Josh Yagur What is Marketing MAR 3023 Study Guide Exam 1 Product development to satisfy unmet consumer needs Short term and long term plans must coincide under 1 unified plan attending to consumer tastes and desires Long term is focused more on mutually satisfying relationships Branding is extremely powerful Consumers don t buy unfamiliar products Creates consumer trust in Process by which companies determine what products or services be of interest to customers and start to use in sales communities and business development product company Marketing s core strategies Creation o Value reward cards value menu babysitting o Relationship establish long term mutually satisfying buyer seller relationships Customer Relationship Management focuses on using info about customers to create marketing strategies that develop and sustain strong relationships 1 Acquiring new customers 2 Enhancing profitability of existing customers 3 Extending duration of customer relationships Ex Chick Fil A Charmin o Cumulative Value Creation showing that when you buy our product your are helping someone Segmenting Markets o Dividing markets by Gender Age Race Education Income and other classifications for consumers that share common needs and focus on reaching them Usually differentiate product to care to their needs Different cokes and pepsis No one best spaghetti sauce so made a bunch that different people would enjoy o Best Buy did this by separating customers High income men barrys Suburban moms Jills Young early adopters buzzes Identifying Opportunities where circumstance and timing meet to create strategic windows Know the history of Marketing Simple Trade Era made by hand and grown Production Era firms produced what they could make Sales Era firms pushed products using aggressive sales tactics Marketing Era focus on customer orientation Societal Era firms now serve 3 entities Stakeholders essentially everyone involved in the company customers employees investors shareholders suppliers government communities 4 P s The Marketing Mix Product goods services ideas Place Distribution make products available in quantities desired Promotion inform individuals or groups about the organization Price decisions and actions associated with establishing pricing objectives and policies Game Changes Product pricing distribution Misconceptions of Marketing Marketing vs Advertising Time o Not simply promotion It actually is complex strategic quantitative multi faceted process in order to develop products that people want and effectively sell them o Advertising is a major component of Marketing but not the entirety of it o If marketers hit their market with the product price and distribution theres little need to o Marketing must invent complete products and drive them to commanding positions in advertise defensible market segments Time reality suggests that apple needs to say iphone is better than Samsung Samsung replicated iphone so now apple has to advertise Overtime the market reacts with competitor products that have similar benefits o Then the dominant firm uses advertising to develop brand strength and loyalty Market opportunity requires timing to enter a market 1st mover advantage ability of an innovative company to achieve long term competitive advantages by being the 1st to offer a certain product in the market place Late mover advantage ability of later market entrants to achieve long term competitive advantage by not being 1st to offer certain products and brand loyalty o Companys that are quick to enter after 1st mover have greater chance of building market share Strategic windows temporary periods of optimal fitting between the key requirements of a market and the particular capabilities of a company competing in that market Power of branding advertising Extremely powerful o Coke spent close to 3 billion on advertising last year o Anheuser Busch spent 1 47 bullion o Consumers don t buy unfamiliar products even if the unfamiliar product is objectively better Category Bias people associate different sectors as more socially responsible than others o Ex energy companies and banks seemed like they think FUCK the world I just want money when in reality they are very dedicated to social relief and environmental sustainability o Disney happy Walmart shuts down mom and pop when in reality they are almost both Brand bIas equally socially responsible Market Orientation satisfy customers Relationship Consumer Centric customers are the focal pt of ALL marketing We define products as what they do to o Establish long term mutually satisfying buyer seller relationships o CRM acquire new customers enhancing profitability of existing customers and extending duration of customer relationships Customer Relationship and Perception overestimate underestimate all the time Going Green o Sustainability Reality Score people are often perceive companys to be socially responsible and o Helps strengthen relationships by indicating that companys are socially responsible and want to help the world with intrinsic and extrinsic benefits Central Route where full attention is given and the facts on why a product is better is given in the Peripheral Route not full attention is given due to low motivation or low ability Sex appeal Promotion advertisement Marketing Mix as levers Marketing Orientation Competitor Orientation analyzes competitor information in terms of activity successes losses similarities and differences seeking out ways to set the business apart and above surrounding competitors Inter functional orientation Customer Orientation finding out what the needs and wants are Clues to a market orientation Customer Centric Marketing an org commitment to researching and responding to customer needs Customer Relationship Marketing focuses on using info about customers to create marketing strategies that develop and sustain strong relationships 1 Acquiring new customers 2 Enhancing profitability of existing customers 3 Extending duration of customer relationships Relationship Marketing establishing long term mutually satisfying buyer seller relationships Deepens Green Marketing create strong relationships while maintaining supporting and enhancing the natural buyers trust environment Customer Lifetime Value CLV o 80 20 Rule 80 of business profits come from 20 of the customers o Goal is to assess worth pf individual customers and estimate their lifetime value to the company Market opportunity where circumstance and timing meet to create
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