Full transcript
0:01- All right, in this video we're just going to
0:02give you an introduction to what marketing is
0:04and we're going to talk about some of the different values.
0:06But before we get there,
0:07I want to tell you a quick story from my own personal life
0:10about how marketing is around us every single day.
0:13And most of us are completely unaware of it.
0:16We actually sort of think that things
0:18happen more often
0:20on accident than they do in reality.
0:22Most of it's pretty planned out before we go there.
0:25And so I'm just going to share
0:26with you a fun story that happened in my own life.
0:29And this was a few years ago when my daughter
0:30was in second grade.
0:31We were shopping at the grocery store.
0:33And you know, she was in this phase of her life
0:36where she thought that, you know,
0:38she doesn't want to be told what to do.
0:39She's old enough, right?
0:41She can do whatever she wants to do.
0:42You cannot tell her what to do.
0:44She's going to decide.
0:45So instead of me saying like,
0:47"Hey, can you get this product?
0:48Can you get that product?"
0:49She's saying, "No, I'm going to pick my own products."
0:52So first of all, I want you to take a second,
0:54step back and think about how many products do you
0:57think are in a typical grocery store?
1:005,000? 10,000 different products?
1:02There's more than you can count.
1:04There are way too many products.
1:06So I'm like, "Fine, whatever.
1:07Walk around, pick your products."
1:09So she comes to me with the very first product
1:12that we're in, and the first hour walking down,
1:14she comes to me,
1:15and here's a product that she gives me.
1:17It's this can of soup.
1:19Now remember,
1:20my daughter's probably in second grade at this time.
1:23Do you think she can actually read what's on here?
1:25Of course she can read.
1:26Do you think she knows
1:27what Campbell's condensed soup even means?
1:30She has no idea.
1:32Do you think she even cares?
1:33Do you think she read what's on there?
1:35None of the above.
1:37She chose this because of the picture on the thing.
1:41It's a bright pink fuchsia color
1:43with a beautiful fun Disney princess on the label.
1:46That's what she picked.
1:48Now, I want you to think,
1:50out of those 5 or 10,000 products
1:52at the grocery store,
1:53this is the product she picked.
1:56There's no accident that she picked this.
1:58The reason she picked this is,
1:59because look at the height of that can.
2:02It's not at your eyes.
2:03It's not at my eyes, it's not at anyone's eyes
2:06who's actually buying soup at the grocery store.
2:09But what it is,
2:10it's at the eyes of a girl who's in second grade.
2:13It's at her eye level.
2:15That is done on purpose.
2:16And if you look right next to it,
2:18you can actually see that there's a one for boys that have,
2:21they're greener cans, I believe they are.
2:23And they have the, you know,
2:25that the boy type products,
2:27Cars is what's on there, right?
2:29So, the idea that marketers are very aware
2:31that kids are walking up and down aisles.
2:33They're very aware that at this moment,
2:36these kids are, you know,
2:38telling their parents,
2:39"Hey, I want to pick what I want to pick.
2:40You can't tell me what to pick."
2:42And they're going to pick this.
2:43It's not at your level.
2:44It's not on my level
2:45because it doesn't attract to us, right?
2:47The ones that are our levels
2:49are the greens and the reds.
2:51But at the kids' levels, it's the cartoon characters.
2:54Now, here's the second thing
2:55about marketing that's interesting.
2:57How much does a can of soup cost?
2:59I don't know, $1, $1.5, $2,
3:01whatever it is.
3:02But as a parent, I have a choice.
3:05I could buy this soup for $2 and make my daughter happy,
3:09or I can say no,
3:11and now she's going to throw a massive fit.
3:14She's going to have a tantrum,
3:15and I got to deal with this from maybe
3:18even the rest of the time we're grocery shopping.
3:19All of this to save $2.
3:23So, what would you do?
3:25I'll tell you what I did.
3:26I bought them.
3:27I bought it.
3:29It's still sitting at home.
3:30No one's ever eaten it.
3:31We don't eat Campbell soup in our house.
3:33We try to be a pretty healthy family.
3:35But you know what?
3:36I bought that stupid can of soup,
3:38because it was directed towards my daughter,
3:40and it was perfectly laid out
3:41at the perfect time and the perfect place.
