Marketing Ch1 Slide Notes PDF

​ Marketing is a set of business practices designed to plan for and present an organization's products or services in ways that build effective consumer relationships *Marketing mix = 4 P’s* *Good marketing is NOT random* Providing value: ​ Build & maintain a loyal customer base...

​ Marketing is a set of business practices designed to plan for and present an organization's products or services in ways that build effective consumer relationships *Marketing mix = 4 P’s* *Good marketing is NOT random* Providing value: ​ Build & maintain a loyal customer base ​ Make a product that satisfies a variety of consumer demands ​ Consumer positioning is important ​ Good marketing can establish value ​ Constantly need to protect the brand Core Aspects of Marketing: ​ Occurs in many settings, helps create value, about satisfying customer needs and wants, includes an exchange, requires the 4 P’s decisions, and can be done by both individuals and organizations Marketing: Satisfying Customer Needs & Wants ​ Need: Basic necessity & Want: How to fulfill that need - called market segment ​ Target Markets: Customer segment the firm is interested in selling its product and services to Marketing: Entails a Marketing Exchange ​ The exchange can occur between any 2 parties ​ Not simply a buyer and seller exchanging money for a good or service ​ Can be an exchange of information for convenience Which of the following is NOT part of a marketing exchange? a) Sellers provide products or services b) Sellers communicate and facilitate delivery c) Marketers assess the effectiveness of their advertising d) Buyers complete the exchange by giving money and information to the seller Marketing: Requires Marketing Mix Decisions (The 4 P’s): ​ Product (creating value) i.e. product/service, brand, size, quality, features, packaging, warranty  ​ Price (transacting value) i.e. list price, discounts, allowances, costs, payment period, credit terms ​ Place (delivering value) i.e. marketing channels, distribution intensity, locations: retailers online etc, supply chain, logistics ​ Promotion (communicating value) i.e. advertising, sales promotion, personal selling, public relations, direct marketing, electronic media Marketing Mix: Product (Creating Value) ​ Goods ​ Services ​ Ideas ​ All watches are goods, and they tell the time. But, Rolex is marketed as a status brand. Promotion of ideas Create value ​ Ideas include thoughts, opinions, philosophies, and intellectual concepts that can be marketed ​ Marketing creates value Consumer Behaviour Bottled Water: ​ Bottled water is more expensive than tap water. Consumers pay 120 to 7500 times as much per gallon for bottled water as for tap water. Reasons consumers pay so much is because of the convenience, safer (less minerals, luxury/cool feeling). ​ If it's not for marketing and blind taste tests we actually prefer tap water as we were adjusted to the taste and do not have strong opinions. Marketing Mix: Price (Transacting Value) ​ Price is everything the buyer gives up in exchange for a product (money, time, energy) Marketing Mix: Place (Delivering Value) ​ All activities necessary to get a product to the right customer when that customer wants it ​ Supply chain management is the field that examines these activities ​ Where would you find this product in the store? Marketing Mix: Place (Marketing Channels Distribution Strategy) ​ How does a company get the product to the right customer when and where they want it? Marketing Mix: Promotion (Communicating Value) ​ The communication activities of marketing ​ Used to inform, persuade, and remind potential buyers  ​ Used to influence their opinions or elicit a response ​ It isnt easy to promote oat milk, so Oatly first promoted to coffee shops and then designed a fun package to get the attention of supermarkets Promotion is ________ by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response. a)smoke-and-mirrors b)coercion c)teasing d)communication Marketing: Can be Performed by Both Individuals & Organizations ​ B2B: Wholesaling is often only Business to Business - Dell Canada to Best Buy Canada ​ B2C: All retailing is Business to Consumer selling - Best Buy Canada to consumer ​ C2C: Swap Meets, Ebay, Yard Sales, etc - Consumers selling old Dell laptops to consumers on eBay Marketing Impacts Many Stakeholders ​ Both profit and non-profit entities ​ Developing economies ​ Entire industries The 4 Orientations of Marketing ​ Product Orientation ​ Sales Orientation ​ Market Orientation ​ Value-based Orientation Product