Chapter One Overview of Marketing Beginning Case The difference in Apple s award winning commitment to innovation is about combining technology and design into an end result that quickly reliably meets customers needs their products integrate well with one another o Apple was a marketing company revolutionary products it releasers to the market provide the best value to customers What is marketing The buyer makes a decision about whether they should part with their time and or money to receive a particular service or merchandise Marketing 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 o Requires thoughtful planning with emphasis on ethical implications of any of those decisions on society Marketing plan is marketing activities for a specific period of time o How product or service will be conceived or designed how much it should cost where and how it will be promoted how it will get to the customer About satisfying customer needs and wants o Marketplace segmented into groups of people pertinent to organization o Know for which marketplace segment your product is more relevant build marketing strategy targeting those groups o Seek customers who have interest in product and ability to buy it o Crest developed white strips to satisfy customers who want white teeth Marking entails an Exchange the trade of things of value between buyer and seller so that each is better off as result their offering to consumers o Sellers provide products or services then communicate facilitate delivery of o Buyers complete exchange by giving money and information to seller o Sellers goods services producers communications delivery buyers customers consumers money information o Uses valuable info you provide to facilitate future exchanges solidify o Purchasing Taylor Swift song from iTunes exchange customer song apple relationship w you money information Marketing Requires Product Price Place and Promotion Decisions o These are known as the marketing mix the four P s and are controllable set of activities the firm used to respond to wants of its target market o Product purpose is to create value by developing variety of offerings to satisfy customer needs Creating bottled water products brand image Aquafina Typically goods of some kind but can also be services or combined Goods are something you can touch Services are intangible customer benefits produced by people machines and cannot be separated from producer Ideas opinions programs philosophies can also be marketed Rafael Nadal adds value to Nike brand a Sting concert is a service but a Sting t shirt purchased at the concert is a product Ritz Carlton Hotel Company enjoys great reputation as top luxury hotel b c provides excellent customer service Above beyond ordinarily expected service levels for each Understands storytelling as tactic to train employees o Price is everything the buyer gives up in exchange for the product Marketers must determine price of product on basis of potential buyer s belief about its value Key to determining prices is figuring out how much customers willing to pay so they are satisfied w purchase seller has reasonable profit o Place represents all the activities necessary to get product to the right customer when customer wants it Merchandise is produced distributed in right quantities to right locations at right time while minimizing system wide costs satisfying service levels required by customers W o strong efficient supply chain system merchandise isn t available when customers want it and sales and profits suffer If you want Stone Crabs and you live in Wyoming order online from Joe s Stone Crabs and you will have them the next day o Promotion communication by marketer informs persuades and reminds potential buyers about a product to influence opinions elicit response Calvin Klein is known for selling youth fun and sex appeal in its fragrance promotions dance to sounds of DJ Ruckus as live in billboard shaped like giant CK one bottle overlooking streets of Times Square in NY City o Marketing intermediaries accumulate merchandise from producers in large amounts and sell it to you in small amounts o B2C business to consumer marketing business sell to consumer o C2C consumer to consumer marketing consumers marketing their products and services to other consumers ex Internet social media o B2B business to business marketing selling merchandise or services from one business to another o Individuals can also undertake activities to market themselves o Facebook is the 4th most frequently visited site in US Open graph program helps businesses find promising customers by combining info across various sites Made it easier for companies to place share buttons on Web pages so more more traffic joins Facebook o Manufacturer makes computer B2B retailer sells computer B2C Can be performed by both individuals and organizations Consumer A C2C Consumer B Impacts various stakeholders o Supply chain partners are involved in marketing to one another o Manufacturers sell merchandise to retailers but retailers often have to convince manufacturers to sell to them o More then 25 of Fortune 200 companies devote some resources to programs that will improve their image among potential employees Employment marketing involve undertaking marketing research to understand what potential employees are seeks as well as what they think about the firm Developing a value proposition and employment brand image Communicating that brand image to potential employees Fulfilling the brand promise by ensuring the employee experience matches that which was advertised o Marketing is designed to benefit entire industry society at large o Diary industry s Got Milk ad campaign has created high levels of awareness about benefits of drinking milk has increased milk consumption by using celebrities like David Beckham and Demi Lovato Marketing Helps Create Value example is evolution of phone o Production oriented Era around turn of 20th century most firms of this kind believed good product would sell itself Manufacturers concerned w product innovation not satisfying needs of individual customers o Sales oriented Era consume less or manufacture items themselves Manufacturers had capacity to produce more than customers really wanted or were able to buy becoming sales oriented o Market oriented Era manufacturers turned from focusing
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