3:44So, this is just an example for kids,
3:46but it happens to all of us all the time.
3:47Marketers know a lot,
3:49if not everything about us,
3:51and they're always kind of lurking there.
3:54And so we're going to get into that,
3:55not just in this video,
3:56but in all the videos that you're going to watch
3:57throughout the semester.
3:59So here's what we're going to do today,
4:01today's objective,
4:02you will be able to explain the purpose
4:04of marketing in our daily lives.
4:07So the first thing I want to do is
4:09I want to just get some really basic vocab out of the way.
4:12And the reason I want to touch on this vocab
4:14is because marketing is one of these weird things
4:16that the word marketing
4:18is used very interchangeably with multiple other words
4:22in the marketing sort of like field.
4:25So I'm just going to read these words
4:26in some very basic examples.
4:28We're not going to go into very much detail.
4:30We're going to spend a lot
4:31of this semester actually talking about these later.
4:34But I just want to just get this out of the way
4:35in the beginning,
4:36because I feel like sometimes, you know,
4:38in marketing there's a little bit
4:40of confusion because people often say,
4:42"Well, I'm going to go do my marketing,"
4:44or "Well, what are you doing?"
4:45"I'm doing marketing."
4:45And they're actually talking about different things.
4:48So the first one's advertising.
4:49So I'm just going to actually read these to you.
4:51Advertising,
4:53a sign says circuses is coming to town on Saturday
4:56is advertising.
4:58The second one,
4:59if you put the sign in the back of an elephant
5:01and walk into town, that's a promotion.
5:05The third one,
5:07if the elephant sits on the car of the mayor,
5:09and the local paper writes a story,
5:11that's publicity.
5:14If you get the mayor to laugh about it,
5:16that's public relations.
5:18People buy tickets to the circus,
5:21that's sales.
5:23You plan the whole thing.
5:24That's marketing.
5:26So, in this class, we're going to talk about marketing,
5:29but like I said, a lot of times people
5:30use all of these different words I just gave to you
5:33interchangeably with the word marketing.
5:36But in reality, the word marketing
5:37is actually something different
5:39than all of these other words.
5:41So, what is marketing?
5:43Marketing is a strategy.
5:45It's the thing that actually controls all
5:48of these other words.
5:49All of these other words
5:50are underneath this word, marketing, right?
5:53Marketing is the strategy,
5:55it's the plan,
5:56it's the master plan.
5:59It's understanding what consumers desire,
6:03and to create value to fulfill those needs.
6:06So, marketing is understanding your customers.
6:10It's doing very in-depth market research.
6:14So you understand as much
6:16as you possibly can about your customer.
6:19And you're not doing all this research
6:20to understand your customer to exploit them.
6:23You're doing all of this research,
6:25so that you can produce products
6:27that will solve the problems they have.
6:30But what is marketing?
6:30Marketing is the strategy of digging up this research,
6:34understanding who your customers are,
6:37and then putting forth all the things,
6:38which we often say at the four P's.
6:42Marketing is what drives the bus.
6:44It's what moves everything along.
6:46So, once you have all of your research done,
6:49your strategy is how are you going to get sales?
6:52How are you going to connect with your customers,
6:54and how are they going to actually buy the products?
6:56It's basically,
6:58it's like everything that's under the umbrella.
7:01That's what-
7:02so I think of it as like you're driving the bus
7:04or it's everything underneath this umbrella of marketing.
7:07All of these different vocabs,
7:09whether it's sales, public relations,
7:11advertising, it all fits under marketing.
7:16So, why do we need marketing?
7:18What's the point of it?
7:20I know a lot of you are probably watching this video
7:22thinking marketing is dumb.
7:24I don't need marketing.
7:25You know, I'm in finance, or I'm in engineering,
7:27or I'm in R&D, or I'm in production,
7:30or I'm in supply chain, or I'm accounting.
7:32Marketing doesn't do anything.
7:35So, what does it do?
7:38Marketing creates value.
7:41So, what is value?
7:45Marketing is a solution.
7:46Value is a solution.
7:48You are selling a solution to people's problems.
7:52So, your job is to understand what is the problem
7:56that your customers are trying to solve,
7:58and you're giving them a solution to that problem.
8:02That's what you're doing.
8:04You're selling a solution.
