Josh YagurMAR 3023 Study Guide- Exam 1- What is Marketing? Product development to satisfy unmet consumer needs Short term and long term plans must coincide under 1 unified plan attending to consumer tastes and desires. Long term is focused more on mutually satisfying relationships. Branding is extremely powerful. Consumers don’t buy unfamiliar products. Creates consumer trust in product/company. Process by which companies determine what products or services be of interest to customers and start to use in sales, communities and business development. - Marketing’s core strategies Creation o Value- reward cards, value menu, babysittingo Relationship- establish long term mutually satisfying buyer-seller relationships. Customer Relationship Management: focuses on using info about customers to create marketing strategies that develop and sustain strong relationships. 1) Acquiring new customers2) Enhancing profitability of existing customers3) Extending duration of customer relationships. Ex: Chick Fil-A, Charmin o Cumulative Value Creation- showing that when you buy our product your are helping someone. Segmenting Marketso Dividing markets by Gender, Age, Race, Education, Income, and other classifications for consumers that share common needs, and focus on reaching them. Usually differentiate productto care to their needs. Different cokes and pepsis. No one “best” spaghetti sauce, so made a bunch that different people would enjoy. o Best Buy did this by separating customers. High income men “barrys” Suburban moms “Jills” Young early adopters “buzzes” Identifying Opportunities- where circumstance and timing meet to create strategic windows- Know the history of Marketing Simple Trade Era- made by hand and grown Production Era- firms produced what they could make Sales Era- firms pushed products using aggressive sales tactics Marketing Era- focus on customer orientation Societal Era- firms now serve 3 entities. - Stakeholders- essentially everyone involved in the company- customers, employees, investors, shareholders, suppliers, government, communities.- 4 P’s/The Marketing Mix Product- goods, services, ideas Place/Distribution – make products available in quantities desired Promotion- inform individuals or groups about the organization. Price- decisions and actions associated with establishing pricing objectives and policies.- Game Changes- Product, pricing, distribution- Misconceptions of Marketing Marketing vs. Advertising o Not simply promotion. It actually is complex, strategic, quantitative, multi-faceted process in order to develop products that people want and effectively sell them. o Advertising is a major component of Marketing, but not the entirety of it. o If marketers hit their market with the product, price and distribution, theres little need to advertise. o Marketing must invent complete products and drive them to commanding positions in defensible market segments. - Time Time/reality suggests that apple needs to say iphone is better than Samsung. Samsung replicated iphoneso now apple has to advertise. Overtime, the market reacts with competitor products that have similar benefits o Then, the dominant firm uses advertising to develop brand strength and loyalty. Market opportunity requires timing to enter a market. 1st mover advantage- ability of an innovative company to achieve long-term competitive advantages by being the 1st to offer a certain product in the market place. Late mover advantage- ability of later market entrants to achieve long- term competitive advantage by not being 1st to offer certain products. o Companys that are quick to enter after 1st mover have greater chance of building market share and brand loyalty. Strategic windows- temporary periods of optimal fitting between the key requirements of a market andthe particular capabilities of a company competing in that market. - Power of branding/advertising Extremely powerful. o Coke spent close to $3 billion on advertising last year. o Anheuser Busch spent $1.47 bullion. o Consumers don’t buy unfamiliar products even if the unfamiliar product is objectively better. Category Bias- people associate different sectors as more socially responsible than others. o Ex: energy companies and banks seemed like they think FUCK the world, I just want money, when in reality they are very dedicated to social relief and environmental sustainability. Brand bIas- o Disney- happy. Walmart- shuts down mom and pop; when in reality they are almost both equally socially responsible. - Market Orientation Consumer Centric – customers are the focal pt. of ALL marketing. We define products as what they do tosatisfy customers. Relationship o Establish long term mutually satisfying, buyer-seller relationships. o CRM: acquire new customers, enhancing profitability of existing customers, and extending duration of customer relationships. Customer Relationship and Perception o Sustainability Reality Score- people are often perceive companys to be socially responsible and overestimate/underestimate all the time. Going Greeno Helps strengthen relationships by indicating that companys are socially responsible, and want to help the world with intrinsic and extrinsic benefits.- Promotion Central Route—where full attention is given, and the facts on why a product is better is given in the advertisement. Peripheral Route- not full attention is given, due to low motivation or low ability. Sex appeal. - Marketing Mix as levers- Marketing Orientation Competitor Orientation- analyzes competitor information in terms of activity, successes, losses, similarities, and differences, seeking out ways to set the business apart and above surrounding competitors. Inter-functional orientation- ? Customer Orientation- finding out what the needs and wants are. - Clues to a market orientation Customer Centric Marketing- an org. commitment to researching and responding to customer needs Customer Relationship Marketing- focuses on using info about customers to create marketing strategies that develop and sustain strong relationships. 1) Acquiring new customers2) Enhancing profitability of existing customers3) Extending duration of customer relationships. Relationship Marketing- establishing long-term, mutually satisfying buyer-seller relationships. Deepens buyers
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