Business in-class 1/13/15What is Marketing?Marketing:An organizational function and a set of processes for:-Creating, communicating, and delivering value to customers-Managing costumer relationships in ways that benefit the organization and its stakeholders (stakeholders consist of owners of the company)Asks:- Who are your potential costumers?- How big is the market?- How fast is it growing?- Can you usefully group your costumers?- What do they want from you? Product, price, Place, PromotionCostumer Perceived Value:A consumer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative of those competing offersThe Marketing Mix:The 4 P’s of marketing (product, price, place, promotion) A unique blend of product, distribution (place), promotion, and pricing strategies designed to produce mutuallysatisfying exchanges with a targets marketThe role of Marketing ResearchMarketing Research:Marketing:- Market Research- Market segmentation and target markets- Consumer BehaviorThe role- The process of planning, collecting, and analyzing data relevant to a marketing decisionNote: Your industry conditions report in foundation shows the information collected by the marketing functionSecondary Data:Data previously collected for a purpose other than the one at hand, collected by someone elseResearch, secondary research: A research method that relies on already available information- Websites- Publications- Research reportsSecondary Research- Collection of information from published sourcesPrimary Data: Information collected for the first time, can be sued for solving the particular problem under investigationResearch, primary research:A research method that relies on three types of observation- People watching people- People watching an activity- Machines watching peoplePrimary Research:- Observational research- Collection of original informationBasis for segmentation Basis for segmentation (dividing a big market into smaller subsets):-GeographyLocation and Cultural Differences-Demographics Age, gender, income, family life cycle-Psychographics Market segmentation on the basis of personality, motives, lifestyles, and geodemographics (segmenting potential customers into neighborhood lifestyle categories, combines geographic, demographic,and lifestyle segmentation)-Benefits sought The process of grouping customers into market segments according tothe benefits they seek from the product-Usage rateIntermarket Segmentation:Teens show surprising similarity no matter where in the world they live, many companies target teenagers with worldwide marketing campaignsTarget Market:A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchangesConsumer Behavior: Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services, also includes factors that influence purchasedecisions and the product useGenerationsTweens:-Pre- and early adolescents, age 8-14-Population of 29 million-Purchasing power od 39 billion-View TV ads as just advertising-Emerging as the most influential generation in historyGeneration Y:-Born between 1979 and 1994-Population of 60 million-Purchasing power of 200 billion annually-Researchers have found Gen Y’ers to be:-Impatient-Family-oriented-Inquisitive-Opinionated -Diverse-Time managers-Street smart-Word of mouth marketing is effectiveGeneration X:-Born between 1965 and 1978-Population of 40 million-Savvy and cynical and consumers-Time is at a premium, and outsourcing is utilized-Entering their money-making yearsBaby Boomers-Born between 1946 and 1964-Population of 77 million- the largest demographic segment-1 trillion in spending power for aged 50 to 60-Income will continue to grow as they keep workingFoundationMTBF:Mean Time Between FailureLow tech- 14,00-20,00 hoursHigh tech- 17,00-23,000 hoursLonger MTBF time is more attractiveLower price is more attractiveAgeLow tech age=3High tech