week1

Marketing

• is the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers

• and to develop and maintain favorable relationships with stakeholders in a dynamic environment

• focuses on customer’s needs in return of something

• more than simply advertising a product; it involves developing and managing a product that will satisfy customer needs.

• It focuses on making the product available in the right place and at a price

• requires communicating information to determine whether the product will satisfy their needs

American Marketing Association (AMA) defines marketing as

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

Customers

• They are the focal point of all marketing activities

• They expects to gain a reward or benefit greater than the costs incurred in a marketing transaction.

• The marketer expects to gain something of value in return, generally the price charged for the product.

• They develops expectations about the seller's future behavior. To fulfill these expectations, the marketer must deliver on promises made.

• Over time, this interaction results in relationships between the two parties.

The essence of marketing is to

• develop satisfying exchanges from which both customers and marketers benefit.

Target Market

• Organizations generally focus their marketing efforts on specific group of customers, called (blank)

• Marketing managers may define a (blank) as a vast number of people or a relatively small group.

The Marketing Mix

• Product

• Place

• Promotion

• Price

Product Variable

• of the marketing mix deals with researching customer's needs and wants and designing a product that satisfy them.

• A product can be a good, a service, or an idea.

• What you want to offer

Service

• is an application oi human and mechanical efforts or objects to provide intangible benefits to customers.

• Intangible

Good

• is a physical entity you can touch

• Tangible

Distribution Variable (Place)

• To satisfy customers, products must be available at the right time and in convenient locations

• In dealing with the (blank), a marketing manager makes products available in quantities desired to as many target market customers as possible, keeping total inventory, transportation, and storage costs as low as possible.

• Where to access

Wholesalers and Retailers

A marketing manager also may select and motivate intermediaries (blank) to establish and maintain inventory control procedures, and develop and manage transportation and storage systems

The advent of the internet and electronic commerse

also has dramatically influenced the distribution variable. Companies can now make their products available throughout the world without maintaining facilities in each country.

Promotion Variable

• relates to activities used to inform individuals or groups about the organization and its products.

• It can aim to increase public awareness of the organization and of new or existing products.

• Its activities also can educate customers about product features.

• It can help sustain interest in established products that have been available for decades

• How the customers will know about it (How to inform)

Price Variable

• It relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices.

• It is a critical component of the marketing mix because customers are concerned about the value obtained in an exchange.

• often used as a competitive tool, and intense price competition sometimes leads to price wars.

• Higher (blank) can be used competitively to establish a product's premium image.

• How much?

Customer Value

=Customer Benefits - customer costs (if the amount you paid is worth it, then you’ll get a high value)

Value

• is an important element of managing long-term customer relationships and implementing the marketing concept.

• We view (blank) as a customer's subjective assessment of benefits relative to costs in determining the worth of a product (customer value = customer benefits - customer costs).

• Customers develop a concept of (Blank) through the integration of heir perceptions of product quality and financial sacrifice

Nonmonetary costs

• Time and Effort

• Risk

Monetary Price

The most obvious cost is the

Risk

• which can be reduced by offering good basic warranties for an additional charge.

• Warranties

Time and Effort

• customers expend to find and purchase desired products.

• To reduce (blank), a company can increase product availability, thereby making it more convenient for buyers to purchase the firm's products.

Stakeholders

• It include those constituents who have a "stake," or claim, in some aspect of the company's products, operations, markets, industry, and outcome;

• external factors outside the business for ex: customers, employees, investors and shareholders, suppliers, governments, communities, and many others.

Marketing Builds Relationships with Customers and Other Stakeholders

• Marketing also creates value through the building of stakeholder relationships.

• Individuals and organizations engage in marketing to facilitate exchanges, the provision or transfer of goods, services, or ideas in return for something of value.

• For an exchange to take place, four conditions must exist:

• Two or more individuals, groups, or organizations must participate, and each must have something of value that the other party desires

• The exchange should provide a benefit or satisiaction to both parties involved

• Each party must have confidence in the promise of the "something of value held by the other -Trust

• To build trust, the parties to the exchange must meet expectations

Loyalty

• Extending the duration of customer relationship

• Even when your competitor has the same product as you, your customers will only avail that certain product from your business and thats what you call

Environmental Forces

• may affect a marketing manager's decisions and actions by influencing buyer's reactions to the firm's marketing mix.

Marketing occurs in Dynamic Environment

• The forces of the marketing environment affect a marketer's ability to facilitate value-driven exchanges in three ways:

• They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products

• Marketing environment forces help to determine whether and how a marketing manager can perform certain marketing activities

• Environmental forces may affect a marketing manager's decisions and actions by influencing buyer's reactions to the firm's marketing mix.

The Marketing Concept

• is a managerial philosophy that an organization should try to satisty customer's needs through a coordinated set of activities that also allows the organization to achieve its goals.

• Key success of the business to understand the customers needs & wants to satisfy them while achieving the goal of the business

• Customer satisfaction is the major focus of the (blank)

• To implement the (blank), an organization strives to determine what buyers want and uses this information to develop satisfying products.

• It focuses on customer analysis, competitor analysis, and integration of the firm's resources to provide customer value and satisfaction, as well as to generate long-term profits.

Customer Satisfaction

is the major focus of the marketing cocept

The Sales Orientation

• Businesses viewed (blank) as the major means of increasing profits. Business people believed that the most mportant marketing activities were personal selling, and distribution.

The Product Orientation

• 2nd half of the 19th century, the Industrial Revolution was in full swing; electricity, rail transportation, division of labor, assembly lines, and mass production made it possible to produce goods more efficiently.

• Firms were developing the ability to produce more products, and competition was becoming more intense.

The Market Orientation

"organization wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization wide responsiveness to it."

Customer Relationship Management (CRM)

• focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

• Marketing relationships are the lifeblood of all businesses.

Marketing Relationships

are the lifeblood of all businesses

Marketing Relationships

are the lifeblood of all businesses

Profits can be obtained through relationships in the:

• At the most basic level, profits can be obtained through relationships in the following ways:

• Acquiring new customers

• Enhancing profitability of existing customers

• Extending the duration of customer relationships

Enhancing Profitability

• earn more from them

• “Upselling” -where a business encourages a customer to purchase a more expensive, upgraded, or premium version of a product or service they already intend to buy

Relationship Marketing

• refers to "long term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges."

• continually deepens the buyer's trust in the company, and as the customer's confidence grows, this, in turn, increases the firm's understanding of the customer's needs.

The Importance of Marketing in our Global Economy

• Marketing Costs Consume a
  Sizable Portion of Buyer's Dollars - marketing activities cost money, this has an impact on the economy

• Marketing Is Used in Nonprofit Organizations - Nonprofit organizations also employ marketing activities to create, price, distribute, and promote that benefit particular segments of society

• Marketing Fuels Our Global Economy - Advances in technology, along with falling political and economic barriers and the universal desire for a higher standard of living, have made marketing across national borders commonplace while stimulating global economic growth.

• Marketing Knowledge Enhances Consumer Awareness - Marketing activities help to improve the quality of our lives.

• Marketing Connects People through Technology - Technology, especially computers and telecommunications, helps marketers to understand and satisfy more customers than ever before

• Socially Responsible Marketing: Promoting the Welfare of Customers and Stakeholders - Green marketing is a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment.

• Marketing Offers Many Exciting Career Prospects - A big percentage of workers perform marketing activities. The marketing field offers a variety of interesting and challenging career opportunities throughout the world.

Price

Marketer generally expects to gain in an transaction

Repeat Purchases

Critical for the firm in regards of customer relationships