What to most people when they think of marketing ads commercials brands selling Has a NEGATIVE connotation Marketing is The process of planning and executing the conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives Marketing is the study of exchange It s bread An exchange needs 2 or more parties What is marketing NOT it s not business Marketing can be people or political ideas Terrorism was marketing they got a desired reaction How old is marketing it s relatively new businesses can cow make more than they can sell Need to persuade Marketing s first task discovering consumer needs When was the birth of marketing 1950s What should you do before producing something see if there s a sufficient need It s easier to sell something ppl want swim downstream ex selling spigetti in mexico Nobody wants it You can passion but not a marketing concept It will fail b c there s no need Marketing s second task satisfying consumer needs it s done by creating an offering which is in the 4ps Flow chart thing 1 Discover consumer needs 2 Satisfy consumer needs and find the right combo of product price promotion place 3 Goods services ideas 4 Potential consumers the market 5 Info about needs 6 Back to discover needs a full circle effect Importance of place examples restaurants for them to be close People won t drive a long distance for taco bell poor only buys desani water if its from a vending machine importance of price it can inhibit purchasing can also make the sale fast food dollar menu it s important at a place like walmart importance of promotion consumer needs to know about product Ex not much difference between soft drinks and mayo Ex ipod zune b c it s defined by the market not necessarily reality it s been proven that ppl can t tell the difference between orange juices Importance of product it s the most important It precedes the others What is the most brand loyal product mayo There are four benefits functional social personal experiential functional this class learn about marketing get course credit car is functional paper towels pencil microwave Social this class meet friends business partner ect phone facebook beer a tie clothes games Personal feel good about yourself makeup exercise volunteering massage tanning grad college experiential have fun enjoy learning traveling movies amusement parks music sport events Truman the tiger what has all four benefits education Four costs monetary temporal psychological behavioral monetary tuition book fees temporal time spent in class studying ex going to a restaurant assembling something online shopping vs stores pets pickup vs pizza delivery house painting psychological stress studying for exams and listening to instructor scary movie kardashians buying a car or house behavior expending energy walking to class or getting sick from lecture halls walking to sports Great way to find new needs add experiential without adding cost Value equation Value all benefits all costs Marketing strategy managers monitoring environment See trends and changes that are happening Analyzing the marketing environment 40 billion diet industry increased consumption of health and diet products businesses responding to the demand in a variety of ways sara lee white bread is threatened by health movement They started making it with whole grains There are three levels of a marketing environment analysis consumers center immediate environment macroenvironment Immediate environment competition company corporate partners macroenvironmental factors culture political legal economic technology social trends demographics social trends can be changes of taste ex fitness econ ex folgers sells less b c ppl make coffee at houses less Energy drinks are substitutes and ppl want lattes starbucks Three phases of a strategic marketing plan 1 Mission 2 Environmental analysis SWOT 3 Segmentation targeting position Step one defining mission vision Madd mission To stop drunk driving support victims of the crime and prevent underage drinking Mission answers two Qs in which industries businesses should we operate what is our sustainable competitive advantage Porter s five forces model it says should we be in this industry with this product is the industry profitable You look at two things in the 5 forces model corporate strategy which industries to compete in what Industry profitability depends on Industry profitability is dependent on industry competitiveness availability of substitute products potential entrants Threat of new competition supplier power buyer power Industry competitiveness low intensity of current competitors higher profitability industry has low intensity when there are few firms competing ex commercial aircraft if ppl leave industry it s more profitable If ppl enter it s less profitable Availability of substitutes customers can choose different product as a substitute few or no substitutes higher profitability ex no subs gasoline proprietary drugs ex many subs fresh vegetables frozen vitamins ect technological products from past or future technologies technology ex HDTV subs old TV Blu Ray or the conceptual sub of ppl waiting for next technology 3D Substitutes are outside product category subs for coffee tea energy drinks sub for beer liquor wine no subs electricity toilet paper Threat of potential entrants high barriers to entry higher profitability barriers to entry make it hard for ppl to get in industry harder to get in industry more profitability high barriers to entry exist when high capital requirements economies of scale are present high product differentiation network externalities technological or learning curve High product differentiation ex wrist watches There are a lot of watches b c differentiation sports fashion ect Network externalities a cell phone plan where you talk to ppl on the network for free w more ppl it s more valuable Learning curve VHS and sony A lot of ppl learned 1 product It s hard for others to enter the industry Ppl don t want to relearn More Barrier notes advice enter an industry and create a barrier to entry no barrier internet companies amazon lost for 5 yrs then had learning curve barrier set Supplier and buyer power lower bargaining power of suppliers buyers higher profitability w of suppliers decreases it hurts the profitability of the industry with a lot of buyers it lowers buying power Lower bargaining power when high number low information