelligence across departments, and • Organization-wide responsiveness to it. How do firms generate market intelligence?

11. Managing Customer Relationships • Relationship Marketing • Establishing long-term, mutually satisfying buyer-seller relationships allowing for cooperation and mutual dependency • Increased value of customer (loyalty) over time results in increased profitability. • How important is this in determining where you shop or eat?

12. Managing Customer Relationships (cont’d) • Customer Relationship Management (CRM) • Using information about customers to create marketing strategies that develop and sustain desirable customer relationships • Identifying buying-behavior patterns of customers • Using behavioral information to focus on the most profitable customers… • What kinds of information would be critical for sports marketing organizations to achieve its CRM objectives?

13. Value-Driven Marketing • Value.…What do fans value about games? • A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product • Customer value = customer benefits – customer costs • Customer benefits: Anything desired by the customer that is received in an exchange • Customer costs: Anything a customer gives up in an exchange for benefits • Monetary price of the benefit • Search costs (time and effort) to locate the product • Risks associated with the exchange

14. Marketing Management • Marketing Management • The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently • Effectiveness: The degree to which an exchange helps an organization achieve its objectives • Efficiency: The process of minimizing the resources an organization must spend to achieve a specific level of desired exchanges • Has anyone seen some poor examples of marketing management at work in Waco?

15. Marketing Management (cont’d) Control • Establishing performance standards • Comparing actual performance to established standards • Reducing the difference between desired and actual performance • Why is it important to set objectives?

16. Effective Marketing Control Process • provides for quick detection of differences in planned and actual performance. • accurately monitors activities and is flexible enough to accommodate changes. • incurs low process costs relative to the costs of a “no-control” situation. • is understandable by both managers and subordinates. How should the process of control work in the classroom?

17. The end.

18. Percentage of Sales Online by Retail Segment Source: Investor’s Business Daily, Wednesday, September 5, 2001, p. A6. Used with Permission.

19. Starting Salaries for College Graduates Source: American Demographics, December 2000, p. 27. Adapted with permission.