M300 1st Edition Lecture 1 Outline of Current Lecture I. IntroductionII. Intro into MarketingIII. What is MarketingIV. The General Marketing ModelV. Customer Value TypeVI. Ted Levitt’s 4 IdeasCurrent LectureI. Introduction a. Marketing is the most important class because:i. Marketing is in important in every single job and careerii. Marketing is important in your personal lifeiii. Marketing can help you get the job you want. II. Intro into Marketinga. 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 Marketinga. 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 Modela. 1. Identify marketplace & customer needsb. 2. Develop a value-driven marketing strategyc. 3. Deliver the marketing strategyd. 4. Develop profitable customer relationshipse. 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 Typea. Form Valuei. 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 Valuei. Many people are starved for time.ii. Example: shopping online, Netflix, fast food drive up, Discover bank 24-7 banking.c. Possession Valuei. Possession value makes it easier to make a decision about the product. Happens Pre-purchaseii. Example: lay-away, test drive on automobiles, demo of software, samples at Sam’s Clubd. Place Valuei. Making products available where customer needs it.ii. Example: Redbox return at any location, Rent-a-car, Div-y bikese. Information Valuei. Providing relevant information about the productii. Example: Zappos info about shoe size, CarFax, “Other customers also liked..”f. Service Valuei. Providing ongoing and excellent serviceii. Example: warranties, customer support, troubleshooting, Zappos free shippingVI. Ted Levitt’s 4 Ideasa. 1. There are no commoditiesi. Commodities: non differentiated products. Example: oil, salt.b. 2. Products are problem solving toolsc. 3. Measurement biasd. 4. Intangibles matteri. Make the intangible tangibleii. 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