Marketing and Selling

1. Marketing and Selling Introduction to Marketing

2. Definitions of Marketing AMA: Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or users. (1970s) Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives. (1985) 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. (2006)

3. Marketing Tasks Entrepreneurial Stages of Marketing Formulated Intrepreneurial

4. Goods Services Experiences Events Persons Examples?? Places Properties Organizations Information Ideas What Can Be Marketed?

5. Target markets and market segmentation Marketplace, market-space, metamarkets Marketers & prospects Needs, wants, demands Product offering and brand Value and satisfaction Exchange and transactions Relationship and networks Marketing channels Supply chain Competition Marketing environment Marketing program Core Marketing Concepts www.edmunds.com Value = Benefit/Costs =functional benefits + emotional benefitsmonetary + time + energy + psychic costs

6. Market Driving Strategy Market Driven Strategy • Buyer perceptions, preferences, and decision making define competition; all three depend on the strategies brands pursue • The customer is the driving force in creating strategy • Successfully meeting customer needs requires segmentation, targeting, and positioning • Competition is a battle over the structure of customer perceptions, preferences, and decision making • Competitive advantage arises by meeting customer needs better than customers • Competitive advantage arises from shaping buyer decision making and competition 美国普度大学 刘秀明

7. Market-Driven Strategies Market-Driving Strategies Nature of Product/Service Incremental change Break though New platform offering Innovation Extension of current offerings Target Customer Customer satisfaction/delight New target group Value Propositions Latent/potential Clearly anticipated Quantitative methods （e.g. customer survey; market test） Market Research Qualitative methods （e.g. ethnographic study on pioneers; focus group study)

8. Quantum leap of customer value Current competitive sphere Hi Benefit – Cost needed Market-driving firms • • • • • • Equivalence Line Lo Hi Lo Price 美国普度大学 刘秀明

9. Marketplace (P) vs. Marketspace (S) Customer Acquisition Customer Generation Customer Retention Example: department store Storefront display Advertising and promotion:radio, newspaper,direct mail Face-to-faceinteraction withsalesperson Toll-freetelemarketingdirect mailcatalog Face-to-face interaction withcustomer service Mailing couponsto customer list [P] [S]

10. Common Components for “place” and “space”- usually linked in the “place”, can be separated in the “space” • Content • what companies offer • Context • how companies offer it • Infrastructure • what enables the transaction to occur, including the technology platform place space

11. Examples: Content Info about Diesel fuel Terminator 2 products and & value-added services information services Baxter Pacific Pride Times Warner Cable On-line Automated filling Home box office interactive stations, on major and other cable access, screen truck routes premium services design Context Internet, Automated Times Warner CD-ROM, inventory tracking cable and other warehouse and station refueling cable systems & delivery operators services Infrastructure

12. Today’s Consumers’ Mindset Rising expectations for quality and service Increased price sensitivity Increased time shortage Increased need for convenience Decreased perception of product differences Customer Increased wish for customization Growing acceptance of reseller brands Decreased customer loyalty

13. Process for developing an online offering Identify the scope of the offering “customers think in terms of activities, while firms think in terms of products” Identify customer decision making process Map the offering to the consumer decision process

14. Problem - Recognition Information Search Pre-Purchase Evaluation of Alternatives Purchase Decision Purchase Satisfaction Post-Purchase Loyalty Disposal Consumer Decision Process — Flower Purchase Flowers • Need recognition, potentially triggered by a holiday, anniversary or everyday events • Search for ideas and offerings, including: • Available online and offline stores • Gift ideas and recommendations • Advice on selection style and match • Evaluation of alternatives along a number of dimensions, such as price, appeal, availability, etc. • Purchase decision • Message selection (medium and content) • Post-sales support • Order tracking • Customer service • Education on flowers and decoration • Post-sale perks

15. Egg Diagram for 1-800-flowers.com • Gift reminder service • Holiday specials • Everyday celebrations suggestions • Special occasion suggestions Ideas and Information • “Care and handling” • “Do it yourself” • Special events and educational workshops held at stores • Floral ideas • Garden ideas • Home ideas • Gift ideas • Gourmet ideas • Store locator • Recommendations by budget • Bestsellers Flower / Gift Decision Process • Need Recognition MarketOffering Gift Recommendations • Education on Flowers and Decoration • Search for Ideas and Offerings • Gift guru • Favorite gifts • Gift frequency • Gift impossible • Gift baskets • Corporate gift services Post-Sale Support • Order receipt e-mail • eQ&A online customer service • FAQ • Customer service inquiry form • Post-Sale Support and Perks • Evaluation of Alternatives • Product price • Product picture • Product description • Delivery information • Delivery availability Perks • Miles earned with flower purchases • Free gifts • Discounts at AOL & BN.com with flower purchases • Member specials • Message Selection • Purchase Decision • Shopping basket • E-commerce transaction • Special shopping features • Delivery outside US • 1-800-lasfloras.com • Gizmo fully-animated greeting cards • Physical cards in gifts

16. 1-800-flowers.com Resource System BloomNet Network Third-Party Contractors Address Book Strong Distribution Network Gift Recommend- ations Fulfillment Center Stores Online Gift Center Gift Reminder Broad Assortment of Gifts High Quality of Flowers Rich Content Personalization Capabilities Popular Website Garden Works Integrated Partner Offers Telephone 3,000 Affiliates Plow & Hearth Online Customer Service Wide-spread, Easy Access Great Foods Multiple Contact Points Franchise Stores Catalog Technology Strong Brand Name Wide Reach to Customers Customer Service Centers = Core Benefits Snap Starmedia Integrated online offline Systems = Activities & assets MSN AOL = Capabilities