MKT 3350 Ch.1

What is marketing?
set of institutions for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society
Core aspects of marketing
create value
satisfy customers wants and needs
requires an exchange
marketing mix (four p’s)
can be done by individuals and organizations
affects various stakeholders
CORE ASPECTS:
Satisfy customers wants and needs
*fundamental to marketing
-interested in finding buyers that are most likely to be interested in company’s product or service
CORE ASPECTS:
Exchange
-trade valuables between buyer & seller
CORE ASPECTS:
Marketing Mix (four p’s)
-Product
-Price
-Place
-Promotion
Importance of marketing mix
can compromise decisions of what activities to respond to in target markets
MARKETING MIX:
Product
-use product to creating value
-develop variety of offerings including goods, services, ideas to satisfy customers
MARKETING MIX:
Price
-Use price to capturing value
-convince the customer that the product is worth the value (money, time, energy)
MARKETING MIX:
Place
-Use place to delivering the value proposition
-necessary activities to get product to right customer when they need is
-works closely with supply chain management
MARKETING MIX:
Promotion
-enhance value through communication to educate and inform customers about benefits of their product and services and increase perceived value.
Supply chain management
-set of approaches and techniques to integrate suppliers, manufacturers, warehouses, and stores into a seamless chain
MARKETING MIX:
Promotion
-Use promotion to enhance product/service value
-communication that informs, persuades, and reminds potential buyer of goods and services
CORE ASPECTS:
Marketing can be done by both individuals and organizations
-business-to-consumer (B2C)
-business-to-business (B2B)
-consumer-to-consumer (C2C)
Business-to-consumer (B2C)
business selling to consumer

ex: Target, Walmart

Business-to-Business (B2B)
selling from one business to another

ex: produce company selling to Market Street

Consumer-to-Consumer (C2C)
consumer selling to another consumer

ex: eBay, garage sales

CORE ASPECTS:
Marketing affects various stakeholders
success/failure of company affects stakeholders such as consumer, clients, society, employees, supply chain partners
Supply chain partners
Wholesalers
Retailers
Transportation companies
Warehousing companies
CORE ASPECTS:
Marketing can help create value
can be described by eras of marketing:
production oriented era
sales oriented era
market oriented era
value based era
Production oriented era
-believed good product will sell itself
-concerned with product innovation, not satisfying customers wants and needs

Ex: Ford Model T “you can have any color you want as long as it’s black” <--- didn't take into consideration the customers color preference

Sales oriented era
-after WWll there was an excess of products that consumers could not buy, relied heavily on personal selling and advertising
Market oriented era
-focused on consumers wants and needs before designing, making, or selling their product or service.
-era that discovered marketing
Value based era
-focus on providing consumer with product/service with greater value than competitors
Value co-creation
-customer can act as collaborators to create product or service

ex: Nike ID (customizable tennis shoes)

CHECKPOINT:
Marketing is about satisfying….
Customers wants and needs
CHECKPOINT:
What are the four components of the Marketing Mix?
Product
Price
Place
Promotion
CHECKPOINT:
Firms can improve their value by
-increasing benefits
-reducing cost
How marketing can become more value driven?
-share info
-balance benefit with cost
-build a relationship with customer
-connect through mobile/social media
Share info
-share information about customers and competitors across firms departments to become more personable with customers and stay up to date with competitors
Balance benefit with cost
-use customer data to find opportunities to satisfy customers needs better, keep costs down, and develop loyalty
-create good value for customer without lowering costs too low for company
Build relationship with customer
-build lifelong relationships with customers for lifetime profitability
Rational orientation
-view customer as relationship not transaction
Customer Relationship Management (CRM)
-business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty amongst most valued customers
Function of CRM
-determine which types of merchandise certain groups are buying and tailor to their needs
Connect through social and mobile media
-93% of marketers connect through social or mobile media
ex: facebook or email subscriptions
CHECKPOINT:
Does providing a good value mean selling at a low price?
-no
-ex: Porche or Gucci. Customers believe they are receiving good value for product or service. There are customers willing to pay asking prices for all types of goods at all price levels because to them they are getting a good value
Why is marketing important?
-can be entreprenurial
-can enrich society
-can transfer across channel members
-can emphasize global presence
MKT can be entrepreneurial
-entrepreneurs have vision of how certain combinations of products and services will satisfy unfilled needs
MKT can enrich society
-best known corporations have developed greener products, healthier food options, safer products, and reduce carbon footprint
MKT persuasive across channel members
-supply chain or marketing channel
-can provide career opportunities to those involved in supply chain
MKT expands firms global presence
-global expansion can create career opportunites in other countries
CHECKPOINT:
A firm doing the right thing emphasizes the importance of marketing to….
do the right thing
End of chapter 1 quiz answer
production oriented era (because her boss is too focused on innovation rather than customers wants and needs)
End of chapter 1 quiz answer 2
-need to provide benefits to customers and desire to keep cost down (explained by core aspect: balance benefit with cost)