Intro to Marketing 201 Jobs Exam 1

Marketing seeks to…

1. Discover needs and wants of customers.

2. Satisfy them.

The key to achieving these two objectives is exchange.

The Diverse Elements Influencing Marketing Actions

The Organization Itself and Its Departments

• Mission and objectives determine the business and goals

• Management establishes goals

• Marketing works with other departments to provide customer-satisfying products

Society

Environmental forces shape marketing actions

Environmental Forces (Figure 1-1/The Organization and its Departments)

• Social

• Economic

• Technology

• Competitive

• Regulatory

The Organization and its Departments (Figure 1-1)

[Middle] - Senior Management

1. Research and development department

   • → Other organizations (Alliances) [Society]

2. Human resources department

   • ← Shareholders/owners (Ownership) [Society]

3. Information technology department

   • → Shareholders/owners (Ownership) [Society]

   • ← Customers (Relationships) [Society]

4. Marketing department

   • → Customers (Relationships) [Society]

   • ← Environmental forces

5. Finance department

   • ← Environmental forces

   • → Suppliers (Partnerships) [Society]

6. Manufacturing department

   • ← Suppliers (Partnerships) [Society]

   • → Other organization (Alliances) [Society]

What is Needed for Marketing to Occur?

1. Two+ parties with unsatisfied needs

2. A desire and ability to be satisfied

3. A way for the parties to communicate

4. Something to exchange

The Challenge

Meeting consumer needs with new products.

Consumers may not know, or cannot describe what they need or want.

• It takes 3,000 ideas to generate one commercial success.

• 40% of new products fail!

The challenge:

1. Focus on the consumer benefit.

Needs

Necessities

Wants

shaped by culture

Organization’s Marketing Department (Figure 1-2)

Discover consumer needs by researching what consumers needs are → Concepts for products

Satisfy consumer needs by designing a marketing program having the right combination of

• Product

• Price

• Promotion

• Place

→

Products, services, ideas

→

Potential consumers: The Market

→

Information about needs

→

Discover consumer needs by researching what consumers needs are

The 4 P’s

The Four Ps: Controllable marketing mix factors.

• Product – good, service, or idea.

• Price – something to exchange.

• Promotion – communication between buyer and seller.

• Place – gets product to consumer

Uncontrollable environmental forces

• Social.

• Competitive.

• Economic.

• Regulatory.

• Technological

Customer value strategies

• Best price: Target.

• Best service: Nordstrom.

• Best product: Starbucks

Relationship Marketing

• Easy to understand.

• Hard to do.

Market orientation

create customer value

CRM

Customer relationship management

Customer experience

• What firms think they offer.

• What customers say they receive.

Ethics

Companies develop codes of ethics, policies, and guidelines

Social responsibility

Organizations are accountable to a larger society

• Societal marketing concept.

What is marketed?

• Products (goods).

• Services – intangible items.

• Ideas – concepts

Who buys and uses what is marketed?

• Ultimate consumers.

• Organizational buyers