MAR3023 Exam 1 Study Guide What is Marketing o Peter Drucker s view The aim of marketing is to make selling and advertising unnecessary The aim of marketing is to know and understand customers so well the product or service fits them and sells itself o Coca cola Why do you drink it It tastes good caffeine Product development is a core marketing function There would be no firms without marketing o 4 P s Product Price Place Promotion Great products make companies money because don t have to advertise as much if its already a great product 1 1st goal of marketing Product development to satisfy unmet consumer needs Ex henry ford s model tee production car VS a horse You could have any modeltee you want as long as its black 2 Price How much would you pay for a coke Great product priced at a point that maximizes product 3 Place Would you drive to Atlanta to get a coke Its everywhere Distributes them to where consumers are 4 Promotion Over times competitors force firms to promote their products in order to differentiate them from close competitors o Short term marketing versus Long term marketing 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 o The Power of Branding Marketing Branding and marketing are very powerful Pillsbury makes publix muffins Game changers product pricing distribution o Iphone Kindle Ipad Don t have to advertise that much because it does so much o Spanx Sara Blakely billionaire changed how people thought about underwear o Redbox ruined blockbuster changed the game mcdonalds funded redbox o Limited to short term Misconceptions of Marketing o Marketing vs Advertising If marketers hit their mark with product price and distribution there s little need to advertise Asics Costco rolls Royce but profits huge o Holistic view For ex iceberg above water not underneath For ex mark wallberg first was in a band but is known for the original calvin klein ad o Whats wrong The problem originates from the marketer themselves Time as related to Marketing o What effect does time have in marketing As times goes by and a company like apple makes hundreds of millions of dollars from products like iPhone and ipad it leads to imitator products Ex Samsung galaxy comes out leading to apple advertising more and the competitive market place take place Direct 1 1 relationship between the financial health and the quality of its products Products are the core foundation of what marketing does Power of branding and advertising o Brand bias Clorox bleach over publix bleach Would you buy ok soda over coke No What is the most decorate mass produced light beer from the U S People believe in the brand don t want to be cheap Old milwakee light but people believe bud light tastes better but if you take off the label it doesn t people just care about the name due to the amount of advertising Coca Cola spent close to 3 billion on advertising Anheuser Busch spent 1 47 billion Consumers don t buy unfamiliar products even if the unfamiliar one is objectively better o EX don t like McDonalds but see McDonalds vs mcwaldo s burgers but you will still chose McDonalds o Category bias o Social responsibility o Dr Brady s approved definition of Marketing Foundation of every business The primary goal of marketing is to develop good PRODUCTS that people want and need priced appropriately and delivered to where consumers are Know the history of Marketing o Simple Trade Era made by hand and grown in small quantities lasted up until the industrial revolution o Production Era firms produced what they could make as long as its black could make one color because it was so important to get access to this product People wanted these products because it was a lot easier to buy then make demand exceed supply What happened Great depression happened so no more money to spend and were risk averse Market Orientation o Sales Era changing their minds about not spending their money firms pushed products using aggressive sales tactics sell what we make short term profit maximization o Marketing Era 1940s 1990s focus on customer orientation The great awakening because customers became the main focus Make what we sell customer is the key delight o Relationship Marketing Era 1990s 2010 The focus is on long term relationships and customer retention 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 customers Engaged customers generate 1 7 times more revenue than normal customers EX Frequent flier miles chickfila publix o Societal Era 1960s present green marketing firms now serve three entities Adds society s best interest to the mix Corporate social responsibility Firm now serves three entities stockholders customers and society as a whole o Customer Centric Marketing Developing collaborative relationships with customers based on focusing on their individual needs and concerns o Relationship Marketing Establish long term mutually satisfying buyer seller relationships o Customer Relationship Management Using information about customers to develop and sustain desirable customer relationships Sustainability Reality Score o Green Marketing creating meaningful long term relationships with customers while maintain supporting and enhancing the natural enviorment Dr Brady s material Corporate Social Responsibility Guest Speaker Presentation o Product goods services ideas the product has to be good Best products ford s Mykey parents can control speed max audio speed warning o Place Distribution make products available in quantities desired Minimize costs inventors transportation storage o Promotion inform individuals or groups about the organization and its Advertising PR Personal selling promotions street teams Guerilla Marketing Viral marketing o Price decisions and actions associated with establishing pricing objectives products services and policies Stakeholders who are they 4 P s The Marketing mix Segmenting Markets Determining product prices determines the value of the exchange Gender Age Race Education Income Early adopters o Identifying opportunities Macro Marketing Strategies o Creating value reward cards value menu babysitting How do companies do this Give them more for the same price value is
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