What s Marketing Meeting customers needs profitably The act of satisfying and retaining customers The activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large American Marketing Association No it is a process involving planning research and execution to reach a target audience Does Marketing Happen by Accident Core Aspects of Marketing 1 Satisfies customer needs and wants Marketers generate ideas for new products by discovering unmet consumer needs Example Tile solves the problem of losing personal belongings by providing a small Bluetooth enables tracker that can be attached to items and locate them through a mobile app Example Thule solves the problem of keeping dogs safe in rides by providing high quality carriers for travels 2 Exchange between buyer and seller This exchange should be mutually beneficial Do buyers always exchange money Exchange of money is common practice but not always the case exchange of branding time and data can be another form of transaction 3 Creates value through price product place and promotion decisions The Marketing Mix sets of decisions that the firm uses to respond to the wants of its customers Product creating value marketers create value by developing a variety of offerings including goods services and ideas to satisfy customer needs Example goods services and ideas Price capturing value price is everything a buyer gives up including money in exchange for the product or service Example money time effort and comfort Place delivering value marketing processes necessary to get the product to the right customer at the right time Example grocery stores vending machines and kiosks Promotion communicating value communication that informs persuades and reminds potential buyers about a product or service to influence their buying Example mobile app with rewards program slogans and TV How does marketing create value Builds relationships with partners and customers Gathers analyze and shares information about customers and competitors Balances the benefits and costs of their offerings for themselves their customers and their communities Leverages technology to deepen customer relationships 4 Affects multiple stakeholder groups Consumer is just one group Marketing also impacts supply chain partners include manufacturers agents wholesalers and retailers Companies market to employees internally to recruit and retain the best employees 5 Performed by individuals organizations Beyond B2B and B2C Marketing activities exist beyond the firm level consumers also market to other consumers Is social media a form of C2C marketing Yes it facilitates direct transactions between individuals allowing them to buy and sell goods and services from each other What is a Marketing Strategy A marketing strategy identifies and defines 1 A firm s target market 2 The appropriate marketing mix 4Ps 3 How the firm plans to build a sustainable competitive advantage Sustainable Competitive Advantage A sustainable competitive advantage SCA is an advantage over the competition that is o Not easily copies o Can be maintained over a long period of time Think of a SCA like a wall that the firm builds through marketing efforts that protects its position in a market Strategies To Create and Maintain SCA Customer Excellence Operational Excellence Locational Excellence These four excellences build value in the mind of the consumer Product Excellence Operational Excellence consumer prices stocks negotiations Product Excellence and positioning Locational Excellence Customer Excellence Achieved when a firm develops strategies for retaining loyal customers and provides outstanding customer service Example Disney is a brand known for providing the highest level of customer service o The MagicBand system wristbands acts as wallets room keys and ride check ins o Employees are extensively trained to find ways to provide better service Example Airlines Customer Satisfaction Ratings o Highest Delta Southwest JetBlue Alaska o Lowest American Airlines United Spirit Frontier Achieved through efficient operations excellent supply chain management and strong relationships with suppliers Example Walmart has achieved competitive operational advantage that allows for lower o Optimizing how products are delivered to their stores reduces costs and out of o Leveraging their scale and relationships with suppliers is advantageous for Achieved by developing products with high perceived value through effective branding Example Interbrand s 2023 ranking of top global brands includes Apple Google Microsoft Coca Cola Amazon Samsung Toyota and Mercedes Achieved by having a strong physical location and or Internet presence especially important for retailers and service providers Locational advantage is not easily duplicated why o It is inherently ties to a specific geographic location including access to raw materials and market proximity that cannot be readily replicated elsewhere The three most important things in retailing are location location location o Starbucks has developed a strong competitive advantage with its location selection o The high density of stores it has established in some markets makes it very difficult for a competitor to find good locations o Starbucks is also known to lease space but leave it empty to prevent competitive chain from entering Single Strategy Often Not Sufficient