Intro to MarketingMarketing StrategyThe Marketing EnvironmentMarketing Exam 1Intro to Marketing• Marketing helps to develop the products that people want to buy at an affordable price.1920-1950- Marketing was known for the “door to door” salesmanMost people think of marketing as advertising and sales but that is a misconception, because marketing is much more complex.The process of marketing is:1) Product2) Price3) Place4) PromotionProductPrimary goal of marketing is to identify unmet consumer needs and develop products to themMarketing starts with the product: • What makes a good product?• Ex: Coke bottle and can fizzyProduct development = core marketing conceptWe find out the unmet consumer needs through “marketing research”PlaceProduct must be available at the right time in the right place to be wantedEx: Internet has changed distribution• Getting a Coke to where you can buy it is distributionPriceMust bring in a profit for the company, but still be affordableIncreased access of information develops consumer prices • Identify a price that maximizes revenuePromotionA primary goal of marketing is to inform consumers of a new product.• Can be done through advertisingDefinition of Marketing: Process by which companies develop products those consumers will desire, and promote them accordingly.Finance and Marketing is closely related and would not exist without one another.Pure Marketing: Legitimate marketing that has research to back it upImpure Marketing: The guys that call themselves marketers but try to advertise and sell products in faulty ways.• Impure marketing is very powerful, and it actually works• Advertising is a key concept in selling a productMarketing StrategyStakeholders- People who hold ownership in a company, and are NOT just customersEx: The BP oil spill negatively affected the stakeholders Marketing Orientation: An organization-wide commitment to researching and responding to customer needs.1920’s – 2010: The relationship Marketing era, which established that creating positive long-term relationships with consumers was beneficial to companiesSocietal MarketingFocuses on “Green Marketing”• Has Society best interest• 1960- present• Successful Marketing orientation always begins with the customer and builds upon the FOUR P’sValue driven marketing: A customer determines if the products value is worth the buy.• Value = Customer Benefits – Customer Costs• Social value is another form of valueRelationship marketing is important because it can develop repeat customersEx: Chik-fil-A encouraging its workers to be more generous to employeesMarket Opportunity:• Where timing meets the appropriate circumstance and a strategic marketing window is createdStrategic Planning: Choosing which goals deserve to be more prioritized and met first, helps to develop a marketing plan.SWOT Analysis:Determines a companies:1) Strengths2) Weakness3) Opportunity4) ThreatNike is an exampleThe “mission statement” will determine a marketing goalMarketing Planning• Determines a companies organizational goals and objectives by establishing guidelines in the marketing planMarket Strategy • Will help analyze a target market and develop a “marketing mix.”The Marketing Environment• Environmental Scanning is the process of collecting information about forces in marketing environment.• Environmental Analysis will help interpret the information found in Environmental Scanning.How do marketers react to environmental forces?1) Passive- accepting them as uncontrollable2) Proactive- attempt to change themCompetitive ForcesTypes of Competitors1) Brand Competitors2) Product Competitors3) Generic Competitors4) Total Budget CompetitorsFirms to Know: PepsiMonitoring Competition will help a firm to develop the competitive advantage and create a marketing strategy that can outwit a competitor. Economic Forces that can affect sales:1) Depression2) Recession3) Prosperity4) RecoveryACSI- American Customer Satisfaction Index• Political Forces such as new law legislation can impact competition and product successo Pro-competitive legislation- preserves competitiono Consumer Protection Legislation- protects consumers“The Pizza Puffery debate” between Papa John and DominoesThe Sherman Antitrust Act- prohibits contracts or conspiracies to restrain trade, and establishes as a misdemeanor in attempting to monopolizeRegulatory Agencies:• Federal Trade Commission• Food and Drug Administration• Environmental Protection AgencyThe FTC has the most influence on marketing activities.Technological ForcesApplies knowledge and tools to solve problems and perform tasks more efficiently.• Can impact “dynamic change”• Can improve productivityNegative Impacts of Technology: invasion of privacy and intellectual propertySociocultural Forces• These forces have an influence on societies customs and lifestyle (including beliefs and norms)Warren Buffet- is the 3rd wealthiest man in the world, pays himself 175 k/year, and has pledged to donate 99% of his wealth to charity.Consumerism- “the organized efforts of groups and organizations to protect the rights of consumers.”Ex: Kennedy’s consumer “bill of rights”• “Marketing critics think that consumers are being exploited in the marketplace.”The key to internal marketing is empowerment, which gives workers the power to act immediately and decisively without fear in order to maintain consumer
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