Chapter 1 Overview of Marketing 10 10 2015 Marketing is an organizational function and a set of processes for creating capturing communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders Marketing Plan specifies the marketing activities for a specific period of time ultimately in any exchange the parties of the transactions should be satisfied Core aspects of marketing Marketing helps create value Marketing is about satisfying customer needs and wants Marketing entails an exchange Marketing requires product price place and promotion decisions Marketing can be performed by both individuals and organizations Marketing occurs in many settings Because marketing costs money good marketers carefully seek out potential customers who have both an interest in the product and an ability to buy it Exchange the trade of things of value between the buyer and the seller so that each is better off as a result Sellers provide products or services then communicate and facilitate the delivery of their offering to consumers Buyers complete the exchange by giving money and information to the seller Marketing mix aka as the 4Ps product price place and promotion The four Ps are the controllable set of decisions activities that the firm uses to responds to the wants of its target market creating value by developing a variety of offerings including goods services and Product ideas to satisfy customer needs o Goods items you can physically touch o Services intangible customer benefits that are produced by people or machines and cannot be separated from the producer Ideas concepts opinions and philosophies intellectual concepts such as these also can be marketed capturing value price is everything the buyer gives up money time energy in Price exchange for the product o Marketers must determine the price of a product carefully on the basis of the potential buyer s belief about its value The key to determining prices is figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller achieves a reasonable profit o o delivering the value proposition represents all the activities necessary to get the Place product to the right customer when the customer wants it o Place commonly deals specifically with retailing and marketing channel management o Marketing channel management aka as supply chain management is the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers manufacturers warehouses stores and other firms involved in the transaction into a seamlessly Needs to be done so merchandise is distributed at the right quantities locations time etc communicating the value proposition communication by a marketer that Promotion informs persuades and reminds potential buyers about a product or service that influence their opinions and elicit a response can enhance a products value B2C marketing process by which businesses sell to consumers B2B marketing process of selling merchandise or services from one business to another C2C marketing consumers sell to consumers eBay social media Production oriented era turn of twentieth century firms believed that a good product would sell itself They were concerned with product innovation not with satisfying the needs of the individual consumer Sales oriented era manufacturing changed from focusing on the war effort toward making consumer products They began to focus on what consumers wanted and needed before they designed made etc Here firms discovered marketing Value based marketing era Value reflects the relationship of benefits to costs or what you get for what you give Value co creation customers can act as collaborators to create the product or service A creative way to provide value to customers How do firms become more value driven Sharing information marketers share information about customers and competitors and integrate it across the firm s various departments Balancing benefits with cost measure the benefits that customers perceive against the cost of their offerings use available customer data to find opportunities to better satisfy their customers needs keep cost down and develop long term loyalties Building relationships with customers o Relational orientation marketers realized they need to think about their customers in terms of relationships rather than transactions focus on lifetime profitability of the relationship not how much money is made per transaction o Customer relationship management CRM philosophy and set of strategies programs and systems that focus on identifying and building loyalty among the firm s most valued customers They collect info about their customers needs and then use the information to target their best customers with products and promotions that appear most important to them Why is marketing important Marketing expands firms global presence Marketing is pervasive across marketing channel members o Supply chain or marketing channel group of firms that make and deliver a given set of goods and services Marketing enriches society o Developing greener products making healthier food option and safe products and improving their supply chains to reduce their carbon footprints Marketing can be entrepreneurial o Entrepreneurs people who organize operate and assume the risk of a business venture Key to the success is to launch ventures that aim to satisfy unfilled needs Chapter 2 Developing Marketing Strategies and a Marketing Plan 10 10 2015 Marketing strategy identifies 1 A firms target market s 2 A related marketing mix its four Ps 3 The bases on which the firm plans to build a sustainable competitive advantage Sustainable competitive advantage an advantage over the competition that is not easily copied and thus can be maintained over a long period of time Key to long term financial performance 4 macro strategies that focus on the aspect of the marketing mix to create and deliver value and to develop sustainable competitive advantages Customer excellence retaining loyal customers and excellent customer service Operational excellence achieved through efficient operations and excellent supply chain and human resource management Product excellence having products with high perceived value and effective branding and positioning Locational excellence having a good physical location and internet presence Customer Excellence Achieved when a firm develops