Ch 1 Overview of Marketing 01 24 2016 I Marketing the activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have values for customers clients partner and society at large and managing customer relationships in ways that benefit the organization and its stakeholders II Marketing Plan a written document composed of an analysis of the current marketing situation opportunities and threats for the firm marketing objectives and strategy specified in terms of the four Ps action programs and projected or pro forma income and other financial statements III Marketing Entails Exchange the trade of thing of value between the buyer and the seller so that each is better off as a result Companies apple example use valuable information which you provide to facilitate future exchanges and solidify relationships with you IV Marketing Mix The 4Ps Product creating value fundamental purpose is to create value by developing a variety of offerings including goods services and ideas to satisfy a customers needs o Goods items you can physically touch o Services untangible customer benefits that are produced by people or machines and cannot be separated from the producer o Many offerings in the market combine goods and services o Ideas concepts opinions and philosophies intellectual concepts can be marketed Price capturing value everything that the buyer gives up money time energy in exchange for a product o The key to determining prices Figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit Place delivering the value proposition the activities necessary to get the product to the right customer when that customer wants it V Milestones in Marketing History o Marketing channel management supply channel management Promotion communicating the value proposition promotion is a communication by a marketer that informs persuades and reminds potential buyers about a product or service to influence their opinions and elicit a response o Marketing can be performed by both individuals and organizations B2C business to consumers B2B business to business C2C consumers to consumers Note marketing can also affect several stakeholds The supply chain wholesalers retailers transportation warehouses Production Orientated Era turn of the 20th century 1920 o Manufacturers believed a good product would sell itself o Concerned with product innovation Ex Henry Ford Customers can have any color they want as long as it is black Sales Orientated Era 1920 1950 o Firms found answers to overproduction in becoming sales orientated o Depended on personal selling and advertising Market Orientated Era 1950 1990 o Right after world war two manufacturers turned focus from war products to consumer products o United States turned into a buyers market o Focused on what consumers wanted and needed before they designed made or sold the product o Discovery of marketing Value based Marketing o Market oriented firms have transcended a production or selling orientation and attempt to discover and satisfy their customers needs and wants o Value reflects the relations of benefits to cost or what you get for what you give o Value co creation customers can act as collaborator to create the product or service How Do Marketing Firms Become More Value Driven Sharing Information marketers share information about their customers and competitors across and integrate it across the firms various departments o Example J Crew Balancing Benefits with Costs marketers constantly measure the benefits that customers perceive against the cost of their offerings o Example Ikea sale people Building Relationships with Customers o Relational orientation a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long term relationship o Customer relationships Management a business philosophy and set of strategies programs and systems that focus on identifying and building loyalty among the firms most valued customers Connecting with Customers through Social and Mobile Media Why is Marketing Important Advises production how much to make and tell logistics when to ship it Creates long lasting mutually valuable relationships between the company and the firms from which it buys Identifies elements which local customers values and make it possible for a firm to expand globally Marketing Expands Firms Global Presence Marketing is pervasive across marketing channel members o Supply chain or marketing channel a group of firms that make and deliver a given set of goods and services o Example Levi Jeans inventory Marketing Enriches Society o Firms are making socially responsible activities an integral component of everything they do Ex Greener products reducing carbon foot print o Tell investors and customers they are here for the long run Marketing can be Entrepreneurial o Ex Oprah Winfrey 01 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