MAR3023 Exam 1 Study Guide 09 11 2014 What is Marketing Drucker Product development to satisfy unmet consumer needs The aim of marketing is to make selling unnecessary Peter The aim of marketing is to know and understand customers so well that the product service fits them and it sells itself Peter Drucker Marketing is the foundation of every business Marketing is the answer to the question of why you buy a product o Ex convenience of bottled water and Coke vending machines distribution Short term marketing versus Long term marketing o Short term marketing efforts tend to cause sudden sales spikes which rarely last These sharp sales increases are usually the result of a targeted marketing campaign or time limited offer While short term marketing produces sales long term marketing efforts must be mixed in to sustain sales The Power of Branding Marketing Core strategy o Which should cost more Ziploc vs Great Value brand baggies Peter Pan vs great value peanut butter Consumer Report rates all cheaper products non brand as objectively the same as or better than the branded products Because brand companies are spending lots of money to make you think their product is better than it is Pillsbury makes their own brand muffins AND Publix brand muffins they are exactly the same doubles manufacturing for those contracted companies Publix works with The Lesson Branding and marketing are very powerful Dr Brady s approved definition of Marketing o 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 1 Primary goal of marketing is to develop good PRODUCTS that people want and need o They also have to be priced appropriately and delivered to where consumers are 2 If firms do marketing correctly they don t need to advertise much at least until competition imitation product appear in the market 3 Over time competitors force firms to promote their products in order to differentiate them from close competitors o Where advertising comes in 4 In reality firms need to perform all 4 Ps well in order to drive profits and everything else Macro Marketing s Core Strategies Creation o Value Value is the difference in what you have to pay and what you re getting in return Creating Value other than offering a low price giving customers more especially when companies can t compete with competitive rates Small Banks Some serve Starbucks coffee Offer free babysitting while talking to loan counselor Offer extending hours and free toasters Sheraton Five Points in LA offers 24 hours check in Rooms available anytime day or night Guest is guaranteed a room for a 24 hour block regardless of check in time The result occupancy went from 66 to 90 Driving value in ways other companies haven t thought about before Examples Reward cards value menu babysitting o Relationship establish long term mutually satisfying relationships buyer seller relationships Disney sells the belief in magic and a magical family experience to build relationships with customers Go above and beyond to do extra things like making arrangements with animals on the cruise Charmin Opened kiosk for people to use bathroom for free at Times Square People dressed up as toilets Result sales increased 20 Relationships in Action Chick fil A trains its employees to go the extra mile bring umbrellas to customers if its raining My pleasure Segmenting Markets filling needs for different groups for example the option for online class and live lecture course o Different product that is similar to core product but appeals to different kinds of people different segment of population that have slightly different needs macro marketing strategy Example coke comes in bottle and in cans because different people have preferences Coke Zero in black can for men because they don t like the term diet There s like 20 different types of Coke Diet coke lime coke zero with cherry etc o In an effort to compete with Wal Mart and Dell Best Buy made an effort to separate angel and devil customers Goal was to analyze sales records and attempt to fire about 20 of its customers Devils cost companies money do things like apply for rebates return purchases only to buy them at discount buy loss leaders and other severely discounted merchandise designed to boost store traffic then sell them for a profit on eBay and they quote rock bottom prices from web sites and demand that Best Buy match the price This is why Best Buy has a 15 re shelving fee o To separate devils from angels make companies money store clerks are given training to identify desirable angel customers High income men are Barrys Suburban moms are Jills Male early adopters are Buzzes o Segmentation is based on Gender Age Race Education Early adopters Income Identifying opportunities o Market opportunity windows Where circumstance and timing meet to create strategic Starbucks recognizes opportunity of a second place now offers a second place as a caf o Core competencies things a firm does well Competitive advantage opportunity competency Starbucks core competency comfortable environment McDonalds core competency consistency and location Through the process of strategic planning a firm establishes an organizational mission and goals corporate strategy marketing objectives marketing strategy and finally a marketing plan Know the history of Marketing Simple Trade Era Pre Industrial Revolution made by hand and grown make o Sold in small quantities o Very inefficient market o Lead up to the Industrial Revolution Production Era 1860 s 1920 s firms produced what they could o Henry Ford As long as it s black Inward focus Technical development Condition Seller s market people wanted these products because it was a lot easier to buy it from someone that to make it yourself Demand exceeded Supply Very little competition Sales Era 1920 s 1940 s firms pushed products using aggressive sales tactics o Focus on o Depression happened people didn t have money to spend so people stopped buying things so firms had to convince people to change their minds and spend their money Selling what we make Aggressive promotion vacuum cleaners Short term profit maximization Marketing Era 1940 s 1990 s focus on customer orientation o The great awakening where customers became central focus of the organization o Began with the development of marketing departments 1940s 1960 and then transferred to the rest of the firm
View Full Document
Unlocking...