INTRO WHAT IS MARKETING What is marketing Managing profitable customer relationships Goal is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction CREATE VALUE CAPTURE VALUE The marketing concept start with market outside information to determine needs and o Types of products physical objects people organizations places information bring it back to the company ideas o Types of customers Sales concept the idea that consumers will not buy enough of the firm s products unless the firm undertakes a large scale selling and promotion effort Production concept the idea that consumers will favor products that are available and highly affordable therefore the organization should focus on improving production and distribution efficiency Product concept the idea that consumers will favor products that offer the most quality performance and features therefore the organization should devote its energy to making continuous product improvements Marketing myopia the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products o To be myopic to have blinders on and only see what is directly in front of you Societal marketing concept the idea that a company s marketing decisions should consider consumers wants the company s requirements consumers long run interests and society s long run interests The marketing mix a set of marketing tools that work together to satisfy customer needs and build customer relationships o 4 P s product what do customers need and want promotion how will we communicate with the customers price how much should we ask them to pay place how will we get it to the customers Marketing process model o Steps in the process Understand the needs and wants design a customer driven strategy construct an integrated marketing program build profitable relationships and create customer delight capture VALUE from customers to create profit and customer equity o Consumer touch points include customer purchases sales force contacts service and support calls etc Basically every contact between a customer and a company Building and capturing customer value o Customer loyalty and retention strangers barnacles butterflies true friends o Customer equity customer lifetime value o Consumer generated marketing driven by the consumer o Customer relationship groups MARKETING ENVIRONMENT What is the marketing environment why is it important marketing environment is all of the people and forces outside marketing that affect marketing management s ability to build and maintain successful relationships with its targeted customers The microenvironment consists of actors close to the company that affect its ability to serve customers The macroenvironment consists of the larger societal forces that affect the microenvironment Actors in the microenvironment Page 1 of 7 o The company marketing department works closely with all other dept to share the responsibility for understanding customer needs and creating customer value o Suppliers form a link in the company s overall customer value delivery network They provide the resources needed by the company to produce its goods and services Managers must watch supply availability and cost because these problems can seriously affect marketing Marketers treat their suppliers as partners in creating and delivering customer value o Marketing intermediaries help the company promote sell and distribute the products to consumers They can be resellers physical distribution firms marketing services agencies or financial intermediaries Resellers wholesalers and retailers who buy and resell merchandise Physical dist firms help company move and stock goods from their points of origin to their destinations Marketing services agencies firms that help the company target and promote products to the right markets Financial intermediaries banks credit companies etc to help finance transactions or insure risk against buying selling goods o Customers types of customers Consumer markets individuals that buy goods services for personal consumption Business markets buy goods services for further processing or use in their production processes Reseller markets buy goods services to resell for a profit Gov Markets gov agencies that buy goods services to product public services or transfer the goods and services to others in need Int l Markets buyers in other countries o Competitors competitive advantage law of color A company must provide greater customer value than its competitors Competitive Adv why might the customer choose you instead Law of Color create your own identity with a different color than your competitor s o Publics e g financial media any group that has an actual or potential interest in or impact on an organization s ability to achieve its objectives Financial Publics influences ability to obtain funds Media Publics carries news features and editorial opinion Gov t Publics management must take gov t developments into account Citizen Action Publics decisions may be questioned by outside groups public relations can help it stay in touch with consumer groups Local Publics community organizations and neighborhood residents large companies create departments that deal with local issues and provide support General Public companies need to be concerned about the general public s attitude toward its products activities Internal Publics includes workers volunteers managers and Board of Directors Forces in the macroenvironment o Demographic forces e g household structure population diversity age structure the study of human populations in terms of size density location age gender race occupation etc Involves the characteristics of people who make up the company s markets Baby Boomers spending more carefully post recession and planning to Generation X less materialistic cares about the environment Millennials Gen Y most financially strapped generation comfort with work longer technology o Economic forces e g value marketing Engel s law treasure hunter consists of economic factors that affect consumer purchasing power and spending patterns Page 2 of 7 Engel s law as income rises the proportion spent on food falls o Natural forces involves the natural resources needed as inputs by marketers or that are affected by marketing activities Environmental concerns have grown over the past 3 decades as the fear of global warming grows Marketers should