BA 390, Week 1 Session 2
BA 390, Week 1 Session 2 BA 390
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This 5 page Class Notes was uploaded by Samantha Tucker on Thursday January 14, 2016. The Class Notes belongs to BA 390 at Oregon State University taught by Toombs in Winter 2016. Since its upload, it has received 197 views. For similar materials see Marketing in Business at Oregon State University.
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Date Created: 01/14/16
BA 390 Week 1 Session 2 Chapter 1 What is Marketing? A process by which companies create value for customers and build strong customer relationships to capture value from customers in return. Marketing Process 1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delights 5. Capture value from customers to create profits and customer equity Understanding the Marketplace and Customer needs Needs o States of deprivation Physical—food, clothing, warmth, safety Social—belonging and affection Individual—knowledge and self-expression Wants o Form that needs take as they are shaped by culture and individual personality Demands o Wants backed by buying power Understanding the Marketplace and Customer Needs Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or wants Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Maslow’s Triangle: physiological, safety, love/belonging, esteem, self-actualization Marketers o Set the right level of expectations o Not too high or low Customers o Value and satisfaction Exchange is the act of obtaining a desired object from someone by offering something in return Marketing actions try to create, maintain, grow exchange relationships. Markets are the set of actual and potential buyers of a product Company Marketing Suppliers intermediaries Consumers Competitors Designing a customer-driven marketing strategy Marketing management is the art and science of choosing target markets and building profitable relationships with them. o What customers will we serve? o How can we best serve these customers? o Keystone and Coors example Selecting customers to serve: Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Choosing a Value Proposition o A brand’s value proposition is the set of benefits or values a company promises to deliver customers to satisfy their needs. Marketing management orientations o Production concept: (Lowest marginal cost): consumers will favor products that are available and highly affordably (Walmart) o Product concept (Monopoly price): Consumers favor products that offer the most quality, performance, and features Focus is on continuous product improvements (Apple) o Selling concept: Consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort Model T ford o Marketing concept: Knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do Amazon Prime: knows we’ve lost our patience, targets students knowing they will make lots of money after graduating college which they in turn can invest in amazon’s services. Newest concept has everyone scared Preparing an Integrated marketing plan and program The marketing mix: Set of tools (four Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place Integrated marketing program: comprehensive plan that communicates and delivers the intended value to chosen customers Building customer relationships Customer Relationship Management (CRM) o The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction (Amazon Prime) Relationship Building Blocks: Customer Value and Satisfaction o Customer-perceived value The difference between total customer value and total customer cost o Customer satisfaction The extent to which a product’s perceived performance matches a buyer’s expectations. Customer Relationship Levels and Tools o Basic Relationships o Full Partnerships The Changing Nature of Customer Relationships o Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers. o Relating more deeply and interactively by incorporating more interactive two way relationships through blogs, websites, online communities, and social networks. Capturing Value from Customers Creating customer loyalty and retention o Customer lifetime value: the value of the entire stream of purchases that the customer would make over a lifetime of patronage. Growing share of customer o Share of customer: portion of the customer’s purchasing that a company Building Customer Equity o Right relationships with the right customers involves treating customers as assets that need to be managed and maximized. o Different types of customers require different relationship management strategies. Digital age o Online marketing is the fastest-growing o Click-and-mortar companies are evolved (Prime, uber, Walmart) Chapter 2: Company and Marketing Strategy Partnering to Build Customer Relationships Companywide Strategic Planning Strategic planning: the process of developing and maintain a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. Steps in Strategic planning o Defining the company missions o Setting company objectives and goals (corporate level) o Designing the business portfolio o Planning marketing and other functional strategies (business unit, product, and market level) Defining a Market-Oriented Mission o The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment o Market-oriented mission statement defines the business in terms of satisfying basic customer needs o Google: We help you organize the world’s information and make it universally accessible and useful Developing Strategies for Growth and Downsizing: Product/Market Expansion grid o Looks at new products, existing products, new markets and existing markets for company growth opportunities. Market Penetration Market Development Product Development Diversification Developing Strategies for Growth and Downsizing o Downsizing: prune, harvest, or divest businesses that are unprofitable or that no longer fit the strategy. o Ex: Kraft & Heinz merger; combined and lose marginal cost, downsized. o Safeway & Albertson’s merged to cut costs Planning Marketing Partnering to Build customer relationships o Value chain: is a series of departments that carry…. o Value delivery network… Marketing strategy and the Marketing mix: Market segmentation: the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes. Market segment: a group of consumers who respond in a similar way to a given set of marketing efforts. Developing an integrated marketing mix o Marketing mix: the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market. Product Variety Quality Design Features Brand Name Packaging Services Price List price Discounts Allowances Payment period Credit terms Promotion Advertising Personal selling Sales promotion Public relations Place Channels Coverage Assortments Locations Inventory Transportation Logistics
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