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What is the simple definition of marketing.. and what are its goals?
Marketing is managing profitable customer relationships.
- 1. Attract new customers by promising superior value.
- 2. Keep and grow current customers by delivering satisfying.
What are the types of needs?
- physical needs:
- -food, clothing, shelter, safety
- Social Needs
- - belonging, affection
- Individual needs
- - Learning, knowledge, self-expression
Definition of wants:
Form that a human need takes, as shaped by culture and individual personality.
wants + buying power = demands
Market offerings: products:
-persons, places, organizations, info, ideas
Market offerings; Services
Activity or benefit offered for sale that is essentially intangible and does not result in owernship.
Market offerings; brand experiences
".... Dazzle their senses, though their hearts, stimulate their minds."
- Occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.
- - they focus on the wants and lose sight of the needs.
What is a market?
- - is the set of actual potential buyers of a product
- -These people share a need or want that can be satisfied through exchange relationships
What is market managing?
the art and science of choosing target markets and building profitable relationships with them.
- -Requires that consumers and the marketplace be fully understood
- -Aim is to find, attract, keep, and grow customers by creating, delivering, and communicating superior value.
Divides the market for a product category into segments of consumers
Process of selecting one or more of these segments
-Finding and increasing demand, also changing or reducing demand, as in demarketing.
Temporarily or permanently reducing the number of customers or shifting their demand.
* THE full position of a brand- the full mix of benefits upon which it is positioned.
- The set of benefits or values a company promises to deliver to consumers to satisfy their needs
- - It dictates how firms will differentiate and position their brands in the marketplace.
What are the 5 key marketing management philosophies
- 1. production concept
- 2. product concept
- 3. selling concept
- 4. Marketing concept
- 5. Societal marketing concept
Consumers will favor product that are available and highly affordable.
Consumers will favor the products that offer the more quality
Consumers will not buy enough of a firms products without a major selling and promotional effort.
Achieving organizational goals requires delivering desired customer satisfaction
Societal Marketing concept
Marketing decisions should consider consumers wants, the company's should consider consumer wants, the company's requirements and consumers ans society's long run interests
The 4 p's of marketing
Place price promotion product
- Customer Relationship (management) Marketing
- - Deals with all aspect of acquiring, keeping and growing customers.
- -customer value and satisfaction are key
Partner relationship marketing
- 1. customer is always right
- 2. if customer is wrong reread number 1
- The combined discounted customer lifetime values of all the company's current and potential customers.
- -classify customers by loyalty and potential profitability
- -manage accordingly
- Questions the mission statement should answer include:
- -What is our business?
- -Who is our customer?
- -What do consumer value?
- -What should our business be?
- Mission statements should be market oriented, not product oriented.
- The company must:
- -Analyze its current business portfolio or strategic business units (SBUs)
- -Decide which SBUs should receive more, less, or no investment; and
- -Develop strategies for growth and downsizing.
Marketing in Strategic planning
- Marketing plays key told
- -provides a guiding philosophy
- --the marketing concept
- -Provides inputs to strategic planners
- -Designs strategies to reach objectives
Partner relationship managment
- Marketers must practice partner relationship management
- -Working with partners internally within the company can create an effective value chain.
- -Working with external partners in the marketing system helps to form a superior value delivery network
-Involves evaluating each market segments attractiveness and selecting one or more segments to enter
The 4 c's
- Customer solution
- Customer cost
Return on Marketing
- Return on marketing investments in assessed using one or more methods:
- -Standard marketing performance measures
- *Brand awareness, sales, market share
- -Customer-centered measures
- *Customer acquisition, customer retention, customer lifetime value
The study of human populations in terms of size, denisty, location, age, gender, race, occupation, and other statistics
- The changing age structure of the U.S. population is the single most important demographic trend
- -Baby boomers, Generation X, and the Millennials are key generational groups
- The american family and household makeup is changing: Traditional households with children= 23%
- NON TRADITIONAL
- Married without children = 29%
- Single parents =16 %
- Non-family househaolds= 32%
- - United States is an ethnic "salad bowl"
- *Ethnic segments will continue to grow as a percentage of the U.S. pop
- * Marketers target specially designed ads, products and promotions at ethnic groups.
- Consists of factors that affect consumer purchasing power and spending patterns
- Involves natural resources that are needed as inputs by marketers or that are affected by marketing activities
- -Factors include:
- *Shortages of raw material
- *Increased pollution
- *increased government intervention
- *environmentally sustainable strategies
- -Changes rapidly, creating new markets and opportunities and/or danger of products becomeing obsolete
- -challenge is to make practical affordable new products.
- -Safety regulations result i higher research costs and longer time between product conceptualization and introduction
- -Includes laws, government agencies, and pressure groups that influence or limit various organizations and indiv. in a given society
- areas of concern:
- -Increasing legislation
- -Changing gov. agency enforcement
- -increase emphasis on ethics and socially responsible behavior
- -Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business and gov.
- -Secondary beliefs and values are more open to change.
- --Marketers may be able to change secondary beliefs but not core beliefs.
Many firms simply react to changes in the marketing environment.
Some firms attempt to manage the marketing environment via aggressive actions designed to affect the publics and forces in the marketing environment.
The marketing info System
Consists of people and procedures for assessing info needs, developing the needed info, and helping decision makers to use the info to generate and validate actionable customer and market insights.
Fresh understanding of customers and the marketplace derived from marketing info that becomes the basis for creating customer value and relationships
- info that already exists somewhere which has been collected for another purpose.
- -internal databases
- -commercial data services
- -gov. sources
consists of info collected for the specific purpose at hand. - must be relevant, accurate, current, and unbiased.
Primary data collection
- -Research- observation,survey or experiment
- -contact methods -- Mail= least flexible, telephone, personal, or online.
- -Sampling plan- sampling unit, sample size and sampling procedure
- -Research instruments: Questionnaire or mechanical instruments.
- The gathering of primary data by observing relevant people, actions and situations.
- --can obtain info that people are unwilling or unable to provide
- --cannot be used to observe feelings attitudes and motives, and long-term or infrequent behaviors
-After hanging out in the hotel lobbies observing business travelers, Marriott revamped its hotel lobbies by creating a "social zone" where travelers can work or unwind. The new lobbies feature brighter lights, small tables, and wireless access.
Survey and experimental research
- - Most widely used method primary data collection.
- -approach best suited for gathering descriptive info
- -can gather info about people's knowledge, attitudes, preferences, or buying behavior
- Online marketing research
- -includes surveys, experiments, and focus groups conducted over the internet
- -the least expensive and quickest way to gather info
- -offers excellent control over sample
- -good flexibility and response rates; able to collect a fair amount of info
- -some forms prone to interviewer effects
- -simple direct unbiased!
- -what questions to ask?
- form of each question?
- *closed ended
- *open ended
- -Wording should be simple direct, and unbiased
- -questions should be arranged in a logical order
- --> collecting data: most expensive phase, subject to error
- -->Processing the data: check for accuracy, code for analysis
- -->analyzing the data: tabulate results
- Interpret the findings
- draw conclusions
- report to managment:
- - Present findings and conclusions that will be most helpful to decision making
Act of obtaining a desired object from someone by offering something in return?
- The combined discounted customer lifetime values of all the company's current and potential customers
- -Classify customers by loyalty and potential profitability
- -manage accordingly
Which department carries responsibility for achieving profitable growth
American pop is movie