MKTG 301 2 9 15 Marketing Concept 1 Market definition of the business Practice target marketing 1 demographic 2 geographic 3 psychographic 4 volume 5 benefit segmentation Primary benefits the one or two important benefits that are important in a product What does this person look for in a product Ex buying toothpaste for flavor freshness or clinical worry 6 Institutional target markets based on organizational institutional type Ex targeting hotels businesses restaurants etc and selling in bulk 2 Organizations develop Extended Product Strategies the marketing of co ordinated solutions to related customer needs Ex airlines advertising hotels rental cars and other trip needs in an e ort to market to its customers 3 Establish relationship marketing programs Marketing begins once a sale is made Ex Amazon customizing product searchers and tailoring them to your needs 1 Lifetime value of a customer If you buy a car for your first time in your 20s what do you represent to them in terms of lifetime value Probably millions Once you buy from them what will they do to keep you as a customer The after sale relationship is important Policies that are customer friendly and encourage repeat business Creating good publicity and retaining customers 4 Coordination and integration of the marketing e ort 1 Human Resource Management HRM process Job descriptions recruiting and selection orientation training evaluation and rewards Companies need to emphasize customer satisfaction and marketing in all their employees 2 Cross functional coordination Having marketers work and check out all jobs within the organization to gain perspective Even the most mundane jobs must be inspected to create a true team e ort People in various departments work together to create ideas and products 3 Internal marketing One of your key publics is your own employees How are you marketing your organization to your own employees Don t let your employees hate their job Do your employees understand your products and services How to inform and persuade your employees internally 4 Social responsibility Obeying laws and ethical codes compliance with the rules of the game JFK s consumer bill of rights 1 A right to safety Employee and consumer safety Ex FDA CPSC Consumer Products Safety Commission EPA Environmental Protection Agency We can t just market any product we must have safe products 2 A right to be informed Regulation of deceptive acts and practices Material falsity does it lie and purposely decive customers about a product vs permissible pu ery harmless exaggeration We have the most delicious burgers in the world Sometimes it is a close call between what is literally true and materially false Ex food artists visual distortion of food Visual distortion incomplete disclosure bait and switch advertising 3 Federal Trade Commission FTC regulates most of this and exists to protect consumers FDA for food and drugs USPS for mail advertising can take mail privileges away if found guilty of deceptive practices Federal Communication Commission FCC control over broadcast media licensure can fine and or networks for airing deceptive advertising You can t sell any old product You can t market any old product in anyway you want 4 Right to choose Trying to protect consumers against anti competitive acts and practices Also about protecting small businesses against larger ones Deals very much in pricing and distribution Ex 1 Price discrimination there is good and bad price discrimination The bad type is when we re involved in business to business B2B marketing For example a manufacturer o ering better wholesale prices to Walmart than to small businesses Illegality found in injury to competition 2 Price fixing Keeping prices at a certain level Having a floor to a price at a certain level 3 Predatory pricing competitors pricing things low to drive out other businesses Pricing below cost to drive out competition then jacking again when the competition is gone Again only matters if it s injurious to competition 4 Price gouging jacking up prices to overcharge based on need Ex raising the price of flashlights and water by a large margin before a storm 5 Tying arrangements forcing businesses mostly small businesses to carry products they don t wish to carry in order to carry a product they want to sell 6 All of these are regulated by the FTC 5 Right to be heard Who will listen to our complaints There is no government agency to protect this Companies have consumer a airs departments to deal with complaints and needs This is mostly voluntary Ex Better Business Bureaus designed to listen to complaints Sometimes forward complaints to government agencies