MAR3023 Exam 1 Ch 1 Overview of Strategic Marketing 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 o Product development to satisfy unmet consumer needs o Short term vs long term marketing o Branding marketing o The aim of marketing is to make selling unnecessary o Understand the customer base so well that the product fits them and sells itself Marketing s Core Strategies o Creation Value reward cards value menu babysitting Relationship establish long term mutually satisfying buyer seller relationships ex Chick Fil A o Segmenting markets Age gender race education income early adopters o Identifying opportunities History of Marketing o Simple Trade Era Pre 1860s Products made by hand grown or traded in small quantities Lasted up until the Industrial Revolution it let people have access to a lot more products than they had themselves o Production Era Pre 1920s Firms produced what they could make Ex Henry Ford as long as it s black Seller s market demand exceeded supply People had access to very few products Mass production distribution o Sales Era 1920s Firms pushed products using aggressive sales tactics Focused on selling what they made Short term profit maximization o Marketing Era 1940s 1990s Focus on customer orientation Make what customers want not just what s easiest to make Development of marketing departments o Societal Era 1960s present Firms now serve 3 entities stockholders companies society as a whole Society s best interest MAR3023 Green Marketing Stakeholders people who have a stake or claim in some aspect of a company s products operations markets industry and outcomes o Ex customers employees investors o The impact on value can then impact how stakeholders perceive certain products Marketing Mix o Product goods services ideas o Price price something at a level that maximizes return value of the exchange o Place distribution make products available in quantities desired minimize costs o Promotion inform individuals groups about the organization Advertising PR Promotions guerilla marketing Gamechangers product pricing distribution Misconceptions of Marketing o Brand bias Peter Pan PB vs Publix Brand PB o Category Bias o Social Responsibility Market Orientation o Customer centric Developing collaborative relationships with customers based on focusing on Establish long term mutually satisfying buyer seller relationships Ex rewards cards etc Using information about customers to develop and sustain desirable their individual needs and concerns o Relationship Marketing o Customer Relationship customer relationships Sustainability Reality Score o Green Marketing Creating meaningful long term relationships with customers while maintaining supporting and enhancing the natural environment Corporate Social Responsibility Company s Stakeholder s employees investors shareholders o Everyone is affected by a companies actions Macro Marketing Strategies are getting in return o Create value value is the difference between what you have to pay vs what you MAR3023 Ex McDonald s Dollar Menu Doesn t always have to be about paying less you may be getting more for o Create relationships establish long term mutually satisfying buyer seller the same price relationships Ex Disney you buy into the magic Disney is not trying to just sell their rides o Segmenting markets appeals to a specific type of customer Coke Diet Coke Coke Zero Angels and Devils Best Buy separated their customers into angels and devils Devils apply for rebates etc Loss leaders sell something cheaper in hopes that the customer will buy other regular priced items o Identifying opportunities Market Opportunity circumstance and timing meet to create strategic windows Ex Starbucks was an opportunity for McD s because McD s beat Starbucks in taste tests so they moved into the McDonald s Caf margin Core Competency things a firm does well Ex you go to Starbucks because they made it a second place Competitive advantage opportunity competency Starbuck s core competency is to provide a second place SWOT Analysis o Convert weakness strengths o Converts threat opportunities o Match strengths opportunities o Ex company has weak distribution function Strength enter into a strategic alliance with a company that has good distribution like UPS Strategic Business Units a division or unity within a larger parent company o Ex FSU has 15 SBU and the College of Business has 5 o Internal Marketing treat your employees well and in turn they will treat the customers well o External Marketing company customer MAR3023 BCG Matrix o Star big share of a growing market Ex when the iPhone was introduced o Questions mark product with potential but your particular brand is not doing well o Cash Cow bring in lots of money The market is established stable and has a large share of the market Use money to make it into a star and when it is mature it becomes a cash cow o Dog get out now Warren Buffet o Most successful investor of the 20th century o 3rd wealthiest person in the world worth 68 billion yet he pays himself 175 000 a year and lives in the same house o Pledged 99 of his wealth to charity Bill Gates Foundation o Based in Omaha Berkshire Hathaway the company that Warren Buffet owns o Conglomerate holding company with a diverse portfolio of businesses o Best known for insurance o Started out as a textile company in Mass That Buffet took over o Invest in brands companies Pepsi created by Caleb Bradham to be sold in his drug store in N Carolina o Originally called Brad s Drink and is named after the digestive enzyme pepsin MAR3023 o Coke was offered to buy Pepsi 3 different times and declined it Ralph Nader father of consumerism o Fought for consumer safety environmentalism and balance of wealth o Ran for president in 1996 and 2000 as the green party candidate The Internal Environment windows o Market Opportunity where circumstance and timing meet to create strategic Ebay first mover in C to C marketing Recession and Wal Mart they sold things at a lower price Starbuck s was an opportunity for McD s o SWOT Analysis o Strategic Business Units division or unity within a larger parent company ex FSU has 15 SBU s and COB has 5 Origins of Marketing Strategy chart that flows down broad to specific o Mission Statement guides organization Vision says what we do Mission says what we do apart from everybody else o
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