Introduction to Marketing Principles

What Marketing Means

• Marketing has two facets: a management philosophy focused on customer satisfaction, and an organizational function for implementing this approach.
• The American Marketing Association (AMA) defines marketing as creating, communicating, delivering, and exchanging value for customers, clients, partners, and society.
• Marketing delivers value and benefits to customers through communication, distribution, and pricing, building mutually rewarding relationships.
• Organizations must understand their stakeholders, including employees, suppliers, and distributors.
• The aim of marketing is an exchange where people relinquish something for a preferred alternative.
• Exchange necessitates at least two parties with potentially valuable items who can communicate, accept/reject offers freely, and find dealing desirable.
• Exchange becomes probable if all five prerequisites are satisfied

Marketing Management Philosophies

• Production orientation prioritizes a firm's internal capabilities over marketplace desires and needs. Resources are assessed by asking what the company does best, what the engineers design, and what is easy to produce.
• Firms succeeding in competitive markets focus on customer wants then produce, not on internal assumptions.
• Sales orientation believes aggressive sales techniques yield high sales and profits.
• A pitfall of sales and production orientations involves disregarding marketplace wants and needs.
• Market orientation argues a company's justification lies in gratifying customer wants and needs affordably.
• Market-driven businesses differentiate their offerings, integrate all activities to satisfy wants, and meet long-term goals legally/responsibly.
• For market-oriented firms, sales depend on customer purchase decisions, not aggressive sales tactics. They obtain information about customers, competitors, and markets, then provide superior value.
• Societal marketing broadens this, stating an organization prioritizes customers wants and meeting organizational goals alongside individuals long-term interests and society as a whole

Sales vs Market Orientations

• Customer value balances benefits and necessary sacrifices. Good value combines quality and reasonable pricing.
• Consumers seek functionality (time/risk/effort/organization) from products. Retail examples: The Container Store and TurboTax.
• Life-changing needs include hope, motivation, and belonging; Fitbit and Leica offer health and self-actualization
• Wellness, aesthetics, fun, entertainment and anxiety reduction are emotional needs in good product design. Social impact from nonprofits meets self-transcendence needs.
• Customer Satisfaction: Meeting consumer needs and expectations to meet overall experience
• Relationship marketing prioritizes current customer relationships. The aim is ongoing engagement instead of changing to different people when the need arises
• Customer-oriented personnel are essential for strong relationships. Each contact frames customer perception, hence the organization must work to meet standards for customer service
• Defining an organization with benefits instead of goods offers continued focus and creativity.

Organization Strategies

• Good missions integrate core values with customer benefits.
• Strategic planning aligns goals, resources, and evolving market opportunities, requiring substantial long-term resource commitment.
• Strategic marketing management addresses: 1) what the main activity it and 2) how will it reach goals
• West Elm is launching a hotel chain and Ford is shifting to all hybrids
• Starbucks stopped offering Evenings, deciding to focus on lunch
• Strategic Business Units (SBUs) are managed with unique ROI (Return On Investment), risks, and funding, featuring a distinct mission, resource control, competitors, and independent plans.
• Three tools to manage business portfolio: Ansoff Matrix, Boston Consulting Group (BCG) Model, General Electric Model. Depends on expecting immediate profits or market share growth (better long run)

Ansoff Matrix

• Use the Ansoff's strategic opportunity: It matches businesses with market; explore the four options:
• Increase market share within existing customers; retailer JCPenny using in store magazine
• Develop existing products in new markets to stimulate additional sales; Ex McDonald's opening internationally
• Yogurt maker Danone is a product developer, using new products in present markets for current customers.
• Diversification increases sales by introducing new products into new markets Ex Lego expanding online games in China Critics note the matrix doesn’t account for reality in changing industry (fluid manner businesses with current capabilities instead of the clear sectors from the outline)

###Innovation Matrix

• Innovation ranges through levels instead of clear sector
• Core innovation implements changes using existing assets for customers from other brands
• Adjacent Innovation capitalizes on company assets in new markets, exemplified by Botox’s expanded uses.

The General Electric (GE) Model

• GE model uses market attractiveness and business position, more complex than other models but hard to quantify.
• Business Position: How poised a firm meets market chances, using technology and available finances
• Market Attractiveness. Expressed qualitatively and quantitatively, like high profitability, rapid growth, and regulation
• SBUs that have a low attractiveness should be avoided
• Selectively maintain markets with medium range, but withdraw if it dips
• Hight attractive: Should invest aggressively

Marketing Plan

• Create a marketing plan: Marketing managers can create it for individual products, brands, lines, or customer groups Planning anticipates future events toward objectives and the environment, the basis of the strategies, and written documentation
• It gives perspective and reference
• Items include product, price, planning, and objectives
• Competitive Advantage unique factors cause customers to choose a firm.
• Marketing plans involve a business mission statement, SWOT (Strengths, weaknesses, opportunities, threats) analysis, goals and implementation from evaluating a target

Competitive Advantage

• A competitive advantage derives from features that consumers view as superior..
• Cost leadership, Differentiation, and Niche are types

Cost Competitive Advantage

• Experience curve, efficient labor production design reengineering are examples of effective cost reduction

Differentiated Competitive Advantage

• Gives unique or valuable goods and services beyond offering the same item

Niche Competitive Advantage

Market for focus, can involve unique opportunities, needs specialization.

• Target markets selected, may be selective, market analysis and descriptions

Social Media

• The use of digital platforms to promote brands (can be specific digital platforms)
• Moves with communication between brands and customer; however it's meant more for society than marketing, as social media has changed from advertising into a medium of contact, moving into the 5 P's for participating
• The social implies several things for markers including it's easy to share quickly, reach large quantities, and content must be great to work
• Marketers can leverage to listen better, but they don't often to control what's on sites
• Examples that are well known include Adidas that initiated the Tango Squad, 650 new measurements include several users 2.46 billion worldwide is expected by 2021

Using Social Media Effectively

• There are many benefits to use, brands, and personal communication. Marketers use to leverage and connect effectively must not operate beyond how people are on there for personal, intimate connections
• Technology allows connection, social has a purpose, and it's useful, however it has been difficult measuring, Adidas has concise and less formal
• Use social media platform, it's helpful monitoring social media, but most important is a consistent style

Steps to Using Social Media

• Know consumers are on which and how active to assume customer or brand, not just static a message in reality
• Involve consumers for discussion, engage by building and developing
• The objectives should focus on the following listening is essential since media have to make it part of promotional campaigns
• With social it raises Q's about categorization, however marketing should remember there's new methods to evaluate

Types of Media

• Include owned, earned, ad
• For maximum impact should maximize owned and reach with outside websites and ensure there is no misreprentation. Balance is key
• Some things that leverage marketing effectively
• Examples are sports and brands

Digital Objectives

• Focus should be to reach and learn then build relationships
• Should be clear of objectives
• Is best to use types of evaluation tools
• The first step is to identify your performance and align with business goals, for example social
• There's an opportunity in this realm, however it's not a static approach in which can reach the most attention there must be balance