Basic Marketing Exam One Study Guide Note This study guide takes the online Exam Review Guide and goes into depth on each of the listed topics This information comes right from Brady s lectures as well as the provided PowerPoint Hope it helps you and good luck on the exam What is Marketing The aim of marketing is to make selling unnecessary Peter Ducker Marketing is the 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 Phil Kotler It is product development to satisfy unmet consumer needs Marketing is much larger than advertising and selling Marketing is understanding your buyers Marketing is the answer to the question of why you buy a product Price Brand and Convenience Marketing is the foundation of every business Good marketing Develops products that people want or need Price them at a level that maximizes profits Distributes them to where the consumers are Product developing is a core marketing function The first goal of marketing is to identify consumer needs and then to develop Marketing game changer products are short lived but take over a market such products that fill those needs as the iPhone Over time the margins will shrink because of competitors thus competitor products hurt brand new products think iPhone vs all of the similar phones available today Advertising and branding are very powerful promotion If a product is properly marketed there is not much advertising needed The power of brands in marketing are very high because people do not buy products they are unfamiliar with even if the unfamiliar product may be better Why Because with a familiar brand people know what they are going to get What are the core strategies of Marketing The creation The value of the product The relationship that the product develops between the buyer and the seller Reaching specific market groups Female or Male Age Race Education level Income level Early product adopters Identifying the opportunities The history of Marketing Simple Trade Era In the 1860s products were made by hand grown or traded in small quantities This is very inefficient for variety This lasted until the Industrial Revolution which brought variety into the products people was able to obtain This was the pre 1920s and there was a beginning of technical development There was an inward focus and it exceeded the supply thus firms were able to produce what they could make Production Era Sales Era This is in the 1920s and companies as well as individuals were changing their minds They focus on selling what we make there was aggressive promotion and there was short term profit maximization The Marketing Era This took place from the 1840s 1990s This took place during the Great Awakening where customers became the central focus of marketing departments 1940s 1960s and then it transferred to the rest of the firm 1960 1990 There was a focus on delighting the customer There was also a focus on making what we sell Four types of marketing discussed 1 Customer Centric Marketing the development of collaborating the relationships with the customers and the companies based on the needs and concerns of the customers 2 Relationship Marketing this simply focused on making a long term relationship between the buyer and the seller think about Chik Fil A saying my pleasure It is something we remember about the company 3 Customer Relationship Management Using the information obtained about the customers to create and uphold a desirable customer relationship 4 Green Marketing making a useful and meaningful long term relationship with the customer base bust also maintaining supporting and enhancing the natural environment Societal Era 1960s present day Led to a movement of being green There was a sudden focus on adding society s best interest into the mix as well as Corporate social responsibility The firms were now serving the entities Stockholders Customers and Society as a whole Who are the Stakeholders of a company The primary stakeholders of a company are the people who can be directed affected by the company and the products For example this includes the employees investors customers and the suppliers Today it even includes the government The Marketing Mix The marketing mix refers to the 4 P s of marketing 1 Product this is the most important aspect of the marketing mix This includes goods services and ideas 2 Place Distribution this refers to making products available in the quantities desired so all of the customers who seek that product are able to obtain that product There is also a goal for the company to minimize their costs based on inventory transportation and storage 3 Promotion this is a way to inform people about the organization products and company This includes advertising public relations personal selling promotions street teams Guerilla marketing and viral marketing 4 Price these are decisions and actions associated with establishing pricing objectives and policies determining the price of the products and determining what the value of the exchange of the product will be Marketing Game Changers Include the product the price and the distribution Popular macro marketing strategies include creating values and relationships segmenting markets and identifying opportunities Companies are always promoting values emphasizing the difference between what you pay and what you get Misconceptions of Marketing Marketing vs Advertising Marketing is NOT advertising With proper Marketing there is not much Advertising needed Marketing is about developing great products that people want need pricing them at a level that maximizes profits and getting them to consumers Holistic View What effect does time have in Marketing One product will not always remain the best Over a certain amount of time the competitors will develop great ideas and offer great products The power of branding and advertising We like to buy products that we know think Coca Cola vs Publix brand In every product category we as customers have a biased opinion Brand Bias cola Category Bias Social Responsibility Market Orientation Customer Centric looking for Relationship Seeking to please the customer providing a product that he customer is Establish long term mutually satisfying buyer seller relationships Customer Relationship Sustainability Reality Score Green Corporate Social Responsibility Guest Speaker Presentation Which firms are social responsible and
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