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$b uy$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$are$objectively$better$iv. Advertising$is$necessary$v. Advertising$without$investment$in$the$marketing$process$is$impure$marketing$$3. Short term vs. Long term marketing a. Short-Term: Cause-related marketing and philanthropic events are short term marketing examples b. Long-term: customer satisfaction, relationship marketing, and ethical marketing are all long term marketing strategies 4. Marketing Core Strategies: The$process$of$1)$creating,$2)$distributing,$3)$promoting$and$4)$pricing$goods,$services$and$ideas$(aka$products).$Also$known$as$the$4$P’s.$ 5. History of Marketing a. Product$orientation$(the$Model$T$and$assembly$line)$i. Affected$by$technology$in$the$industrial$revolution$1. Mass$production$2. Efficiency$3. New$ways$to$use$labor$and$technology$b. Sales$orientation$(door$to$door$salesmen)$i. 1920’s$to$1950’s$becomes$increasingly$important$with$door$to$door$salesmen$1. Demand$subsided$2. Advertising$became$key$3. Often$the$source$of$misconceptions$$c. Market$orientation$i. Starting$in$the$1950’s,$companies$realized$they$needed$to$asses$and$meet$needs$$1. Responsive$to$the$customer$2. New$product$innovation$3. Trust,$openness,$honoring$the$promise$$d. Relationship$Marketing$Era$(1990Y2010)$i. The$focus$is$on$longYterm$relationships$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$$7. Place/Distribution a. Making$sure$products$are$available$in$the$right$quantities$and$the$right$locations$b. Minimize the costs of inventory, transportation and storage c. Changed by the internet8. Promotion a. Aims$to$create,$promote$and$sustain$interest$$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$$9. Price a. Another$primary$goal$of$marketing$is$pricing$the$product$so$the$firm$makes$a$profit$and$the$customer$is$satisfied$with$the$value$$b. Critical$component$c. Creates$competition$ 10. Core Competencies a. Things$a$company$does$extremely$well,$which$sometimes$give$it$an$advantage$over$it’s$competition i. Ex.$WalYMart$in$supply$chain$management$ 11. Market Opportunities 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$$i. It$is$a$critical*component$of$the$marketing$plan$ii. Identifying$and$analyzing$a$target$market$and$developing$a$marketing$mix$to$meet$the$needs$of$that$market$$$13. SWOT Analysis a. Assessment$of$an$organization’s$strengths,$weaknesses,$opportunities$and$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$to$sat isfy$it s$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
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