What is

Marketing
 The official definition

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 Definition

 Marketing Components

A Philosophy Set of Activities,

including:
An Attitude
Products
A Perspective
Pricing
A Management
Orientation Promotion
Distribution
Marketing at its very core is…

The process through which

VALUE
is exchanged
 Value Creation
Perceived Benefits Perceived Costs

1. Product benefits 1. Monetary costs

•Performance Acquisition Cost
•Durability Usage Cost
•Reliability Maintenance Cost
•Ease of use Disposal Cost
2. Service benefits
2. Time costs
•On time delivery
•Responsiveness to problems Acquisition
•Technical support quality Usage Cost
•Availability of support Maintenance Cost
Disposal Cost
3. Image benefits
Psychological needs 3. Energy Cost
Personality enhancement
reinforcement

Total customer Total Customer Total customer

benefit VALUE cost
 What is Perceived Customer Value?

Product
Product value
value
Services
Services value
value Total
Total
customer
customer
Personnel
Personnel value
value benefit
benefit
Image
Image value
value Customer
Customer
delivered
delivered
Monetary
Monetary cost
cost value
value

Time
Time cost
cost Total
Total
customer
customer
Energy
Energy cost
cost cost
cost
Psychic
Psychic cost
cost
 WHAT IS MARKETING

Exchange
Relationship
Buyer Seller
VALUE
Customer value and beneficial relationships are the
center
Creating
Value

uct Pl
ac
rod e
P

Exchange
A B

Delivering Pr n Communicating
io
Value
ice ot Value
rom
P
 Marketing Analysis (The 5C’s)

Company Competitors Context

Customers Collaborators

Observations
Target Product and
Market
Market Service • The central role of marketing in the firm is to create value for its
Segmentation
Selection Positioning chosen customers (in a market driven strategy). Having created
the value for its customers, the firm is then entitled to capture a
Creating portion of it through pricing. To remain a viable concern, the firm
Value must sustain this process of creating and capturing value over
time
Marketing Mix (The 4 P’s)
• In a market driving strategy, you need the product first
Product Place/Channels Promotion
& Service • A marketing strategy involves two major activities:
1. Selecting a target market and determining the desired
positioning of the product in the customer’s minds
Capturing 2. Specifying the plan for the marketing activities to
Value Pricing achieve the desired positioning

Sustaining
Value Customer Customer
Acquisition Retention

Profits
 Company
Marketing Analysis (The 5C’s)
• Internal Analysis. Company Strengths & Weaknesses, financial
Company Competitors Context position
• External Analysis. Industry & General Trends
Customers Collaborators
Competitors
Both current and potential competitors need to be identified.
Competitors strengths, weaknesses, reactions, objectives, and
strategies need to be assessed. Landscape and barriers to entry
also need to be evaluated
Target Product and
Market
Market Service Collaborators
Segmentation
Selection Positioning Downstream trade and upstream suppliers are important partners
in the marketing system and their positions and goals need to be
Creating assessed. Value chain analysis (whoa has the power?), buyer
Value selection, supplier strategy, etc.

Context
Marketing Mix (The 4 P’s) Technology, culture, politics, regulation, law, and social norms are
not fixed features of the marketing landscape, but factors to
Product Place/Channels Promotion consider and monitor for signs of disruption
& Service
Customers (see also flow chart in promotion)
Capturing Effective marketing require in depth understanding of customers’
Value Pricing purchase and usage patterns. Areas to consider are:
• The Decision Making Unit
• Who is involved in the process?
Sustaining • What roles does each play? (1) Initiator, (2) Decider, (3)
Value Customer Customer Influencer, (4) Purchaser, (5) User
Acquisition Retention • The Decision Making Process
• Is there search for information?
• How?
• What criteria are used to evaluate alternatives?
Profits • How important are the various attributes?
• How did DMU member interact?
• Other considerations
• Where do customers wish to buy?
• How is the product to be used?
• How frequently will it be used?
• How Important is the problem it resolves?
The
The Essence
Essence of
of Marketing
Marketing

The customer first , last

and always !
 The Marketing Mix
Four marketing activities

Product

Place
Target
Promotion Market

Pricing
Developing Marketing Mixes for Target Markets

Product Place

Price Promotion
 Marketing
mix

Products Prices Promotion Distribution

Advertising Public Personal Sales

relations selling promotion

Sales
Sales
management
management

Planning
Planning Motivating
Motivating
Budgeting
Budgeting Compensating
Compensating
Recruiting
Recruiting and
and selecting
selecting Designing
Designing territories
territories
Training
Training Evaluating
Evaluating performance
performance
 Marketing Elements

Product

Price
Advertising
Place Sales Promotion
Personal Selling
Promotion
Public Relations
Personal Selling
 Personal selling
Interpersonal influence process
involving a promotional
presentation conducted on a
One-to-One basis with the buyer.
Personal selling is usually a
necessity for
complex products,
high-involvement buying
situations,
and
transactions involving trade-ins.
 Old Attitude towards Selling
High Pressure Selling –
trying every means to get the
prospect to buy, regardless of whether
it is in the prospect’s best interest.

