Chapter 1 Definitions Marketing The American Marketing Association the activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large Marketing Plan Firm specifies the marketing activities for a specific period of time and is broken down into various components How the product or service will be conceived or designed How much it should cost Where and how it will be promoted How it will get to the consumer Ultimately both sides of the transaction should be satisfied Marketplace the world of trade can be segmented into groups of people who are pertinent to an organization for particular reasons focus on who wants and can also afford the product Exchange the trade of things of value between the buyer and the seller so that each is better off as a result Communications and delivery to the buyer customer Money and information to the seller producer Core aspects of Marketing Marketing helps create value Marketing is about satisfying customer wants and needs Marketing entails an exchange Marketing requires product price place and promotion decisions 4Ps Marketing can be performed by both individuals and organizations Marketing occurs in many settings Marketing Mix 4Ps product price place promotion the controllable set of activities that the firm uses to respond to the wants of its target markets 1 Product creating value Goods items that you can physically touch Services intangible customer benefits that are produced by people or machines and cannot be separated from the producer Ideas opinions programs and philosophies 2 Price capturing value everything the buyer gives up money time energy in exchange for the product 3 Place delivering the value proposition represents all the activities necessary to get the product to the right customer when the customer wants it Supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers manufacturers warehouses stores and other firms involved in the transaction ex transportation to companies into a seamless value chain in which merchandise is produced and distributed in the right quantities to the right locations and at the right time while minimizing system wide costs and satisfying the service levels required by the customers 4 Promotion communicating the value proposition communication by a marketer that informs persuades and reminds potential buyers about a product to influence their opinions and elicit a response B2C business to consumer marketing B2B business to business marketing C2C consumer to consumer marketing Employment Marketing involve undertaking marketing research to understand what potential employees are seeking as well as what they think about the firm developing a value proposition and an employment brand image communicating that brand image to potential employees and then fulfilling the brand promise by ensuring the employee experience matches that which was advertised Production Oriented Era Customers can have any color they want so long as it s black Henry Ford Sales Oriented Era depended on heavy doses of personal selling and advertising between 1920 and 1950 Great Depression and WWII Victory Gardens Market Oriented Era 1950 1990 manufacturers and retailers began to focus on what consumers wanted and needed before they designed made or attempted to sell their products and services after WWII U S entered a buyer s market and the customer was king Value Based Marketing Era before the turn of the 21st century Value reflects the relationship of benefits to costs or what you get for what you give customers seek a fair return in goods and or services for their hard earned money and scarce time Value Cocreation customers can act as collaborators to create the product or service Value Based Marketing benefits vs costs Sheraton Hotel Isn t just about creating strong products and services it involves deciding which products services to provide for whom Walmart vs William Sonoma Firms become value driven by 1 they share info about their customers and competitors across their own organization and with other firms such as manufacturers and transportation companies that help them get the product or service to the marketplace 2 they strive to balance their customers benefits and costs 3 they concentrate on building relationships with customers Transactional Orientation regards the buyer seller relationship as a series of individual transactions so anything that happened before or after any transaction is of little importance selling buying a used car Relational Orientation based on the philosophy that buyers and sellers should develop a long term relationship the lifetime profitability of the relationship is what matters and not how much money is made during each transaction Apple UPS Customer Relationship Management CRM a business philosophy and set of strategies programs and systems that focus on identifying and building loyalty among the firm s most valued customers Importance of Marketing 1 Expands firms global presence without the knowledge that firms gain by analyzing new customers needs and wants on a segment by segment region by region basis one of marketing s main tasks virtually no firm would succeed internationally or be able to expand globally 2 Pervasive across the supply chain Supply Chain a group of firms that make and deliver a given set of goods and services Relational orientation important 3 Enriches Society Kellogg s Colgate Palmolive Ben and Jerry s 4 Can be Entrepreneurial Entrepreneurs people who organize operate and assume the risk of a new business venture key of success is that they identify and aim to satisfy unfilled needs Ben and Jerry s Ben Cohen and Jerry Greenfield Amazon Jeff Bezos Netflix Reed Hastings The Oprah Winfrey Show and other ventures Pixar Studios Steve Jobs and Ed Catmull Disney 7 4 billion Chapter 4 Definitions Kimberly Clark working toward social economic and environmental sustainability because it s the right thing to do and is critical to business survival The Marketing Environment Consumer is the center of all marketing efforts immediate environment consumers may be influenced by the immediate actions of the focal company the company s competitors and corporate partners that work within the firm to make and supply products and services to consumers the firm and therefore consumers indirectly are