MKTG 409 Exam 1 ch 1 3 4 6 7 8 Video notes Week 1 Introduction 1 Marketing the process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in dynamic environment 1 Ex the blue and black or white and gold dress 1 An organization in England seized on this to use in domestic violence ads 2 Public zoos also used marketing to promote their activities and services 3 Trade Associations collection of firms within an industry that band together to try to influence how we buy how much of the product that we buy in terms of primary demand 1 Ex milk producers and processors talk about consuming more milk and the health benefits of milk 1 Kate Moss has her milk mustache and shes talking about the benefits of low fat milk b The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit ii Customers Purchasers of the products that organizations develop promote distribute and price a Are the focal point of all marketing activities ii Target market A specific group of customers on whom an organization focuses its marketing efforts iii Marketing mix Four marketing activities product pricing distribution and promotion that a firm can control to meet the needs of customers within its target market a A firm can control these activities to meet the needs of customers within its target market 1 There is a limit to how much these variables can be controlled ii Product A good a service or an idea a Good A physical entity that you can touch b Service The application of human and mechanical efforts to people or objects to provide intangible benefits to customers c Idea A concept a philosophy an image or an issue ii Product Variable involves creating or modifying brand names and packaging sometimes decisions regarding warranty and repair services 2 ii 1 Important because they directly relate to customers needs and wants Distribution Variable To satisfy customers products must be available at the right time and in appropriate locations a A marketing manager makes products available in the quantities desired to as many target market customers as possible while minimizing these three costs 1 Inventory 2 Transportation 3 Storage 2 Marketing manager may also 1 Select and motivate intermediaries wholesalers and retailers 2 Establish and maintain inventory control procedures 3 Develop and manage transportation and storage systems Managerial Approacha Marketing Decision Variablesb Environmental variables Segment 2i The Marketing Concept is a managerial philosophy essentially saying what we need to do as a marketer go out and find out what customers want what types of needs that they re trying to satisfy 1 A management philosophy guides an organization s overall activities toward satisfying customer s needs through a coordinated set of activities that also allows the organization to achieve its goals 2 Customer driven 1 Back in the 1800s marketers were product driven production driven 2 Late 1800s concerned with production efficiency 3 Early 1920s emphasized on sales high pressure selling and a lot of advertising 1 Push products onto customers trying to convince them to buy their product 2 Mid 50 s period of customer orientation 1 Find out what customer wants and make that product that satisfies the customer 2 Measuring customer satisfaction is a strong indicator of a company using the marking concept 1 Measure of satisfaction surveys feedback 1 Staying at a hotel 2 When you buy a car 3 Going to a restaurant 2 An employee s compensation is affected by their customer satisfaction index such as bonus 2 Mouse trap super effective metal trap didn t succeed because it wasn t as disposable as the wooden traps No one wanted to clean the trap off and store it Marketing environment segment 1 j x Why must marketers analyze marketing environment forces 1 Affect current decision making 2 Affect the consequences of previous marketing decision How do organizations respond to marketing environment forces 1 Reactive 2 Proactive 3 Examples daylight savings time 1 Companies wanted it moved to increased sales of products proactive approach getting law changed instead of sitting back and waiting Marking environment segment 2 l What issues or dimensions are associated with environmental forces 1 Competitive forces 1 Competitive market structures 1 Competitive tools a basis by which a firm competes with other competitors in its market or industry 1 Example price such as airline prices are cheaper when there are more competitors flying that route and go up when no one else is flying that route 2 Examples ready to mix concrete 1 Chances are there s only one company so they control the prices cause there isn t a competitor 2 Uniglow clothing store 1 Technical mirror that allows you to change shirt color 2 Customer service very helpful always smiling 3 Store appearance crisp folds 4 Price cheap 4 99 shirts b Economic forces not flexible companies aren t powerful enough to change a recession 1 General economic conditions 2 Buying power just because customers have buying power doesn t mean they will they have to be willing to spend 3 Willingness to spend b Political forces 1 What and who People we ve elected and appointed in political positions 2 Why are they important Some businesses are politically flavored therefore those politics get to decide who gets the business 3 How are they influenced 1 Lobbying paying people and agencies money to influence government officials in a way that make them want to do things that are consistent with your business 1 at the state and federal level 2 Many are trade association s not individual businesses normally 3 Legal and done daily 4 Examples serious lobbying was done for Tobacco products to keep them legal even though they kill about 400 000 of their customers every year Marketing environment segment 3 4 Legal and regulatory forces 1 Laws provisions 2 Interpretations of laws 3 Regulations federal trade commission Marketing environment segment 4 5 Technological forces 1 Effects cut both ways 2 Adoption and use 3 Examples digital camera almost put film based camera completely out of business 5 Sociocultural forces1 Demographics1 South shifting population 51 4 of US population growth in southern states 2 The new majority over 50 of US population is non white 3 Intermarriage increase marriage across racial and