MAR3023 Exam 1 Chapters 1 and 2 Intro to Marketing Pure Marketing Good Product delivers benefit tastes good product development is a core marketing function the first goal of marketing is to identify unmet consumer needs and then develop products that fill those needs ex Ford ex Iphone great products also come with great distribution means ex Walmart identifying the price that maximizes revenue is also part of marketing the best answer to the question of what is marketing is that it s the foundation of every business it s the business function that develops the products that people want to buy be cause they know they need them and because they can afford them and be cause they can find them marketing itself creates product Wall Street bets on the firms that perform the marketing function best If firms perform pure marketing correctly they don t need to advertise much or hire a huge sales team to push their product Impure Marketing happens when other company has time to make equivalent product now you have to advertise more to prove your product is better ex Apple suing Samsung advertising and selling are the base of impure marketing because if product is not obviously better you have to convince people to believe in your brand A and S are important but define marketing very important though objective quality of a product is different from perception impure marketing responsible ex best beer social stigmas also associated with brands ex Coke vs Celo Polka Soda branding power consumers also don t buy unfamiliar products So how is marketing related to the A and S words 1 2 To let consumers know that they need a product To let consumers know they need our product if firms fail to objectively distinguish their products from competitors then impure marketing becomes very important Components of Strategic Marketing Outside of Circle Competitive Forces Economic Forces Political Forces Legal and Regulatory Forces Technological Forces Sociocultural Forces Middle Product Price Distribution Promotion Center Customer organizations must define their products not according to what they produce but according to how they satisfy customers Marketing Mix four marketing elements that a firm can control to meet the needs of customers within its target markets Product Price Distribution Promotion Exchange Between Buyer and Seller Buyer Seller gives money credit labor goods Seller Buyer gives goods services ideas marketing builds relationships with customers and other stakeholders Marketing Concept a 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 Evolution of Marketing Simple Trade Era things made by hand or grown and traded in small quantities 1 Product Orientation Era because of industrial revolution mass production made it possible to produce goods more efficiently and poured into the marketplace where demand for manufacture goods was strong 2 firms produced what they could make inward focus Sales Orientation 1920 s businesses realized they would have to sell products to buyers the most important marketing activities became personal selling advertis ing and distribution firms pushed products using aggressive sales tactics short term profit maximization today some people incorrectly equate marketing with a sales orientation 3 Market Orientation 1950 s 60 s businesses found that they must first deter mine what customers want and then produce these products rather than make the products first and then try to convince customers they needed them great awakening began with the development of marketing depts and then transferred to the res of the firm 3 Things contribute to MO Competitor Orientation Inter Functional Orientation and Customer Orientation Societal marketing Era green marketing firm now serves 3 entities 4 Stakeholders constituents who have a stake or claim in some aspect of a com pany s products operations markets industry and outcomes ex BP and FL residents Customer Centric Marketing developing collaborative relationships with customers based on focusing on their individual needs and concerns CRM Customer relationship marketing focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships Marketing Management the process of planning organizing implementing and control ling marketing activities to facilitate exchanges effectively and efficiently Relationship Marketing a 5 increase in customer retention yields up to a 95 im provement in NPV delivered by customers 4 P s pie with customer in the middle Product goods services ideas 1 mostly all services now developed countries Place Distribution available in quantities desired minimizing costs Promotion inform consumer about the firm and its product Price determining product prices and the value of exchange 2 3 4 Marketing s Core Strategies Macro Marketing 1 Creating Value and Relationships ex Small Banks Sheraton Disney loyalty clubs 2 3 Segmenting Markets Gladwell ex separating devils from angels Identifying Opportunities Core Competencies things a firms does well Market Opportunity where circumstance and timing meet to creat strategic windows Competitive advantage opportunity competency So through the process of strategic planning a firm establishes an organiza tional mission and goals corporate strategy marketing objectives marketing strategy and finally a marketing plan Market Opportunity where circumstance and timing meet to create strategic windows Core Competencies things a firm does the best ex Starbucks place to go Strategic Planning Process chart on pg 30 Internal Marketing 1 Analysis of Organization s Strengths and Weaknesses Identification of Organiza tion s Opportunities and Threats Core Competencies Market Opportunity Strategic Windows Competitive Advantage Swot Analysis Organizational Mission and Goals Mission Statement Corporate and Business Unit Strategies Corporate Strategy SBU and Marketing Strategy Market Growth Share Matrix creating Marketing Mix Marketing Objectives Strategy and Marketing Plan Production Finance and 2 3 4 Human Resources Marketing Plan Marketing Implementation Intended vs Realized Strategies Swot Analysis Strengths Weaknesses Opportunities and Threats strengths refer to competitive advantages or core competencies that give the company an advantage in meeting the needs of its target markets
View Full Document
Unlocking...