MAR3023 Exam 1Chapters 1 and 2: Intro. to MarketingPure Marketing- Good Product- delivers benefit, tastes good- product development is a core marketing function- the first goal of marketing is to identify unmet consumer needs and then develop products that fill those needs ex) Ford ex) Iphone- great products also come with great distribution means ex) Walmart- identifying the price that maximizes revenue is also part of marketing- the best answer to the question of what is marketing is that it’s the foundation of every business - it’s the business function that develops the products that people want to buy because they know they need them and because they can afford them and because they can find them- marketing itself creates product- Wall Street bets on the firms that perform the marketing function best- If firms perform pure marketing correctly, they don’t need to advertise much or hire a huge sales team to push their product Impure Marketing- happens when other company has time to make equivalent product, now you have to advertise more to prove your product is better ex) Apple suing Samsung- advertising and selling are the base of impure marketing because if product is not obviously better you have to convince people to believe in your brand- A and S are important but define marketing- very important though; objective quality of a product is different from perception, impure marketing responsible ex) best beer- social stigmas also associated with brands ex) Coke vs. Celo Polka Soda-branding= power- consumers also don’t buy unfamiliar productsSo how is marketing related to the A and S words?1) To let consumers know that they need a product2) To let consumers know they need our product- if firms fail to objectively distinguish their products from competitors, then impure marketing becomes very importantComponents of Strategic MarketingOutside of Circle- Competitive Forces, Economic Forces, Political Forces, Legal and Regulatory Forces, Technological Forces, Sociocultural ForcesMiddle- Product, Price, Distribution, PromotionCenter- Customer- organizations must define their products not according to what they produce but according to how they satisfy customersMarketing Mix- four marketing elements that a firm can control to meet the needs of customers within its target markets (Product, Price, Distribution, Promotion)Exchange Between Buyer and SellerBuyer> Seller- gives money, credit, labor goodsSeller> Buyer- gives goods, services, ideas- marketing builds relationships with customers and other stakeholdersMarketing Concept- a philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goalsEvolution of MarketingSimple Trade Era- things made by hand or grown and traded in small quantities1) Product Orientation/ Era- because of industrial revolution mass production made it possible to produce goods more efficiently and poured into the marketplace, where demand for manufacture goods was strong- firms produced what they could make; inward focus2) Sales Orientation- (1920’s) businesses realized they would have to sell products to buyers; the most important marketing activities became personal selling, advertising, and distribution- firms pushed products using aggressive sales tactics- short-term profit maximization- today, some people incorrectly equate marketing with a sales orientation3) Market Orientation- (1950’s- 60’s) businesses found that they must first determine what customers want and then produce these products, rather than make the products first and then try to convince customers they needed them- “great awakening”- began with the development of marketing depts. and then transferred to the res of the firm- 3 Things contribute to MO: Competitor Orientation, Inter-Functional Orientation, and Customer Orientation4) Societal marketing Era- “green marketing”; firm now serves 3 entitiesStakeholders- constituents who have a “stake”, or claim , in some aspect of a company’s products, operations, markets, industry and outcomesex) BP and FL residentsCustomer- Centric Marketing- developing collaborative relationships with customers based on focusing on their individual needs and concernsCRM (Customer relationship marketing)- focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationshipsMarketing Management- the process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficientlyRelationship Marketing- a 5% increase in customer retention yields up to a 95% improvement in NPV delivered by customers4 P’s: (pie with customer in the middle)1) Product- goods, services, ideas- mostly all services now (developed countries)2) Place/ Distribution- available in quantities desired; minimizing costs3) Promotion- inform consumer about the firm and its product4) Price- determining product prices and the value of exchangeMarketing’s Core Strategies (Macro-Marketing)1) Creating Value and Relationships ex) Small Banks, Sheraton, Disney, “loyalty clubs”2) Segmenting Markets (Gladwell) ex) separating devils from angels3) Identifying OpportunitiesCore Competencies- things a firms does wellMarket Opportunity- where circumstance and timing meet to creat strategic windows- Competitive advantage= opportunity+ competency- So, through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy, marketing objectives, marketing strategy, and finally a marketing planMarket Opportunity- where circumstance and timing meet to create strategic windowsCore Competencies- things a firm does the best ex) Starbucks- place to goStrategic Planning Process (chart on pg. 30) (Internal Marketing)1) Analysis of Organization’s Strengths and Weaknesses/ Identification of Organization’s Opportunities and Threats- Core Competencies, Market Opportunity, Strategic Windows, Competitive Advantage- Swot Analysis2) Organizational Mission and Goals- Mission Statement3) Corporate and Business-Unit Strategies- Corporate Strategy, SBU, and Marketing Strategy- Market Growth Share Matrix- creating Marketing Mix4) Marketing (Objectives, Strategy, and Marketing Plan), Production, Finance, and Human Resources- Marketing Plan, Marketing Implementation, Intended vs. Realized StrategiesSwot
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