(Monday) August 19, 2013TA office hrs:130 Cornell—5-7:00pm Tuesdays6:30-8:30 pm WednesdaysThere you can look into previous test (after you take them)Email:[email protected] Office Hours:Monday/Wednesday8:15-9:15 amClass DiscussionRead both notes and book materialTests:You must have your ID on test daysA definition of marketingThe process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectivesBOOK:An org should seek to make a profit by serving the needs of customer groupsPurpose of the marketing concept: rivet attention of marketing managers on serving broad classes of customer needs: CUSTOMER ORIENTATIONProduct orientation: marketing based on current productsSelling orientation: devising methods to attract customersStudy of exchangeIn business the exchanges that are most relevantMoney for goods and servicesPolitical parties market their ideas to others—exchange view pointsTerrorism: political act by disfranchised companiesUsually for power2 communication objectives1) effectively demonstrate their power against some nation or ideal—gain members2) cause an overreaction on the party that was attackedonly way they’d beat the US is if we got ride of all our civil rightsThe scope of marketing is very broadYOU MUST DO WHAT SUITS THE CONSUMEREffective marketing: requires consumer needs come first in org decision makingMarketing’s first task: discovering consumer needs once you know, then you work backwards to find products and methods that serve these customers needsConflict between consumer wants and societal needs: society deems clean air and water necessary for survival--- takes precedence over goods and services that pollute the environmentOrganizations marketing department:Discover consumer needsInformation about needsPotential consumers: the marketIs there sufficient demand? (That is critical)Marketing: finding out first what customers wantBOOK: build long-term relationship in which the initial sale is the beginning step in the process NOT the end goalMarketing’s second task: satisfying consumer needsOrganization’s marketing departmentDiscover consumer needs: (Concepts for products)Satisfy consumer needs rFind the right combination of:ProductPricePromotionPlacePotential consumers—the marketRestaurants:Their failure rate is incredibly high because they don’t do marketingWhat is the marketing Mix: set of decisions marketing officers make for offeringsFour P’s:Product: this is the most importantThe product features the ability to executePrice: a commodity that’s homogeneousPrescription medicine vs. genericDrink specialsPromotion:Food and beverage industryPlace: gasolineGoing to the hospitalBuying a houseTheme parksLocation of goods on shelvesBenefit and Costs ExampleBenefits to taking this courseFunctional (learn about marketing, get course credit)It accomplishes somethingHammerRefrigeratorPenSocial (meet friends, business partner, etc)Cell phoneInternetGreeting cardsDinning roomPersonal (feeling good about learning or excelling)GymMakeupArtMoneyClothingExperiential (have fun, joy of learning)TelevisionFootball gamesConcertsGetting an engagement ring—buying is social, partly functional….Truman the TigerCosts:Monetary (Tuition and book fees)Temporal (Time spent in class and studying)Psychological (Stress studying for exams and listening to instructor)Behavioral (Expending energy walking to class or getting sick from lectures)Non-monetary costs:Ikea—massiveOffers good quality for lower pricesYou pay in temporal cost—takes a lot of time to walk through the whole storeWhen you buy furniture from there it doesn’t come assembled (behavioral cost)If you can reduce the time, that’s beneficialDiscussion- iPadWhat is the main type of benefit vs. alternativesFunctional, social, experiential or personalWhat is the main type of cost vs. alternatives?Monetary, temporal, psychological, or behavioralWhat kind of added benefits or reduced costs might Apple provide in their future iPad product and servicesReturning an old iPad for a new and then giving them $100 off of their new productBOOK: before individual division or departments can implement any marketing planning, a plan has to be developed for the entire organizationThe objectives established at the top provide context for planning in each of the division and departmentsBusiness strategies need to reflect changing environments and emphasis must be placed on developing business systems that allow for continuous improvementTrue mission of the org is to provide value for:CustomersEmployeesInvestorsStrategic 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 changesStrategic Planning ProcessOrganizational Mission: the environment provides resources for organizations, in return they must supply the environment with quality goods and services at acceptable pricesOriginal purpose may become irrelevant, managers may loose interest, or environment may make the mission inappropriate, thus forcing it to changeResult 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 goalVision and mission both guide behavior, create a culture and inspire sentimentQuestions to answer:What is our businessWho is the customerWhat do customers valueWhat will our business beMission statement remains the most widely used management tool in business todayDeveloping a statement of mission there are three key elements to consider:History of the orgdistinctive competencies- things an organization does well (best)environmentFocused on market rather than productsCustomer or clients of an org are critical in determining its mission statementMission statements have an external focusAchievableMotivationalSpecificOrganizational objectives:Specific, measurable, action commitmentsManagement must translate organizations mission into specific objectives that support the realization of the missionStrategiesProducts and marketsCompetitive advantageValueMarket penetration:Increasing the sale of present products to present customersStrategy:Price reductionNew packagingMore locationsProduction plan developed to produce the product more effectivelyMarket development:Find new customers for its present