This in not Selling - The pushing

someones something that they
don’t want, don’t need,
and certainly can’t afford.
 Sales Management Trends
From To
Transactions Relationships

Individuals Teams

Sales Volume Sales Productivity

Management Leadership

Local Global
 Evolution of Personal Selling
Peddlers selling door Selling function
to door . . . served became more
as intermediaries structured

1800s 1900s 2000s

As we begin Post-Industrial
Industrial the 21 century, selling
st
continues toModern
War and develop,
becomingRevolution
Revolution more professional and more relational
Depression Era

Selling function
Business organizations
became more
employed salespeople
professional
The process of:
Developing customer relationships,
Discovering customer needs,
Matching appropriate products with
these needs, and communicating
benefits.”
Personal Selling’s Unique Role
1. High level of
4. Communicate
customer attention
more technical and
complex information

2. Customize the 5. Demonstrate a

message product’s functioning
and characteristics

3. Yields immediate 6. Develop long-term

feedback relationship
 Modern Selling Philosophy
Based on trust and mutual agreement

Customer-driven

Act as if on customer’s payroll

After-sales service is key

Professionalism and integrity are essential

 Relationship Selling

Salesperson focuses on developing a

trusting partnership in which the
salesperson seeks to provide long-term
customer satisfaction by listening,
gathering information, educating, and
adding value for the customer.
 Transaction- vs. Relationship
Focused
Transaction-Focused Relationship-Focused
• Short term thinking • Long term thinking
• Making the sale has • Developing the
priority over most relationship takes priority
other considerations over getting the sale
• Interaction between • Interaction between
buyer and seller is buyer and seller is
competitive collaborative.
• Salesperson is self- • Salesperson is customer-
interest oriented oriented
 What buyers want from
salespeople
• Knowledge • Solutions
• Empathy • Punctuality
• Organization • Hard work
• Quick turnaround • Energy
• Follow-through • Honesty
 What buyers DON’T want
• Lack of preparation • Presumption
• Lack of knowledge • Walk-ins
• Aggressiveness • Hot air
• Lack of dependability • Problem avoidance
• Poor follow-through • Lack of personal
respect
 Selling Philosophy of ‘Good’
Salespeople:
1. Selling is problem solving
2. Selling is a caring activity
3. A customer is a person to be served, not a
prospect to be sold
4. Treat people as human beings, not $ signs
5. Be customer driven, not product driven
6. Long-term success depends on customers
relations
7. Selling is a ‘win-win’ activity
8. Adherence to ethics, mutual trust, and honesty
is essential
 Argument -- Discussion
Throws Heat
Throws light
Stems from Ego and closed mind
Open mind
Exchange of Ignorance
Exchange of Knowledge
Expression of temper
Expression of Logic
Tries to prove who is right
Tries to prove What is Right
Course Introduction

The foundation of good selling is the desire

to help people.

Professional salespeople typically view

themselves as problem solvers and selling as
problem solving.

People tend to respond better to being treated

as human beings than as dollar signs.
 Course Introduction
A salesperson is no longer a vendor out to sell a
product, but rather a consultant out to help their
customer’s business.

There is no such thing as ‘soft sell’ and ‘hard sell’, there

is only ‘smart sell’ and ‘stupid sell’.

Selling should be a friendly act. It is something we do

WITH and FOR people, not TO them.

People don’t care what you know until they know that
you care.
Course Introduction
Forget about the sales you hope to make and
concentrate on the service you want to render. The
moment people’s attention is centered on service to
others, they become more dynamic, more forceful
and harder to resist. How can you resist someone
who is trying to help you solve a problem? . . . Start
out each morning with the thought, ‘I want to help as
many people as possible today,’ instead of ‘I want to
make as many sales as possible today . . . ‘

The object of a salesperson is not to make sales,

but to make customers.