MAR3023 Test 1 Notes Exam 1 is February 11 15 Remember to bring FSU ID to the testing center 1 9 13 Peer marketing products The goal of marketing is to make selling and advertising unnecessary o 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 marketing 1 14 13 Consumer Reports Ratings o 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 powerful o EX Great value brand vs Ziploc History of marketing o Simple trade era pre 1860s Products were made by hand grown or traded in small quantities Ended in Industrial Revolution o Production era pre 1920s As long as it s black Inward focus Technical development o Sales Era 1920s Changing their minds Focus on Condition seller s market demand exceeded supply Selling what we make Aggressive promotion vacuum cleaners Short term profit maximization o The Marketing Era 1940s 1990s The great awakening where customers became the central focus of the organization 1 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 sell o 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 o Societal marketing era 1960s present than normal customers Green marketing Focus on Adds society s best interest to the mix Corporate social responsibility Firm now serves three entities Marketing orientation o 1 Competitor orientation o 2 Inter functional orientation o 3 Customer orientation Stakeholders company s prodcuts Clues to a market orientation o Constituents who have a stake or claim in some aspect of a o Customer centric marketing developing collaborative relationships with customers based on focusing on their individual needs and concerns o Relationship marketing establishing long term The Four Ps Marketing Mix o 1 Product o 2 Place o 3 Price o 4 Promotion Distribution place o Make products available in quantities desired o Minimize costs Inventory Transportation Promotion Storage o Inform individuals or groups about the organization and its products services 2 Pricing o Decisions and actions associated with establishing pricing objectives Advertising Public relations Personal selling Promotions Viral marketing Street teams guerilla marketing and policies o Determining product prices o Determines the value of the exchange Popular macro marketing strategies o Creating Value Relationships o Segmenting markets o Identifying opportunities 1 16 13 Segmenting customers o 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 investor o Third wealthiest person in the world Worth 47 billiion o Pays himself 175 000 a year and still lives in the same house he bough in 1958 worth 700K o Pledged 99 of his wealth to charity o 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 NC o 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 3 Core competencies o Core competencies things a firm does well Competitive advantage opportunity competency EX Starbuck s core competency is atmosphere SWOT analysis SBUs o Strength Weakness Opportunity Threat o Strategic business unit a division or unity within a larger parent company o FSU has 15 SBUs the COB has 5 Origins of marketing strategy o Mission statement corporate strategy business unit strategy marketing strategy marketing mix elements product distribution promotion pricing Business unit strategy o To provide high quality innovative instruction that prepares challenges and inspires students to shape the future of business 30 rule Sussai com EX Teacher rating NOT RateMyProfessor com but 1 23 13 Marketing strategies o Product o Distribution o Pricing o Promotion Successful SBUs product o Market share the percentage of a market that actually buys a specific Apple has 81 of the market for digital music players Red Bull has 1 of the global market share for soft drinks o BCG grid Boston consulting group 4 o EX Dog VCR EX Cash Cow Coca Cola EX Stars Vitamin Coca Cola Internal marketing o EX Southwest airlines Key to internal marketing o 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 marketing o 2 BCG is tops in pay new consultants are able to earn up to 184 000 first year Topic 2 The External Environment Environmental forces o 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 money o Political Top corporate donors UPS AT T Pfizer Cassette CD player iPod o Technological o Sociocultural o Legal and regulatory Pizza puffery debate Domino s vs Papa John s o Economic Competitive structures o Monopoly when an organization has no competitors so that it is the sole source of supply 5 EX Microsoft o Oligopoly when a few sellers control supply Usually due to entry barriers EX Airlines cell phone companies o Monopolistic when firms in competitive industries attempt to differentiate a product A normal market most common o Pure competition exists when there are a large number of sellers with similar products and low barriers to entry EX Ebay Economic forces o The business cycle o Prosperity Recession Depression Recovery Federal trade commission o Most heavily
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