Chapter 1-Strategic Marketing

Marketing
=The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate SATISFYING exchange relationships with customers in a dynamic environment.
Customers
=The purchasers of organizations’ products; the focal point of all marketing activities
Components of Strategic Marketing
Components of Strategic Marketing
-Customer is the central focus
-Surrounded by the 4 aspects of the marketing mix “product, price, promotion, and distribution.”
-Forces include economic, competitive, sociocultural, technological, legal and regulatory, and political.
Target Market
=A Specific group (or groups) of customers on whom an organization focuses its marketing efforts
The Marketing mix
=Four marketing activities-product distribution, promotion, and pricing- that firm can handle to meet the needs of customers within its target market.
-Also known as the 4 p’s
Product
=Anything offered in the exchange (good or service, tangible or intangible)
-Part of the marketing mix
Distribution
=All about delivery. Anything we do to make the product available or convenient to the Customer.
-Part of the marketing mix
Pricing
=Whatever the customers has to give up for a product
-Part of the marketing mix
Promotion
=The communication umbrella-telling the value story (Advertising).
Exchange Relationships
=Exchange=the provision or transfer of goods, services, or ideas in return for something of value
Exchange conditions
-two or more participants have something of value that the other party desires.
-Exchange provides mutual benefit/satisfaction
-Each party has confidence in the exchange value of the other party’s offering.
-Each party must meet the expectations of the exchange to become trusted by other parties.
Purpose of an organization
=To create and satisfy a customer
Marketing Concept
=A philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals
-Short-term oriented
Customer satisfaction
-HOW WE KEEP SCORE
-analysis of customers’ current and long term needs
-analysis of competitors’ capabilities
-Integration of firm’s resources
Evolution of the Marketing Concept Stage 1
Product Orientation : All about demand and efficiency in creating product.
Evolution of the Marketing Concept Stage 2
Sales Orientation: The era of marketing. Telling the person what they want and selling their products.
Evolution of the Marketing Concept Stage 3
Marketing Orientation: Adopting a customer focus by market research and adapting the market to produce what consumers wanted.
Implementing the Marketing Concept
-Research is a crucial aspect of marketing
-Jobs become more people or customer satisfaction related instead of task or operational
-Everyone must understand that their goal is to take care of customers, and must work together towards that goal (houeskeeping and CEO alike)
Relationship Marketing
=Establishing LONG-TERM, MUTUALLY SATISFYING buyer-seller relationships allowing for cooperation and mutual dependency
-Customer acquisition costs! So it is financially beneficial to keep current customers (allowing the margin to go up since there isn’t any start up money)
Customer relationship management (CRM)
-using information about customers to create marketing strategies that develop and sustain desirable customer relationships. (Amazon is a good example)
Customer value
-A customer’s subjective assessment of benefits relative to the costs in determining the worth of a product
=customer benefits- customer costs (what the customer gets vs. what he has to give up)
Customer Benefits
-Anything desired by the customer that is received in an exchange
-Can be subjective
Customer cost
-Anything a customer gives up in an exchange for benefits (time, money, effort, risks, etc)
Marketing Management
=The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently.
Marketing management: Effectiveness
=meeting the goal
Marketing Management Efficiency
=optimizing the resources at our disposal.
4 cornerstones of marketing
1.Planning (start with a plan)
2. Organizing (organize resources)
3. Implementation (launching the plan)
4. Control (studying how the outcome relates back to the plan)
Effective Marketing Control Process
-Provides for quick detection of differences in planned and actual performance.
-Accurately monitors activities and is flexible enough to accommodate changes.
-Incurs low process costs relative to the costs of a “no-control” situation.
-Is understandable by both Managers and subordinates.
The importance of marketing in our global economy
-Business’s must market themselves because marketing influences consumption and consumption influences the economy.
-Marketing is used in nonprofit organizations
-Marketing connects people through technology
-Marketing offers many exciting career prospects
-Marketing knowledge enhances consumer awareness
Goal of marketing
=Should be to open a relationship, not make a sale.