MAR3023 Overview 1 Marketing a The process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment i The foundation of every business ii Develops the products people want to buy because they know about them and want need them and know they can afford them and where to get them iii Primary goal is to do research and collect data to identify unmet customer needs and then develop products that fulfill that need iv Customers main focus b To facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stake holders in a dynamic environment 2 Pure vs Impure Marketing a Pure Marketing engaging in the process of creating distributing promoting and pricing products to fulfill consumer needs i About developing good products that people want need ii Doesn t require much advertising b Impure marketing When there is ambiguity in quality and customer preference it leaves room for impure marketing i Hijacking another brand ii Very powerful iii Consumers don t buy unfamiliar products even if they are iv Advertising is necessary v Advertising without investment in the marketing process is impure objectively better marketing 3 Short term vs Long term marketing a Short Term Cause related marketing and philanthropic events are short term b Long term customer satisfaction relationship marketing and ethical marketing are marketing examples all long term marketing strategies 4 Marketing Core Strategies The process of 1 creating 2 distributing 3 promoting and 4 pricing goods services and ideas aka products Also known as the 4 P s 5 History of Marketing a Product orientation the Model T and assembly line i Affected by technology in the industrial revolution 1 Mass production 2 Efficiency 3 New ways to use labor and technology b Sales orientation door to door salesmen i 1920 s to 1950 s becomes increasingly important with door to door salesmen 1 Demand subsided 2 Advertising became key 3 Often the source of misconceptions c Market orientation meet needs i Starting in the 1950 s companies realized they needed to asses and 1 Responsive to the customer 2 New product innovation 3 Trust openness honoring the promise d Relationship Marketing Era 1990 2010 i The focus is on long term relationships and customer retention ii There is power in retaining customers 1 A 5 increase in customer retention yields up to a 95 improvement in CLV customer lifetime value delivered by customers 2 Repeat customers generate over twice as much revenue as new customers 3 Engaged customers generate 1 7 times more revenue then normal customers iii Loyalty systems push this 1 EX Starbucks Gold Card e Societal Marketing Era 1960 s present i Green Marketing ii Focus on 1 Adds society s best interest to the mix 2 Corporate social responsibility 3 Firm now serves three entities 6 Product a Deals with needs and wants of a customer b Product goods services ideas c Includes creating and modifying brands and packaging d Product development core marketing function 7 Place Distribution locations a Making sure products are available in the right quantities and the right b Minimize the costs of inventory transportation and storage c Changed by the internet 8 Promotion 9 Price a Aims to create promote and sustain interest b A primary goal of marketing is to inform individuals or groups about the organization and it s products services c Advertising public relations viral marketing personal selling promotions a Another primary goal of marketing is pricing the product so the firm makes a profit and the customer is satisfied with the value b Critical component c Creates competition 10 Core Competencies 11 Market Opportunities a Things a company does extremely well which sometimes give it an advantage over it s competition i Ex Wal Mart in supply chain management a A combination of circumstances and timing that permits an organization to take action to reach a particular target market 12 Levels of Strategic Planning a Begins with an analysis of marketing environment b The strategic planning process ultimately yields a marketing strategy that is the framework for a marketing plan which is a written document that specifies the activities to be performed to implement and control an organization s marketing activities c Marketing plan a systematic process of assessing marketing opportunities and resources determining marketing objectives defining marketing strategies and establishing guidelines for implementation and control i The outcome is a written document that specifies the marketing activities to be performed to implement and control the organization s marketing activities d Marketing Strategy done to achieve a company s marketing objective a company must identify a marketing strategy which includes identifying and analyzing a target market and developing a marketing mix to meet the needs of individuals in that market i It is a critical component of the marketing plan ii Identifying and analyzing a target market and developing a marketing mix to meet the needs of that market a Assessment of an organization s strengths weaknesses opportunities and 13 SWOT Analysis threats b Convert threat to opportunity external i exist independently of the organization and therefore represent issues to be considered by all organizations in an industry even those that are not competitors c Convert weakness to strength internal i internal factors that can influence an organization s ability to satisfy its target markets d Match strength to opportunity 14 Strategic Business Unit is a division product line or other profit center within the parent company Strategic planners should recognize the strategic performance 15 Internal vs External Marketing a Internal Marketing Key is empowerment giving employees the power to act immediately decisively and without fear in order to attain satisfaction delight i Ex Nordstrom USAA Marriot Charles Schwab 16 BCG s Matrix 1 Several tools allow an organization s portfolio of strategic business units to be classified and displayed according to the attractiveness of various markets and the business s relative market share within those markets a The market growth market share matrix the Boston Consulting Group BCG approach is based on the philosophy that a product s market growth rate and its market share are
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