Introduction to Marketing Marketing Is an organizational function and a set of processes For creating capturing communicating and delivering value to consumers And for managing customer relationships ways that benefits the organization and its stakeholders Good marketing requires thoughtful planning with the emphasis on the ethical implications on decisions on society in general Firms develop a marketing plan that specifies the marketing activities for a specific period of time Core Aspects of Marketing marketing occuring in many settings marketing is about satisfying customer needs and wants marketing can be performed by both individuals and organization marketing entails an exchange Exchanges of values marketing helps create value Marketing marketing requries products price and promotion decisions Marketingmarketing helps create valuemarketing is about satisfying customer needs and wantsmarketing entails an exchangemarketing requries products price and promotion decisionsmarketing can be performed by both individuals and organizationmarketing occuring in many settings Value ratio what is given up for what is obtained Both parties must believe they are getting value for exchange to take place Value is created through the marketing mix 4 Ps 4 P s Marketing Mix The controllable set of decisions activities that the firm uses to respond to the wants of the target markets Product Creating Value Fundamental purpose is to create value by developing a variety of offerings goods services and ideas to satisfy customer needs Price Capturing Value Doesn t always have to be monetary Price is everything a buyer gives up money time energy in exchange for the Must be about customer is willing to pay and which gives a profit Place Delivering the Value Proposition Place deals specifically with retailing and marketing channels All activities needed to get the product to the right customer when the customer Marketing supply chain management the setoff approaches and techniques that firms employ to effectively and efficiently integrate their suppliers manufactures product wants it warehouse stores and other firms involved the in the transaction into a seamless value chain in which merchandise is produced and distributed Promotion Communicating Value Communication that informs persuades and reminds potential buyers about a product or service To influence their opinions or elicit a response Marketing can be Performed by Both Individuals and Organizations B2C business to consumer marketing o Business sells to consumers B2B business to business C2C consumers to consumers o Consumers sell to consumers o eBay and social media o The process of selling merchandise or services from one business to another Marketing Impacts Various Stakeholders o Stakeholders supply chain partners society at large o Partners in supply chain wholesalers retailers or other intermediaries such as transportations or wholesaling companies o Manufacturers sell merchandise to retailers but the retailers often have to convince manufacturers to sell to them Corporate orientations Production o Turn of 20th century o Focus is on internal capability and technology o Key question what does the firm do best Sales o 1920 1950 o the Great Depression and World War II conditioned consumers to consume less or manufacture items themselves o Focus is on aggressive sales technique o Key question how can we sell more of what we have Marketing Orientation Marketing concept o Suburban communities featuring cars in every garage shopping centers began to replace cities central business districts as the hub of retail activity and a place to hang out Value based marketing orientation o Most successful today o Purpose of the organization is to satisfy consumer needs wants while meeting organization objectives o Value reflects the relationship of benefits to cost or what you get or for what your give o Provide more value than competitors o Key question what does the consumer what How Do Marketing Firms Become More Value Driven Sharing Information o In a valued based marketing oriented firm marketers share information about customers and competitors Balancing Benefits with Cost o Value oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings o They use available customer data to find opportunities to better satisfy their customers needs keep costs down and develop long term loyalties Building Relationships with Customers o Marketers have begun to develop a relational orientation as they have realized that their customers in terms of relationships rather than transaction o Firms focus on the lifetime profitability of the relationships now how much money is made during each transaction o Customer relationship management CRM a business philosophy and set of strategies programs and systems that focus on identifying and building loyalty among the firm s most valued customers o Collect information about their customers needs and then use that information to target their best customers needs and use that information to target their best customers with the products services and special promotions that appear most important to them Connecting with Customers Using Social and Mobile Media Marketers steadily embracing new technologies such as social and mobile media to allow them to connect better with their customers and thereby serve their needs more effectively Businesses take social and mobile media seriously including these advanced tools in the development of their marketing strategies U S companies now use social media tools for marketing purposes 46 internet users worldwide 77 world s population subscribes to mobile services 10 world s population uses Facebook Market concept Make what you can sell rather than Selling what you can make Why is marketing important Marketing enriches society o Socially responsible firms recognize that including a strong social orientation in business is a sound strategy that is in both its own and its customers best interests o Greener products healthier foods options and safer product Marketing can be entrepreneurial o A major role in the success of large corporations it also is at the center of the successes of numerous new ventures initiated by entrepreneurs or people who organize operate and assume the risk of a business venture o Key to success of many entrepreneurs is that they launch ventures that aim to satisfy unfilled needs o Bose Ben Jerry Amazon Netflix Marketing