1 Marketing Exam 1 Textbook Notes Only An Overview of Strategic Marketing Chapter 1 Marketing is the foundation of every business or firm Marketing The process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment Marketing encompasses more than just advertising and selling Two purposes of A S 1 Lets consumers know they need the product 2 Lets consumers know they need OUR product Goal To identify unmet consumer needs and develop products to fit those needs Customers are the focal point of all marketing activities Organizations must define their products not according to what they produce but according to how they satisfy customers Interdependencies between customer and marketer Target market Organizations generally focus their marketing efforts on a specific group of customers Marketing s core strategies involve creating valued relationships between the customer and marketer segmenting markets and identifying opportunities Marketing involves developing and managing a product that will satisfy customer needs Making products available at the right place and at a price that buyers are willing to pay Communication Product development is a core marketing function Marketing Mix 4 P s Product Place Distribution Promotion and Pricing The primary goal of a marketing manager is to create and maintain the right mix of these elements to satisfy consumers needs for a general product type Marketers must obtain in depth up to date information about consumer needs before creating their marketing mix Product Successful marketing efforts result in products that become part of every day life Can be a good service or idea To identify unmet consumer needs and develop products to fit those needs Brand names and packaging Consumer needs and wants are always changing it is a marketer s job to keep up with these things and modify existing products or service or create new ones Distribution To satisfy customers products must be available at the right time and through convenient distribution methods Quantity Minimizing costs Promotion Relates to activities used to inform individuals or groups about the organization and it s products Increase public awareness Educate customers Helps sustain interest in products that have been around for a while Price Relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices Critical component because consumers are concerned with the value obtained in the exchange Competitive tool Individuals and organizations engage in marketing to facilitate exchanges 2 Marketing activities should attempt to create and maintain satisfying exchange relationships Buyers must be satisfied with the good or service and sellers must be satisfied with the financial reward Marketers are concerned with building relationships not only with customers but with relevant stakeholders Stakeholders Constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes The Marketing Environment The forces of the marketing environment affect a marketer s ability to facilitate exchanges in three ways 1 Lifestyles standards of living and preferences and needs for products 2 Helps to determine whether and how a marketing manager can perform certain marketing activities 3 Decisions and actions by influencing buyers reactions to the form s marketing mix Environmental forces can fluctuate dramatically and quickly Changes in the environment produce uncertainty for marketers and at times hurt marketing efforts but they also create opportunities They can adjust to these changes and capitalize on the opportunities such changes can provide The marketing concept is a management philosophy that guides an organization s overall activities and affects all organizational activities not just marketing Providing customers with products that they need and want while at the same time allowing the organization to achieve their goals Emphasizes that marketing begins and ends with customers Helping customers at the expense of the organization Long term goals Evolution of Marketing History of Marketing see notes Production era Sales orientation market orientation Early 1950 s Market Orientation new product innovation by developing a strategic focus to explore and develop new products to serve target markets Responsive to ever changing customer needs and wants Managing Customer Relationships Achieving the full profit potential of each customer relationship should be the fundamental goal of every marketing strategy Marketing relationships with customers is the lifeblood of all businesses Profits can be obtained through relationships by 1 acquiring new customers 2 enhancing the profitability of existing customers 3 extending the duration of customer relationships Relationship marketing continually depends the buyer s trust in the company which also increases the firm s understanding of the customer s needs Cooperation and mutual dependency Customer centric Marketing Customers buy offerings that provide value and prefer a relationship rather than a transactional orientation Consumer Relationship Management using information about customers to create marketing strategies that develop and sustain desirable customer relationships Managing customer relationships requires identifying patterns of buying behavior and then using that information to focus on the most promising and profitable customers Value Driven Marking Value a customer s subjective assessment of benefits relative to costs in determining the worth of a product Trade offs benefits received by customers Nonmonetary costs Customers receive benefits based on their experiences The marketing mix can be used to enhance perceptions of value Promotional activities can also help create an image and prestige characteristics that consumers consider in their assessment of a product s value Marketing Management The process of planning organizing implementing and controlling marketing activities to facilitate exchanges effectively and efficiently 3 Forces marketing managers to think ahead establish objectives and consider future marketing activities and their impact on society Involves developing an internal structure of the marketing unit Structure is key to directing marketing activities An
View Full Document
Unlocking...