IUB BUS-M 300 - What is Marketing (4 pages)

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BUS M 300 1nd Edition Lecture 1 Outline of Current Lecture I What is Marketing II How Marketing Discovers and Satisfies Consumer Needs III The Marketing Program How Customer Relationships are Built IV How Marketing Became so Important I What is Marketing Marketing activity for creating and delivering offerings that benefit the organization its stakeholders and society Market people with both the desire and ability to buy a specific offering Anything can be marketed 1 Services 2 Places 3 Ideas 4 Organizations 5 Events 6 People Fraud and promotion are NOT marketing Exchange the trade of things of value between a buyer and a seller so that each is better off Marketing seeks two things 1 Discover needs and wants of prospective customers 2 Satisfy them For marketing to occur 1 Two or more parties with unsatisfied needs o Bookstore selling People magazine and a consumer s desire to read about celebrities 2 Desire and ability to satisfy these needs o Consumer has the money bookstore has desire to sell and has magazine in stock 3 A way for the parties to communicate o Bookstore sends sample in mail consumer sees magazine in bookstore 4 Something to exchange o Both bookstore and consumer has gained and lost something in the transaction General marketing model 1 Marketing research trying to determine opportunities 2 Customer needs 3 The offering product place price promotion used as levers for success 4 Retaining customers cheaper to keep 5 Attract new customers 5 times more expensive 6 Financial outcomes sales market share profit stock price cash flow II How Marketing Discovers and Satisfies Consumer Needs Step one Discovering consumer needs o Sometimes consumers don t know what they want or need Step two Meeting consumer needs with new products o Focus on what customer benefit is o Learn from the past Showstoppers factors that might doom the product Need occurs when a person feels deprived of basic necessities Want a need that is shaped by a person s knowledge culture and