EXAM 1 What is Marketing o Product development to satisfy unmet consumer needs them to consumers convince often unfamiliar What makes Coke a good product and why do so many people buy it It s benefits It tastes good has caffeine First goal of marketing is to identify unmet consumer needs So if it is a good product how much would you pay How much do you want a coke Great marketers will develop products that people want need price them at level that maximizes profit and distribute Truly great products don t even need marketing brand likes asics Costco and Rolls Royce do little if any o Short term marketing versus Long term marketing o The Power of Branding Marketing Time as time goes by and a company like Apple makes tons of money imitation appears The dominant firm has to customers its product is superior Powerful people will pay much more for brands they trust even if they are the exact same product Publix brands are from the same plants as others consumers won t buy products even if they are objectively better o Dr Brady s approved definition of Marketing Marketing is the process by which companies determine what products or services may be of interest to customers and the strategy to use in sales communications and business development Phil Kotler o TAKE AWAYS 1 The primary goal of marketing is to develop good PRODUCTS that people want and need they also have to be priced appropriately and delivered to where consumers are If firms do marketing correctly they won t need to advertise much 2 Value reward cards value menu babysitting Relationship establish long term mutually satisfying buyer seller relationships Cumulative Corporate Social Responsibility Customer Value Typology Efficiency self oriented intrinsic benefits Status self oriented extrinsic benefits Aesthetics other oriented intrinsic benefits Ethics other oriented extrinsic benefits Marketing s core strategies o Creation Example Chick Fil A gives but they also sell their delicious product o Segmenting Markets Gender Age Race Education Income Early adopters o Identifying opportunities Know the history of Marketing o Simple Trade Era Pre 1860s made by hand and grown traded in small quantities lasted up until Industrial revolution o Production Era Pre 1920s firms produced what they could make Henry Fords statement You can have a model T in any color as long as its black inward focus technical development Sellers market where demand exceeded supply o Sales Era 1920s firms pushed products using aggressive sales tactics people were changing their minds on what they wanted they sold what they made and focused on short term profit maximization o Marketing Era 1940s 1990s the great awakening where customers became central focus began with development of marketing departments in early part of era customer is key Created 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 TODAY Can be seen as perks cards rewards miles points for hotel stay o Societal Era 1960s present green marketing adds society s best interest to mix corporate social responsibility firm serves three entities Stakeholders who are they Constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes BP s affected stakeholders weren t always important often times its people who surround the situation not shareholders or customers 4 P s The Marketing mix o Product goods services ideas Things like Ford s MyKey parents control more things o Place Distribution make products available in quantities desired minimize costs inventory transportation storage o Promotion inform individuals or groups about the organization includes advertising PR personal sales promotions street teams viral marketing o Price decisions and actions associated with establishing pricing objectives and policies determines value of exchange one Game changers product pricing distribution Apple products Kindle they combined many different technologies into Redbox caused blockbuster to close because it innovated movie rentals Misconceptions of Marketing o Marketing vs Advertising if marketers hit their mark with the product price and distribution there s little need to advertise places like asics Costco Rolls Royce o Holistic view most people view marketing as promotion when actually it is complex strategic quantitative multi faceted Time as related to Marketing o As time goes by and a company like Apple or McDonalds makes hundreds of millions of dollars competitors arise This means firms must figure out ways to create distinctions between their brands and others the dominant firm has to convince customers its product is superior Power of branding and advertising o Brand bias you think something is objectively better just because it is popular ie Google Coke Nike but in reality many products are actually lesser in relation to others Bing is statistically better than Google but Google s branding is much better Social responsibility the belief that a company needs to be held responsible for its actions socially ethically and environmentally Market Orientation o Customer Centric developing collaborative relationships with customers based on focusing on their individual needs and concerns o Relationship establish long term mutually satisfying buyer seller relationships o Customer Relationship using information about customers to develop and sustain desirable customer relationships o Green creating meaningful long term relationships with customers while maintaining supporting and enhancing the natural environment Promotion o Dr Peloza s presentation Central Route consumers focus on the product message in the ad interpret them form beliefs about product attributes and integrate them to form brand attitudes Peripheral Route the consumer doesn t focus on the product message in an ad but on other stimuli such as celebrities or music these things being present is what changes the beliefs about a brand product Marketing Orientation o Competitor orientation analyzes competitor information in terms of activity successes losses similarities and differences in order to seek out ways to set the business apart o Inter functional orientation a combination of both o Customer orientation research of the customer in regards to wants needs and behavior Macro Marketing Strategies o Creating value How do companies do this Small banks some serve Starbucks coffee or offer
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