Welcome to the world of Marketing Creating and Delivering Value Zou Degang. PhD School of Management, Fuda an univers Feb About the Course Textbook: Kotler, Philip and Kevin Lane Keller(2006) Marketing Management, 12th edition. Upper Saddle River. NJ: Pearson Education This course integrates lectures, class discussions group term project, and exams to achieve the course objective atot Internatinal I Each participant's grade will be based upon 2. Personal home assignmer 20% 3. Group term project 20% Final exam. 40%
1 Welcome to the World of Welcome to the World of Marketing Marketing Creating and Delivering Value Zou Deqiang, PhD School of Management, Fudan University February 27, 2008 2 © Copy rights reserved, Zou Deqiang About the Course • Textbook: Kotler, Philip and Kevin Lane Keller (2006), Marketing Management, 12th edition. Upper Saddle River, NJ: Pearson Education. • This course integrates lectures, class discussions, group term project, and exams to achieve the course objective. • Each participant’s grade will be based upon: 1. Class attendance and discussion: 20% 2. Personal home assignment: 20% 3. Group term project: 20% 4. Final exam: 40%
About the instructor ° Zou Deqiang Research interest: consumption value, consumer judgment and decision making, customer satisfaction, brand management, and quantitative techniques Address: Room 410, Lidasan Building Phone:55665412 Email:deqiang.zou@gmail.com zoudq@sem.tsinghua.edu.cn >Office hour: by appointment Rules ° Actively participate Interrupt with questions at any time Turn off cellular phones and computers Read the textbook seriously Be critical and curious Respect start and stop times, and
2 3 © Copy rights reserved, Zou Deqiang About the Instructor • Zou Deqiang ¾Research interest: consumption value, consumer judgment and decision making, customer satisfaction, brand management, and quantitative techniques ¾Address: Room 410, Lidasan Building ¾Phone: 55665412 ¾Email: deqiang.zou@gmail.com; zoudq@sem.tsinghua.edu.cn ¾Office hour: by appointment 4 © Copy rights reserved, Zou Deqiang • Actively participate • Interrupt with questions at any time • Turn off cellular phones and computers • Read the textbook seriously • Be critical and curious • Respect start and stop times, and ... Rules
Chapter Questions Why is marketing important? What is the scope of marketing? What are some of the fundamental marketing concepts? How has marketing management changed? What are the tasks necessary for successful marketing management? hts reserved, Zou deqian Why is marketing important? The good, bad, and marketing ( ust a common sense?) >Laptop PC: IBM, Apple >TVC: Heng-Yuan-Xiang Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit Why does a business exist? Marketing: an external perspective O Copy rights reserved, Zou Deqian
3 5 © Copy rights reserved, Zou Deqiang Chapter Questions • Why is marketing important? • What is the scope of marketing? • What are some of the fundamental marketing concepts? • How has marketing management changed? • What are the tasks necessary for successful marketing management? 6 © Copy rights reserved, Zou Deqiang Why is marketing important? • The good, bad, and marketing (just a common sense?) ¾Laptop PC: IBM, Apple ¾TVC: Heng-Yuan-Xiang • Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. • Why does a business exist? ¾ Marketing: an external perspective Macbook Air
Market Markets are the set of actual and potential buyers of a product Marketing Perspective: Industry and Market Multi-sided market eby 淘宝网 oogle Taobao. com What is Marketing? 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 Marketing is meeting needs profitably Stated needs: an inexpensive car Real needs: its operation cost, not initial price, is low Unstated needs: expect good service from the dealer >Delight needs: include an onboard navigation system Secret needs: seen by friends as a savvy consumer
4 7 © Copy rights reserved, Zou Deqiang Market • Markets are the set of actual and potential buyers of a product ¾Economics perspective ¾ Marketing Perspective: Industry and Market ¾ Multi-sided market 8 © Copy rights reserved, Zou Deqiang What is Marketing? • 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 • Marketing is meeting needs profitably ¾Stated needs: an inexpensive car ¾Real needs: its operation cost, not initial price, is low ¾Unstated needs: expect good service from the dealer ¾Delight needs: include an onboard navigation system ¾Secret needs: seen by friends as a savvy consumer
What is Marketing Management? Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating delivering, and communicating superior customer value Marketing is both an "art and a"science Art: aesthetics, music, design,., creative Science: psychology sociology economics, statistics cultural anthropology .. reasoning hts reserved, Zou deqian Marketing is about Meeting Needs TVC, Danier Leather > Needs? Art and Science? A supermarket Needs? Marketing or Demarketing 不准吃 · Telecon ·Bank O Copy rights reserved, Zou Deqian
5 9 © Copy rights reserved, Zou Deqiang What is Marketing Management? • Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. • Marketing is both an “art” and a “science” ¾Art: aesthetics, music, design,…, creative ¾Science: psychology, sociology, economics, statistics, cultural anthropology,…, reasoning 10 © Copy rights reserved, Zou Deqiang Marketing is about Meeting Needs • TVC: Danier Leather ¾Needs? ¾Art and Science? • A supermarket ¾Needs? ¾ Marketing or ¾Demarketing • Telecom • Bank
