Basic Marketing Test 1 Ch 1 An Overview of strategic marketing marketing is the foundation of all business activity marketing purpose is to make selling unnecessary how is marketing related to selling and advertising They let consumers know that they need A product not hard if it s a good product They let consumers know they need THE COMPANIES product this is where advertising and selling takes place Pure Marketing is about developing good PRODUCTS that people want and need Williand wang owner founder of visio Marketing 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 Product development to satisfy unmet consumer needs wants American marketing association AMA defines marketing as the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large Customers the purchasers of organizations products ARE THE FOCAL POINT OF ALL MARKETING ACTIVITIES Exp Disney isn t in the business of making theme parks its in the business of making people happy Customer expects to gain or benefit in excess of the marketing cost and marketing expects to gain something in value in return usually a good price on the product Target market a specific group of customers that organizations focus their marketing operations on a Exp firefly phone for 13 17 yr olds nike air native N7 for native americans Marketing mix 4 marketing elements that a firm can control to meet the needs of customers within its target market Product distribution price promotion Marketers must know about their target market in order to get the right amount of each element which satisfies their target group Exp Nissan cube is priced lowly product has many features suitable for young adults Product is aimed at younger adults Firms can only control each element so much due to economy and government regulations etc Also called marketing s action elements or tactical variables Distribution make products available where desired and minimize transportation storage and inventory Promotion inform people about your product Pricing determining prices and what the product is worth some firms create or enhance their own value Some banks offer coffee or watch your children while talking with bankers segmenting customers filtering out customers and giving them what they want Some customers want diet coke others cherry coke others regular coke etc Product Variable product a good service or idea Good a physical entity you can touch car ipod battery dog for sale a The actual production of tangible goods is not a marketing activity Service the application of human and mechanical efforts of people or objects to provide intangible benefits to customers haircut dry cleaning air traveling Product variable decisions and related activities are important because they are directly involved in creating products that address customers needs and wants If they don t create good products it will not satisfy consumers Distribution Variable A marketing manager makes products available in the quantities desired to as many target market customers as possible keeping total inventory transportation and storage cost as low as possible Internet has dramatically changed how products are distributed now Exp redbox 19 mail services like Netflix 39 stores 49 Promotional variable relates to activities used to inform the individuals or groups about the organization and its products Increases public awareness of the organization and its products Can be commercials or websites that tell you about their company and product or ad in newspaper any message that their company wants you to know Price Variable very important variable in the marketing mix some companys may charge higher prices to establish themselves as top tier exchanges the provision or transfer of goods services or ideas in return for something of value Four things needed to facilitate an exchange 1 Two or more parties must participate and each must have something of value that the other party desires 2 The exchange should provide a benefit or satisfaction to both parties involved 3 Each party must have confidence in the promise of the something of value held by the other 4 Parties must meet expectations to build trust stakeholder s people who have a stake or claim in some part of the companys products operations markets industry and outcomes Exp shareholders government employees customers suppliers etc marketing environment the competitive economic political legal and regulatory technological and sociocultural forces that surround the customer and affect the marketing mix Affect a marketers ability to facilitate products in 3 ways 1 Influence customers by affecting their lifestyle standard of living and preferences and needs for products 2 Marketing environment forces help determine whether and how a marketing manager can perform certain marketing activities 3 Environmental forces may affect a marketing managers decisions and actions by influencing buyers reaction to the marketing mix Marketing concept philosophy that an organization should try to provide products that satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals This is not another definition of marketing it is a philosophy that guides an organizations overall activities and affects all organizational activities not just marketing but also finance accounting human resources production etc Organization strives to meet customer needs as well as its own using marketing concept Simple trade era products were made by hand grown and sold in small quantities Product orientation era second half of 19th century the industrial revolution was in full effect and demand was high so mass producing products was used to be more efficient Demand exceeded supply until mass production was used sales orientation era in the 1920 s strong demand for products subsided so businesses looked at sales to be the best way to increase profits Aggressive promotions market orientation an organizations commitment to researching and responding to customer needs focusing on the customer enlightenment era 6 values of market orientated organizations trust openness honoring promises respect collaboration and market recognition achieving
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