8/27/2012Overview of marketing:- Apple named marketer of the decade.- Last 2-5 years Apple spent 1.2 billion in product placement.- Apple’s marketing secrets:o Don’t sell products; people buy what other people have.o Never be the first to market, make something good great.o Empower early adaptors.o Make your message memorable.o Surprise and delight your customers.- What is marketing- Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering and exchanging offering that have value for customers, clients, partners, and society at large -American Marketing Association.- Components of Marketing- - Creatingo Collaborating with suppliers and customers.o Creating offerings that have value to the customer.- Communicatingo Describing those offerings.o Learning from customers.- Deliveringo Getting those offerings to the customero In a way that optimizes value.- Exchangingo Trading Value for those offeringso 5 components of exchange Must be at least 2 parties Each party must have something of value to the other party. Each party is capable of communication and delivery. Each party is free to accept or reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.- 4 p’so Product- creating offeringso Price- communicatingo Place- deliveringo Promotion- Fundamental purpose of marketing:o Create value Benefits- Firm, partners, customers & society- Profitable Exchangeo Value = Benefits Received – (Cost + Hassle)- The Marketing Concepto Philosophy underlying everything marketers do.o Seek to satisfy customer needs & wants.- Value Based Marketingo Offer excess to allow for plenty of producto Monitor the marketplaceo Share informationo Balance benefits with costso Build relationships with customers- Marketing is NOT:o Just buyers and sellers exchanging moneyo Simply about making a profito A random activity The marketing plan- History of marketing’s roleo Production oriented era Build it they will comeo Sales oriented era All about the sales technique Door to door salesmeno Market-oriented era Give customers what they wanto Societal Marketing Orientation The idea that an organization exists not only to satisfy customer wants and needs and to meet organization objectives but also to preserve or enhance individuals’ and society’s long term best interest.o Value based marketing Customer value1. Offer products that perform2. Earn trust3. Avoid unrealistic pricing4. Give the buyers the facts5. Offer organization wide commitment in service and sales support6. Co-creation Who engages in Marketing?o For profit companies Defined by customers Defined by functiono Nonprofit organizationso Individuals (personal marketing plan)Chapter 2 Marketing Strategy1. Identifies a from target markets2. A related marketing mix- their 4p’s3. The bases upon which the firm plans to build a sustainable competitive advantage What is the organizations main activity at a particular time? How will it reach its goals? Why should you have a marketing plan?o If you fail to plan, you plan to failo Overall analysis of how the firm is going to get marketing strategy accomplished.o Helps employees and management work toward common goals.o Allows the marketing manager to enter the marketplace with an awareness of possibilities and problems. Planning phase: Step one Business mission and objectiveso What business are we in?o Should focus on the market or markets the organization is trying to serve rather than a good or service offered.o Don’t want: Marketing myopia- defining a business in terms of goods and services rather in terms of the benefits that customer seek.o Don’t want to be too broad eithero Also may include sustainable competitive