Test 1 Note Market groups of people who have common needs and are willing able to exchange for needs satisfied Value Costs Time Monetary Energy Opportunity costs Psychological costs Value Benefits Product Distribution Pricing Promotion 1 Product core needs satisfier The Marketing Mix Goods services experiences ideas 2 Distribution access availability Timing location mode distribution channels Direct Distribution Manufacturer Consumer Indirect Distribution Manufacturer Wholesaler Retailer Consumer Types of Utility Distribution Time utility form utility place utility possession utility 3 Pricing monetary valuation Competition cost to manufacture Cost Oriented Approach TFC TVC Profit Units Demand Oriented Quality Demand Price Elasticity of demand how sensitive is demand to changes in the price Greater than 1 elastic sensitive to change Less than 1 inelastic changing to little Competition Oriented Price Skimming above competition Parity Pricing pricing at competition Penetration Pricing pricing below competition 4 Promotion Information and Persuasion Major Promotion Methods 1 Advertising a Mass communication b Non personal communication c One way communication d e Low cost per thousand CPM f High control control the message who what when Indirect feedback 2 Personal Selling a One on One b Personal communication c 2 way communication d Direct feedback e High cost per thousand f Low control 3 Sales Promotion a Coupons b Samples c Combination offers d Point of purchase displays e Gains contests f Continuity program g Rebate offers 4 Public Relations a Organizational Publics Employees Customers Financial Community News Media i ii iii iv v i ii iii iv v b Major Public Relations Methods Publicity not paid for no control Institution advertising Publications Tours open houses Lobbying c Other Promotional Methods Premium Offers Packaging Permanent Media Product placement i ii iii iv v Word of Mouth Value market perception that marketing mix benefits are greater than costs Quality a market perception of performance on most important attributes Satisfaction market perception that performance is greater than or equal to expectations Marketing Concept philosophy that underlies the practice of marketing 1 Market Definition of the business companies main focus is the market not the product practice target marketing A Major Approaches to Target Marketing marketing segmentation a Demographic age gender ethnicity income occupation education level social class material status family size b Geographic climate terrain urban suburban rural geographic subculture Buying Power Index target areas that have the best buying power of national population that resides in that area of national income in that area of national retail sales in that area People who have money who spend it c Psychographic values lifestyles and personality traits To find psychographic profiles you take volume and target based on primary benefit B Develop Extended Product Strategies Involves the marketing of coordinated solution to related customer needs C Establish Relationship Marketing Strategies Lifetime value of a customer Nordstrom tire story 2 Coordination Integration of The Marketing Effort A Human Resource Management Process Job description Recruiting Selection Orientation Programs i Training programs Rewards Systems Evaluation Systems B Cross Functional Coordination C Internal Marketing How do you define your organization 3 Social Responsibility Obey laws and ethical codes Are you socially responsible 1 JFK Consumer Bill of Rights a Right to Safety product FDA CPSC EPA b Right to be Informed promotion Protect consumers from deceptive acts and practices Marketing Falsity it has the capacity to deceive on a material point Permissible Puffery harmless exaggeration VS Protecting against anti competitive acts and practices a FTC b FDA USPS FCC c Right to choose pricing distribution a FTC Price fixing Predatory Pricing Price discrimination d Right to be heard No federal laws or govt agency protecting this is voluntary Green marketing Cause related marketing 4 Environmentally Responsive Marketing Planning Develop a plan Implement the plan A Situation Analysis where are we now i ii iii SWOT Analysis Strengths Weakness Opportunity and Threats S W internal People finance facilities strategy organizational structures O T external Social political legal technology competition Competition market needs nature of product Market Needs Product Same Similar Similar 1 Brand Level Competition 2 Product Level Competition 3 Generic Level Competition Same Similar Different 3 Levels Analysis of market demands states No demand situational marketing Negative demand conversional marketing Latent demand demand for something that does not exist as a product development marketing Faltering demand remarketing Irregular demand synchrom marketing B Set objectives where do we want to be Profit ROMI Return on Marketing Investment Sales units dollars Market share Brand equity brand awareness brand associations quality loyalty financial marketing value of your brand Efficiency measuring input output relationship C Strategy how do we get there Selection of target markets Marketing mix D Evaluation Control how are we doing Monitors itself MIS Marketing Information System