Marketing
The process of creating distributing, promoting & pricing goods, services, and Ideas to facilitate satisfying exchanging relationships with customers to develop and maintain favorable relationships with stakeholders in a dynamic environment.
Who is the focus of marketing?
Customers and Target Markets
Target Market
A specific group of customers on whom an organization focuses its marketing efforts
What are the 4 P's of marketing?
Products, Distribution, Promotions, Price
Product Variable
Product can be a good, service, or idea
Price Variable
Relates to the decisions and actions associated with establishing pricing objectives and policies. (determines value of exchange)
Distribution Variable
1. Makes products available in quantities desired.
2. Fares as low as possible: Inventory, transportation, and storage.
3. Establish/Maintain Inventory control procedures.
Promotion Variable
Inform Individuals or groups about the organization and its products and services.
Value
A customers subjective assessment of benefits relative to cost in determining the worth of a product. (Part of Value-driven Market)
Exchange:
The provision or transfer of goods, services, or ideas in return for something of value.
Stakeholder
constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry and outcomes.
Six forces of the Marketing Environment
1. Competitive forces.
2. Economic Forces
3. Legal and regulatory forces
4. Technological forces
5. Sociocultural forces
6. Political Forces
Marketing Concept:
a management philosophy that and organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals.
Evolution of the Marketing Concept (3 parts)
1. Product orientation (1850s-1920s)- Industial revolution improved speed of efficiency, Large increase in available products
2. Sales orientation (1920s-1960s)- Many products with not enough demand, businesses viewed sales and selling as the main means o
How to implement the Marketing Concept.
Management needs to establish an info system to identify customer needs.
Customer Relationship Management (CRM):
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Relationship Marketing
establishing long term mutually satisfying, buyer/seller relationships
Customer lifetime value:
is the worth of individual customers and estimates their lifetime value of the company.
Global impact of marketing
fuels global economy, connects people through technology, used in non-profit organizations.
___________ are the focal point of all Marketing activities
Customers
The ___________ variable of the marketing mix relates to the activities used to inform individuals or groups about the organization and its products
Promotion
Strategic marketing management
The process of planning and implementing and evaluating the performance of marketing activities and strategies, both effectively and efficiently
Strategic planning
Process of establishing an organizational missions and formulating goals, corporate strategy and marketing objectives
Mission statement
A long-term vision of what the organization whats to become.
Corporate identity
Should support all corporate activities.
1. Unique symbol
2. Personalities
3.philosophies
Corporate strategy
A strategy that determines the means for utilizing resources in the various functional areas to teach the organizations goals
Strategic business unit
A division, product line or other profit center within a parent company
Market share
The percentage of market that actually buys a specific product from a specific company.
Growth Share Matrix
1. Star: dominant market share and growth prospects
2. Cashcow- dominant market share and low growth perspective
3. Dog- low market share and low growth prospects
4. Question mark- small market share of a growing market & require significant cash to build
Competitive advantages
The result of a company's matching core competency to opportunities in the marketplace
Marketing strategies
Statement of what is to be accomplished through marketing activities.
Marketing implantation
Process of putting marketing strategies in action
Performance standards
Performance standard is an expected level of performance against which actual performance can be compared
Marketing plan
A written document that specifies the activities to be preformed to implement and control the organization's marketing strategies
The marketing plan is
A plan of all aspects of an organizations business strategy
The process of putting marketing strategies into action is called
Marketing implantation
An organization's goals should be based on its ____________, which is a long-term view or vision of what the organization wants to become.
Mission statement
Groups of individuals and/or organizations that need products in a product class have the ability, willingness, and authority to purchase those products are called _____________.
Shareholders
Environmental scanning:
The process of collecting information about forces in the marketing environment
Environmental analysis
The process of assessing and interpreting the information gather through environmental scanning.
Brand competitors
Firms that market products with similar features and benefits to the same customer at similar prices
Product competitors
Firms that compete in the same product class but market products with different features, benefits and prices
Generic competitors
Firms that provide very different products that solve the same problem or satisfy the same basic customer needs
Total budget competitors
Firms that compete for the limited financial resources of the same customers
Monopoly
When and organization offers a product that has no close substitutes making it a sole source of supply
Oligopoly
When a few sellers control the supply of a large portion of product
Monopolistic competition
When a organization with many competitors develops a marketing strategy to differentiate its product
Pure competition
A market structure that has extremely large number of services none strong enough to significantly influence price or supple
Disposable income
After tax income
Consumer protection legislation
Federal and state laws
Protects people from harm, prohibits hazardous products, requires information disclosure.
Self regulatory forces
1. Better business bureau- system of non governmental, independent regulatory agencies supported by local businesses that help settle problems between customers and business firms
2. National advisory review board- self regulatory unit that considers issu
Sociocultural forces
The influences in a society and its culture that bring about changes in people's attitudes, beliefs and customs.
Consumerism
The organized efforts of an individuals, groups and organizations to protect the rights of consumers.
Social responsibility
In organizations obligation to maximize its positive impact and minimize its negative impact on society
Marketing citizenship
The adoption of strategic focus for for filling the economic, legal, ethical, and social responsibility is expected by stakeholders.
Ethical issues related to the marketing mix
1. Prod-prod info: covering up defects that could cause harm to a customer
2. Distribution issue- counterfeit products are widespread
3. Promotion issues- deceptive advertising
4. Pricing issue- indicating that an advertised sales price is a reduction bel
Social responsibility and ethics improve marketing performance
Evidence shows there are increase profits to being ethical and socially responsible
Marketing research
Systematic design, collection, interpretation and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
Exploratory research
Conducted to gather more information about a problem or to make a tentative hypothesis
Experimental research
Allows marketers to make casual inferences about relationships
Marketing research process (five parts)
1. Locating and defining issues or problems
2. Designing the research product
3. Collecting data
4. Interpreting research findings
5. Reporting research findings
Hypothesis
An informed guess or assumption
Sample
Limited number of units chosen to represent the characteristics of a total population
Technology used in marketing information system
Data base
Consumer market
Purchasers are household members who intended to consume or benefit from purchased products and do not buy products to make profits
Business markets
Individuals or groups of people that purchase a specific kind of product for resale, direct use in production of other products, or use in daily operation
3 basic targeting strategies
1. Undifferentiated targeting strategy- should be homogenous market customers have similar needs for products
2. Concentrated targeting strategy- heterogenous markets individuals or organizations with diverse needs
3. Differentiated targeting strategy- ta
Segmentation variables
Characteristics of individuals, groups or organizations used to divide markets into segments
Segmentation variable
1.Demographics variables
2. Geographical
3. Psychographic
4. Behavioristic
Company sales potential
The maximum percentage of market share a from can expect for a product.
Buying behavior
The decision process and actions of people involved in buying and using products
Consumer buying decision process (5 stages)
1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Post-purchase evaluation
Perception
Selecting, organizing and interpreting information to produce meaning
Motives
Internal energizing force that directs a person's behavior toward satisfying needs or achieving goals
Maslows heirarchy of needs
5. Psychological
4. Safety
3. Belonging
2. esteem
1. Self actualization
(In a pyramid)
Attitude scale
Measured by an attitude scale a series of additives phrases or sentences about an object
Comsumer misbehavior
Behavior that violates generally excepted norms for particular society