Marketing is the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large Notes BMGT 350 Consumer Inputs Needs Wants Demands Marketing Process Desired Outcomes Satisfaction Value Exchange Sine qua non Marketing Exchange Conditions There must be at least 2 parties Parties must have something of value Parties must want to deal Parties must be free to accept or reject Parties must be able to communicate Why Call It Marketing a market a place where people gather to trade exchange notion b market set of consumers and firms that have the desire and ability to purchase products Product Concept Build a better mouse trap and the world will make a beaten path to your door Product Concept inside outside game focus existing products means aggressive sales profit sales volume Marketing Concept Give the people what they want and you ll never go wrong Marketing Concept outside inside game focus consumer need means IMC profits satisfaction Value Driven Marketing Focus on developing delivering superior value to consumers to achieve success value is attained by applying key principles Satisfaction Constructs Form Utility offering tangible features Task Utility Possession Utility Time Utility Place Utility rendering a service or performance having the right to use or consume a product having a product available when consumers want it having a product available where consumers want it Value Principles Customer Principle Competitor Principle Proactive Principle Cross Functional Principle Continuous Improvement Principle Stakeholder Principle Benefits Functional tangible benefits Social positive response consumers get from others Personal good feelings consumers get Experiential sensory enjoyment consumers gain Costs Monetary amount of money consumer pays Temporal time spent purchasing Psychological mental energy involved in making purchase Behavioral physical energy consumers expend to buy Central Market Money System Middlemen Stages of Marketing Evolution Pre Industrial Revolution Orientation Production Orientation Sales Orientation Marketing Orientation Value Driven Marketing Orientation Marketing Insight The goal of marketing is not maximize consumer satisfaction Instead marketing is meeting needs profitably Its purpose is to generate consumer value at a profit Marketing Strategy Overview Marketing Strategy Target Market Marketing Mix Competitive Advantage Marketing Plan Marketing Strategy a game plan to reach consumers articulates what the firm wants to do specifies how the firm will accomplish it has a target market marketing mix Target Market a homogenous set of consumers that the firm pursues similarity is based on shared characteristics lifestyle behavior Marketing Mix firm s controllable tactical tools 4 Ps product price place promotion 4 Ps interdependent changeable Product Issues Product Good service combination the firm offers to its target markets Quality Design Features Warranty Branding Packaging Price Issues Amount of money consumers have to pay to obtain the product List Discounts Allowances Payment Credit Place Issues Efforts that make the product available to target consumers Channels Exposure Assortments Locations Inventory Logistics Promotion Issues Efforts that communicate the merits of the product Advertising Personal Selling Publicity Direct Marketing Sales Promotion Competitive Advantage Consumers perceive your firm s marketing mix to be better than the competition Strategic actions know what your rivals are offering anticipate rival countermeasures watch competitive landscape on a continual basis Marketing Plan When marketing strategy that is written down what marketing mix to what target market for how long what resources results control Marketing Spheres Micro Marketing firm consumer flow of goods services Macro Marketing how an economy works to benefit society Macro Marketing Realities Former Soviet Union Planned Economy Goal Feed the masses Limitation Enforcement of human behavior Macro Marketing Realities United States Free Market Economy Goals Consumption Satisfaction Choice Quality of Life Limitations Ethical dilemmas What is Ethics f Ethics Honesty Proper Conduct Ethical Pitfalls Process Related marketing strategies Product Related questionable products Why Managers Do the Wrong Thing Acting in the company s best interest Looking out for one s own interest Unaware of being unethical Corporate Guidelines 1 Start at the top 2 Give your code of ethics teeth 3 Never ease up Ethical Behavioral Responses Social Responsibility A firm s acceptance of accountability to society for its actions Consumerism A movement that protects consumers from practices that infringe upon their rights Pure Competition Characterized by many sellers Free market sets the price Firm faces horizontal demand curve e g Corn Kiosk Monopolistic Competition Most common market structure Offers marketers a real challenge Firm s offering perceived as different by buyer e g Coke Pepsi RC Cola Sam s Choice Oligopoly Characterized by a few sellers Potential entrants face extremely high barriers Monopoly Having no rivals very rare Fed tries to breakup natural monopolies e g AT T Microsoft R D costs Capital outlay Technical know how o e g U S airline industry Demographic Environment The study of human populations e g age sex race Trends in the United States Women in the workforce Graying of America Single person households Migration to the sunbelt Trends in the United States continued Health consciousness Better educated Rise of white collar ranks Environmental concern Ethnic racial diversity Important Acts Sherman Act Clayton Act Enacted in 1890 Prohibits monopolies Prohibits conspiracies in restraint of trade e g price fixing Enacted in 1914 Prohibits tying contracts Makes pooling ownership of stock by competing firms illegal Federal Trade Commission Act Enacted in 1914 Creates FTC Allows FTC to investigate monitor and remedy unfair business practices Robinson Patman Act Enacted in 1936 Makes price discrimination illegal Wheeler Lea Act Empowers FTC to set limits on quantity discounts Prohibits promotional allowances except when made available on a proportionately equal basis Enacted in 1938 Prohibits deceptive misleading and unfair practices even if competition is not injured Places advertising of food drugs under FTC jurisdiction Lanham Trademark Act Enacted in 1946 Protects and regulates
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