MAR3023 01 12 2016 Marketers view of marketing aim of marketing to know and understand customers so well the product of service fits them and sells itself Peter Drucker My View of Marketing answer to the question of why you buy a product Starbucks good product Product benefits Taste Caffeine Great Service in a great setting Place Everywhere right not always the low Quantity Exclusivity maximizes profit for the firm Product Development core marketing function Firms don t get far without good products to sell This warrants repeating there would be no firms without marketing Good Products Identify unmet consumer needs and then develop products that fill those needs Identify the price that maximizes revenue part of marketing o Getting coke to where you can buy it Channels Distribution Logistics M W R C Great marketers Develop products that people want or need Price them at a level that maximizes profits Distribute them to where consumers are Great Marketing Some game changer products iPhone kindle iPad Game changer pricing distribution Redbox Great marketing advertising Advertising If marketers hit their mark with the product price and distribution there s little need to advertise My view of marketing Marketing is the foundation of every business Other side of Marketing 1 Time Reality 2 Advertising branding 1 Time Reality example starbucks vs mccafe o Copycat Brands shampoos butter toothpaste o Time As companies come out w products others copy Market reacts with competitor products that have Dominant firm has to convince customers its product is similar benefits superior Branding very powerful ex Beats headphones bad reviews but still sell a lot Lego Red Bull Take Away 1 The primary goal of marketing is develop good products that 2 If firms do marketing correctly they don t need to advertise consumers want and need much for awhile 3 Over time competitors force firms to promote their products in order to differentiate them from close competitors 4 In reality firms need to perform all 4 P s well in order to drive profits and everything else Ch 2 Introduction to the Marketing Strategy Consumer Reports Ratings all of the products you saw as objectively the same as or better than the branded products Brands Marketing are powerful History of Marketing Simple Trade Era Pre 1860 s o Products were made by hand grown or traded in small quan o Lasted up until the Industrial Revolution Production Era Pre 1920 s o you can buy any color model T o Inward focus o Technical development o Condition Seller s market Demand Exceeded Supply Sales Era 1920 s o Sell what we make o Changing their minds o Focus on sell what we make o Aggressive promotion vacuum cleaners o Short term profit maximization Marketing Era 1940 1990 o Great awakening where customers became central focus of organization transferred o Began w development of marketing departments o Focus on Customer is the key make what we sell Clues to a market orientation Customer Centric Marketing developing collaborative relationship w customers based on focusing on their individual needs concerns Relationship Marketing Establishing long term mutually satisfying buyer seller relationships Customer Relationship Management using information about customers to develop and sustain desirable customer relationships Green Marketing creating meaningful long term relationships w customers while maintaining supporting enhancing natural enviro Relationship Marketing Era 1990 2010 Focus on long term relationships and customer retention o Repeat customers generate over twice as much revenue as o Engaged customers generate 1 7 times more revenue than new customers normal o 5 increase in customer yields up to 95 improvement Relationship marketing today sky miles hotel points rewards o Development American girl Societal Marketing Era 1960 present Green marketing Focus on society s best interest to the mix corporate social responsibility firm now serves three entities Four P s Marketing Mix Product most important Place Price Promotion Products Goods Services and Ideas Best products uber Fords My key example Place Distribution Make products available in quantities desired Minimize costs o Inventory o Transportation o Storage Retail Airport retail market 5 Billion Promotion inform individuals or groups about the organization and its products services Advertising Public relations Personal selling Promotion Viral marketing Street teams Guerilla Marketing Promotion example break the glass get all the money guerilla Pricing Decisions and actions associated with establishing pricing objectives and polices Determining the product price Determines the value of the exchange Popular Macro Marketing Strategies Creating value relationships o Value examples value meals dollar menu Winn Dixie card o Creating Value reducing costs Wal Mart o Creating Value increasing benefits Small banks serve starbucks babysit toasters Sheraton 5 points in LA offers 24 hour check in o Relationship marketing establishing a long term mutually satisfying buyer seller relationships Ex Disney characters Charmin mobile restrooms o Relationships in action chick fil a trains its employees to go the extra mile my pleasure bring umbrellas pull out chair for ladies bus tables offer to refill drinks Segmenting Markets o Departments Marriott other hotels have diff types of hotels o Course delivery Segmenting Customers To separate devils from angels store clerks are given training to identify desirable angel customers o Coke has several different types of coke cans to appeal to men that are trying to diet undercover etc Day 5 01 12 2016 Segmentation Involves offering different products which are designed for different groups of customers Segmenting Customers to separate devils from angels store clerks are given training to identify desirable angel customers High income men Suburban moms Male early adopters Marketing Opportunities where circumstance and timing meet to create a strategic windows Core competencies things a firm does well Competitive advantage opportunity competency Through Strategic planning firm establishes an organizational mission and goals corporate strategy marketing objectives marketing strategy and market plan Ch 3 Assessing the internal and external environments People you should know Warren buffet Third wealthiest person in the world o Worth 66 million o Pays himself 175 000 a year and still lives in same house o 99 of wealth to charity o Omaha o 20 years to build a reputation 5 minutes
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