MAR3023 Test 1 Notes Exam 1 is February 11 15 Remember to bring FSU ID to the testing center 1 9 13 Peer marketing products The goal of marketing is to make selling and advertising unnecessary o Make a good product Pure invisible marketing is about developing good PRODUCTS that people want and need If firms perform pure marketing correctly they don t need to advertise much or hire If firms fail to objectively distinguish their products from competitors then impure marketing becomes very important Over time competitors imitate great ideas Pure marketing v impure marketing 1 14 13 Consumer Reports Ratings o Consumer Reports rates all of the products you saw as objectively the same as or better than the branded products Brands and marketing are really powerful o EX Great value brand vs Ziploc History of marketing o Simple trade era pre 1860s Products were made by hand grown or traded in small quantities Ended in Industrial Revolution o Production era pre 1920s As long as it s black Inward focus Technical development o Sales Era 1920s Changing their minds Focus on Condition seller s market demand exceeded supply Selling what we make Aggressive promotion vacuum cleaners Short term profit maximization o The Marketing Era 1940s 1990s The great awakening where customers became the central focus of the organization Began with the development of marketing departments and then transferred to the rest of the firm Focus on Customer is the key delight Make what we sell o Relationship marketing era 1990s 2010 The focus is on long term relationships and customer retention A 5 increase in customer retention yields up to a 95 improvement in NPV delivered by customers Repeat customers generate over twice as much revenue as Engaged customers generate 1 7 times more revenue than new customers normal customers o Societal marketing era 1960s present Green marketing Focus on Adds society s best interest to the mix Corporate social responsibility Firm now serves three entities Marketing orientation o 1 Competitor orientation o 2 Inter functional orientation o 3 Customer orientation Stakeholders prodcuts Clues to a market orientation o Constituents who have a stake or claim in some aspect of a company s o Customer centric marketing developing collaborative relationships with customers based on focusing on their individual needs and concerns o Relationship marketing establishing long term The Four Ps Marketing Mix o 1 Product o 2 Place o 3 Price o 4 Promotion Distribution place o Make products available in quantities desired o Minimize costs Inventory Transportation Storage Promotion o Inform individuals or groups about the organization and its products services Advertising Public relations Personal selling Promotions Street teams guerilla marketing Viral marketing Pricing policies o Determining product prices o Determines the value of the exchange Popular macro marketing strategies o Creating Value Relationships o Segmenting markets o Identifying opportunities o Decisions and actions associated with establishing pricing objectives and 1 16 13 Segmenting customers o Segmentation dividing up your market based on different factors EX Coke diet coke coke with lime coke zero Warren Buffet the oracle of Omaha the best investor o Third wealthiest person in the world o Pays himself 175 000 a year and still lives in the same house he bough in Worth 47 billiion 1958 worth 700K o Pledged 99 of his wealth to charity o Owns Berkshire Hathaway a conglomerate holding company with a diverse portfolio of businesses Based in Omaha Best known for insurance He owns Geico Started out as a textile company in Massachusetts that Buffett took over Pepsi created by Caleb Bradham to be sold in his drug store in New Bern NC o Originally called Brad s Drink o Named after the digestive enzyme pepsin TOPIC 1 The Internal Environment Market opportunity where circumstance and timing meet to create strategic windows Core competencies o Core competencies things a firm does well Competitive advantage opportunity competency EX Starbuck s core competency is atmosphere SWOT analysis SBUs o Strength Weakness Opportunity Threat o Strategic business unit a division or unity within a larger parent company o FSU has 15 SBUs the COB has 5 Origins of marketing strategy o Mission statement cid 224 corporate strategy cid 224 business unit strategy cid 224 marketing strategy cid 224 marketing mix elements product distribution promotion pricing Business unit strategy o To provide high quality innovative instruction that prepares challenges and inspires students to shape the future of business 30 rule Sussai com EX Teacher rating NOT RateMyProfessor com but 1 23 13 Marketing strategies o Product o Distribution o Pricing o Promotion Successful SBUs product o Market share the percentage of a market that actually buys a specific Apple has 81 of the market for digital music players Red Bull has 1 of the global market share for soft drinks o BCG grid Boston consulting group o EX Dog VCR EX Cash Cow Coca Cola EX Stars Vitamin Coca Cola Internal marketing o EX Southwest airlines Key to internal marketing o Empowerment giving employees the power to act immediately decisively and without fear in order to attain satisfaction and delight EX Nordstrom Use your good judgment That s the only rule o Best company to work for SAS Result of internal marketing o 2 BCG is tops in pay new consultants are able to earn up to 184 000 first year Topic 2 The External Environment Environmental forces o Competitive Types of competitors Brand competitors Coke vs Pepsi Product competitors juice vs soda Generic competitors great value vs Coke Total budget competitors choosing b w a candy bar or a soda b c you don t have enough money o Political Top corporate donors UPS AT T Pfizer o Technological Cassette cid 224 CD player cid 224 iPod cid 224 o Sociocultural o Legal and regulatory Pizza puffery debate Domino s vs Papa John s o Economic Competitive structures o Monopoly when an organization has no competitors so that it is the sole source of supply EX Microsoft o Oligopoly when a few sellers control supply Usually due to entry barriers EX Airlines cell phone companies o Monopolistic when firms in competitive industries attempt to differentiate a product A normal market most common o Pure competition exists when there are a large number of sellers with similar products and low barriers to entry EX Ebay Economic forces o The business cycle o Prosperity cid 224 Recession cid 224
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