Exam 1 Review MAR 3023 02 What is marketing o Product development to satisfy unmet consumer needs sells itself o Short term marketing vs Long term marketing o The Power of Branding Marketing Products have to be promoted by advertising to form brand ex blind taste tests o Dr Brady s approved definition of Marketing Process by which companies determine what products or services may be of interest to customers and the strategy to use in sales communications and business development Kotler Marketing s Core Strategies o Creation Value reward cards value menu babysitting at banks Relationship establish long term mutually satisfying buyer seller relationships Chick fil A Charmin o Segmenting Markets ex Best Buy separating angel vs devil customers Gender Age Race Education Income Early adopters o Identifying opportunities Marketing opportunity where circumstance and timing meet to create strategic windows Core competencies things a firm does well ex consistency location Competitive advantage opportunity competency History of Marketing o Simple Trade Era pre 1860s industrial revolution Made by hand and grown very inefficient o Production Era pre 1920s Firms produced what they could make Henry Ford Model T Ended in great depression o Sales Era 1920s o Marketing Era 1940s 1990s Aggressive sales tactics a need to convince people to buy product Focus on customer orientation what they want Customer Relationship Management Using information about customers to develop and sustain desirable customer relationships o Relationship Marketing Era 1990s 2010 Forming long term customer relations and customer retention o Societal Era 1960s present Firms serve 3 entities stockholders customers society green marketing Stakeholders people investing in your organization 4 P s The Marketing mix o Product goods services ideas o Place Distribution make products available in quantities desired o Promotion inform individuals or groups about the organization o Price decisions and actions associated with establishing pricing objectives and policies Through the process of strategic planning a firm est an organizational mission and goals corporate strategy marketing objectives marketing strategy and a marketing plan Game changers product pricing distribution 1 Develop products that people want or need 2 Price them at a level that maximizes profits 3 Distribute them to where consumers are Ex game changer products iPhone kindle iPad co s then have great financial heath Redbox o Misconceptions of Marketing o Marketing vs Advertising If you do marketing well you don t need to advertise marketing selling product because its good o Holistic view serious marketers identify consumers wants and needs develop product price it where it will maximize product Apple Cisco Texas Instruments Time as related to Marketing o What effect does time have in marketing Over time and in reality you will have competitor products imitator products arise the now dominant firm has to convince customers its product is superior Power of branding and advertising o Brand bias Aspirin vs Bayer o Category bias assume they are bad or good Google Exxon Chevron Apple o Social responsibility good to society environment Toyota vs Ford debate Market Orientation o Customer Centric o Relationship o Customer Relationship o Green Establish long term mutually satisfying buyer seller relationships Sustainability Reality Score trying to build relationship with customers Creating meaningful long term relationships with customers while maintaining supporting and enhancing the natural environment Corporate Social Responsibility Marketing Orientation o competitor orientation o inter functional orientation o customer orientation Who are a company s Stakeholders o Who are affected by companies actions o Remember BP oil spill Macro Marketing Strategies o Creating value offering coffee rewards good reputation o Creating relationships How do you build a relationship with a customer Charmin they sell toilet paper so how can they build relationships o Segmenting markets Coke Diet Coke Coke Zero etc identifying devils from angels o Identifying opportunities Market opportunity Where circumstance and timing meet to create strategic windows o Recession and Wal Mart selling things at low price o Starbucks and McDonalds Mc Cafe Core competency Things a firm does well Competitive advantage opportunity competency PEOPLE AND FIRMS TO KNOW o Warren Buffet 3rd wealthiest person in the world worth 68 billion Pays himself 175 000 year lives in the same house he bought in 58 worth 700k Pledges 99 of wealth to charity Based in Omaha It takes 20 years to build a reputation and five minutes to ruin it created by Caleb Bradham to be sold in his drug store in New Bern NC o Pepsi Originally called Brad s Drink named after digestive enzyme pepsin Coca Cola was offered the opportunity to buy Pepsi 3 times latest in 33 Owns Frito Lay Tropicana Quaker Gatorade etc o Berkshire Hathaway a conglomerate holding company with a diverse portfolio of businesses Based in Omaha best known for insurance started out as textile co in Mass Buffett took over Geico Dairy Queen Fruit of the Loom etc o Ralph Nader consumer advocate father of consumerism Fought for consumer safety environmentalism and balance of wealth 1996 2000 green party presidential candidate still puts his name in the race Product best university distribution online class pricing tuition promotion value new hope Origins of Marketing Strategy o Vision goal vs Mission specifics o Corporate Strategy o Business Unit Strategy How are you going to carry it out o Marketing Strategy Marketing Mix 4 P s The Internal Environment o Market Opportunity above o SWOT Analysis Strengths from weaknesses opportunities from threats Matching strengths to opportunities o Strategic Business Units SBU s Internal Marketing Company employee Empowerment Chick fil A CEO Southwest Airline video External Marketing Company customer o BCG s matrix o Giving employee the power to act immediately decisively and without fear in order to attain satisfaction and delight trust employees ex nordstrom Relative Market Share High Low Product Market Share High Star Low Cash Cow Dog Question Mark growing remarkably establish and stable brings in money high growth bad brand what Question marks Star Cash cows do we do Dogs want to get out Market Share the of a market that actually buys a specific product The External Environment o Environmental Forces Competitive Brand coke Generic cola
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