Introduction to Marketing• Marketing – process of creating, distributing, promoting, and pricing goods, services, and ideas• Sales Orientation Periodo The era during 1920s – 1950s of “door-to-door” salesman • 4 P’s:o Product – identify unmet consumer needs and develop product to fill needso Price – price your product where the firm makes a profit and the consumer is satisfied with the valueo Place – distribute that product where it is needed in the quantities desiredo Promotion – inform individuals or groups about the organization and its products/services• Pure marketing – developing good products that people want and need• Impure marketing – is not focused on creating quality products that meet consumer needs. Uses advertising and selling products in a faulty ways. o Very powerful and effective• Purposes of Marketing:o Facilitate satisfying exchange relationships with customerso Develop and maintain favorable relationships with stakeholderso In a dynamic environmentMarketing Strategy• Stakeholderso Constituents who have a stake or claim in some aspect of the firms outcomes, not just customers BP oil spill• Relationship Marketing Era (1990s-2010)o The focus is on long-term relationships and customer retention• Societal Marketing Era (1960s- present)o “Green Marketing• Marketing Orientation – an organization-wide commitment to researching and responding to to customer needs• Market Opportunity - Where timing meets the appropriate circumstance and a strategic marketing window is created• Strategic planning- establishing an organizational mission and goals, corporate strategy, marketing objectives, marketing strategy and finally a marketing plano “Mission Statement” – determines marketing goal• SWOT analysis o Strengths, Weaknesses, Opportunities, Threatso Firm to know: NIKE• Marketing Strategy- a plan of action for identifying and analyzing a target market and developing a “marketing mix” to meet the needs of that market• Marketing plan – systematic process of assessing marketing opportunities and resources, determining marketing objectives, defining marketing strategies, and establishing guidelines for implementation and control of the marketing program. • Exchange- the provisions or transfer of goods, services, or ideas in return for something of valueo 4 conditions of exchange: Two or more must participate Provide benefit of satisfaction to both parties Each party must have confidence in the other Parties must meet expectations• Value – a customer’s subjective assessment of benefits relative to costs in determining the worth of a producto Value = Customer Benefits – Customer CostsMarketing Environment• Environmental scanning – the process of collecting information about forces in the marketing environment• Environment analysis – the process of assessing and interpreting the information gathered• Environmental Forces:o Competitive Brand competitors Product competitors Generic competitors Total Budget competitors Firm to Know: Pepsi – created by Caleb Bradham to be sold in his drug store in New Bern, NC.• Originally called “Brad’s Drink”• Named after the digestive enzyme “pepsin”• Coca-Cola was offered the opportunity to buy Pepsi three different times (the latest in 1933). It declined each Competitive Structures• Monopoly – One source dominates the market. No competition.• Oligopoly – few competitors dominate the market• Monopolistic Competition - When an organization with many competitors develops a marketing strategy to differentiate its product• Pure Competition – Involves a large number of sellers, no one of which influences price or supply. Does not exist in real world. o Economic ACSI – American Customer Satisfaction Indexo Political Pro-competitive legislation – preserves competition Consumer Protection legislation – protects consumerso Legal/Regulatory “Pizza Puffery Debate” between Papa Johns and Dominoes Sherman Antitrust Act- prohibits contracts or conspiracies to restrain trade, and established as a misdemeanor in attempting to monopolize Regulatory Agencies• Federal Trade Commission (FTC) – has most influence on marketing activities• Food and Drug Administration (FDA)• Environmental Protection Agency (EPA)o Socio-cultural These forces have an influence on societies customs and lifestyle Warren Buffet• Third wealthiest person in the world - Worth $47 billion• Pays himself $175,000 a year• Pledged 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 rightso Technological Applies knowledge and tools to solve problems and perform tasks more efficiently• Can impact “dynamic change”• Can improve productivity Negative impacts:• Invasion of privacy and intellectual property• Responding to Environmental Forces:o Passive – accepting them as uncontrollableo Proactive – attempting to influence and shape them• The Business Cycle – a pattern of economic fluctuations that has 4 stageso Prosperityo Recessiono Depressiono Recovery• Buying Power- resources such as money, goods, and services that can be traded in an exchange• Income – the amount of money received through wages, rents, investments, pensions and subsidy payments• Disposable income – after-tax income• Discretionary income – disposable income available for spending and saving after an individual has purchased the basic necessities • Empowerment: gives workers the power to act immediately and decisively without fear in order to maintain consumer satisfactiono Is the KEY to internal marketing Social Responsibility and Ethics• Social responsibility – an organizations obligation to maximize its positive impact and minimize its negative impact on societyo Positive impacts can help boost sales and create good publicity o FOUR dimensions of corporate social responsibility Economic – be profitable Legal – obey the law Ethical – do what is right and fair• Marketing Ethics: principles and standards that define acceptable marketing conduct Philanthropic – contribute to the community and improve quality of life• Cause related marketing: practice of linking products to a particular social cause on an ongoing or short term basis• Strategic
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