8:06You have to understand what's bothering your customers,
8:09what are their wants and needs and fears,
8:12and then you solve that problem that they have.
8:14So, think about it,
8:16why do you buy water?
8:19Why did you buy that car?
8:20Why do you shop at Zara?
8:23The very basic says,
8:24I'm thirsty, I need water.
8:26But we all know when you go to this-
8:28whether you go to the grocery store or the gas station,
8:30there are 100 different drinks in there.
8:32So, which one do you pick?
8:34There's so much more to it
8:35than the basic law of I'm thirsty, I'm going to buy water.
8:39And we're going to get into these different types
8:41of things that matter to people,
8:43and what types of things that they buy
8:44and what problem are they solving.
8:46And later in the other videos,
8:48we're going to actually get much deeper
8:50into things like cars.
8:51Why do you buy cars?
8:53Of course, I want to get from A to B
8:54but if that was that simple,
8:57we would all buy the exact same car.
8:59We don't.
9:00If it was simple as just clothes,
9:02we would all shop just at Walmart
9:04or Amazon and buy all of our stuff
9:06for the cheapest every single time.
9:07But we don't.
9:09And think about brands like Zara, H&M,
9:11how do these brands exist?
9:12These fast fashion brands.
9:15They solve a lot more problem
9:17than just, I'm cold, I need clothes to wear.
9:19They make you look good,
9:20they make you feel good,
9:21they make you proud of who you are,
9:24or whatever the reasons are.
9:27But you're solving much bigger problems
9:28than just, I'm cold, I need clothes to wear,
9:31I'm going swimming,
9:31I'm going to work.
9:33There's a lot more that goes into it.
9:34And as a marketer,
9:36it's your job to understand what are these different things
9:38that go into this decision making process?
9:43There are four types of value.
9:46So as a marketer, you want to think about, okay,
9:49there are four types of value.
9:50Which one are we going to focus on?
9:53Which one does our customer care about?
9:55And a lot goes into this thought process.
9:58Again, you think about what does your customer care about?
10:00What are our competitors focusing on?
10:04How can we be the same as them?
10:05How can we be different?
10:07But in this section here,
10:08I just want to tell you what are the four types
10:10of value that you can offer your customers
10:12to solve their problems.
10:14The first one's economic value.
10:17The example that I use is an LED light bulb.
10:20It's tangible monetary savings,
10:22either at the time of purchase
10:24or whether it's long-term value use.
10:27To me, I think about it,
10:28it's like a bang for your buck, right?
10:31An LED light bulb costs a lot more money
10:34than a traditional light bulb up front.
10:36But a lot of times when you buy them,
10:37you'll get an 8, 9, 10 year warranty.
10:40If you've ever seen videos on YouTube
10:42of when they compare,
10:44someone will be like spinning the box,
10:46and they show like how hard they're spinning
10:47to spin a traditional light bulb,
10:49meaning like how much electricity it requires
10:52compared to an LED light bulb.
10:55And they spin the box,
10:56they like spin it barely like this,
10:57and the bulb will actually light up.
11:00And so yeah,
11:01you're spending more money to get this LED light bulb,
11:05but you have a 10 year warranty,
11:07and the amount of electricity it's using
11:08is way, way less than a traditional light bulb.
11:13So that's called economic value.
11:15The actual purchase price is more expensive,
11:18but the bang for your buck,
11:19what you're getting from it is way higher.
11:22So, economic value is focusing on that.
11:24The next one is functional value.
11:28This means like it really solves the problem.
11:30It's features that it offers,
11:33the benefits that it offers are great.
11:34To me, I think about computers, smartphones.
11:40Think about a smartphone.
11:42What percentage of a smartphone
11:43do you think you actually use?
11:475%,
11:4810%,
11:4915%?
11:51The power that a smartphone has
11:53and the capabilities that it has are mind boggling,
11:56but most of us use it for what?
11:58Texting, checking the news, checking the weather,
12:01sports, social media, taking pictures.
12:05That's it.
12:06Very basic, very simple.
12:08We barely even touch the actual functional value
12:11that it has.
12:12How far it can actually go.
12:14Think about it, if you go on a business trip,
12:17you technically don't need anything but your phone,
12:20because you really could do everything on it, right?
12:23And so that's what functional value is.
12:24It really solves that problem.
