Unformatted text preview:

Lecture 1- Marketing process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stake holders in a dynamic environmento Why do people buy coke? Tastes good Caffeine It’s a great product = marketingo Marketing = development of a great product Product development is a core marketing functiono There would be no firms or products without marketingo 4 P’s of marketing: Product- The first goal of marketing is to identify unmet consumer needs and then develop products that fill those needs Ex: Henry Ford offered care only in black because he could, it was a great product Price- Have to make it the right price that maximizes revenue- Explains how marketing, economics, and finance are related Place- Getting coke to where you can buy it is also part of marketing You can get a coke anywhereo Channels/distribution/logistics Promotion- Great marketers:o 1. Develop products that people want or needo 2. Price them at a level that maximizes profitso 3. Distributes them to where consumers are- Game Changer Productso Ex: Iphone, Kindle, Ipad Don’t have to advertise a lot for them  Marketing did a good job, the product sells itself o Ex: Spandex- If you do marketing function right, you do not really need to advertise o If marketers hit their mark with the product, price, and distribution there is little need to advertiseo Saves a lot of money Ex: Costco, Rolls Royce, 4 Rivers BBQ- Marketing Results o Apple stock keeps on rising over the past 10 yearso On the other hand dell stock has gone down The quality of the product died down - Marketing is not advertising or promotiono It is complex, strategic, quantitative, multifaceted etc .o Problem caused from markets who are hawking and lying about the product People who make bad products look good- The other side of marketingo Time/reality People make similar products (competition) that work the same as the original and take business- Ex: Google making a similar iPad After the competition is created, the dominant firm has to convince customers its product is superior o Its powerful Advertising and branding are powerful when it comes to marketing products, for products that are not objectively distinguishable - Why promotion works so well- Ex: Old Milwakee Light is the best light beer more awards that any other been in the light beer categoryo Bud Light has never won an award but the sell the most- Consumers do not buy unfamiliar productso Even if the unfamiliar is objectively bettero It works really wellLecture 2- Ratingso Consumer reports rates all of the products you saw as objectively the same – or better than – the branded products Ex: Frosted Flakes v. Store Brand- Brands (and marketing) are powerfulo Get you to believe the brand is bettero Only used when there are a lot of competitors with similar products- History of Marketing o Simple Trade Era (Pre 1860s) Products were made by hand, grown, or traded in small quantities- Lasted up until the industrial revolution - Realized they could make same products in a big amount, cheaper, and distributeo Production Era (Pre 1920s) “As long as its black”- inward focuso company focused on what they could create not what customers wanted- technical development  emphasis on production Condition: Sellers Marker, Demand exceeded supply- Lots of buyers, few sellers = sellers marketo Sales Era (1920s) “Changing their minds” great depression happened- people became conservative buyers Focus on:- Selling what we make- Aggressive promotion – vacuum cleaners- Short term profit maximizationo The Marketing Era (1940s-1990s) The “great awakening” where customers became the central focus of the organization Began with the development of marketing departments (1940-1960) and then transferred to therest of the firm (1960-1990) Companys started to think of what the customer wanted- Customer focused  Focus on:- Customer is the key “delight”- Make what we sell Marketing orientation- Competitor orientation- Inter functional orientation- Customer orientation Stakeholders constituents who have a “stake”, or claim in some aspect of a company’s products, operations, markets, industry, and outcomes - Ex: When the Oil Spill happened BP stakeholders had to deal with the problems Clues to a Market Orientation - Customer centric marketing  developing collaborative relationships with customers based on focusing on their individual needs and concerns- Relationships marketingestablishing long term mutually satisfying, buyer seller relationship o Develop long term relationships and make you keep buying- Customer relationships management using info about customers to develop and sustain desirable customer relationships- Green marketingcreating meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment o Relationship Marketing Era (1990s-2010) The focus is on long term relationships and customer retention- Yielded great results - Ex: The 5% increase in customer retention yields up to 95% improvement in NPV delivered by customers o NPV = net present value Repeat customers generate over twice as much revenue as new customers Engaged customers generate 1.7 times more revenue than normal customers  Point is to get customers and keep customers by developing mutually beneficial relationships  Relationship marketing today:- Ex: if you are earning delta sky miles you are not going to switch airlines because you want the mileso Societal Marketing Era (1960s-present) “green marketing” focus on - adds society’s best interest to the mix- corporate social responsibility- firm now serves three entities- the 4 p’s/marketing mix drive products and companyo products = goods, services, ideas best products- ex: ford’s my key – parents can control the car for their children (i.e max speed, gas, etc.)o distribution/place make products available in quantities desired minimize costs:- inventory- transportation- storage- Ex: Coca Cola get the product everywhereo Promotion Inform individual or groups about the organization and its products/services- Advertising- Public relations- Personal selling- Promotions- Street teams/guerilla marketing- Viral marketingo In social


View Full Document

FSU MAR 3023 - Lecture 1

Documents in this Course
Marketing

Marketing

17 pages

Chapter 1

Chapter 1

48 pages

EXAM #3

EXAM #3

19 pages

Exam 4

Exam 4

22 pages

EXAM #3

EXAM #3

24 pages

Lecture 1

Lecture 1

27 pages

Exam 4

Exam 4

17 pages

EXAM 1

EXAM 1

7 pages

Lecture 1

Lecture 1

27 pages

Chapter 1

Chapter 1

18 pages

Lecture 1

Lecture 1

82 pages

Lecture 1

Lecture 1

82 pages

Exam #2

Exam #2

10 pages

Exam 3

Exam 3

12 pages

Marketing

Marketing

19 pages

EXAM 2

EXAM 2

13 pages

Exam 1

Exam 1

19 pages

Exam 1

Exam 1

5 pages

Marketing

Marketing

21 pages

EXAM 2

EXAM 2

5 pages

EXAM 1

EXAM 1

7 pages

Test 3

Test 3

18 pages

Notes

Notes

6 pages

Marketing

Marketing

16 pages

Exam 1

Exam 1

7 pages

Exam 1

Exam 1

7 pages

Exam

Exam

1 pages

Test 2

Test 2

11 pages

Chapter 6

Chapter 6

34 pages

Test 1

Test 1

8 pages

Marketing

Marketing

34 pages

EXAM 1

EXAM 1

7 pages

Notes

Notes

4 pages

Notes

Notes

10 pages

Chapter 1

Chapter 1

51 pages

Marketing

Marketing

15 pages

Exam 1

Exam 1

16 pages

Exam 1

Exam 1

16 pages

Marketing

Marketing

13 pages

Exam 1

Exam 1

16 pages

Exam 1

Exam 1

5 pages

Exam 1

Exam 1

5 pages

Exam 4

Exam 4

18 pages

Test 2

Test 2

20 pages

Load more
Download Lecture 1
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Lecture 1 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Lecture 1 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?