Marketing 3000 Book Noteswww.mhhe.com/GrewalM2eChapter 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 needsMarketing plan: specifies the marketing activities for a specific period of timeHow 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 consumerUnderstanding 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 merchandiseRefers to the world of tradeBuyers are divided into groupsCrest:Adult, adolescent, child, seniorCoffee drinkers, wine drinkers, smokers, tea drinkersWant to know which marketplace segments your product is most relevant and then make sure that you build a marketing strategy that targets those groupsExchange: the trade of things of value between the buyer and seller so that each is better ofAlicia Keys CD review in Rolling stoneThe magazine says it is available at B&N and online so you go online and purchase the CDB&N creates a record of your information and purchase so when Alicia Keys makes a new CD B&N can inform youB&N gets not only your money, but also important information so it can market to you in the futureMarketing mix/four P’s:Product, price, place and promotionControllable set of activities that the firm uses to respond to the wants of its target marketsProduct: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 touchReebok 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 producerAirlines, hotels, banking, insurance, spas and entertainment, ATMAdd value by being conveniently located, fast and easy to useIdeas: include thoughts, opinions and philosophiesGroups promoting bicycle safety has a primarily children marketSecondary target is parents and siblingsWhen the kids wear their helmets they are becoming purchasers of the safetyidea that the group marketedPrice: everything the buyer gives up in exchange for a productMoney, time, energyA 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 spentFor 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 profitPlace: represents all the activities (supply chain management) necessary to get the product to the right customer when that customer wants itSupply chain management is the set of approaches and techniques that firms employto 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 customersIf the system doesn’t work, the product doesn’t get where it needs to be in timeA 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 placeorders 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 $123.95for 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 responseCalvin 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 appealB2C/Business-to-consumer marketing: the process by which businesses sell to consumersMcDonald’sB2B/business-to-business marketing: the process of selling merchandise or services from one business to anotherMizzou t-shirt retailer to Mizzou bookstoreC2C/consumer-to-consumer marketing: consumers sell to other consumersEtsyIndividuals 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 itZappo 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