12:26The functions, the features, the benefits
12:28are excellent.
12:29You're paying for that.
12:32The next one is experiential value.
12:36Experiential value to me is like brand value.
12:40It's Apple, it's Nike.
12:43It's a sort of intangible, psychological,
12:45and emotional value.
12:47So for me, I think a good example
12:49is people waiting in line to buy the Apple phone
12:51or to buy an iPhone, right?
12:53You'll pay extra money just for that logo.
12:57For me personally, Nike,
12:59the only tennis shoes I wear are Nike's.
13:02I am a huge super fan of the 1990 Air Maxes.
13:06I love those shoes.
13:08I always joke that when I get rich,
13:10I'm going to have a massive closet full of nothing
13:12but 1990 Nike Air Maxes.
13:15I want every color and design ever made,
13:18and I'll pay for them.
13:19Why? Because I want that brand name.
13:22Are Nike shoes the best shoes out there?
13:24I don't know, but it doesn't matter.
13:26I care about that logo.
13:28I care about that name.
13:29So, I will pay more money for those just because of that.
13:33That's experiential value.
13:35So, don't really forget that.
13:36That's a huge one that a lot of us get sucked into.
13:40We think we're buying it,
13:40because it's a better this, it's better that,
13:42but in reality, you're paying for that logo.
13:46The last one is social value.
13:49This is one that's really exploded
13:51since the internet took off.
13:53Social value, the idea is,
13:56is that it's connecting with other people.
13:59Imagine if you're on Facebook, Snapchat, Instagram, TikTok,
14:04and you're the only one on there.
14:06Nobody else was on there but yourself.
14:09It wouldn't exist.
14:10It would disappear.
14:12Even things like Yelp, TripAdvisor,
14:14even YouTube for that matter,
14:16the only reason they really exist is
14:18because lots of people are on there.
14:20There are great ways to connect with other people.
14:23Snapchat by itself is a useless tool.
14:26But if you have it
14:27and you can message with all your friends,
14:28now it's a great tool.
14:30It provides social value.
14:34So, the question then becomes this:
14:37you can research your customers,
14:39you can understand what they care about.
14:42You can understand their wants, needs, and fears.
14:45You produce the right product that they care about,
14:48you understand the values that they care about.
14:51But how do you deliver that to them?
14:53How do you tell them,
14:54"Hey, I'm over here, right here.
14:57Look at me, look at me.
14:58I have the problem that's going to-
15:00I have the solution that's going to solve your problem."
15:03How do you tell them that?
15:04That is probably the most difficult part
15:06in all of marketing.
15:08You need to communicate to them,
15:10communications.
15:12You tell them that, "Hey, I have a pro-
15:14I have a solution for your problem."
15:16Communication is key.
15:18So, once you do all the first steps,
15:19now you have to figure out,
15:21how do I deliver this value?
15:22It's communication.
15:25But imagine this,
15:27and this is where marketing plays a big part.
15:29Imagine if you went grocery shopping
15:32or anything for that matter,
15:34and nothing had logos.
15:35Nothing had labels,
15:36everything was just white.
15:39Think about you walk into your favorite supermarket,
15:41and you go shopping and you go to the bread aisle.
15:43The bread aisle is my favorite,
15:44because there's like a thousand kinds of bread.
15:46Every single package of bread is just in a clear bag,
15:50not a single word on it.
15:53Imagine you go to the, you know,
15:54the salad dressing aisle,
15:56the soup aisle or whatever the aisle is,
15:58cereal aisle and every single box is just white.
16:02No words, just says, "Cereal."
16:04How do you pick them?
16:06How do you choose from type A to type B to type C?
16:09You couldn't.
16:10Which one's good?
16:11Which one's bad?
16:12You don't know.
16:13Marketing tells us, it tells us this.
16:16marketing is communicating,
16:17gey, this one's sweeter.
16:18This one has higher protein,
16:20this one has, you know, vitamin A,
16:22and this one has vitamin C in it.
16:24This one has these shapes,
16:25this one has those shapes.
16:26This one is fun.
16:27That one is for adults,
16:28this one's for kids.
16:29This one is multi-grain.
16:31This one has whole grain, whatever it is.
16:34But we know this because of the labels on the packaging.