Orientation ​ Focus on developing and distributing innovative products with little concern about whether the products best satisfy customer needs. Ex) Ford Model T it only comes in black Sales Orientation ​ View marketing as a selling function where companies try to sell as many of their products as possible rather than focus on making products consumers really want ​ Really transactional only care about selling don't even know what's happening, ex) air duct cleaning services Market Orientation ​ Start out by focusing on what consumers want and need before they design, make, or attempt to sell their products and services ​ This was hugely successful and resulted in higher profits because of satisfying customers ​ The marketing function in businesses grew to much more prominences and businesses grew because they tapped into the consumer's demand Value-based Orientation ​ To complete successfully, firms focus on the triple bottom line: people (consumer needs & wants), profits (long-term profitable relationships), planet (social & environmental responsibility) ​ Relationship marketing - customer lifetime value (CLV) What must firms do to become value-driven? a)Share information, balance benefits and costs, and build customer relations. b)Set low prices, put profit above service, and use effective marketing strategies. c)Make logistics a priority, expand globally, and always offer new goods and services. d)Keep a vigilant eye on the marketplace, undercut competitors, and provide competitive salaries. How Do Firms Become More Value-Driven? ​ Sharing information ​ Balance customer’s benefits and costs ​ Build relationships with customers ​ Use technology to connect with customers Becoming More Value-Driven: Sharing Information ​ Why is sharing and coordinating information such a critical success factor for any firm? ​ Fashion designers like Zara, the Spain-based Fashion retailer, collect purchase information and research customer trends to determine what their customers will want to wear in the next few weeks… ​ …They then share this information with other departments to forecast sales and coordinate deliveries ​ Challenge: How does the flagship brand of Europe’s fastest-growing apparel retailer keep up with the latest trends? ​ Answer: By implementing sophisticated information technology into its customer tracking and supply chain functions  ​ Results: Zara now has over 1500 women’s clothing stores in 78 countries. Products move from design through the supply chain and onto the store shelves in about 2 weeks Becoming More Value Driven: Building Customer Relationships - CLV: ​ Take a long-term view of customer relationships and use data to assist in maintaining customer relationships - CRL ​ Embrace social media to better connect with customers Becoming More Value Driven: Connect With Customers Using Social Media ​ Embrace social media to better connect with customers ​ 91% of North American Companies now use social media for marketing purposes ​ Users are driving the way brands and stores are interacting with social media Becoming More Value Driven: Balancing Benefits with Costs ​ Understand key benefits ​ Focus on key benefits ​ Eliminate the cost of fewer strategic benefits Becoming More Value Driven: Building Customer Relationships ​ Take a long-term view of customer relationships ​ Use data to assist in maintaining relationships Why is Marketing Important: ​ Can expand global presence, Can be entrepreneurial, Enrich society, Make life easier, Persuasive across the supply chain Why is Marketing Important: Marketing Expands Firms Global Presence ​ Goods are available to consumers from many countries from far reaches of the globe ​ Must understand Customer needs and wants ​ Segment by segment, region by region Why is Marketing Important: Marketing is Persuasive Across Channels Members ​ Each step in the supply chain involves marketing ​ All members in the chain must ultimately focus on creating value for their customers and the end user consumer Which of the following would NOT be considered part of a supply chain? a)Consumer b)Retailer c)Manufacturer d)Customer service representative Why is Marketing Important: Marketing Enriches Society ​ Canadian companies recognize that a strong social orientation is in both their and their customer's best interests. It shows the consumer that the firm can be trusted with their business. Why is Marketing Important: Marketing Can Be Entrepreneurial ​ Though important to large firms, marketing is equally important to the success of small ventures - especially new ventures