Marketing Chapter 1 01 29 2014 Marketing Definition Is the activity for creating communicating delivering and exchanging offerings that benefit the customers the organization its stakeholders and society at large Stresses the need to deliver benefits in the offering of good services and ideas marketed to customers Exchange Which is the trade if things of value between buyer and seller to that each is better off after trade Needed for Marketing to Occur Two or more parties individuals or organizations with unsatisfied needs o Wanting to know about celebrity gossip and the bookstore needing to sell a magazine A desire and ability on their part to be satisfied o Need to have the money and time to go to the bookstore and the owner has the magazine on the shelf A way for the parties to communicate o market of potential buyers nearby o sent samples of the mag Something to exchange o exchanging something of value o gained something and also gave something up Discovering consumer needs First step in marketing is discovering needs of customers Marketing tries to satisfy both costumer s needs and wants Market Potential customers make up a market people with the desire and ability to buy a specific offering Target Market Organization cannot satisfy all needs so there is a target market o One or more specific groups of potential consumers toward which an organization directs its marketing program After picking a target market the firm then figures out how to satisfy their needs The Four P s Product Price Promotion Place problem o A good service or idea to satisfy the consumers needs o What is exchanged for the product o A means of communication between the seller and buyer o A means of getting the product to the customer These are the elements of the marketing mix controllable factors that can be used by marketing managers to solve a marketing Customer Value Proposition Cluster of benefits that an organization promises customers to satisfy their needs Uncontrollable environmental Forces Involving social economic technological competitive and regulatory forces 01 29 2014 Chapter 3 Scanning the Marketing Environment 01 29 2014 Environmental scanning The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends Tracking Environmental Trends They typical arise from five sources o Social o Economic o Technological o Competitive o Regulatory forces Ex coffee trends has changed making distributors change the way they sell their coffee and where they sell it Environmental scanning also explains trends o Why did coffee increase in buying and then decrease Social Forces Social forces of the environment include the demographic characteristics of the population and its values o Changes of these forces can have dramatic impact on marketing strategy Demographics Social Force o Describing a population age gender ethnicity income and o Population Reference Bureau and United Nations monitor o A global trend is the shifting age structure of the world occupation population Higher growth rates of elderly age group Generational Cohorts o Baby Boomers wealthiest generation in U S history 50 percent of all consumer spending Companies target the boomers will respond to their interest in health fitness retirement financial planning Known as the baby bust the baby born this year were o Generation X declining Better educated than any other generation Traditionalism Largest segment of business travelers o Generation Y Echo boom baby boomlet Influence on music sports computers and all forms of communication and networking strong willed and passionate about the environment and optimistic Millennial o Population shift A major regional shift in the U S population toward southern and western states in under way Last year Texas gained more people than any other state Census Bureau has a classification system Metropolitan statistical area 366 areas and cover 84 percent of population Micropolitan statistical area 576 areas and cover 10 percent of o Racial and Ethnic Diversity population Multicultural marketing programs Which are a combinations of the marketing mix that reflect the unique attitudes ancestry communication preferences and lifestyle of different races Marketing research that allows an accurate understanding of each culture is essential Culture Social force group A second social force that incorporates the set of values ideas and attitudes that are learned an shared among the members of the The Changing Attitudes and Roles of Men and Women o One of the most notable cultural changes in the united states in the past 30 years o Several factors contributing to the shift in attributes Young women has mothers with careers Increased participation in organized sports Internet exposure to the marketplace making gender age invisible o The trend is to have fewer gender distinctions Changing Values o Today commonly held values include personal control continuous change equality individualism self help competition future orientation and action o Important value for consumers in the United States is sustainability and preservation of the environment Generation Y o Value Consciousness The concern for obtaining the best quality features and performance of a product or service for a given price Economic Forces The second component to the economic scan Economy o Pertains to the income expenditures and resources that affect the cost of running a business and household o Two perspectives Macroeconomic view of the marketplace Microeconomic view of consumer income Macroeconomic Conditions o Economy based on indicators such as GDP unemployment and price changes inflation or deflation o If prices rise faster than consumer incomes the number of items consumers can buy decreases o Consumer expectations about the economy are important element of environment scanning Survey is Consumer Confidence Consumer Income o Consumers ability to buy is related to the income o Gross income The amount of money made in one year by a person household or family o Disposable income taxes to use for necessities o Discretionary Income The amount of money a consumer has left after paying The money that remains after paying taxes and You need to be able to determine what is luxury and necessities what is necessity Technology Forces research Technology is the third environmental force Inventions and innovations from applied science or engineering Technology Impact on Consumer Value o The