Marketing 301 Chapter 1 How is marketing defined 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 What are the key elements components of marketing o The marketing department of an organization must be able to work closely with management and other departments in order to help achieve predetermined goals o Key people groups outside the organization also influence marketing activities Partnerships with suppliers Relationships with customers Ownership by shareholders Alliances with other organizations o External environmental forces such as social economic technological competitive and regulatory also affect marketing What conditions must be true for marketing to occur 1 Two or more parties with unsatisfied needs 2 Desire and ability to satisfy those needs 3 A way for the parties to communicate 4 Something of value to exchange What is a need Difference between an actual current state and an ideal or desired state For example food nourishment water air covering clothing shelter warmth love fun power respect safety etc What types of needs exist Needs can be functional physical psychological emotional spiritual etc How is a need different from a want A specific way to satisfy a need the desire for a specific product entity to satisfy a need For example a Pepe s Pizza can satisfy a need for food nourishment a house at 742 Evergreen Terrace can satisfy a need for shelter How is value defined The total benefits one receives for a given price from buying a product or Benefits Cost OR Benefits Cost What is a benefit What one receives gets obtains or a state outcome that is realized from an object item product What a product does for someone What is utility Usefulness received worth or what one gets Marketing can help bring about various types of utility 1 Form utility the value derived from the product form itself EVEN if ALL products are the same there are other ways to distinguish value 2 Place utility the value derived from where the product is available distributed e g convenience store on a nearby corner in a mall near a centralized shopping area online 3 Time utility the value derived from when the product is available 4 Possession utility the value derived from processes that facilitate product purchase ownership possession e g credit delivery installation What is a value proposition what a consumer will obtain get from an offering that is the bundle of benefits that an organization promises What is meant by product differentiation what product features or advertising help the customer perceive a product as being different and better than competing products This can be done with physical features size color or non physical price image Identify the various types of stakeholders in marketing An entity e g consumers employees suppliers shareholders society community that has a stake in or could be impacted by an outcome related to marketing activity processes What are the elements of the Triple Bottom Line Conducting marketing or business in general that considers decisions and actions with respect to contributing to 1 Firm profitability Profit 2 Communities society People 3 Environment Earth Planet to buy a specific offering What are The Four Ps What is a market Potential customers people with both the desire and the ability o Price what is exchanged for the product o Place a means of getting the product to the customer o Product a good service or idea to satisfy the customer s needs o Promotion a means of communication between the seller and the buyer What are the elements of the marketing mix The controllable factors The Four P s that can be used by the marketing manager to solve marketing problems These make up the organization s marketing program which is a plan that integrates the marketing mix to provide a good service or idea to prospective buyers What is relationship marketing Developing and maintaining effective customer relationships links the organization to its individual customers employees suppliers and other partners for their mutual long term benefit What is the marketing concept The idea that an organization should strive to satisfy the needs of the consumer while also trying to achieve the organization s goals What is the marketing orientation Efforts that focus on continuously collecting information about customers needs sharing this information across departments and using it to create customer value o Customer value the unique combination of benefits received by targeted buyers that include quality convenience on time delivery and services at a specific price What is the societal marketing concept The view that organizations should satisfy the needs of consumers in a way that provides for society s well being This backs up the idea of corporate social responsibility CSR