Marketing 3250 Exam 1 Introduction 1 Marketing to Employers a Work experience b Classroom c Personally Leadership get involved in one sure thing Interests 2 Magnificent Marketing a Betting on a sure thing gambling 90 chance the house will win b Data mining discovering hidden predictive information Ex Kroger plus card brand shelf placement TONS of data 1 Frequency regular customers are more profitable because of their loyalty don t need special deals and tell their friends c investing in customer relationships all customers are not equally attractive d 25 million customer 90 categories How to classify data wise 2 Nationality origin 3 Income 4 Age e Total Rewards basis for freebies Customer loyalty program Predictor variables continuously updated 1 Ex gambling huge with old women where they live income age gender Author as example 600 mi away 30s male not good candidate BEST customers 30 who spend 100 500 visit make up 80 of revenue and almost 100 of all profit 2 Former Harvard professor s methods of sophisticated marketing TEST TRACK REFINE Three types of customers 1 Those who make you money make or break you 2 Those who could make you money experiment on 3 Those who cost you money convert or get rid of de market Chapter 1 Introduction to Marketing 1 Leftovers a Market Segmentation If you try to appeal to everyone you won t appeal to anyone enough b Target Marketing TARGET SOMEONE best fit customer most profitable c The 4 Ps PRODUCT PLACE DISTRIBUTION PROMOTION PRICE 2 Definitions of MARKETING a Identifying understanding and satisfying the buyer customer demands through exchanges Sometimes satisfaction isn t sufficient ex restaurant 1 Need a level of satisfaction to keep them coming back 2 Willingness to recommend the restaurant to their friends Satisfied vs Very Satisfied BIG difference 3 Kinds of Customers customers that MAKE you money you want very satisfied 80 20 principle Where the Money is 1 Very often a small of customers account for majority of profits b AMA an organizational function and a set of processes for creating communicating and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders c Attempts to anticipate sometimes to change but always to satisfy buyer demands through exchanges to achieve our own objectives Moving target someone in the future Easier and more effective to figure what they would like in the first place Give the buyer what THEY want 3 Common components to all definitions a Satisfying buyers b Exchange process Advertising and selling are the tip of the marketing iceberg very visible and dramatic but only a small part of the whole 1 Business to business advertising 01 earned 2 Consumer advertising between 06 and 08 earned By our definition if there is voluntary exchange marketing is taking place Not limited to monetary exchanges and to for profit organizations THIS occurs whether or not marketing is 1 Understood 2 Approved of 3 Formally recognized THIS identifying understanding and satisfying the customer Separate the marketing department budget job When a company understands marketing probably will do better Organizations in the past could ignore customers concerns 1 Not for profits until 20 25 years ago did not need to market at all Now discovering marketing like breathing discovering lungs Now speak of discovering marketing or beginning marketing AS LONG AS VOLUNTARY EXCHANGE IS HAPPENING SO IS MARKETING 4 Questions a business needs to ask a Is marketing done well Are your target customers aware of your product Satisfied Talk to you EX customers b Does marketing matter Sometimes more competition an organization has the more a company should worry about understanding the customer 5 Facilitation and Expediting Exchanges a Much of marketing is done by middlemen ex eBay b Most common channel of distribution for consumer goods Manufacturer Wholesaler Retailer Consumer BUYS FOR M 250 W 300 R 400 C 600 SELLS AT 300 400 600 When where and how for big customers you can cut out the middlemen o Sometimes middlemen necessary sometimes now o Middlemen survive in markets because manufacturers want and have to do business with them 6 Utility a Satisfaction value benefits b From the BUYERS point of view YOUR opinion doesn t matter Manufacturers make things they create FORM utility Marketing activities affect form utility only INDIRECTLY Marketing activities contribute directly to 1 Time utility 2 Place utility 3 Possession utility All happen almost entirely after the physical product is produced value relative to time place and person 7 Evolution of Organization Orientations a Four Orientations that Relate to the role and importance of marketing in organizations PRODUCTION ORIENTATION ex Henry Ford same car for 1 3 price all in black 1 Stress on making products 2 Producer priorities focuses on the actual making of products if I would have asker what customer wanted when inventing the car they would have said a faster horse PRODUCT ORIENTATION 1 Offer highest quality as expert producer sees it 2 Professionals professors performers Doctor but some customers are assertive Marketing Myopia mistake of focusing on a product s form instead of benefits buyers seek and thinking that there will always be a demand for your product i Ex typewriters Paid telephones TV ads The production and product orientations are always associated with excess demand service still needed people still need ready close access to phones Have to think ahead right now seriously intense competition After a certain level of economic development supply tends to grow faster than demand Organizations start to discover marketing Actually a misunderstanding the tip of the iceberg SELLING ORIENTATION out of 4 Ps promotion 1 Promoting the product is crucial push prospects to buy with strong beginners mistake at most concentrating on 1 ads and selling 2 This way of sthinking about marketing is very common but is mistaken Have to think about who buys the products or makes the decision ex insurance doctors family restaurants MARKETING ORIENTATION 1 customer satisfaction is the focus if you perfectly understand the Religion of the course customer there is no need to advertise 2 the opposite of selling orientation KMART spent 3x as much as WAL MART on advertising KMART less successful 3 IDEAL 4 Make selling superfluous unnecessary b KEYPOINT SELLING we must sell what we make what customers want something that is only ours MARKETING we must
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