MAR3023 Study Guide Exam 1 What is marketing Much more broad than just advertising and sales and selling isn t as necessary Great products will sell themselves If you do it right advertising Marketing is the foundation of every business Marketing is responsible for all their products Marketing is the answer to the question of why you buy a product Maybe because of branding or the price or because it s convenient The actual definition of marketing is the process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment Marketing builds relationships with customers and other stakeholders including customers owners shareholders employees supplies investors governments communities etc Parties engage in marketing to facilitate exchanges 4 conditions must exist for an exchange o Two or more parties must participate and each most have something of value than one of the others desires o The exchange should provide benefit or satisfaction to all parties o All parties much have confidence in the promise of something of value o All parties must meet expectations What makes this a good product and why do so many people buy it Coke it tastes good caffeine etc This describes the product itself A great product delivers benefits to consumers Product development is a core marketing function 4 Ps Product o It s easy to sell and advertise a great product This can save a lot of time and money don t have to worry as much about advertising o The first goal of marketing is to identify unmet consumer needs and then develop products that fill those needs o The Model T was the first car that had such great strides in production that people could afford it Because of this there was no real competition which helped them dominate Price this connects marketing to finance economics and accounting Price is what dictates profit margin Profit margin drives all of the financial indicators Priced at a point that maximizes profit Place Get products to where customers are so it s convenient for them Distribution is a big deal Cokes are everywhere vending machines all over campus Promotion Target market the group of customers that a firm focuses their marketing on Marketing mix 4 marketing elements product distribution promotion and pricing that a firm can control to meet the needs of the customers within their target market Firms that balance these elements can ensure customer satisfaction Although these elements are seen as controllable there are limits as to how much a marketing manager can do with them Product variable this deals with researching customer s needs and wants and designing a product that fits that This can involve creating or modifying brand names and packaging Distribution variable products need to be available at the right time and place for customers to be satisfied They need to be available to as many target markets as possible in the desired quantities Promotion variable this relates to all activities used to inform individuals and groups about the firm and the product service This can promote new or existing products and can educate consumers on product features or just help sustain interest Price variable this relates to decisions and actions associated with establishing pricing objectives and policies Price can be used as a competitive tool Great marketers 1 Develop products that people want or need 2 Price them at a level that maximizes profit 3 Distribute them to where consumers are If these are all done well companies can come up with game changer products that will revolutionize the market These include the iPhone kindle and iPad After you develop a product like this all you have to do is tell the customers some things it does how much it costs and where to find it Game changers don t have to be products Any part of marketing function In distribution Redbox changed how the products are distributed No more Blockbusters Same functionality of a movie rental store in a vending machine If marketers hit their mark with the product price and distribution there s little need to advertise Companies that do little if any advertising Asics Costco and Rolls Royce Marketing is the foundation of every business Products are the foundation of both marketing and business A lot of people only see promotions as marketing but it includes much more it s very complex strategic quantitative and multi faceted The key to marketing is having a good product If you don t you have to really push it at people If you have a good enough product you can be in a really crowded and hypercompetitive global market and still do incredibly well and sometimes even lead them Why are the obvious parts of marketing advertising and selling need and so prominent This is because they are powerful and work really well Over time you have a really great product but there are competitors and imitators Game changer products are usually limited to the short term At this point the game changers have to convince consumers that their products are superior This is usually to the consumers benefit as the prices may go down and the quality will probably go up Over time products have to be promoted But one of the most effective ways is branding Brands themselves are very powerful Marketing occurs in a dynamic environment including competitive economic political legal and regulatory technological and socio cultural forces surrounding the customer and affecting the marketing mix The marketing environment affects exchanges in 3 general ways Influence customers by affecting their lifestyles and preferences 1 2 Determine if and how a marketing manager can perform different marketing activities 3 Forces can affect a marketing manager s decisions and actions by influencing buyer s reactions to a firm s marketing mix The marketing concept an organization should try to provide products that satisfy customer s needs through a coordinated set of activities that also allow the organization to achieve its goal A main part of this is customer satisfaction This is a management philosophy guiding the organization s activities and affecting them There is a positive association between customer satisfaction and share value so being customer oriented is the best way to achieve multiple objectives Marketing management the process of planning organizing implementing and controlling marketing
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