Marketing - Week 1 Notes
Marketing - Week 1 Notes MARK 20100
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Popular in Marketing
This 5 page Class Notes was uploaded by Coty Miller on Monday January 25, 2016. The Class Notes belongs to MARK 20100 at University of Notre Dame taught by Gaski in Spring 2016. Since its upload, it has received 40 views. For similar materials see Principles of Marketing in Marketing at University of Notre Dame.
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Date Created: 01/25/16
Chapter 1 Marketing Creating and Capturing Customer Value Marketing H Social Bene ts 0 Sales Revenue D satisfying needs and wants raise sales means Costs Expenses D efficient use of resources lower costs ends 0 Idea selfinterested behavior tends to lead to a common good in a free market Wealth ofNations by Adam Smith 0 Command economy socialism government owns all types of production Our capitalist system relies on human nature 0 This is the system that s designed to work in free markets 0 Works because it relies on a dependable force selfinteresthuman nature Other type is socialism stated above 0 This type collapsed because it didn t have the same incentive to take care of resources or satisfy customers because it didn t have to worry about losing customers to a competitor because there was no competitor In this system companies couldn t sell products worldwide because the quality of the products were so bad 0 There was no way their decisions are going to match consumer preferences as well as when consumers themselves decide in a capitalist economy 0 Didn t work because it relied on benevolence 0 Consumer sovereignty when consumers in a free marketplace capitalist economy decide what s producedsold because it is marketbased on what consumers buy Consumers have veto power 0 You can t really successfully sell products and gain pro t that don t satisfy customers because customers won t buy a 2nCI time even if they bought the 1st bad product 0 Our official poverty rate 1215 0 There is always a bottom quintile o This takes into account ONLY cash transfers not noncash lf take into account noncash transfers 910 lf take into account also undergroundillegal income 56 0 This is calculated by income not wealth net worth lf take into account wealth because some have high wealth and low income 23 0 For society there s a reversal of means and ends 0 Means allow business to pursue pro t 0 Ends satisfaction 0 We cannot maximize customer satisfaction impossible o This would mean giving all products away for free 0 the means by which needs and wants of human life are satis ed 4 P s of Marketing 4 Main Functions Marketing Mix 0 The tools marketers use 0 Product a bundle of bene ts simple de nition a need satis er 0 Price 0 Promotion 0 Distribution Product 0 Don t think of product as a physical object o Nonphysical objects that are products service consulting work insurance etc 0 Products are goods and services Customer vs Consumer any actual or potential buyer 0 any individual or household who buys for personal use or consumption type of customer 0 Nonconsumers business institution retail store Notre Dame etc Back to Big Picture o If marketing has such a healthy xation on satisfying customers why is there so much dissatisfaction o 1 We can t maximize satisfaction 0 2 A lot is selfimposed because of human incompetence people make mistakes Example unrealistic expectations marketers faults o 3 Sometimes because of government interference when there is too much government regulation Examples government takes about 060 of 170 190gallon of gas where the oil company only gets about 008 o 4 Some people out there are trying to cheat their customers not marketing 0 1 common criticism of marketing It gets us to buy products we don t want 0 This is wrong because of Principle of exchange 0 V Value gt P Price or at least EV Expected Value gt P 0 Value of your want for product or the feeling of what buying it would result in means more the amount of money you must use to purchase product 0 Example don t want to buy textbook but it does have bene ts Convenience chance to pass knowledge 0 All of this adds up to V gt P o state of felt deprivation 0 So no difference in saying I feltthought or I wanted something and actually wanting something 0 Voluntary 0 Another common criticism Doesn t marketing create needs in the rst place So it naturally satis es needs because it created the needs in the rst place Difference between Needs amp Wants Needs things we absolutely have to have essentials Wants discretionary desires Urgency 0 Needs physiological o Wants psychological desires 0 But the less urgent wants can be felt more urgently than more urgent needs therefore can be more motivating example oxygen need but don t think about how we need it Speci city 0 Needs Generic o Wants Particular different levels of particularity 0 Examples Generic need for food but want for Big Mac Generic need for clothing but want for sweater Generic need for shelter but want for house or apartment 0 So no way marketing could create need because needs are a part of human nature so must have preexisted marketing 0 Can say that marketing creates wants that s the business of marketing Societal Marketing Concept o AKA social responsibility marketing should go beyond its traditional role satisfying customers and achieving a goal and do what s in the best interest of society 0 Do the right thing for common interest of society the common good 0 What s wrong with this concept I Selfinterest is absent which is a big incentive I How does anyone determine what s really in the interest of society 0 So should say want marketers to try to serve the public interest making the best guess and acting on that I What quality of decisionmaking are you going to get 0 Experts at satisfying customers not deciding on interest of people so because they are not experts they re decisions will not be good because they are not selfinterested and pro tbased 0 So resources wasted on bad decision which would result in higher prices lower wages fewerjobs or lowerquality products 0 Professor s advice let marketing stick to business and leave public policy to others 0 Social responsibility using marketing methods to try to get your social ideas accepted 0 Examples marketing idea of respectkindness March for Life Black Lives Matter 0 Transaction one s marketing idea doesn t want anything more than acceptance of the idea 0 Object is not pro t though sometimes need to raise money to get message out Cha ter 2 mgany and MarkgingMgiis Maior Concepts 0 a plan for using resources to achieve objectives 0 Example increasing awareness o Connotation of strategy fundamental longrange plan 0 deciding on the objectives and the resources to be used to obtain the objectives 0 Example for marketing increasing awareness through advertising 0 Strategic planning process of producing a strategy 0 Strategy the result of strategic planning o speci c actions undertaken to implementexecute the strategy 0 0 Marketing 0 O O 0 Examples for marketing TV ads radio ads pictures Connotation of tactics shortrange implementationexecution Strategy Marketing strategy elements 1 Selection of market targets What customers do we want to serve 2 Development of marketing mix How do we serve those customers through the 4 P s FOR EXAM Remember these 2 components of marketing strategy Starting point for thinking of any marketing problem Strategic Planning 0 0 Marketing Strategic Planning in Marketing Step 1 Resources Competitors Thinking about considering enumerating and identifying resources especially relative to competitors Step 2 Differential Advantage Opportunity When we nd that we have good resources relative to our competitors that identi es a being able to do something satisfy a need better than our competitors Looking for resource strength to identify opportunity Step 3 Mission Then we can decide on basic expression of what we need we re trying to satisfy and what bene ts we re trying to provide in marketing Step 4 Objectives Once we have a mission statement then we can derive our general objectives Examples sales market share return on investment Step 5 Strategy Then develop strategy for purpose of achieving those objectives Strategies Markets Existing New Products Market Development Market Penetration Existing Product Development New
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