MAR 3023 Lecture 1 The aim of marketing is to make selling unnecessary o Know and understand the customers so well that the product or service fits them and sells itself Marketing is the answer to the question of why you buy a product o You may buy Coca Cola often because it is very accessible convenience and branding Official definition of marketing the process of creating promoting distributing and pricing goods services blah blah blah o Professor thinks this is a poor definition doesn t properly describe marketing He believes Marketing is the foundation of every business Product development is a core marketing function o Firms don t get very far without good products to sell o There would be no firms without marketing 4 P s o Product it s easy to sell a great product o Price important to appropriately price your product to maximize o Place delivering a product to a place where consumers are o Promotion The first goal of marketing is to identify unmet consumer needs and then develop products to fill those needs o You can have any Model T you want as long as it s black Henry profits Ford How much would you pay for a Coke o It s important to sell a product at a price that maximizes revenue Great marketers o Develop products that people want or need o Price them at a level that maximizes profits o Distributes them to where consumers are Misperceptions of Marketing o Most people only see the tip of the iceberg sales advertisement etc o There is actually a great amount of complex components and underlying concepts Strategic Quantitative Multi faceted How does Marketing get a bad name o People who will create hype around a product usually a fad and create buzz until the fad dies out soon after o Real marketing Product and Positioning o Real marketing is how Apple Cisco and Texas Instruments make great products and position themselves to be leaders in a ridiculously crowded and over competitive market o Marketing must invent complete products and drive them to commanding positions in defensible market segments Why is bad marketing needed and why is it so prominent o Time Reality As time goes by and companies like Apple become successful imitator products begin to form Now Apple has to spend money to advertise against these imitators In reality these imitating products don t last as long o Powerful o It works really well Advertisement and branding are incredibly powerful Consumers don t usually buy unfamiliar products even if the unfamiliar product is objectively better What is the most decorated and mass produced light beer from the U S Old Milwaukee Light won more awards than anyone although it s not even in the top 20 beers sold This is because the brand isn t very strong and isn t that much greater than the popular beers Marketing definition Marketing is the process by which companies determine which products or services may be of interest to customers and the strategy to use in sales communications and business development Conclusion Primary goal of marketing is to develop good PRODUCTS that people want and need If firms do marketing correctly they don t need to advertise often Over time competitors force firms to promote their products in order to differentiate them from close competitors In reality firms need to perform all of the 4 Ps well in order to drive profits The aim of marketing is to make selling unnecessary Lecture 2 Basic Marketing From last time Marketing is about developing great products that people want need pricing them at a level that maximizes profits and getting them to consumers distribution Competitors imitate great ideas o This creates a need to convince consumers that one product Coke is better than another product Pepsi through promotion Consumer Reports Ratings Consumer Reports rates all of the products you saw Frosted Flakes vs Publix Brand as objectively the same as or better than the brand name product o This proves that branding and marketing are powerful History of Marketing Simple trade Era Pre 1860s o Products were made by hand grown and traded in small quantities o Lasted up until the Industrial Revolution Production Era Pre 1920s o You can have any color you d like as long as it s black o Inward focus o Technical development o Condition Sellers Marker Demand exceeded supply Sales Era 1920s o Changing their minds o Focus on Selling what we make Aggressive promotion vacuum cleaners Short term profit maximization o Think of a cheap cars salesman The Marketing Era 1940s 1990s o The great awakening where customers became the central focus of the organization o Began with the development of marketing departments 1940 1960s and then transferred to the rest of the firm 1960 1990 o Focus on Customer is the key delight Make what we sell Relationship Marketing Era 1990s 2010 o The focus is on long term relationships and customer retention o A 5 increase in customer retention yields up to a 95 improvement in the NPV delivered by customers o Repeat customers generate over twice as much revenue as new o Engaged customers generate 1 7 times more revenue than normal customers customers o Includes coupons rewards via some type of reward system etc Societal Marketing Era 1960s present o Green Marketing o Focus on Adds society s best interest to the mix Corporate social responsibility Firm now serves three entities Vocab Customer Centric Marketing Developing collaborative relationships with Relationship Marketing Customer Relationship Marketing Establishing long term mutually satisfying buyer customers based on focusing on their individual needs and concerns seller relationships develop and sustain desirable customer relationships customers while maintaining supporting and enhancing the environment creating meaningful long term relationships with Using information about customers to Green Marketing The 4 P s of Marketing Products goods services ideas Place Distribution essentially makes products available in quantities desired They minimize costs with inventory transportation and storage Promotion Inform individuals or groups about the organization and its products services Includes Advertising Public relations Personal selling Promotions Viral marketing Street teams Guerilla Marketing Pricing policies Determining product prices Determines the value of the exchange Decisions and actions associated with establishing pricing objectives and Popular Macro Marketing Strategies Creating Values the difference between what you have to pay vs what you get in return The
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