Marketing 8 26 14 Introduction Quote of the Day Marketing is far too important to be left only to the marketing department David Packard of Hewlett Packard Agenda Introduction What is marketing Why study marketing Next class and study tip Syllabus Fall Marketing Forum Tuesday Aug 26 6pm 110 Business Building for marketing majors What is Marketing Selling stuff Getting consumer to buy into what you re selling Think of hunting trying to get someone to do something Getting people to do stuff and or getting to know what consumers Persuading people to do something values are Understanding the consumer Ex What is the person holding Opening a drawer holding an apple product holding a piece of paper Answer Ipad 2 Why can people look at a hand and know what they are holding how do we recognize this White background recurring themes in apple marketing hands If you look at the consistency of apple marketing pictures you ll see that each of the ads have a hand in them with a fairly simple background In our hands it is shown how important it is in our lives looks simple you can relax while holding it the hand is simple Each P is represented in the ad s shown by not much color easy to hold visually it User friendly and simple A lot of marketing is about doing background research and understanding what peoples wants are Marketing is about value to the customer if they see the value value will go back to the company in profitability You capture the value in 4 different ways 4 P s 1 What do potential customers need and want Product 2 How much should we ask customers to pay Price is psychological certain products have to be priced higher and lower based on status and social needs 3 How will we get it to the customers Place how you get product from point A to point B 4 How will we communicate with the customers Promotion Ex Pinterest Youtube Instagram There are targets we try to convey messages we think about our status updates on facebook forms of marketing is how were delivering that value What do we want people to see and what do we not want people to see Johnson and Johnson Seeing the mocking jay hunger games has a certain value to me than someone else Seeing celebrities bring value to certain things for certain people Everyday things target symbol tobi wegmans The lighting of pictures in magazines can change our emotions these things surround us everyday and we don t know it Penn State markets itself we all ended up here because some form of value attracted the customer Places are marketed made in the USA going abroad beliefs for these places Why Study Marketing Affects our life everyday Key to effective business strategies and business models Vital to profitability and growth of businesses Next Class Soak in Ch 1 Purchase register clicker Study Question Is it more profitable for a company to think o Inside out Company out to the customer o Outside in Customer first and into the company Marketing 8 28 14 What is Marketing Announcements Shannon Research Studies are real data being collected please take them seriously Any problems email Shannon or Anika Quote of the Day The true meaning of marketing is knowing what is value for the customer Peter Drucker If a person doesn t value what youre offering they are not going to buy it The Marketing Concept See page 6 diagram The marketing concept says that we start with the market first Integrated marketing means we start with the 4 P s Faced outward first ask customers what they want and then develop in the company Not about hunting people down and selling not about pushing people down to buy Marketing is about cultivating a long term relationship with customers Ex gardening what type of soil is right what lighting condition weather condition marketing is like gardening understanding and changing to customers needs to eventually have a beautiful garden Ex Walkman When first Walkman was introduced people thought they didn t need it Turns out researchers studied the way people would use it and pretty soon everyone had a Sony Walkman In the future people say remember when people thought it was a stupid idea Ex Amazon picture Amazon 61 billion in annual revenues This business wouldn t be successful if they weren t totally focused on the In Holiday 2013 they sold 306 items second worldwide customers Jeff Bezo says we Obsess over customers in terms of data they have o In January Wall Street Journal said Amazon wants to ship your package before you buy it Amazon knows what you want before you even know what you want o What kind of data are they using to determine what you want before you say you want to buy it Purchase history age groups demographics what you ve viewed time of year and day address and location how long you ve looked at an item o They have such specific data they can then make predictions of what customers will buy Anticipatory shipping o Amazon makes you feel like you re interacting with a human to make you feel important Giving you special offers that you would use based on past buyings they say hello Jessica They call it your amazon account friendly Ex Apple Products how do these ads convey user friendly and simple Words used are limited and fonts are simple and easy to read Music is friendly The hand is generic isn t gender specific no nail polish they make you feel like its you holding the product no tattoos no wrinkles the blandest hand ever so anyone can picture themselves holding it What is marketing Marketing The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return Armstrong Kotler p 5 or p 6 We want them to speak positively about our products tell their friends tweet and build loyalty Creating Value Marketers create value through products Products doesn t just refer to physical objects Physical objects People Organizations Places Information Ideas Ex Dog poster see pic on page 6 It is about protection which is the idea of the value Ex Driven Sport Cologne Ad by Avon Physical object the cologne being advertised People Yankee player on the ad Derek Jeter people who follow baseball Organizations Yankee baseball fans Avon company Places New york Information You have to be driven to use this cologne Derek Jeter is a winner and is driven Ideas Hardworking and driven New york represents money success and freedom to achieve Derek Jeter has marketed so many different products Gatorade commercial Watches Razors What are Customers See diagram on page