Chapter 1 Marketing the activity and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large 1 Production Orientation a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the Anything that happens in an organization that can affect perception All activities to acquire and retain customers not just the marketing department Both an art and a science use data to develop strategies Exchange people giving up something in order to receive something they would rather have Ex giving up money to receive goods or services Four Marketing Management Philosophies marketplace Entrepreneurial common for startup companies If we build it they will come Problem does not focus on market needs people don t know about it result in high profits Selling things and collecting money all about the company Problem doesn t consider market targets anyone irritating 2 Sales Orientation the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales 3 Marketing Concept Orientation the idea that the social and economic justification for an organization s existence is the satisfaction of customer wants and needs while meeting organizational objectives assumes that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase a product Focuses on what customers want Problem identifying customers wants and needs and competition 4 Societal Marketing Orientation the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society s long term best interests Above and beyond market orientation concerned about improving society Ex recyclable materials hybrid cars environmentally friendly products Problem Often don t meet customers needs price sustainability Needs and Wants Stated Needs Wants an inexpensive car Real Need Wants a car with low operating costs not low initial price Unstated Need Expects good service from the dealer Delight Need Wants the dealer to include onboard navigation for free Secret Need Wants to be seen by friends as a savvy customer Sales vs Market Orientation 1 Organization s Focus Sales inward focus on firm focused on selling what the organization makes not what the customer wants Market outward focus on customers customers are at the center of the business provides customer value customer satisfaction and relationships Customer Value the relationship between benefits and the sacrifice necessary to obtain those benefits Ex Customers value goods and services that are high quality at reasonable prices Offering products that perform earning trust avoiding unrealistic pricing giving the buyer facts offering organization wide commitment in service and after sales support co creating with customer input Customer Satisfaction customers evaluation of a good or service in terms of whether it has met their needs and expectations Relationship Marketing a strategy that focuses on keeping and improving relationships with current customers Customer oriented personnel role of training empowerment teamwork Misses opportunities whose wants can be met through a wide range of products rather than a specific product 2 Firm s Business Sales focused on current existing set of products Market focused on identifying new needs and wants of customers Leaves room for innovation to meet customers needs 3 Targeting Sales targets everybody doesn t differentiate customers No such thing as the average user Market target various market segments each with different needs Different products for different customers 4 Firm s Goal Sales maximize sales or revenue even if selling a product to an unmatched customer Selling is more important than a long term relationship Market maximize profitability via increased customer satisfaction and long term relationships Ex Switching costs ex phone companies loyalty programs ex receiving points for purchases stable pricing Ex Sense of community ex Harley Davidson special treatment ex knowing customers names and orders privileges ex cutting the line Ex Share equipment software ordering system joint investment mostly for suppliers ex Walmart requires all supplier to use same IT system so it would be costly for suppliers to switch buyers Ways to build long term relationships 1 Financial Bonds 2 Social Bonds 3 Structural Bonds Tasks of Marketers 1 Capture marketing insights 2 Develop marketing strategies and plans 3 Develop the Marketing Mix the 4 Ps Product features branding Price fee charged Promotion sales force ads websites public relations social media sales promotions Place where distributed sold 4 Evaluate effectiveness of the marketing mix Chapter 2 The Marketing Process 1 Situation Analysis 2 Marketing Research 3 Marketing Mix Customers Company Competitors Collaborators Context Segment the Market Target Market Selection Position Product Service Product Service Place Channels Promotion Pricing 4 Customer Acquisition and Retention Satisfaction and Relationships 5 Profits Goal is long term profitability and growth Four Organizational Levels of Firms 1 Corporate Level 2 Divisional Level 3 Business Unit Level 4 Product Level each product has its own marketing plan Strategic Planning the managerial process of creating and maintaining a fit between the organization s objectives and resources and the evolving market opportunities Planning the process of anticipating future events and determining strategies to achieve organizational objectives in the future Market Planning designing activities relating to marketing objectives and the changing marketing environment Market Plan a written document that acts as a guidebook of marketing activities for the marketing manager helps employees and managers understand and work towards common goals Elements of a Marketing Plan 1 Define the Business Mission Statement 2 Perform a Situation Analysis SWOT 3 Define Objectives 4 Delineate a Target Market 5 Establish Components of the Marketing Mix 6 Implement Evaluation Control Mission Statement provides a boundary for all subsequent decisions objectives and strategies including products or services offered types of customers sought etc Answers What business are we in Marketing Myopia defining a business in terms of goods and services rather than in terms of the benefits customers seek
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