Organizational function and set of processes Also for managing customer relations For creating capturing and communicating value and delivering that to customer Marketing notes Marketing 4 P s Product Creating value Promotion Communicating value Place Price Delivering value Capturing value Exchange of value Value ratio what is given up for what is obtained Both parties must believe they are getting value for the exchange Value is created through marketing mix 4 Ps Product creating value Through a variety of services goods and ideas Satisfies customer needs Price capturing value Everything a buyer gives up for a product Place Place or supply chain management All activities needed to get the product to the right customer when the customer wants it Promotion communicating value Communication that informs persuades and reminds potential buyers about product To influence opinions or elicit a response Market concept Market orientation marketing concept Value based on marketing orientation Purpose of organization is to satisfy consumer needs wants while meeting organizational objectives Provide more value than competitors What does the customer want Societal market orientation Focus on enhancing benefits to society Make what you can sell rather than selling what you can make Ford production era if you build it they will buy it Ford marketing era be contingent on customers demands today and tomorrow Chapter 2 What is a marketing strategy Includes Target markets Marketing mix 4Ps Designed to provide sustainable competitive advantage Developed through marketing planning Based on a sustainable competitive advantage Marketing planning Step 1 Busines mission and objectives Step 2 SWOT analysis Step 3 Identify opportunities Segmentation Positioning Targeting Step 4 Implementing marketing mix 4Ps Step 5 Use marketing metrics to make decisions Business objectives and statement What does the org stand for What kind of business are they Who do they want to be in the future and what do they need to do to accomplish that SWOT Strength weaknesses opportunities and threats Identifies firms competitive advantage How do we decide Target Markets and What 4Ps Portfolio analysis Method to classify current business units products Helps determine how to allocate resources Boston consulting group growth matrix Star Cash Cow Question Mark Dog Portfolio analysis indicates whether growth or analysis is appropriate Growth strategies Market penetration Current markets current products Market development New market current products Product development Current market new products Diversification New market new products Cutting back on devoted resources to product or market Eliminate entire product line or division Planning implementation and control Consolidation strategies Harvesitng Divestment Chapter 4 Marketing ethics 4 overriding principles Recognition of marketing greater purpose Consideration of stakeholders and their interdependence Presence of conscious leadership creating a corporate culture Understanding that decisions are ethically based Marketing s greater purpose CSR Economic performance Social performance Enviromental performance Marketing ethics as a conscious marketing principle Often difficult to balane needs and preferences of various stakeholders Ethics is an integral part of a conscious marketing initiative When a firm embraces conscious marketing it implements programs that are socially responsible and employees act ethically Framework for ethical decision making Identify issues Gather information and identify stakeholders Brainstorm and evaluate alternatives Choose a course of action Publicity test Moral mentor Would i want to see this action on the front page of the news Would the person i admire most engage in this activity Would i want the person I admire most to see me do this Could i give a clear explanation for the action including an honest account for all my Uncontrollable elements outside any organization that may affect its performance Admired observer Transparency test motives Person in the mirror Golden rule Triple bottom line Could i respect the person i see if i do this Would i like to be on the receiving end Economic social and environmental performance Conscious marketing puts CSR at the core of business Chapter 5 Marketing environment Environmental scanning Systematic analysis of those elements Immediate environment Company Competitors Consumers Physical environment Corporate partners Macro Environment Culture Demographics Political legal Social Economic Technology Cultural factors Demographics Values beliefs practices and customs Age gender ethnicity in a sense who people are Individual income education Generational cohorts Gen z Born 2001 or later Postponing retirement Involved in lives of adult children and grandchildren Education is related to income which determines spending power Digital natives Always had access to info Socially connected Gen Y or millennials 1977 2000 Huge cohort Wide range of life cycles Diverse group Gen X 1965 1976 Latchkey children Focus on children Value education Convenience is important Baby boomers 1946 1964 Social trends Sustainability Health and wellness concerns Efficient utilization and distribution of food Technological advances New products New form of communication New retail channels Political and legal environment FDA Federal trade commission Child protection act Cigarette labeling and advertising act Do not spam law Childrens television act When Disney and other global firms produce advertising where the pictures and ad copy stay the same only the language changes this is an example of an appeal to the same target market based on different Country cultures Asian americans are the fastest growing minority Chapter 6 Consumer decision making Process of buying Why we make purchase decisions High involvement Greater attention and deeper processing Develops strong attitudes and purchase intentions Low involvement Less attention Peripheral processing Generates weak attitudes and increased habit Low involvement purchases Low cost low risk Routine or habitual Promoted by In store promotion Link to high involvement issue High involvement Important risk is present consumer spends effort and time purchasing Locus of control Internal you make things happen External things happen to you Financial risk Actual or perceived risk Performance risk Social risk Physiological risk Psychological risk For high involvement items Consumers see big