Customer Needs, Wants. Demands Needs are states of deprivation e Physicalfood, clothing, warmth, safety Social-belonging and affection Individualknowledge and self-expression Wants are the form that needs take as they are shaped by culture and individual personality, directed to specific objects that may satisty the need Demands are wants backed by buying power Marketers do not create needs: Needs preexist marketers hts reserved, Zou deqian Marketing Myopia Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Focused on selling i prerecorded CDs, the I record industry missed early I i opportunities to partner with music I downloading services I i and manufacturers of: DOWNLOAE FEARLESSLY digital MP3 type recording de Copy rights reserved, Zou Deqiang
6 11 © Copy rights reserved, Zou Deqiang Customer Needs, Wants, & Demands • Needs are states of deprivation ¾ Physical—food, clothing, warmth, safety ¾ Social—belonging and affection ¾ Individual—knowledge and self-expression • Wants are the form that needs take as they are shaped by culture and individual personality, directed to specific objects that may satisfy the need • Demands are wants backed by buying power • Marketers do not create needs: Needs preexist marketers Yami 12 © Copy rights reserved, Zou Deqiang Marketing Myopia • Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Focused on selling prerecorded CDs, the record industry missed early opportunities to partner with music downloading services and manufacturers of digital MP3 type recording devices
Marketing Myopia A fast food outlet might be in the business of satisfying hunger quickly, cheaply and conveniently A national airline might be in the business of moving passengers to and from a variety of destinations quickly safely, comfortably and smoothly A car manufacturer might be in the business of giving people the freedom and flexibility to transport themselves and/or their families for work, educational or leisure purposes A hairdresser might be in the business of helping people to feel pampered, more attractive and more confident wwctrip. com hts reserved, Zou deqian Market Offerings Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want B RBU
7 13 © Copy rights reserved, Zou Deqiang Marketing Myopia • A fast food outlet might be in the business of satisfying hunger quickly, cheaply and conveniently. • A national airline might be in the business of moving passengers to and from a variety of destinations quickly, safely, comfortably and smoothly. • A car manufacturer might be in the business of giving people the freedom and flexibility to transport themselves and/or their families for work, educational or leisure purposes. • A hairdresser might be in the business of helping people to feel pampered, more attractive and more confident. • www.ctrip.com 14 © Copy rights reserved, Zou Deqiang Market Offerings • Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Company Orientations Production concept is the idea that consumers will favor products that are available or highly affordable Focus: high production efficiency, low costs, and mass distribution Product concept is the idea that consumers will favor products that offer the most quality. performance, and features for which the organization should therefore devote its energy to making continuous improvements Better Mousetrap Fallacy, Function Redundancy hts reserved, Zou deqian Tetra Pak suffered from a production orientation O Copy rights reserved, Zou Deqian
8 15 © Copy rights reserved, Zou Deqiang Company Orientations • Production concept is the idea that consumers will favor products that are available or highly affordable ¾Focus: high production efficiency, low costs, and mass distribution • Product concept is the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements ¾Better Mousetrap Fallacy, Function Redundancy 16 © Copy rights reserved, Zou Deqiang Tetra Pak suffered from a production orientation
Company Orientations Selling concept is the idea that consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotion effort Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do >3Cs: Company, Customer, Competition hts reserved, Zou deqian Selling vs Marketing Orientation Starting Means End The selling Factory Existing Profits through oducts ales volume The marketing arket Customer Integrated Profits through concel marketin customer satisfaction
9 17 © Copy rights reserved, Zou Deqiang Company Orientations • Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort • Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do ¾3Cs: Company, Customer, Competition 18 © Copy rights reserved, Zou Deqiang Selling vs. Marketing Orientation
Marketing Mix and the Customer Four Ps Four cs Product Customer solution ● Price Customer cost Place Convenience ● Promotion Communication hts reserved, Zou deqian The Marketing Mix roduct offerin Pricing Product variety List price Credit terms New product pricing Other product issues Hing mix Channel Promotion Direct marketing ternet activities Other channel issues Other promotion issues O Copy rights reserved, Zou Deqian 10
10 19 © Copy rights reserved, Zou Deqiang Marketing Mix and the Customer Four Ps • Product • Price • Place • Promotion Four Cs • Customer solution • Customer cost • Convenience • Communication 20 © Copy rights reserved, Zou Deqiang The Marketing Mix