IUB BUS-M 300 - M300 Notes (33 pages)

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M300 Notes



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M300 Notes

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Pages:
33
School:
Indiana University, Bloomington
Course:
Bus-M 300 - Introduction to Marketing
Introduction to Marketing Documents
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M300 Notes 08 26 2014 Chapter 1 Developing Customer Relationships and Value What Marketing is NOT Fraud misconception tends to overheat hottest product on the market o marketing is about understanding consumers needs promotion is not marketing that is awareness What is Marketing The process of planning and executing the conception and pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives Marketing focuses on discovering and satisfying consumers needs The process of establishing maintain mutually beneficial exchange relationships with customers and other stakeholders Thus marketing is responsible for customer value creation o Marketing doesn t stand alone o CVC means marketing performs 3 business functions Product development management Customer relations management Supply chain management The Organization Wheel Slide Market orientation o All divisions of company are focused on company value creation o Marketing works with all aspects of the company Management defines the company s goals outside purple Responsible for developing relationships with customers and suppliers manufacturing department Does not work in a vaccum Activities are shaped by environmental forces arrow economic Works closely with departments people to deliver customer satisfying products green marketing department Elements Influencing Marketing Economic environment hybrid automobiles Interest rates gas prices Political environment alcohol advertising Tariffs taxes laws Competitive Environment dick s in btown of competitors in the segment effects price quantity service social cultural environment dunkan diet craze trends religion ethnic background technical environment internet TV radio etc MARKETERS MAKE DECISIONS BASED ON THESE FACTORS Basics of Marketing 4 P s of marketing controllable elements of the marketing mix price o assignment of value place o availability of product promotion o activities to inform consumers product o service idea place person A General Marketing Model NEED TO KNOW Marketing research Trying to determine opportunities customer needs the offering product price place promotion 4p s levels used to be successful o Retain Existing Customers cheaper to keep o Attract New Customers 5x more expensive financial outcomes sales market share profit stock price cash flow Marketing Product Orientation Manufacturing is king o you can have any color you want as long as it is black focus is on making products not selling products Selling Concept Selling existing products o sell off this inventory no matter what it takes focus is on the movement of products advantage generates profits for the firm by moving products and services Market Orientation Fulfilling existing emerging customer needs o we will research what customers want before developing a solution Marketing Concept o customer focused listening and acting on customer needs striving to build long term relationships o focus is on building long term customer relationships o advantage generates profits for the firm by creating these long term relationships Anything Can Be Marketed Services Place Idea Organization Event Person Fact 94 of all new product launches fail each years things marketer s must think about o consumers needs and wants o building value for consumers o developing relationships with consumers o promoting products that benefit consumers Marketing s Two Tasks Discovering consumers needs leads to new concepts 4 p s marketing mix o controllable information about needs market research potential consumers target market Satisfying Consumer Needs Marketers satisfy consumers needs by identifying the target markets they can best service Target market o One of more specific groups or potential consumers toward which an organization directs its marketing program Week 2 9 4 Chapter 4 08 26 2014 what is consumer behavior The process involved when individuals or groups select purchase use and dispose of goods services ideas or experiences to satisfy needs and desires o Its what marketers live for Consumers purchase decision process need to know The stages a buyer passes through in making choices about which products and services to buy Problem recognition o Perceiving a need Information search o Seeking value Alternative evaluation o Assessing value Purchase decision o Buying value Post purchase behavior Not always linear o Value in consumption or use Depends on the complexity of the purchase The decision making process Step 1 problem recognition perceiving a need Consumer sees a difference between her current state of affairs and some desired state of affairs o Marketing can activate a consumers decision process by showing the shortcomings of competing or currently owned products Step 2 information search seeking value A consumer searches for appropriate information to make a reasonable decision o Memory Frequently purchased products Internal search o TV commercials MKT dominated sources high involvement risk involved external search o Friends recommendations Personal sources high involvement risk involved external search o Brochures trade shows Public sources high involvement risk involved external search Involvement and decision making extended problem solving automobiles housing college use all 5 stages of decision making model limited problem solving clothing dinner cosmetics rely on friends routine decision making soda candy milk low priced items Step 3 Alternative Evaluation Assessing Value Represents both the objective attributes of a brand and the subjective attributes used to compare different products and brands possible cars evaluative criteria o price o gas mileage o roominess o color design criteria are often mentioned in advertisements the decision making process evaluation of alternative purchase choices evoked set o brands actually considered during a choice process allows them to compare products and make decisions based on needs and wants helps marketers to understand their competitors brand loyalty evaluative criteria o dimensions used consideration set o group of brands that are considered heuristics o mental shortcuts to simplify decision brand loyalty o repeated purchasing based on a conscious decision to continue buying a specific brand Step 4 Purchase Decision Buying Value Two decisions must be made Purchase intention Brand loyalty o heuristic Country of origin o Heuristic Purchase decision What to buy o Terms of sale past experiences


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