EXAM 1 Chapter 1 Segment 1 What is marketing o Most people think it s advertising and selling but it s not exactly that That is a Misconceptions of Marketing 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 Holistic view most people view marketing as promotion when actually it is complex strategic quantitative multi faceted o Basic definition the process of creating promoting distributing and pricing goods services and ideas to facilitate satisfying exchange This Definition is so bad which is why marketing is understood o View of marketing The aim of marketing is to know and understand customers so well the product or service fits them and sells itself Marketing is the answer to the question of why you buy a product Marketing is the Foundation of every business o Product development to satisfy consumer needs IS A CORE MARKETING FUCTION people buy it What makes Starbucks a good product and why do so many It s benefits It tastes good has caffeine and you re getting the product in a great scene and the service is at high standard Its also located everywhere this is considered as PLACE PLACE a function of marketing distribution delivery getting the product to where you can buy it is also 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 Starbucks o PRICE the right price is not always the low price Your pricing quality and exclusivity and you re trying to price them at level that maximizes profit Great marketers will develop products that people want need and distribute them to consumers Truly great products don t even need marketing brand likes asics Costco and Rolls Royce do little if any Firms wont get very far if they don t sell good goods There will be no firms or products without marketing o Good products First goal of marketing is to identify unmet consumer needs and then develop products that fill those needs 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 distribute to where consumers are THIS IS THE ANSWER TO WHAT IS MARKETING If firms do marketing correctly they won t need to advertise much 2 Segment 2 o Misperceptions of marketing o Why is marketing misunderstood People only understand marketing through the lenses of what they see everyday They see advertising o So what s the issue The problem originates from marketers themselves Not the real marketers these people are considered to be enterprising opportunists hawking the latest fad or hyping their own brand of sensationalist BS Marketing has to make consumers believe that the product their trying to sell is better than it really is this is what happens when you have a firm that is trying to sell a product that really isn t better in terms of competition o The other side of marketing So what about the visible side of marketing Why is it needed and so prominent Timely reality Its powerful o Time Over time you are going to have imitators The dominant firm has to convince customers its product is superior o Advertising and branding are very powerful o Powerful people will pay much more for brands they trust even if they are the exact same product Publix brands are often from the same plants as others consumers won t buy unfamiliar products even if they are objectively better o Consumers don t buy unfamiliar products Even if the unfamiliar one is better It works really well 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 3 Overtime competitors force firms to promote and convince their products in order to differentiate them from close competitors reminding them that there product is the best 4 In reality firms need to perform 4 P s well in order to drive profits and everything else Product price place promote Marketers are really good at convincing and reminding CHAPTER 2 Segment 1 Consumer Reports same o Rates all of the products brand and no name brand as objectively the o Sometimes the as are better than the branded products Know the history of Marketing o Simple Trade Era o Production Era Pre 1860s products are made by hand and grown traded in small quantities Lasted up until Industrial revolution 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 Whatever we can produce as fast as we can because the demand was there Technical development CONDITION Sellers market where demand exceeded supply SOMETHING HAPPENED TO CHANGE THAT SO WHAT HAPPENED ANSWER the great depression Demand dried up had excess inventory but no one to sell it to o Sales Era 1920s Firms pushed products using aggressive sales tactics people were changing their minds on what they wanted Focused on Short term profit maximization The great awakening where customers became central focus Began with development of marketing departments in early part Sell what we made Aggressive promotion o Marketing Era 1940s 1990s of era Focused on Customer is key Make what we sell o Relationship Marketing Era The focus is on long term relationships and customer retention Establishing long term mutually satisfying buyer seller relationships What they will want know and what they will want in the future Long term revenue short term revenue If you keep 5 of your customers now it will increase customer retention yields up to a 95 improvement in Net present value delivered by customers Maintain customer base is important Repeat customers generate over twice as much revenue as new Loyal customers are important Engaged costumer generate 1 7 times more revenue then normal customers TODAY Can be seen as perks cards rewards miles points for hotel stay o Societal Era 1960s present Green marketing Focus on Adds society s best interest to mix Corporate social responsibility o Ex customer friendly employee friendly Firm serves three entities o Customers employees shareholders and society as the whole o Clues to a market orientation o Customer Centric Marketing Collaborative relationships based on customers individual needs and concerns Customers are put first everything else is behind them o
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