M300 1st Edition Lecture 1 Outline of Current Lecture I Introduction II Intro into Marketing III What is Marketing IV The General Marketing Model V Customer Value Type VI Ted Levitt s 4 Ideas Current Lecture I Introduction a Marketing is the most important class because i Marketing is in important in every single job and career ii Marketing is important in your personal life iii Marketing can help you get the job you want II Intro into Marketing a Marketing is trying to create value for consumers so we can extract value from them b Example used in class First iPad commercials demonstrated innovation and versatility But over the years their commercials shifted to focus more on education cooking etc They shifted to create more value for the consumers and shifted target consumers III What is Marketing a Marketing definition the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return b What is this definition really saying Mechanism through which marketers create value for the company by creating value for the consumer IV The General Marketing Model a 1 Identify marketplace customer needs b 2 Develop a value driven marketing strategy c 3 Deliver the marketing strategy d 4 Develop profitable customer relationships e Marketers go outside and look for problems that consumers have These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute f They ask questions like what does want or need and how can I deliver V Customer Value Type a Form Value i Example Ford buys raw materials and puts it together to make a car ii Marketers create value by taking materials and assembling them into fabulous products b Time Value i Many people are starved for time ii Example shopping online Netflix fast food drive up Discover bank 24 7 banking c Possession Value i Possession value makes it easier to make a decision about the product Happens Pre purchase ii Example lay away test drive on automobiles demo of software samples at Sam s Club d Place Value i Making products available where customer needs it ii Example Redbox return at any location Rent a car Div y bikes e Information Value i Providing relevant information about the product ii Example Zappos info about shoe size CarFax Other customers also liked f Service Value i Providing ongoing and excellent service ii Example warranties customer support troubleshooting Zappos free shipping VI Ted Levitt s 4 Ideas a 1 There are no commodities i Commodities non differentiated products Example oil salt b 2 Products are problem solving tools c 3 Measurement bias d 4 Intangibles matter i Make the intangible tangible ii How do brands make you feel e Ted says nothing is a commodity marketers can differentiate anything i Example Smart Water isn t just water it makes you smart Margarita Salt isn t just salt it s for your margarita