Marketing Exam 1Textbook Notes Only Chapter 1: An Overview of Strategic Marketing 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 product2. Lets consumers know they need OUR product-Goal: To identify unmet consumer needs and develop products to fit those needsCustomers 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 marketerTarget market: Organizations generally focus their marketing efforts on a specific group of customersMarketing’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’ needsfor 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 costsPromotion:-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 whilePrice:-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. 1Marketing 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 outcomesThe 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 organizationalactivities, 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 goalsEvolution 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 productsto serve target markets)- Responsive to ever-changing customer needs and wantsManaging 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 customers3. 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. 2-Forces marketing managers to think ahead, establish objectives, and consider future marketing activities and
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