16:38Imagine cars, if every car was just black,
16:40or every car was just white,
16:41and they were all exactly the same.
16:44We would have the same situation.
16:46You wouldn't know what to choose from.
16:48But now the question comes to this,
16:51how do you know what to tell your customers?
16:53Because most products have multiple benefits to them.
16:57So you need to understand your customers,
16:59so that you focus on that one single topic
17:02that they care about.
17:03What is that one value that they really, really care about?
17:05So again, you do quality market research,
17:09you understand who your customers are,
17:11you understand their wants, needs, and their fears.
17:14And now you can produce the perfect communication
17:18that's going to connect with them.
17:20So I want to show you an example of,
17:21to me, a great industry that does this probably
17:24as well as anybody,
17:26the car industry.
17:27In today's world, with all the rules
17:29and the regulations we have,
17:31the massive amounts of online feedback
17:33that we provide car companies,
17:35basically every car is pretty much the same.
17:38The idea that there's a lemon
17:41is not really existent like it used to be.
17:43You know when I was a kid, people used to,
17:45"Oh, don't buy those cars.
17:46That's they're poor quality,
17:47or that's a lemon.
17:49That car's going to break down."
17:49You don't hear that anymore.
17:51All the cars, for the most part,
17:53are pretty much the same in the sense
17:54of that they're made very, very well,
17:57and they solve a lot of problems.
18:00And car companies know this,
18:02but they also know that there are multiple groups of people,
18:05and each person cares about a specific thing.
18:08They're looking to solve one problem.
18:11So, the first one, Volvo, "Win big with safety."
18:16All their energy, they're communicating,
18:17"Hey, we have the safest car out here,
18:19come buy our car."
18:21The next one, Mustang,
18:23power, speed,
18:25energy, muscles.
18:29Hybrid, we're green.
18:33Tesla, we're super green.
18:35We don't even need gas.
18:38Camry, all wheel drive.
18:41And the last one is a truck,
18:42rugged, outdoor.
18:44But I want to take a second and go back through these,
18:48and I want to talk about what I mean
18:50by how each one could say different things, but they don't.
18:53They choose not to.
18:54So, the "Win big with safety," it's a Volvo.
18:56Obviously they could drive outside,
18:58it gets good gas mileage,
18:59it's all wheel drive.
19:01It does the same thing that most
19:03of the other cars we talked about do.
19:05But they focus on being big with safety.
19:08Safety is what their thing is.
19:09So they're saying, "Hey, if you have a family,
19:11you should buy this car."
19:13Mustang,
19:15Mustangs are nice cars.
19:17They probably get decent gas mileage,
19:19but hey, they're saying, you know what?
19:20If you want a car that's powerful,
19:22you buy this car.
19:24The hybrid, again, it's an SUV,
19:27it gets great gas mileage.
19:28It's Toyotas aren't safe cars?
19:30Of course it's a safe car.
19:33Tesla, right?
19:36It's a green car.
19:37They focus on being green,
19:38but it does definitely does other things.
19:40They could talk about all the amazing technology
19:42they have in there,
19:43but they don't.
19:44They talk about it's green, all wheel drive.
19:48Again, this is a car.
19:49It gets better gas mileage than the hybrid SUV gets.
19:53But they don't need to talk about that.
19:55But why?
19:55They talk about what their customers care about
19:57is all wheel drive, and a truck,
19:59there probably is not a safer car
20:01on the road than driving a huge truck.
20:03I mean, I think about this all the time as a parent,
20:05should I just buy a huge truck?
20:07Because the odds are that something's going to happen to us
20:09if we get in an accident are probably pretty small.
20:12If I'm driving a truck like that.
20:16So, in summary, you should be able to explain the purpose
20:20of marketing our daily lives.
20:21So, through what we talked about in this video,
20:24it all kind of comes back
20:25to marketing is around us all the time.
20:28And next time when you go to the supermarket,
20:30I want you to start thinking about what am I seeing?
20:33Where are things sitting?
20:34Why are they sitting there?
20:36What values are these products giving to us?
20:38Did I buy this because I need to buy this?
20:40Why did I buy this?
20:41What was the purpose of this?
20:42What problem is it solving?
20:44All right, thanks everyone for your time.
20:45Have a great day.
20:46Take care and I'll see you soon, bye.