MKTG 409 Exam 1 Study Guide Lectures 1 10 Lecture 1 Introduction to Marketing Marketing is the process of creating distributing promoting and pricing goods services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment Companies can now engage in more instantaneous marketing via social media more traditional forms have a time lapse making them less effective Ex Database marketing collect data on consumers and use it to project trends and make product more enjoyable Lecture 2 Chapter 1 Marketing Approach to Business Give the customer what he wants there are other businesses out there that will if you won t Customers don t buy things they buy perceptions things that make themselves feel better or that solve a problem Competition if you can t compete with price then compete with quality Marketing Mix Price Product Promotion Place Distribution all are interrelated and can be controlled by marketers know the details of each 1 Product a good service or idea 2 Place Distribution make products available in quantities desired different levels of channel of distribution 3 Promotion activities to inform people about the organization and its products 4 Price decisions and actions associated with establishing price policies determining prices 5 Outside control of marketers competitive forces sociocultural forces technological forces legal and regulatory forces political forces and economic forces True customers returning customers investments in your business satisfied Businesses are not afraid to spend money to track marketing trends spend money to get money long term approach must make a profit to survive Treat employees well so they treat customers well so everyone s happy Exchange the customer exchanges money time and effort for a product or service the provision or transfer of goods ideas or services in return for something of value customer must have a willingness to buy as well as the means to buy the product service idea supplier must have product service idea Target Market the purchasers of organizations products the focal point of all marketing activities the group toward whom a company focuses its marketing efforts Marketing Strategy some companies are reactive to the marketing environment others try to influence it Production the creation of a product sales the process of getting the product to the customer marketing business everything from the production to the sale of the good Lecture 3 Chapter 1 continued Dr McDaniel came to talk to the class about the MS in marketing program and about a Study Abroad which included trips to 7 or 8 European countries such as England France Monte Carlo Italy Austria Switzerland and Germany touted as super fun get to visit many famous businesses and present your own projects on them talked about Fat Tire Bike Tours Chapter 1 continued Marketing Concept a philosophy that an organization should try to provide products that satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals 1 First stage 1850 1920s Production orientation companies made goods and the public bought what they could get much demand 2 Second stage 1920s 1960s Sales orientation companies focused on selling the goods to the public much demand 3 Third stage 1960s current Marketing orientation companies attempt to produce goods that the public wants much supply greater competition Relationship marketing create a relationship with the customer and with the stakeholders personalize experience get to know customer Customer Relationship Management establishing long term mutually satisfying buyer seller relationships relations with existing customers Vale Corp video used database marketing to make experience more enjoyable for returning existing customers Concept of Value customer benefits minus customer cost value price Lecture 4 Chapter 3 The Marketing Environment Environmental Scanning the process of collecting pertinent information about the forces in the marketing environment via observation of different sources Environmental analysis synthesizing the data gathered in scanning into usable data that can be applied to marketing strategy Types of competition four different types 1 Brand competitors same basic product most marketers concentrate efforts on this type of competition ex Coke and Pepsi 2 Product competitors two products that satisfy the same need ex Coke and bottled water or juice 3 Generic competitors something offered from a very different source that satisfies the same need ex Coke or tap water or restaurant vs frozen food 4 Total Budget competitors anything else that the discretionary income could be spent on ex Coke or toy a cruise or a Rolex Disposable income is income after taxes have been subtracted discretionary income is disposable income after the basic necessities of food clothing and shelter have been subtracted Competitive Structures Market Structures also four different types 1 Pure competition no one has enough influence to really change the market ex agricultural products 2 Monopoly you can sell the same amount at any price no one else is even competing ex power companies 3 Oligopoly mostly stable homogenous or differentiated products ex cars 4 Monopolistic Competition products differentiated but with many substitutes ex jeans Buying power resources such as money goods and services that can be traded in exchange components disposable and discretionary income credit and wealth Economic cycle prosperity recession depression recovery Willingness to spend an inclination to buy because of expected satisfaction from a product influenced by the ability to buy and numerous psychological and social forces Pro Competitive Legislation The Sherman Act and the Robinson Patman Act protects from monopolies and price discrimination respectively Consumer Protection Legislation Federal Trade Commission Act makes companies disclose product information to consumers as well as prevent price discrimination Self Regulation ex Better Business Bureau a company or group of companies imposes restrictions on itself before the government has to generally less strict than government regulation but no real punishment power The population is generally growing older and diversifying even as consumer tastes begin to converge Lecture 5 Guest Lecturer Joe Stallard for Sewell Auto Stallard discussed quality business practices