Marketing Management The “BIG” Picture – Why Marketing Matters Marketing Management (BUSA 468)
Key Foundation [ Foundations of Marketing ] We often focus on the bottom line… Profitability. But, there can never be a positive bottom line without one key thing… ? Sales Revenue. 2
Key Foundation [ Foundations of Marketing ] Nothing ever happens until someone SELLS something. What is inherent in the sale? Takes two to tango… SELLER & CUSTOMER 3
Key Foundation [ Foundations of Marketing ] Deconstructing the sale. BUYER EXCHANGE SELLER 4
Exchange occurs when a person gives up something of value to them for something else they desire to have . Bagozzi (1975) [ Foundations of Marketing ] What is this exchange? BUYER EXCHANGE SELLER 5 Key Foundation
[ Value(s) ] Value Formula: Value = Benefits Cost General Consumer Drive maximize minimize
[ Foundations of Marketing ] …this exchange 7 Foundation of Marketing: Value is the ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. Exchange occurs when a person gives up something of value to them for something else they desire to have .
Marketing: [ Let’s Get Formal ] AMA OFFICIAL DEFINITION - 1948; REAFFIRMED 1960 Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers.
Marketing: [ Let’s Get Formal ] AMA OFFICIAL DEFINITION - 1985 Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
Official Definition of Marketing: CURRENT [ Let’s Get Formal ] Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large . (American Marketing Association: October 2007)
Central Foundation of Marketing: [ Back to EXCHANGE ] Marketing is about EXCHANGE. Central Idea (Company Perspective): Company produces something. Consumer purchases something. An exchange is made. Both are better off (ideally). [CSR/CLV]
[ Scenario ] 12 White Label: A company makes products for another company, though their “presence” is anonymous. The products are sold under another brand name. The customer never knows of the white label producer.
Quiz: What Company? [ Scenario ] Started making electronics for a major brand in the 1970’s and 1980’s (Sanyo).
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