Chapter 1: Overview of Marketing

Marketing

The activity, set of institutions, and processes for creating, capturing, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

Marketing Plan

Specifies the marketing activities for a specific period of time

What are the various components of a Marketing Plan?

1. How the product will be consumed or designed.

2. How much it will cost

3. Where and how it will be promoted

4. How it will get to the consumer

What are the core aspects of Marketing?

1. Helps create value

2. Occurs in many settings

3. Satisfying customers needs and wants

4. Entails an exchange

5. Can be performed by both individuals and organizations

Exchange

The trade of things of value between the buyer and the seller so that each is off better off as a result.

Exchange Cycle

Goods/services (sellers) > communications and delivery > customers/ consumers (buyers) > money and information > goods/services (sellers)

Marketing mix- Four P’s

1. Product

2. Place

3. Promotion

4. Price

Goods

Items you can physically touch

Services

Intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

Ideas

Include concepts, opinions and philosophies

Product

Creating value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

Price

Money, time and energy given in exchange for the product. Key to determining price is figuring out how much customers are willing to pay so that they are satisfied with the purchase and the seller acheives a reasonable profit

Marketers must determine the price of a product carefully on the basis of the…

Potential buyer’s belief about its value.

Place

Represents all the activities necessary to get the product to the right customer when a customer wants it. Deals with retailing and marketing channel management (supply chain management).

Marketing Channel Management

Set of approaches and techniques that firms employ to efficiently and effectively integrate with their suppliers, manufacturers, warehouses and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time while minimizing systemwide costs and satisfying the service levels required by customers

Promote

Communication by a marketer than informs, persuades and reminds buyers about a product to influence their opinions and elicit a response.

Business to Business (B2B)

The process of selling merchandise or services from one business to another.

Business to Consumer (B2C)

Businesses sell to consumers

C2C

Consumers sell to other consumers

History of Marketing

Went from production to sales, to marketing, to value based marketing.

Production-oriented Era

Manufacturers believed a product could sell on its own- more concerned with production innovation not with the needs of individual customers.

Sales-oriented Era

Production and distribution were more sophisticated, produced in the masses more than what people actually needed or wanted
Depend on personal selling and advertisting

Marketing- Oriented Era

US entered a buyers market, customers had choices made purchasing decisions on the basis of quality, convenience and price.
Focused more on what customers wanted and needed before they designed, made, or attempted to sell their products and services

Value-Based Marketing Era

Transcended a production or selling orientation and attempt to discover and satisfy their customers' needs and wants

Values

Reflects the relationship of benefits to costs, or what you get for what you give.

Value Co-Creation

When customers can act as collaborators to create the product or service

Four Activities for Firms

1. Sharing information across own organization and manufacturers
2. Balance customers benefits and costs
3. Building relationships with customers
4. Take advantage of new technologies and connecting with social media

Relational Orientation

Thinking about customers in terms of relationships rather than transactions

Customer Relationship Management

A business philosophy and a set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers.

Importance of Marketing

• Enriches society
• Can be entrepreneurial
• Expands global presence
• Pervasive across channel members

Supply Chain

Raw Material → Manufacturer → Retailer → Consumer

Marketing Channel

A group of firms that make and deliver a given set of goods and services.