Marketing Management Notes

Marketing is the process of creating, communicating, and delivering value to customers.
Customers pay for the value they receive, be it a product's function or the feeling it provides.
The ultimate goal of marketing is to boost utility: the power of a good or service to satisfy consumer wants.

Form: Conversion of raw materials into finished goods and services.
- Examples: Dinner at Applebee’s, Samsung Galaxy phone, Levi jeans
- Value: Satisfies hunger, enables communication, provides clothing.
Time: Availability of goods and services when consumers want them.
- Examples: Dental appointment, digital photographs, 1-800-PetMeds guarantee, UPS Next Day Air delivery.
- Value: Allows customers to satisfy needs without waiting.
Place: Availability of goods and services at convenient locations.
- Examples: Technicians at an auto repair facility, onsite day care, banks in grocery stores.
- Value: Provides convenience, reduces searching.
Ownership (Possession): Ability to transfer product title from marketer to buyer.
- Examples: Retail sales (in exchange for currency, credit, or debit card payment).
- Value: Provides customer control and pride of ownership.

Target Market: The group of people a firm aims its marketing efforts and merchandise toward.
Marketing Mix Variables:
- Product.
- Price Strategy.
- Distribution.
- Promotion.

Product: A good, service, or idea.
Price Strategy: The method of setting profitable and justifiable prices.
Distribution: Decisions about transportation modes, warehousing, inventory control, order processing, and marketing channel selection.
Promotion: Communication to a firm's buyers about their products.

Production Era (prior to 1920s):
- Production orientation: Manufacturers focused on producing quality products and then finding customers.
Sales Era (prior to 1950s):
- Sales orientation: Belief that creative advertising and personal selling would persuade consumers to buy.
Marketing Era (since 1950s):
- Seller’s market: More buyers than products available.
- Buyer’s market: More products than buyers.
- Consumer orientation: Focus on satisfying consumer needs and wants instead of just producing and selling.
Relationship Era (since 1990s):
- Builds on customer orientation by developing long-term, value-added relationships with customers and suppliers.
Social Era (since 2000s):
- Uses the Internet and social networking to connect with consumers.

Transaction-Based Marketing: Traditional view of marketing as a simple exchange process.
Relationship Marketing: Developing and maintaining long-term, cost-effective relationships with customers, suppliers, employees, and partners for mutual benefit.

Mobile Marketing: Marketing messages sent to wireless devices.
Social Marketing: Using online social media as a communications channel for marketing messages.

Product Marketing: Communicating the benefits of a good or service and persuading consumers to buy.
- Examples: Subaru