Chapter 1 Overview of Marketing Review the Summing Up and make cards for the definitions Intro What is marketing o Apple succeeds because the revolutionary products it releases to the market provide the best value to customers o Marketing AMA states it is 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 It is not random but requires planning or marketing plan How the product will be conceived or designed How much it should cost Where and how it should be promoted How it will get the customer o Marketplace is the world of trade Broken down into groups of people ex coffee drinking want crest ex lexus to people who want and can afford o Core aspects of Marketing Exhibit 1 1 Helps Create Value About satisfying customer needs and wants Entails an exchange Occurs in many settings Can be performed by both individuals and organizations Requires product price place and promotion decisions o Exchange Seller Buyer Relationship trade of things of value so both parties are better off Sellers Goods Services producers Communications Delivery Buyers Customers Consumers Information Money to Sellers ex radio twitter itunes album recommendations o Marketing Mix 4 P s Exhibit 1 3 Product Creating Value o Goods ex water created a brand image ex nike ID brand Rafael Nadal o Services intangible that can make customers loyal Ex Tickets paying for experience ex ATM hotel service Ritz Carlton o Wow stories o 3 Steps for High quality service o 12 Service values o Both Eye examination and new lenses Concert and t shirt Sting o Ideas opinions programs philosophies Bicycle safety Price Capturing Value o Time energy or money given up for the product o Based on buyer s belief of its value Tradeoff for convenience timing etc to find balance in both parties takeaway Place Delivering the Value Proposition o Get it to the customer when they want it o Supply Chain Management are critical and it drives profit and sales i e Joes Stone Crabs from Florida in Idaho Promotion Communicating the Value Proposition o Informs persuades and reminds the potential buyers about a product to influence their opinion Ex Calvin Klein fragrance Exhibit 1 1 Facebook Increased networking interactions one stop shop o Marketing performed by Individuals and Organizations B2C business to consumer marketing B2B business to business marketing C2C consumer to consumer marketing eBay Exhibit 1 4 Manufacturer B2B Retailer B2C Consumer A C2C Consumer B Retailers often have to convince manufactures to sell JCP and Ralph Lauren now sell American Living Employment marketing Research to understand what potential employees are seeking as well as what they think about the firm o Ex Marriot Nike Starbucks Southwest SAS US Benefit entire industry or society military Ex Got Milk helped dairy and increase health Response may be due to celebrity endorsers o Marketing Helps Create Value Production Oriented Era Worried about Product Innovation not with satisfying the needs of individual consumers Retail stores held product till consumer wanted it Sales Oriented Era 1920 1950 Consumers consume less or make it themselves so supply was greater than demand Firms relied heavily on personal selling and advertising Market Oriented Era Buyer s market after war customer became king Made decisions based on quality convenience and price THIS is when Marketing was discovered Value Based Marketing Era Most successful firms are market oriented o Attempt to identify customer s needs and wants and provide better VALUE than competitors Value is the relationship of benefits to costs So provide a product they want and still make a profit o Value cocreation provide additional value by allowing customers to act as collaborators in design Ex Nike ID MM customization o Brands and style sell based on their perceived value o Have remained king since they appear in every class and are marketed toward each group of people Exhibit Jeans What is Value Based Marketing o Business must understand what customers view as the key benefits of a good and how to improve on them Ex Benefits of service quality convenience merchandise quality vs price time risk of failure Firms compete on basis of value Ex Walmart vs Williams and Sonoma How firms become value driven 3 Sharing information about customers and competitors and integrate it across the firms departments J Crew Balancing Benefits with Costs use available data to find opportunities to better satisfy needs keep cost down and develop loyalties o Southwest keeps it cost low so its customers receive low prices IKEA Building Relationships with Customers o Transactional orientations regards the buyer seller relationship as a series of individual transactions car sale o Relational orientation long term relationship UPS o CRM Customer relationship management developing and building loyalty Collet and use info Why is Marketing Important o Exhibit 1 7 Can be entrepreneurial Ex Ben Jerry s Amazon Netflix Pixar Oprah o They satisfied unfilled needs o They identified the need conducted a thorough examination of the marketplace and developed and communicated the value of their products and services to potential consumers Expands global presence Trends and products disseminate rapidly around the world o McDonalds different in Europe Enriches society Kellogg s is socially responsible for sustainable growth o Recycling fiber cartons o Helps ensure investors trust to invest in viol tile markets Exhibit 1 9 Ben and Jerry s o Product economic and social mission Exhibit Ethical and Societal Dilemma o Aflac is seen as ethical and respected since it discloses more than what is required of them while Lehman Brothers is not Pervasive across supply chain Exhibit 1 8 Supply chain o Raw material manufacture Retailer Consumer itself o Transactional orientation each step cares about o Effectively managing supply chain relationships often has a marked impact on a firm s ability to satisfy the consumer and increase all parties profits o Ex Levi never low on inventory
View Full Document
Unlocking...