Marketing Overview-Marketing: study of exchanges that satisfy individual and organizational objectives-Marketing Concept: before try to sell something, figure if there is a sufficient need-Marketing Mix:~Price: important with products that everyone makes (rice, gas)~Product: MOST IMPORTANT~Place: convenience (vending machine)~Promotion: alcohol-Benefits Categories~Functional: hammer, pen, chair~Social: facebook, cell phone, alcohol~Experiential: movies, sports, casinos~Personal: feel good about self: sewing, instrument, makeup-Cost Categories~Monetary: money (tuition, books)~Temporal: time (spent studying, in class)~Psychological: stress (listening to professor)~Behavioral: body (walking to class, energy, getting sick from lectures)Marketing Strategy and Competitive Analysis-Immediate Environment: company, corporate partners, competition-Macroenvironmental Factors: culture, demographics, social trends, tech., economic, political-Marketing Plan:1. Mission2. Environmental Analysis3. Segmentation, Targeting, Positioning-Porter’s Five Forces Model1. Industry Competitiveness: low intensity= higher profitability=few firmscompeting (Commercial Aircrafts)2. Availability of Substitutes: few substitutes= higher prof. (gas-few subs)3. Threat of Potential Entrants: high barriers to entry= higher prof.~high capital requirements~economies of scale are present~high product differentiation~network externalities (tech/learning curve)4. Supplier and Buyer Power: lower bargaining power of supplier/buyer= higher prof. ~lower bargaining power: high number, low information-Growth-share matrix~star: high market growth/ market share (Apple Ipod)~question mark: high market growth/ low market share (Kindle or Nook)~cash cow: low market growth/ high market share (sales of books, amazon)~dog: low market growth/ low market share (barnes and noble.com)-Sustainable Competitive Advantage: advantage that can be maintained consistently over time~Apple products: known, reliable products,~McDonald’s: own raw materials, virtually everywhere, open 24/7-Three Macro Strategies for Developing Customer Value1. Operational Excellence2. Product Excellence (Apple, Bentely)3. Customer Excellence (Chick-fil-a, Apple)-Ansoff’s Product/ Market Expansion Grid1. Market Penetration: existing markets/ products2. Market Development: new markets/ existing products3. Product Development: existing markets/ new products4. Diversification: new markets/ productsMarket Segmentation and Target Marketing-Market Segmentation: dividing the total market for a good or service into several smaller, internally homogenous groups~necessary due to differences in buying habits, the way the good or service isused, motives for buying~Maximize value~concentrate resources on a few market segments1. Identify current/ potential needs/wants in market2. Identify distinguishing characteristics among segments3. Det. the potential for the segments/ how well they would be satisfied-Segmentation types:~Demographic: age, gender, ethnicity, income, education (cereal, shoes,fisher price)~Geographic: nation, region, urban/rural (John Deer, Ski Resorts)~Psychographic: attitudes and lifestyles (Gatorade, mountain dew)~Purchase Behaviors:-usage: light, medium, heavy (beer, toilet paper)-loyalty status: milk, coffee, Apple-user status: former users (season tickets, magazines, subscriptions)-Target Marketing- Approaches~Mass Marketing: one product for all segments (doesn’t exist)~Niche Marketing: one product per segment (Nike’s running shoe)~Differentiated Marketing: multiple products for multiple segments (Honda)~Individualized (Customized) Marketing: customized (Bentley)Positioning-Competitive-Based Positioning: hierarchical order of categories~category membership: for new products, to show that brand belongs-Points of Difference: benefits selected- strongest postions where brand has point of difference on main/most important benefit~small brands find niches~stress one simple benefit in promotion- correlational inferences-Goal Positioning: brand essence= personality of brand~Personality Dimensions: sincerity, excitement, competence, sophistication,and ruggedness~Laddering Up: personality dimensions (Dove)~Laddering down: show reason to believe a benefit=enhance competitive-based positioning (Ford