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MAR3023 Test 1 NotesExam 1 is February 11 – 15Remember to bring FSU ID to the testing center*1/9/13• Peer marketing- products• The goal of marketing is to make selling and advertising unnecessaryo 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 marketing1/14/13• Consumer Reports Ratingso 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 powerfulo EX: Great value brand vs. Ziploc• History of marketingo Simple trade era (pre-1860s) Products were made by hand, grown, or traded in small quantities Ended in Industrial Revolutiono Production era (pre-1920s) “As long as it’s black”• Inward focus• Technical development Condition: seller’s market; demand exceeded supplyo Sales Era (1920s) “Changing their minds” Focus on:• Selling what we make• Aggressive promotion – vacuum cleaners• Short-term profit maximizationo 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 sello 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 new customers• Engaged customers generate 1.7 times more revenue than normal customerso 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 orientationo 1. Competitor orientationo 2. Inter-functional orientationo 3. Customer orientation• Stakeholderso Constituents who have a “stake,” or claim, in some aspect of a company’s prodcuts……….• Clues to a market orientationo Customer centric marketing- developing collaborative relationships with customers based on focusing on their individual needs and concernso Relationship marketing- establishing long term ………….• The Four Ps/Marketing Mixo 1. Producto 2. Placeo 3. Priceo 4. Promotion• Distribution/placeo Make products available in quantities desiredo Minimize costs: Inventory Transportation Storage• Promotiono Inform individuals or groups about the organization and its products/services Advertising Public relations Personal selling Promotions Street teams/guerilla marketing Viral marketing• Pricingo Decisions and actions associated with establishing pricing objectives and policieso Determining product priceso Determines the value of the exchange• Popular macro-marketing strategieso Creating Value Relationshipso Segmenting marketso Identifying opportunities1/16/13• Segmenting customerso 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 investoro Third wealthiest person in the world Worth $47 billiiono Pays himself $175,000 a year and still lives in the same house he bough in 1958- worth $700Ko Pledged 99% of his wealth to charityo 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, NCo 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 competencieso Core competencies- things a firm does well Competitive advantage = opportunity + competency EX: Starbuck’s core competency is atmosphere• SWOT analysiso Strength, Weakness, Opportunity, Threat• SBUso Strategic business unit- a division or unity within a larger parent companyo FSU has 15 SBUs…the COB has 5• Origins of marketing strategyo Mission statement  corporate strategy  business-unit strategy  marketing strategy  marketing mix elements (product, distribution, promotion, pricing)• Business unit strategyo To provide high quality, innovative instruction that prepares, challenges, and inspires students to shape the future of business 30% rule• EX: Teacher rating- NOT RateMyProfessor.com but Sussai.com1/23/13• Marketing strategieso Producto Distributiono Pricingo Promotion• Successful SBUso Market share- the percentage of a market that actually buys a specific product Apple has 81% of the market for digital music players Red Bull has 1% of the global market share for soft drinkso BCG grid (Boston consulting group)o EX Dog: VCR EX Cash Cow: Coca Cola EX Stars: Vitamin Coca Cola• Internal marketingo EX: Southwest airlines• Key to internal marketingo 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 marketingo #2: BCG is tops in pay; new consultants are able to earn up to $184,000 first yearTopic 2: The External Environment• Environmental forceso 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 moneyo Political Top corporate donors• UPS, AT&T, Pfizero Technological Cassette  CD player  iPod  ?o Socioculturalo Legal and regulatory Pizza puffery debate (Domino’s vs. Papa John’s)o Economic• Competitive structureso Monopoly- when an organization has no competitors so that it is the sole


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FSU MAR 3023 - Exam 1

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