Marketing Chapters 1 and 2

15 percent rule
Where investors can use up to 15% of their time to do initially unfunded research that might lead to marketable 3M products
Marketing
The activity for creating, communicating, delivering, and exchanging offers that benefit its customers, the organization, its stakeholders, and society at large.
Exchange
The trade of things of value between a buyer and a seller so that each is better off after the trade.
Factors that influence Marketing Activities
1. The organization-objectives
2. Management-respect for establishing these goals
Marketing Department
Facilitates relationships, partnerships, and alliances with the organization’s customers, it’s shareholders, suppliers, and other organizations.
4 Factors Needed for Marketing to Occur
1. Two or more parties with unsatisfied needs
2. A desire and ability to satisfy these needs
3. A way for parties to communicate
4. Something to exchange
What are the four P’s?
Price, Product, Promotion, Place
Market
People with both the desire and ability to buy a specific offering
Target Market
One or more specific groups of potential consumers toward which an organization directs its marketing program
Marketing mix
The controllable factors, product, price, promotion, and place that the marketing manager can use to solve a marketing problem
Customer Value Proposition
A cluster of benefits that an organization promises customers to satisfy their needs
Environmental Forces
The uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision
Examples of Environmental Forces
What consumers want and need, changing technology, state of economy, actions that competitors take, government restrictions
Customer Value
Buyers benefits, including quality, conveniences, on-time delivery, and before-and-after sale service at a specific price. -best price, product, or service
Relationship Marketing
Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit
Marketing program
A plan that integrates that marketing mix to provide a good, service, or idea to prospective buyers.
Evolution of the Market Orientation
Production era, sales era, marketing concept era, customer relationship era
Marketing Concept
The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve that organization’s goals
Market Orientation
Focusing organizational efforts to collect and use information about customers’ needs to create customer value
Societal Marketing Concept
The view that organizations should satisfy the needs of consumers in a way that also provides for society’s well-being
Product
A good, service, or idea consisting of bundle of tangible and intangible attributes that satisfies consumers needs and is received in exchange for money or something else of value
Ultimate consumers
The people who use the product purchased for household
Organizational buyers
Manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale
Utility
the benefits or customer value received by users of the product (form, place, time, and possession)
Organization
a legal entity that consists of people who share a common mission
Offerings
Products, services, or ideas that create value for both the organization and its customers by satisfying their needs and wants
Business Firm
a privately owned organization (ex: Target)
Profit
The money left after a business firm’s total expenses are subtracted from its total revenues
Nonprofit organization
A nongovernmental organization that serves its customers does not have profits as a goals
Strategy
A organizations long term course of action designed to deliver a unique customer experience while achieving its goals
Structure of Today’s Organzations
Board of Directors-> Corporate Level-> Strategic business unit level-> Function level
Why does an Organizational Foundation Exist
Used to guide and inspire their employees through three elements 1. core values 2. mission 3. organizational culture
Core Values
The fundamental, passionate, and enduring principles that guide its conduct over time
Organizational Culture
The set of values, ideas, attitudes and behavioral norms that is learned and shared among the members of an organization
Business
The underlying industry or marketing sector of an organization’s offering
Goals or Objectives
Statements of an accomplishment of a task to be achieved, often by a specific time
Market Share
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
Goals
Social responsibility, profit, market share, sales, quality, customer satisfaction, employee welfare
Marketing Dashboard
The visual computer display of essential marketing information
Marketing Metric
A measure of the value or trend of a marketing activity of result
Marketing Plan
A road map for the marketing activities of an organization for a specified future time period
Business Portfolio Analysis
A technique that managers use to quantify performance measures and growth targets of their firms’ strategic business units
Diversification Analysis
A technique a firm uses to search for growth opportunity from among current and new products and makrets
Strategic Marketing Process
An approach whereby an organization allocates its marketing mix resources to reach it’s target markets
Situation Analysis
Taking stock of where the firm or product has been recently, where it is now, and where it is headed
SWOT analysis
An acronym describing an organizations appraisal of its internal strengths and weaknesses and its external opportunities and threats
Market Segmentation
The sorting of potentials buyers into groups that have common needs and will respond similarly to a marketing action
Points of Difference
Those characterstics of a product that make it superior to competitive substitutes
Marketing Strategy
The means by which a marketing goal is achieved
Marketing Tactics
Detailed day to day operational decisions essentials to the overall success of marketing strategies.
Production Era
The early years of the U.S up until 1920s. Goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them.
Sales Era
From the 1920s-1960’s, manufacturers found they could produce more goods than buyers could consumer. Competition grew. Firms hired more salespeople.
Customer Relationship Management
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
Customer Experience
The internal response that customers have to all aspects of an organization and it’s offerings.
Corporate Level
Where top management directs overall strategy for the entire organization.
Strategic Business Unit Level
A unit of an organization that markets a set of related offerings to a clearly defined group of customers.
Functional Level
Where groups of specialists actually create value for the organization.
Stakeholders
employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers.
Mission Statement
Clear, concise, meaningful inspirational, and long term.
Cash Cows
SBUs that generate large amounts of cash, far more then they use. They have a high relative market share and a low market growth rate.
Stars
SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth.
Question Marks
SBUs with a low market share and a high market growth rate. Need to inject cash to make it into a star.
Dogs
Low market share, low market growth rate
Market Penetration
A strategy to increase the sales of current products in current markets
Market development
A marketing strategy to sell current products to new markets.
Product Development
New products to current markets
Diversification
New product, new market
Three Steps of Planning Face
SWOT analysis, market product focus and goal setting. and marketing program
Marketing Process
Planning Phase, Implementation Phase, and Evaluation Phase.