Introduction to Marketing Marketing process of creating distributing promoting and pricing goods services and ideas Sales Orientation Period o The era during 1920s 1950s of door to door salesman 4 P s o Product identify unmet consumer needs and develop product to fill needs o Price price your product where the firm makes a profit and the consumer is satisfied o Place distribute that product where it is needed in the quantities desired o Promotion inform individuals or groups about the organization and its with the value products services Pure marketing developing good products that people want and need Impure marketing is not focused on creating quality products that meet consumer needs Uses advertising and selling products in a faulty ways o Very powerful and effective Purposes of Marketing o Facilitate satisfying exchange relationships with customers o Develop and maintain favorable relationships with stakeholders o In a dynamic environment Marketing Strategy Stakeholders customers BP oil spill o Constituents who have a stake or claim in some aspect of the firms outcomes not just Relationship Marketing Era 1990s 2010 o The focus is on long term relationships and customer retention Societal Marketing Era 1960s present o Green Marketing customer needs Marketing Orientation an organization wide commitment to researching and responding to to Market Opportunity Where timing meets the appropriate circumstance and a strategic marketing window is created Strategic planning establishing an organizational mission and goals corporate strategy marketing objectives marketing strategy and finally a marketing plan o Mission Statement determines marketing goal SWOT analysis o Strengths Weaknesses Opportunities Threats o Firm to know NIKE Marketing Strategy a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market Marketing plan systematic process of assessing marketing opportunities and resources determining marketing objectives defining marketing strategies and establishing guidelines for implementation and control of the marketing program Exchange the provisions or transfer of goods services or ideas in return for something of value o 4 conditions of exchange Two or more must participate Provide benefit of satisfaction to both parties Each party must have confidence in the other Parties must meet expectations Value a customer s subjective assessment of benefits relative to costs in determining the worth of a product o Value Customer Benefits Customer Costs Marketing Environment Environmental scanning the process of collecting information about forces in the marketing environment Environment analysis the process of assessing and interpreting the information gathered Environmental Forces o Competitive Brand competitors Product competitors Generic competitors Total Budget competitors Firm to Know Pepsi created by Caleb Bradham to be sold in his drug store in New Bern NC Originally called Brad s Drink Named after the digestive enzyme pepsin Coca Cola was offered the opportunity to buy Pepsi three different times the latest in 1933 It declined each Competitive Structures Monopoly One source dominates the market No competition Oligopoly few competitors dominate the market Monopolistic Competition When an organization with many competitors develops a marketing strategy to differentiate its product Pure Competition Involves a large number of sellers no one of which influences price or supply Does not exist in real world o Economic o Political ACSI American Customer Satisfaction Index Pro competitive legislation preserves competition Consumer Protection legislation protects consumers o Legal Regulatory Pizza Puffery Debate between Papa Johns and Dominoes Sherman Antitrust Act prohibits contracts or conspiracies to restrain trade and established as a misdemeanor in attempting to monopolize Regulatory Agencies Federal Trade Commission FTC has most influence on marketing activities Food and Drug Administration FDA Environmental Protection Agency EPA o Socio cultural These forces have an influence on societies customs and lifestyle Warren Buffet Third wealthiest person in the world Worth 47 billion Pays himself 175 000 a year Pledged 99 of his wealth to charity Consumerism the organized efforts of groups and organizations to protect the rights of consumers o Technological Ex Kennedy s consumer bill of rights Applies knowledge and tools to solve problems and perform tasks more efficiently Can impact dynamic change Can improve productivity Negative impacts Invasion of privacy and intellectual property Responding to Environmental Forces o Passive accepting them as uncontrollable o Proactive attempting to influence and shape them The Business Cycle a pattern of economic fluctuations that has 4 stages o Prosperity o Recession o Depression o Recovery Buying Power resources such as money goods and services that can be traded in an exchange Income the amount of money received through wages rents investments pensions and subsidy payments Disposable income after tax income Discretionary income disposable income available for spending and saving after an individual has purchased the basic necessities Empowerment gives workers the power to act immediately and decisively without fear in order to maintain consumer satisfaction o Is the KEY to internal marketing Social Responsibility and Ethics Social responsibility an organizations obligation to maximize its positive impact and minimize its negative impact on society o Positive impacts can help boost sales and create good publicity o FOUR dimensions of corporate social responsibility Economic be profitable Legal obey the law Ethical do what is right and fair marketing conduct Marketing Ethics principles and standards that define acceptable Philanthropic contribute to the community and improve quality of life Cause related marketing practice of linking products to a particular social cause on an ongoing or short term basis Strategic philanthropy the synergistic use of organizational core competencies and resources to address key stakeholders interests and achieve both organizational and social benefits Stakeholder Orientation when companies consider the diverse perspectives of their stakeholders in their daily operations and strategic planning Marketing citizenship adoption of strategic focus for fulfilling economic legal ethical and philanthropic social responsibilities expected by stakeholders
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