Chapter 2 Marketing 1 The foundation of every business 2 Core Functions of Marketing Marketing is the process of 1 creating 2 distributing 3 promoting and 4 pricing Product Marketers identify unmet consumer needs via marketing research and then develop products that fill those needs Place Another primary goal of marketing is to distribute that product where it is needed in the quantities desired Price firm makes a profit and the customer is satisfied with the value Promotion A primary goal of marketing is to inform individuals or groups about the organization and its products services 3 Impure marketing is taking shortcuts It s manipulating consumers hijacking someone else s hard work or investing in heavy promotion to sell an inferior product or a product with no unique qualities 4 The Power of Marketing Advertising is a critical component of marketing to be sure Consumers don t buy unfamiliar products even if the unfamiliar one is objectively better Advertising without investment in the marketing process is impure marketing Relevant to you Chapter 4 Strategic Planning 1 Official Definition of Marketing Marketing is the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large 2 The core of a strong marketing strategy is knowing what you do what you do well AND why you do it You must also fully understand what makes your business unique different or even relevant 3 Three Levels of Planning Strategic What is success Functional How do we achieve and measure success Operational Are we succeeding VISION MISION GOAL 4 EXTERNALLY your vision and mission statements relay the core values and purpose of your organization to your customers funding agencies and policy makers 5 INTERNALLY your vision and mission statements guide the decisions and efforts of your employees advisors and advocates 6 Competitive advantage The place where opportunities core competencies and strategic windows meet RESEARCH 7 Environmental forces are dynamic so monitoring the environment is critical The Marketing Plan 8 The Marketing Plan 9 Operational Planning The goals and tactics qualify the mission statement and establish actions are measurable attainable relevant time based that specific and SMART 10 Action Plans SMART It s a defined process that takes your goal from the general idea stage and puts it into action Chapter 5 Marketing research What is marketing research 1 The systematic design collection interpretation and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities Examples Product Development Pricing Studies Customer Satisfaction Assessments Distribution Analysis Promotion Effectiveness Studies Where did it come from 2 1980 s TQM Movement Deming Juran Customer Orientation research to find customer reaction to product research to compare product to competitors research to find problems with product Why is it important 3 if decrease customer defection by 5 you can increase profits by 25 100 one unhappy customer tells 9 12 others it s five times as costly to attract new customers than it is to retain old ones on average U S firms lose half of their customers every five years What types are there 4 5 6 Competitive Marketing Intelligence Advantages Gain insights about consumer opinions and their association with the brand Gain early warnings of competitor strategies new product launches or changing markets and potential competitive strengths and weaknesses Help firms to protect their own information Disadvantage May involve ethical issues The Marketing Research Process 7 define the problem and research objectives Managers often start with exploratory research and later follow with descriptive or causal research Research Approaches Whereas observation is best suited for exploratory research and surveys for descriptive research experimental research is best suited for gathering causal information Experimental research tries to explain cause and effect relationships The major advantage of survey research is its flexibility 8 Research Plan Management problems and research objectives Identify information needed How results of analysis will be used Research cost Type of data required 9 Secondary Data Information that already exists Collected for another purpose Sources Company s internal database Purchased from outside suppliers Commercial online databases Internet search engines 10 Online listening Or it might mean using sophisticated online analysis tools to deeply analyze the mountains of consumer brand related comments and messages found in blogs or on social media sites such as Facebook Yelp YouTube or Twitter In a practice called behavioral targeting marketers use the online data to target ads and offers to specific consumers Social targeting mines individual online social connections and conversations from social networking sites 11 Primary Data Information collected for the specific purpose at hand Sampling Plan 12 Sample Segment of the population selected to represent the population as a whole 13 types Probability samples Simple random sample Stratified random sample Cluster area sample Nonprobability samples Convenience sample Judgment sample Quota sample 14 15 Research Instruments Questionnaires Mechanical instruments include People meters Checkout scanners Neuromarketing 16 The researcher next puts the marketing research plan into action This involves collecting processing and analyzing the information Data collection can be carried out by the company s marketing research staff or outs Chapter 7 segmentation Target Marketing Strategies and Customer Relationship Management 1 Target marketing strategy selecting and entering a market Market fragmentation The creation of many consumer groups due to the diversity of their needs and wants 2 Steps in the Target Marketing Process Segmentation identify and describe Targeting evaluate and select Positioning develop and deploy SEGMENTATION 3 demographics Metrosexual A straight urban male who is keenly interested in fashion home design gourmet cooking and personal care Generation Y born between 1979 and 1994 GenerationX born between 1965 and 1976 Baby boomers born between 1946 and 1964 Older consumers 4 Psychographics use psychological sociological and anthropological factors to segment a market The best known general psychographic segmentation system is named VALS which stands