BUAD 301 FINAL STUDY GUIDE Professor Bambach 1 How we define marketing Ch1 a There are micro and macro views of marketing i A producer of bicycles has to perform many customer related activities besides making the bike micro view Micro set of activities performed by organizations and also from a macro view as a social process ii But the economy doesn t just need bikes we need thousands of organizations to satisfy society macro view social process Macro view looks at the whole product distribution system is also important i Marketing is the performance of activities that seek to accomplish an organization s objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client b Marketing defined c Applies to profit and nonprofit organizations i Profit is the objective of most firms ii Customers may be individuals and businesses iii Some people receive stuff free from government support d More than just persuading customers i NOT JUST SELLING AND ADVERTISING ii Aim is to identify customers needs and meet those needs so well that the product sells itself iii Can even sell an idea iv If the marketing job has been done we sell customers don t need persuading e Beings with customer needs i Marketing should begin with customer potential needs ii Should Anticipate customer needs iii Makes decisions about product price credit collections etc i Shouldn t take over production marketing needs to interpret customers f Does not do it alone needs g Marketing involves exchanges i Marketing doesn t occur unless two or more parties are willing to exchange something for something else ii Pure subsistence economy 1 each family produces everything it consumes no marketing included h Building a relationship with the customer i Marketing exchange is often part of an ongoing relationship not just a single transaction ii Ongoing relationship with customer i The focus of this text management oriented micro marketing 2 The different era s in marketing a Five stages in Marketing Evolution i Simple Trade Era 1 As bartering became more difficult societies moved into this era A time when families traded or sold their surplus output to local distributors Still popular in less developed countries ii The Production Era 1 Industrial Rev until 1920s time when a company focuses on production of a few specific products perhaps because few of these products are available in the market iii The Sales Era 1 Started in 1930 companies production was great now problem is to beat competition time when a company emphasizes selling because of increased competition iv The Marketing Department Era 1 Replaced sales era time when all marketing activities are brought under control of one department to improve short run policy planning and to try to integrate the firms activities v The Marketing Company Era 1 From 1960 time when in addition to short run marketing planning marketing people develop long range plans sometimes five or more years ahead and the whole company is guided by the marketing concept 3 The Marketing concept at a profit a Def Means that an organization aims all its efforts at satisfying its customers b Many managers have little interest in customer needs and they still have a production orientation where companies make whatever is easy to produce and then try to sell it Production orientation bad lack of a central focus c Well managed firms have replaced product orientation with Marketing orientation means trying to give the customers what they actually need i Each department though of its own activity as the center of the business and just wanted to get that done d All managers need to work together to try and make the customer happy e Marketing concept has three basic ideas i Customer Satisfaction 1 Guides the whole system and gives customers what they need ii Total company effort 1 Should work together to do a better job iii Profit not just sales as an objective 1 Profit is the bottom line measure of the firms success and f Is guided around what customers want ability to survive g Survival and success require a profit it may cost more to satisfy some needs than any customers are willing to pay h When there is a lot of competition customers flock to where there is customer service which promotes companies to do that i A manager who adopts the marketing concept sees customer satisfaction as the path to profits 4 The 4 P s a The four p s makes up a marketing mix i Product ii Place iii Promotion iv Price v Customer is not part of the marketing mix b Product the good or service for the targets needs i Developing the right target for customer your good or service should satisfy some customer needs c Place reaching the target i Product reaches customers through channel of distribution is any series of firms or individuals that participate in a flow of products from producer to final user or consumer 1 wholesalers and retailers are sometimes involved d Promotion telling and selling the customer i Telling the target market or others in the channel of distribution about the right product 2 1 Personal selling direct spoken communication between sellers and ii Promotion includes potential customers aka customer service Mass Selling the same time Main form Advertising and Publicity advertising publicity and personal selling that stimulate interest trial or purchase by final customers or others in the channel refers to those promotion activities other than communicating with large numbers of customers at 3 Sales Promotion i Price must consider competition and the cost of the whole marketing mix iii Main form of mass selling is advertising e Price making it right f Each of the four p s contributes to the whole i No one is more important than the other g Strategy jobs must be done together i Selecting a target market and developing a marketing mix are interrelated h Understanding target markets leads to good strategies i Marketers must analyze their potential target markets with great care 5 The Marketing Plan a Marketing plan fills out marketing strategy i Marketing plan is a written statement of a marketing strategy and the time related details for carrying out the strategy 1 Should spell out the following a What marketing mix will be offered to who that is and for how long b what company resources will be needed at what rate c what results are expected b Next step Implementation puts plans into operation i Implementation means putting marketing