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Topic 1: Fundamental marketing concepts (What is the scope of marketing?…
Topic 1: Fundamental marketing concepts
Why is marketing important? (pg3)
Marketing is
"meeting the needs profitably"
. identifying and meeting human and social needs.
Marketing management is both a science and an art.
Financial seduces is dependent on good marketing
Introduce or enhance products that enrich people's lives
Builds demands for products and creates jobs
Engage is social responsibility
What is the scope of marketing? (pg5)
Goods:
bulk of most countries' production and marketing efforts
Services:
often a mix of goods and services (2/3 to 1/3) i.e. mgmt consultants, fast food
Events:
promotion of time based events i.e. trade shows, olympics, bookstore readings.
Experiences:
orchestrating several services and goods for a customized experience i.e. Disney, camps. climbing mount everest
Persons:
Typically high profile or famous people, creating a brand for themselves
Places:
i.e. Las Vegas - "what happens here, stays here"
Properties:
intangible rights of ownership for real property (real estate) or financial (stocks and bonds)
Organizations:
Corporations, non profit, museums etc. boosting their public image
Information:
books, schools, universities - marketing to students, parents and communities
Ideas:
delivering an idea or belief i.e. choose safer or be counter
What are some of the core marketing concepts? (pg9)
Needs, wants and demands
(Needs are basic human requirements like food, this turns to a want like Chicago deep dish pizza. Demands are a specific project with the ability to pay for it):
Stated needs (customer wants an inexpensive car)
Real needs (customer wants a the operating cost to be low not just initial price)
Unstated needs (customer expects good service)
Delight needs (customer would like the dealer to include an extra i.e. GPS)
Secret needs (customer wants friends to see them as a savvy consumer)
Target markets, positioning and segmentation:
identify distinct segments of buyers by demographic, psychographic, behavioral differences then target the segment that presents the best opportunity i.e. Volvo targets a safety audience vs Porsche a pleasure seeking audience
Offering and brands:
Addressing customer needs through value proposition, a set of benefits and satisfy those needs. This can be an offering which can be a mix of products, services, goods and experience.
Brand is from a known source. I.e. apple
Marketing channels
Communication (newspapers, internet, billboards etc.)
Distribution (internet, mail agents etc.)
Service channels (warehouse, banks etc.)
**Paid, owned and earned media:
Paid media (tv, magazines etc.
Owned media (website, Facebook page, twitter
Earned media (press, word of mouth etc.)
Impressions and engagement:
when consumers view a communication
extent of a customers's attention and active involvement with a communication i.e. Facebook likes
Value and satisfaction:
value the sum or tangible or intangible benefits and costs
value triad is quality, service and price
satisfaction reflects a person's judgement of a product perceived performance in relation to the expectations
Supply chain:
a channel of raw materials to components to finished products carried to the final buyers
Competition:
actual and potential offerings or substitutes a buyer may consider
Marketing environment:
Task environment are actors engage in producing, distributing, and promoting the offering
Broad environment consists of demographic, economic, social-cultural, natural, technological and political-legal
What does a holistic marketing philosophy include? (pg20)
Traditional Concepts:
The Production concept (consumers prefer products that are widely available and inexpensive)
The Product concept (consumers favor products offering the most quality, performance or innovative features)
The Selling concept (consumers and businesses, if left alone, won't buy enough of the org's products)
The Marketing concept (to find the right products for your customers)
Holistic Marketing Concept:
is based on the development, design, and implementation of marketing programs, processes and activities that recognize their breadth and inter-dependencies. Everything matters in marketing.
Relationship Marketing
: customers, employees, partners, financial community ( build mutually satisfying long-term relationships with key constituents in order to earn and retain their business)
Integrated Marketing
: communications, products & services, channels, price ("the whole is greater than the sum of it's parts" it's more than just the sale, its the support that comes after, consistent marketing)
Internal Marketing
: Marketing department, senior mgmt, other depts (the task of hiring, training and motivating staff to satisfy customers)
Performance Marketing
: Sales revenue, brand & customer equity, ethics, environment, legal, social (understanding the financial & non financial returns to business and society from marketing activities and programs)
What tasks are necessary for successful marketing management? (pg 27):
Capturing Marketing Insights
Connecting with Customers
Build Strong Brands
Creating Value
Communicating Value
Delivering Value
Conducting Marketing Responsibility for Long-term Sucsess
Who markets? (pg7)
Marketers and Prospects
Marketers seeks a response such as attention, a purchase, a vote or donation from someone else which is the prospect
Key customer markets:
Consumer markets selling consumer goods and services i.e. cosmetics
Business Markets: selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings
Global markets, navigate cultural, langue, legal and political difference while deciding which countries to enter and how much, adjustments needed such as price and how to communicate
Nonprofit and Government Marketers, selling to non profit and limited purchasing power such as churches and universities need to price carefully
Marketing realities:
(pg13)
Technology
Globalization
Social responsibility
The 4 P's
Place:
Channels
Coverage
Assortments
Locations
Inventory
Transport
Promotion:
Sales promotion
Advertising
Sales force
Public relations
Direct marketing
Price:
List price
Discounts
Allowances
Payment period
Credit terms
Product:
Product variety
Quality
Design
Features
Brand name
Packaging
Sizes
Services
Warranties
Returns
Evolution of 4 P''s:
People (only as good as the people in the org)
Processes (avoid ad-hoc planning)
Programs (customer directed activities with all P's)
Performance (range of possibilities and outcome measures)
The 4 A's:
Acceptability
-Affordability
-Accessibility
-Awareness
What new capabilities have these forces given consumers and companies? (pg 16):
Marketing in practice:
Marketing balance (incorporating new digital approaches with traditional marketing plans)
Marketing accountability (ROMI)
Marketing in the organization (marketing is too important to leave to the marketing dept, every employee must be a part of marketing)