BA 101 1st Edition Lecture 3Outline of Last Lecture 1. Class rules and some adminA. Class participation scoresB. Email communicationsC. Quizzes2. Lecture: Wealth transactions and PlanningOutline of Current Lecture I. Foundation updateA. Rehearsal tutorialB. Online quiz commentsII. Lecture: MarketingCurrent LectureI. 877-477-8787 is the number for technical support for the Foundation simulationFor this week do:- The introductory lesson and quiz- Demos and tutorials – watch the R&D and Marketing videos- Over the next week complete demos and tutorials- Go through rehearsal tutorials (due Jan 22nd at 11:59pm)Tutors are available starting next week (Jan 20th), located in the Braddock tutoring center in the Lillis Atrium. Hours: M-Th at 4-7pm, and F at 12-5pm. Upcoming Foundation Due Dates:- Rehearsal tutorial due 1/22 at 11:59pm- Practice Round 1 due 1/27 at 11:59pm- Practice Round 2 due 1/29 at 11:59pmII. Lecture: MarketingThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.What is marketing? Marketing is an organizational function and a set of processes for:- Creating, communicating, and delivering value to customers- Managing customer relationships in ways that benefit stakeholdersCustomer Perceived Value: a customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.Marketing asks:- Who are your (potential) customers?- How big is the market?- How fast is it growing?- Can you usefully group your customers? (Divide market segments)What do consumers want from you?The 4 Ps: - Products- Price- Place- PromotionThe Marketing Mix: A unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.How does marketing figure out customers/markets?- Marketing research- Market segmentation and target markets- Consumer behaviorIn Foundation: you will determine a market size, define an “ideal” product for both segments (hi-tech/low-tech), and calculate a Customer Survey Score (CSS). Role of Marketing Research: process of planning, collecting, and analyzing data relevant to a marketing decision. In Foundation, the Industry Conditions Report has this information. Secondary Data/Research: Data previously collected for any purpose other than the one at hand.Primary Data/Research: data collected for the first time, for the purpose of solving the problem at hand. Includes observational research and the collection of original information. It relies on 3 types of information:- People watching people- People watching an activity - Machines watching people (or activity)Commonly collection sites includes checkout counters and couponsSecondary Research: is the collection of information from published sources. Relies on information from- Websites- Publications- Research reportBasis for segmentation:- Geography - Demographics- Psychographics- Benefits sought- Usage rateTarget Market: A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of the group, resulting in mutually satisfying exchanges. Strategies for selecting a Target Market:- Consumer behavior – the use, disposal, and purchase of products, and the decisions to buy one product over another.- Demographic segmentation – Age, gender, income, family situation. - Psychographic segmentation – personality, motivation, lifestyles, and geodemographics- Geodemographic segmentation – a combination of demographic, geographic, and lifestyle segmentations. Often done by neighborhood. Ex: Tweens:- Pre- and early-adolescents ages 8-14- Population of 29 million- Purchasing power of $39 billion- View TV ads as “just advertising”- Emerging as the “most influential generation in history”Intermarket segmentations: Ex: teens show surprising similarity no matter where they live, many companies target teens with worldwide marketing