MAR3023 Basic Marketing 9 8 12 2 31 PM What is marketing the process of creating promoting distributing and pricing goods services and ideas to facilitate satisfying exchange Pure form of marketing It is what it is supposed to be Coke what makes it a good product o It tastes good o Caffeine benefit o Good product Pure marketing is great products o Great products also have great distribution networks Example you are hardly ever far from a coca cola o Walmart has power in distribution networks because walmart Pure marketing is the foundation of every business buys in bulk o Product o Price o Distribution Good products that sell well and priced to maximize profits Wall Street is actually betting on marketing Product development is a core marketing function There would be no firms without marketing Great firms have great products First goal of marketing is to identify unmet consumer needs and then develop products that fit those needs Consumers needed the product o Where to find how much it cost and let them know what it is short term phenomenon all you have to provide You must identify the price that maximizes revenue Marketing and finance Finance wouldn t exist without marketing Accounting and marketing Count money that doesn t exist Is also wouldn t exist without marketing o The LESSON it all starts with marketing Impure form of marketing Necessary component to every business Other companies create substitutes of your product o Now you must cut price o And increase promotion you must convince people that your product is better o Is very powerful Example Bud Light best selling beer but isn t the best beer ever won know awards promotion makes it sell o Objective quality is often different from perception Pure marketing happens only in the short term Advertisement competitors has to occur when your product is not clearly better than your You must convince people to believe in your brand Advertising and selling are parts of marketing o Two primary purposes 1 To let consumers know they need the product 2 Let consumers know they need our product is powerful makes you believe in brand rather than better product Social statements tied to brands aw well Branding is powerful Consumers do not buy unfamiliar products Pure Marketing Is about developing products they want and need priced appropriately and delivered to where consumers are If firms perform pure marketing correctly they don t need to advertise If firms fail to objectively distinguish their products then impure marketing becomes very important 9 05 2012 Marketing Is about developing a product that people want need pricing them at a level that maximizes profits and getting them to consumers Given time competitors imitate great ideas If you have a successful product companies will imitate what you Creates a need to convince and remind customers that our product Marketers are really good at making you think our products are do is different better superior Consumer report Rates all of the products you saw on powerpoint as objectively the same as or better than the branded products Marketers make you believe a brand is good power of branding Brands and marketing is powerful History of marketing Simple Trade Era pre 1860 s o Products were made by hand grown and traded Production era pre 1920 s o As long as its black o Inward focus produce as many products as fast as they can o Tech development o Demand way exceeded supply o People never had access to as many products before so they were continually buying Sales era 1920 s great depression o Changing their minds o Selling what we make o Aggressive promotion o Short term profit maximization Marketing era 1940 1990 o Great awakening where customers became central focus of the organization o Began with development of marketing departments 40 s 60 s and then transferred to the rest of the firm 60 s 90 s o Customer is key Market orientation o Beware of the competitors orientation o Inter functional orientation organization is set up well communication is efficient o Customers orientation is the focus Relationship marketing era 1990 2010 o Long term relationships and customer retention o 5 increase in customer retention yields 95 more profit o Repeat customers generate over twice as much revenue as new customers o Whole firms need to relearn this Societal marketing era 60 s present o Green marketing o Society best interest to the mix o Firms serve 3 entities Customers Stockholders Society as a whole Stakeholders constituents who have a stake or claim After the BP catastrophe now defined as anyone who is affected by their firm Customer centric marketing developing collaborative relationship with customers based on focusing on their individual needs and concerns Relationship marketing established long term mutually satisfying buyer sell relationship Four P s Marketing Mix 3 p s and a D Product Price Promotion Place distribution Products Goods Services Ideas United States we don t make goods anymore especially in NW Florida GDP of US 20 comes from Physical goods GDP of FL less than 10 comes from physical goods Our economy is based on service providers People make a lot of money on ideas especially in the technology area Distribution very powerful Make products available in quantities desired Minimize costs o Inventory o Transportation o Storage Promotion Advertising Public relations Personal selling Guerilla marketing street teams pay people to represent their Decisions and actions associated with established pricing objectives products Viral marketing Promotions Pricing and policies Determining product prices Determine value of exchange Macro Marketing strategies Creating value and relationships Segmenting markets Identifying opportunities Value menus Creating value examples Small banks o Serve coffee o Extended hours o Babysit Value menus o First was at Taco Bell o Now everyone imitates Sheraton 5 points in LA offers 24 hour check in o Room is available anytime day or night o Increased occupancy from 66 to 90 Disney o Theme parks o Cruises o Movies tv shows o Life events o Experience o Sell relationships o Sell experiences Relationship marketing Charmin toilet paper o Restroom in times square sponsored by them o Mobile restrooms o Sales increased 20 Chick fil A o My pleasure o Brings umbrellas to customers o Pull chairs out for ladies o Bus tables and offer to refill drinks Segmenting customers Coke diet coke diet coke plus diet coke lime etc Malcolm Gladwell s someone likes it somewhere
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