Chapter 1 Marketing the anticipation management and satisfaction of demand through the exchange process involves goods services organizations people places and ideas Management of demand encompasses Stimulation motivates consumers to want a firm s offerings Facilitation the process whereby the firm makes it ways to buy its offerings Regulation control demand through peaks and low times Consumer Demand the attributes and needs of finals consumers industrial consumers wholesalers and retailers government institutions etc Publics Demand the attributes and needs of employees unions stockholders the general public government agencies etc There needs to be an exchange of money for the marketing process to be complete Barter era people trade one resource for another Production era lift production to meet demand output increases to meet demand focus on physical distribution demand is high and competition is low Sales era firms sell products without first determining consumer desires encompasses a sales force whose job is to make consumer desires fit the features of the products offered S D Marketing Department era research is used to determine consumer needs supply begins to exceed demand Marketing Company era integrates consumer research and analysis into all efforts competition is intense and sophisticated need loyal customers Marketing Concept a consumer oriented market driven value based integrated goal oriented philosophy for a firm institution or person Selling PRODUCTION SELLING CONSUMPTION Marketing Consumer Integrated Consumer Achievement marketing satisfaction Need Evaluation effort of organizational goals FEEDBACK Customer service tends to be intangible but quite meaningful to many consumers Companies are empowering employees by giving them more range of power to help satisfy customers Some companies are creating long term customer loyalty through relationship marketing o Essentially creating relationships with clients Marketing simulates consumers constitutes a large part of sales costs employs many people supports industries affects all consumers and plays a major role in our lives Marketing functions Environmental analysis and marketing research Broadening the scope of marketing Consumer analysis Product planning Distribution planning Promotion planning Price planning Marketing management Marketing performers individuals that undertake one or more marketing functions ie final consumer retailer wholesaler marketing specialist Points Customer satisfaction the degree to which there is a match between a customer s expectations of a good or service and the actual performance of that good or service Chapter 2 Marketing Environment consists of 5 elements controllable factors uncontrollable factors the organization s level of success or failure in reaching objectives feedback and adaptation The interaction of controllable factors and uncontrollable factors determines an organization s level of success or failure in reaching its goals Feedback occurs when a firm makes an effort to monitor uncontrollable factors and assess its strengths and weaknesses Controllable Factors they are internally directed by an organization and its marketers Directed by Top Management o Line of Business refers to the general goods service category functions geographic coverage type of ownership and specific business of a firm o Overall Objectives broad measurable goals set by top management o Role of Marketing the importance outlining its activities and integrating it into company operations Directed by Marketing Important when marketing personnel have decision making authority the rank of the chief marketing officer is equal to that of other areas VP Not Important Advisory Status o Roles of business functions and their interrelationships with marketing o Corporate Culture the shared values norms and practices communicated to and followed by those working for the firm o Target Market the particular group s of customers a firm proposes to serve or whose needs it proposes to satisfy with a particular marketing program Use market segmentation when selecting a target market o Marketing Objectives customer oriented or more so than if they were selected by top management image sales profit Differential advantages the unique features in a firm s marketing program that cause consumers to patronize that firm and not its competitors Without me too philosophy o Marketing organization the structural arrangement that directs marketing functions It outlines authority responsibility and the tasks to be doen so that functions are assigned Functional jobs assigned in terms of buying selling promotion etc Product Oriented product managers and brand managers Market Oriented geographic market and customer type o Marketing Mix Product involve determining what goods services organizations people places to market Distribution how you are going to distribute the product sell directly or indirectly how many outlets supplier choice Promotion selecting a combinations of tools pr personal selling sales promotion Price includes actual price and discounts o Performance assessment monitoring and evaluating overall and specific marketing effectiveness Uncontrollable Factors Consumers changing characteristics interpersonal influences decision process Competition structure marketing strategies domestic foreign company size generic o Monopoly one firm sells a given good or service and has a lot of control over organizations channel competition marketing plan o Oligopoly a few firms account for most industry sales o Monopolistic there are several firms in an industry each trying to offer a unique marketing mix based on price or non price factors o Pure competition many firms sell virtually identical goods and services and they are unable to create differential advantages commodities and food US based firms remain globally dominant in areas such as chemicals information technology transport equipment scientific instruments Small firms vantage point a focus on underserved market segments an entrepreneurial drive and flexibility Large firms vantage point wide spread distribution economies of scale well known brands mass media ads Direct v Indirect Competitors as broadly as possible Suppliers and Distributors o A firm is most vulnerable when there are relatively few suppliers o A firm is most vulnerable when there are relatively few distributors o Shortage Actions Government 1 Substitute materials 2 Prices might be raised for products 3
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