Marketing is the process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.
Four marketing activities–product, pricing, distribution, and promotion–that a firm can control to meet the needs of customers within its target market
The provision or transfer of goods, services, and ideas in return for something of value.
What conditions must exist before a marketing exchange can occur? Describe a recent exchange in which you participated.
1. Two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires.
2. The exchange should provide a benefit or satisfaction to both parties involved in the transaction.
3. Each party must have confidence in the promise of the “something of value” held by the other.
4. To built trust, the parties to the exchange must meet expectations.
A managerial philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goal.
To implement the marketing concept, an organization must:
Establish an information system to discover customers’ needs and use the information to create satisfying products. It must also coordinate all its activities and develop marketing mixes that create value for customers in order to satisfy their needs.
Customer-relationship Management; Why is it so important to “manage” this relationship?
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.
Relationship marketing continually deepens the buyer’s trust in the company, and as the customer’s confidence grows, this, in turn, increases the firm’s understanding of the customer’s needs.
Customers are the purchasers of organizations’ products; the focal point of all marketing activities
A specific group of customers on whom an organization focuses its marketing efforts
A good, service, or an idea; the value proposition created by researching customers’ needs and creating value to satisfy them
Value; How can marketers use the marketing mix to enhance the perception of value?
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product A product that demonstrates value usually has a feature or an enhancement that provides benefits. Promotional activities can also help to create image and prestige characteristics that customers consider in their assessment of a product’s value. In some cases, value may be perceived as the lowest price, or the fast, most-convenient way. Distribution works as consumers want their product available at any time and any place (e.g. Taco Bell in supermarkets, campuses, etc.)
Constituents who have a “stake”, or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes
Marketing environment; How much control does a marketing manager have over these forces?
The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix
Because a marketing manager tries to develop and adjust the marketing mix to satisfy customers, effects of environmental forces on customers also have an indirect impact on marketing-mix components.
Marketing environment forces help to determine whether and how a marketing manager can perform certain marketing activities.
Environmental forces may affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix.
An organizationwide commitment to researching and responding to customer needs
Establishing long-term, mutually satisfying buyer-seller relationships
A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
What is the focus of all marketing activities? Why
The focus of all marketing is the customers. This is because organizations have to define their products not as what the companies make or produce but as what they do to satisfy customers.
What are the four variables of the marketing mix? Why are these elements known as variables?
Product, Pricing, Distribution, and Promotion. They are known as variables to decide what type of element to use and in what amounts.
Discuss the basic elements of the marketing concept. Which businesses in your area use the philosophy? Explain why.
The Production Orientation: Focus on production efficiencies and quality enhancements
The Sales Orientation: Focus on generating volume typically through differentiation strategies
The Market Orientation (a.k.a. Marketing Concept): Focus on needs and wants first and foremost
How can an organization implement the marketing concept?
Establish an information system to discover customers/ real needs and then use the information to create satisfying products.
A company must coordinate all of its activities which may require restructuring its internal operations, including production, marketing, and other business functions, changing external environment, and changing customer expectations.
Why is marketing important in our society? Why should you study marketing?
Marketing costs consumer a sizable portion of buyers’ dollars
Marketing is used in nonprofit organizations, marketing is important to businesses and the economy
Marketing fuels our global economy
Marketing knowledge enhances consumer awareness
Marketing connects people through technology
Marketing is relevant in the world we live in.
Identify several businesses in your area that have not adopted the marketing concept. What characteristics of these organizations indicate nonacceptance of the marketing concept?
Identify possible target markets for the following products:
Kellogg’s Corn Flakes
Wilson Tennis Rackets
Discuss the variables of the marketing mix (product, price, promotion, and distribution) as they might relate to each of the following:
A trucking company
A men’s clothing store
A skating rink
A campus bookstore
There are seemingly hundreds of different cell phones available on the market today. How do consumers choose? The answer is simple: consumer value. Compare the value of an Apple iPhone and a Samsung Galaxy smartphone. Begin by identifying the benefits and costs that you consider when evaluating cell phones–factors like ease of texting, overall look and feel, or purchasing price. Assign a weighting coefficient to each factor that reflects its importance to you. You could use 0-5, for example, with 0 meaning no importance whatsoever and 5 meaning absolutely important. Using the equation value=benefits-costs, calculate the value for the iPhone and the Samsung Galaxy. Do these results match actual cell phone sales for the two products?
Fundamental and Universal Building Block of all things marketing:
The buyer has something of value (money, credit, labor, goods) that is exchanged for something of value from the seller (goods, services, ideas)
Universal “Process of Exchange”
1. At least 2 parties
2. Each with something of value to the other
3. Each willing to “exchange” their value
4. Communication connections exist
5. Each free to accept or reject the other’s offers
6. Culminating in mutual satisfaction (of wants, needs, desires, hopes, etc.)
and preferable much more (e.g. delight, loyalty, insistence, etc.)
The value obtained in an exchange and the value given-up in an exchnage
Value must be available at the right time in the right place at the right price
Set of activities used to inform individual or groups about available value (a.k.a. “promo mix”)
Dynamic Environment is comprised of:
Legal and Regulatory
The “Marketing Concept” Four Pillars:
Customer (“target”) orientation
Inter-functional coordination and cooperation (a.k.a. “Integrated Marketing”)
Maintaining long-term positive customer (“target”) relationships
Problems Implementing Marketing Concept
Need Marketing Information System (MIS)
Re-organizing to coordinate
Satisfy target/dissatisfy others
Product Proliferation-creating needs?
Serious ethical and social responsibility criticisms (Honesty-full disclosure; environmental concerns (sustainability; greening, long-term view))
Professional Marketers Want
Repeat Activity (whatever the context)
Their brand “anchored” in integrity, honesty, an truth