Marketing 323 Study Guide Chapter 1 Marketing is the activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large Marketing Plan specifies the marketing activities for a specific period of time It s about an exchange the trade of things of value between the buyer and the seller so that each is better off as a result Marketing Mix 4 decision areas product price place promotion Product To create value within a good service Good Items you can touch Service intangible customer benefits that are produced by people or machines and cannot be separated from the producer e g Fashion sports shoe done by ScarJo Rbk line good ATM service Ideas thoughts opinions and philosophies and intellectual concepts such as these also can be marketed Price Figuring out how much the consumer with pay so that they are satisfied with their purchase and the seller makes a reasonable profit Place Supply Chain Management is key the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers manufacturers warehouses stores and other firms involved in the transaction into a seamless value chain in which the merchandise isn t available when the customers want it Promotion Communicating value Business to Consumer Marketing Business to Business Marketing Consumer to Consumer Marketing eBay Craigslist Employment Marketing Market Research is understand what potential employees are seeking and then fulfilling the brand promise by ensuring the employee experience matches that which was advertised Marketing Benefiting Society at Large Got Milk Production Oriented Era Turn of 20th century Sales Oriented Era 1920 1950 Market Oriented Era After WWII Value Based Era Today Discovering the needs and wants of the consumer Value reflects the relationship of benefits to costs or what you get for what you give Value Co Creation Business co creates a product value with consumer Value Based Marketing All about trade offs between customer satisfaction and cost How to become value driven 1 share info about their customers and competitors across their own organization and with other firms that help them in getting the product or service to the marketplace manufacturing transportation 2 they strive to balance their customer s benefits costs 3 they concentrate on building relationships with customers Sharing Information e g Zara s ad dept collects past sales data to forecast the future needs to tell other depts about promotions Balancing Bens Costs e g cheap intra Europe airfares Building Relationships Transactional orientation the buyer seller relationship is a series of transactions Relational Orientation The buyer seller relationship should be a long term relationship Customer Relationship Management Strategies Programs Systems that focus on identifying and building loyalty among the firm s most valued customers Market research helps firms go internationally by analyzing the needs trends cultures of other regions and segments i e McDonalds Marketing works seamlessly with the functional areas of the company to design promote price and distribute products advertising reception by the millenials vs Gen Y Supply Chain group of firms that make and deliver a given set of goods and services these relationships need to be managed for the long term i e Levis when someone purchases jeans the manufactures know about it immediately Marketing tries to enrich society helps its stakeholders e g Ben and Jerry s Kellogg Marketing as Entrepreneurial Ben Jerry s Kinko s Pixar Oprah created their ventures to fulfill unsatisfied needs Chapter 2 Marketing Strategy identifies 1 firm s target market s 2 a related marketing mix their four Ps and 3 the bases upon which the firm plans to build a sustainable competitive advantage A sustainable competitive advantage is an advantage over the competition that is not easily copied and thus can be maintained over a long period of time The C A means that the firm has built a wall around its position in the market By building thick walls 1 firms can sustain their advantage 2 minimize competitive pressure and 3 boost profits for a longer time Four Macro Marketing Mix Strategies to develop a CA Customer Excellence Focuses on retaining loyal customers and excellent customer service Operational Excellence Achieved through efficient operations and excellent supply chain and human resource management Product Excellence Having products with high perceived value and effective branding and positioning Locational Excellence Having a good physical location and Internet prescence achieved when a firm develops value based strategies for retaining customers and Customer Excellence provides outstanding customer service Loyalty Loyal customers mean that customers are reluctant to patronize competitive firms having a strong brand unique merchandise and superior customer service help solidify a loyal base Viewing customers with a lifetime value perspective rather than a transaction base is key to modern customer retention programs It s not about the 2 customer it s about the 12 500 yr customer CRM Customer Relationship Management Example loyalty programs help to create profiles on loyal customers and see what they are buying Customer Service Consistent excellent customer service could be a CA Must be instilled in the employees company for a long time in order to build up that reputation through efficient operations excellent supply chain management strong Operational Excellence relationships with suppliers and excellent human resource mgmt a firm can gain a CA Efficient Operations By giving their customers what they want when they want it in the proper amounts and at a lower delivered cost than their competitors they ensure good value to their customers earn profits satisfy consumer needs Efficient operations means that there is money left over to give customers discounts a lower price OR use that against their competitors for better service or product variety Excellent Supply Chain Management and Strong Supplier Relations By developing sophisticated distribution systems information systems and strong relationships with vendor they get a CA Strong vendor relations means possible exclusive rights to 1 sell merchandise in a particular region 2 obtain special terms of purchase that are not available to competitors or 3 receive popular merchandise that may be in short