Marketing 3000 Book Notes www mhhe com GrewalM2e Chapter One The role of marketing in organizations Marketing activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large Good marketing is not a random activity it requires thoughtful planning with an emphasis on the ethical implications of any of those decisions on society in general Fundamental purpose is to create value by developing a variety of offerings including goods services and ideas to satisfy customer needs Marketing plan specifies the marketing activities for a specific period of time How the product or service will be conceived or designed how much it should cost where and how it will be promoted and how it will get to the consumer Understanding the market place and especially consumer needs and wants is fundamental Help buyers make a decision about whether they should part with their time and or money to receive a particular service or merchandise Refers to the world of trade Buyers are divided into groups Crest Adult adolescent child senior Coffee drinkers wine drinkers smokers tea drinkers Want to know which marketplace segments your product is most relevant and then make sure that you build a marketing strategy that targets those groups Exchange the trade of things of value between the buyer and seller so that each is better of Alicia Keys CD review in Rolling stone The magazine says it is available at B N and online so you go online and purchase the CD B N creates a record of your information and purchase so when Alicia Keys makes a new CD B N can inform you B N gets not only your money but also important information so it can market to you in the future Marketing mix four P s Product price place and promotion Controllable set of activities that the firm uses to respond to the wants of its target markets Product Water US companies took a cue from firms like Perrier and Pellegrino and made bottled water that says I m healthy smart and chic Goods items you can physically touch Reebok makes chooses but adds value to its products by making them cute and getting Scarlett Johanson to endorse them Services intangible customer benefits that are produced by people or machines and cannot be separated from the producer Airlines hotels banking insurance spas and entertainment ATM Add value by being conveniently located fast and easy to use Ideas include thoughts opinions and philosophies Groups promoting bicycle safety has a primarily children market Secondary target is parents and siblings When the kids wear their helmets they are becoming purchasers of the safety idea that the group marketed Price everything the buyer gives up in exchange for a product Money time energy A person who buys a ticket at the last moment for convenience and a person who buys the same ticket two weeks in advance may have the same price because the first person values convenience over the extra money spent For marketers the key to determining prices if figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit Place represents all the activities supply chain management necessary to get the product to the right customer when that customer wants it Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers manufacturers and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities to the right locations and at the right time while minimizing system wide costs and satisfying the service levels required by the customers If the system doesn t work the product doesn t get where it needs to be in time A Missouri woman loves seafood and Joe s Seafood Place wants to get her the product she wants so it has established a supply chain in which consumers can place orders through its Internet site Joe s works with FedEx to ensure its crabs get delivered to any location by the end of the next business day Joe s charges 123 95 for a dinner for two but the seafood lover values the ease with which she receives her seafood worthwhile for the price Promotion communication by a marketer that informs persuades and reminds potential buyers about a product or service to influence their opinions and elicit a response Calvin Klein s provocative ads helped create an image that says more than use this product and smell good Instead CK sells youth style and sex appeal B2C Business to consumer marketing the process by which businesses sell to consumers McDonald s B2B business to business marketing the process of selling merchandise or services from one business to another Mizzou t shirt retailer to Mizzou bookstore C2C consumer to consumer marketing consumers sell to other consumers Etsy Individuals can undertake activities to market themselves like when they apply for a job Research you do about the firm resume and cover letter way you dress for the interview and conduct yourself during it Zappo realized it could not measure the return on this investment so it began decreasing advertising costs and spending more money on improving customer service through advanced supply chain management techniques such as free overnight shipping free return shipping and 24 7 fulfillment operations making exchanging shoes almost as easy as in store Also strengthened its backend operations to make sure customers were getting what they wanted Zappos ships shoes out of its own warehouse so it can assure when the shoes will get to the customers It moved closer to UPS headquarters and sits within 600 miles of 2 3s of the US population Marketing can impact partners in the supply chain employees and society at large Supply chain partners are involved in marketing to each other Marketing often is designed to benefit an entire industry or society at large Milk saying Got milk aimed at different target segments Overall this campaign benefits the entire dairy industry and promotes the health benefits of drinking milk to society at large Earlier most firms believed a good product would sell itself Manufacturers were concerned with product innovation not with satisfying the needs of individual consumers This was a production oriented ear around the turn of the 20 th century Between 1920 1950 it became more sales oriented Production and