Marketing 3000 CHAP1

Marketing Textbook Definition
an organizational function and set of processes
KEY: Marketing Definition
for creating, capturing, communicating, and delivering value to customers; AND for managing customer relationships in ways that benefit the organization and it’s stakeholders (meets organizational goals)

Consumer happiness and business happiness required for an exchange (both must experience benefits)

Practical Definition- KNOW
Anticipating (Market Research) and determining needs/wants of consumers (target market) and satisfying those needs through the use the 4 Ps to create long term exchanges of value.
Marketing again
– about satisfying customer wants and needs
-occurs in many settings
entails an exchange
* helps create value
– requires 4 Ps decisions
can be performed by individual and organizations
Exchanges of value
Both values must believe they are gaining something for an exchange to take place (both parties must benefit)
Value is created through the four Ps of marketing (Product, place, promotion, price) value is the ratio of benefits to cost
Value
ratio of what is given up for what is obtained (profit) includes what you give up (expenses)

Value is not price- includes expenses and variables that effect the process

Value is created through the four Ps of marketing (Product, place, promotion, price)

4 Ps (S.A. V.E.)
Marketing Mix (Product, Place, Promotion, Price)
Convince Repetition and Sharing with Friends – controllable set of activities a firm uses to respond to the wants of it’s target market
Product
actual business item sold
SOLUTIONS
How We Create Value
* Through a variety of offerings, including goods, services, and ideas (to satisfy customer goods- literal product needs)
* Services- benefits/time
* Gain Ideas- (non profits) charities voting for a candidate
GOODS< SERVICES< IDEAS to satisfy customer needs
Promotion
advertising and selling the product/business
EDUCATION
Communicating Value
* Communication that informs, persuades, and reminds potential buyers about a product or service
* influences their opinions, change actions or elicit a response (goals) how the value is communicated
Place
where it is sold/ who it is available to
ACCESS
Delivering Value Proposition
* Place or Supply Chain Management (All Activities needed to get the product to the right customer, when the customer wants it)
* Consumer- supply chain management- Manufacturers- Who sells products//where
marketing channel management
Price
seller gives up, buying acquires
VALUE
Capturing Value- value to be exchanged
* Price is everything a buyer gives up (money, time, energy) in exchange for the product
* Must be an amount that the customer is willing to PAY where businesses still get a profit
* Lower Price to marketplace or convince it’s worth it
* Russian Rubels (not valuable vodka//pepsi)
* Not always designated in currency
Corporate Strategy-
within the company vision and goals (determines marketing, company personality, strategy, and process
The Environment
determines corporate strategy that determines company vision through all the trends (political, social, ethical environment) (ex. economy, regulation, legislation, social values, political environment)
Corporate Orientations (inward)
1. Production (company has production) and sales
1. Production (company has production) oriented (before 1920)
1. focus on internal capability and technology (best at producing anything)
Produce items that are efficient and high quality
2. key question: what is it that we do best? (keep it up)
3. Problem:misses the needs/wants of the consumers
not satisfying needs of customers
1. Sales oriented (1920-1950)
1. Focus on aggressive sales technique (we can sell anything)
2. Key Question: How can we sell more of what we have (ex. health clubs)
Get rid of extra production
3. Problem: We can be convinced to buy something we don’t want/need once. Typically it is only success once (if not what consumer wants) (bad word of mouth/lack of repetition)
heavy doses of personal selling and advertising
1. Market Orientation/ Marketing Concept (outward)Market oriented (1950-1990)
Value based marketing orientation
CREATING VALUE>DELIVERING VALUE>COMMUNICATING VALUE
1. Purpose of the organization is to satisfy consumer needs/wants while meeting organizational objectives
2. Provides more value than competitors
3. Meet customer needs// provide value to them
4. Key Question: What does the CUSTOMER want?
after ww2 products became plentiful and we became a buyers market, started to make decisions on quality convince and price
Marketing Concept (outward)
make what you can sell (talk to consumers, friends market research, inside their minds) rather than selling what you can make (no regard for market place or consumer needs)
Why is marketing important?
* Marketing enriches society
* Marketing can be entreprenuerial
* Marketing ups standard of living and expands global presence
* Marketing strengths channel relationships
* Does marketing decrease efficiency and waste resources?
Marketingg
Decisions to take part in certain particular services or products
o Not random
o Must develop a marketing plan- written document composed of an analysis of current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of 4 Ps action programs and projected pro forma income statements
§ How its designed, cost, where promoted, how it gets to the customer
Marketing does
1. Creates value
2. Satisfying customer wants and needs
· World of trade
· Not practical to sell to everyone
· Interest and ability to buy
3. Entails an exchange
· Trade of two things of value between buyer and seller so each is better off as a result
· Goods and services to communication and delivers to consumers that give money and information to the producers
4. Requires 4P decisions
Enhance value
5. Performed by individuals and companies
· B2C- business to customer
· B2B- business to business
· C2C- customers to customers
· Can go to the entire industry or society at large
Value cocreation
Creative way to provide value to customers is to engage in value cocreation
customers act as collaborators with manufacturer to create product or service
6. Occurs in many settings
How do markets become value driven?
1. Sharing information- share about customers and computers and integrate that into the field
2. Balancing benefits with costs
3. Building relationships with customers
Relational orientation
method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long term relation that gives them lifetime profitability
Consumer relation management (CRM)
business philosophy and set of strategies, programs -systems that focus on identifying and building loyalty among firms most valued customers
Also Collect info about customers and use that to target their best customers with products that seem most important to them
Connecting using social media
Showed that ¾ of business are now using social media
· Using online services
· World population of internet access is growing
· Spread the word, collect customer information
Why is marketing important
Expands firms global presence
· Persuasive across marketing channel numbers
can be entrepreneurial
enriches society
Supply chains
groups of firms that make and deliver a certain set of goods and services
Marketing channels
set of instruction that transfers the ownership of and move goods from the point of production to the point of consumption, consists of all institution and marketing activities and processes
Marketing plan
a written document composed of an analysis of the current marketing situation, opportunities for the firm, marketing objectives and strategy specified in terms of the 4 ps, action programs and projected or pro forma income (and other financial) statements
Target Market
Specific subset of consumers who share similar needs/ wabts
form utility
how easy the product is to use (sliced bread)
Time utility
the ability to buy the product when you want it (specific pizza delivery timing)
place utility
receiving the product when you need it (buying a hotdog overpriced but at a braves game)
assortment utility
buying a variety of items at once
long term relationship
loyal customers who repeatedly buy and advocate for you
Social Marketing Orientation- beyond marketing concept
1. focus on enhancing benefits to society
2. Key Question: How can I meet consumer needs and benefit society?