Principles of Marketing 10 15 2013 Monday August 19 2013 TA office hrs 130 Cornell o 5 7 00pm Tuesdays o 6 30 8 30 pm Wednesdays There you can look into previous test after you take them Email poor missouri edu Poor Office Hours Monday Wednesday o 8 15 9 15 am Class Discussion Read both notes and book material Tests You must have your ID on test days A definition of marketing The process of planning and executing the conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives BOOK o An org should seek to make a profit by serving the needs of customer groups o Purpose of the marketing concept rivet attention of marketing managers on serving broad classes of customer needs CUSTOMER ORIENTATION o Product orientation marketing based on current products o Selling orientation devising methods to attract customers Study of exchange o In business the exchanges that are most relevant Money for goods and services o Political parties market their ideas to others exchange view points o Terrorism political act by disfranchised companies Usually for power 2 communication objectives 1 effectively demonstrate their power against some nation or ideal gain members 2 cause an overreaction on the party that was attacked only way they d beat the US is if we got ride of all our civil rights The scope of marketing is very broad YOU MUST DO WHAT SUITS THE CONSUMER Effective marketing requires consumer needs come first in org decision making Marketing s first task discovering consumer needs once you know then you work backwards to find products and methods that serve these customers needs Conflict between consumer wants and societal needs society deems clean air and water necessary for survival takes precedence over goods and services that pollute the environment Organizations marketing department o Discover consumer needs o Information about needs o Potential consumers the market Is there sufficient demand That is critical Marketing finding out first what customers want BOOK build long term relationship in which the initial sale is the beginning step in the process NOT the end goal Marketing s second task satisfying consumer needs Organization s marketing department o Discover consumer needs Concepts for products Satisfy consumer needs r Find the right combination of Product Price Promotion Place o Potential consumers the market Restaurants o Their failure rate is incredibly high because they don t do marketing What is the marketing Mix set of decisions marketing officers make for offerings Four P s o Product this is the most important The product features the ability to execute o Price a commodity that s homogeneous Prescription medicine vs generic Drink specials o Promotion Food and beverage industry o Place gasoline Going to the hospital Buying a house Theme parks Location of goods on shelves Benefit and Costs Example Benefits to taking this course o Functional learn about marketing get course credit It accomplishes something Hammer Refrigerator Pen o Social meet friends business partner etc Cell phone Internet Greeting cards Dinning room o Personal feeling good about learning or excelling Gym Makeup Art Money Clothing o Experiential have fun joy of learning Television Football games Concerts Getting an engagement ring buying is social partly functional Truman the Tiger Costs o Monetary Tuition and book fees o Temporal Time spent in class and studying o Psychological Stress studying for exams and listening to instructor o Behavioral Expending energy walking to class or getting sick from lectures Non monetary costs o Ikea massive Offers good quality for lower prices You pay in temporal cost takes a lot of time to walk through the whole store When you buy furniture from there it doesn t come assembled behavioral cost o If you can reduce the time that s beneficial Discussion iPad What is the main type of benefit vs alternatives o Functional social experiential or personal What is the main type of cost vs alternatives o Monetary temporal psychological or behavioral What kind of added benefits or reduced costs might Apple provide in their future iPad product and services o Returning an old iPad for a new and then giving them 100 off of their new product BOOK before individual division or departments can implement any marketing planning a plan has to be developed for the entire organization The objectives established at the top provide context for planning in each of the division and departments Business strategies need to reflect changing environments and emphasis must be placed on developing business systems that allow for continuous improvement True mission of the org is to provide value for Customers Employees Investors Strategic planning plays a key role in achieving an equilibrium between the short and the long term by balancing acceptable financial performance with prep for inevitable changes Strategic Planning Process Organizational Mission the environment provides resources for organizations in return they must supply the environment with quality goods and services at acceptable prices o Original purpose may become irrelevant managers may loose interest or environment may make the mission inappropriate thus forcing it to change Result of an is a drifting organization The mission statement of an org is what defines the direction in which it is going and how it will succeed in reaching its desired goal Vision and mission both guide behavior create a culture and inspire sentiment Questions to answer o What is our business o Who is the customer o What do customers value o What will our business be Mission statement remains the most widely used management tool in business today Developing a statement of mission there are three key elements to consider History of the org distinctive competencies things an organization does well best environment Focused on market rather than products Customer or clients of an org are critical in determining its mission statement Mission statements have an external focus o Achievable o Motivational o Specific Organizational objectives Specific measurable action commitments Management must translate organizations mission into specific objectives that support the realization of the mission Strategies Products and markets Competitive advantage Value Market penetration Increasing the sale of present products to present customers Strategy o Price reduction o New packaging o More locations