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This 8 page Class Notes was uploaded by Amy Turk on Sunday June 5, 2016. The Class Notes belongs to BUS 10123-002 at Kent State University taught by Dr. Diane DeRubertis in Spring 2015. Since its upload, it has received 14 views. For similar materials see Exploring Business in Business at Kent State University.
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Date Created: 06/05/16
MARKETING ● Group of activities designed to expedite transactions by ○ Creating ○ Distributing ○ Pricing ○ Promoting ● Goods, services, and ideas ● Creates value by allowing individuals and organizations to obtain what they need or want The Exchange Process ● An exchange ● Giving up one thing (money, credit, labor, goods) ● In return for another (goods, services, ideas) Marketing Goals ● Satisfy customer needs ○ Achieve business objectives ○ Boost productivity ○ Reduce costs ○ Capture market share ● To satisfy needs = creating value Creating Value ● Benefits ○ Product = service buyer receives in the exchange ● Costs ○ Anything a buyer gives up to obtain the product ■ Service’s benefit ● Value ○ Buyer’s assessment of benefits relative to costs in determining the worth of a product ● Customer value = customer benefits - customer costs The Marketing Concept ● Idea that an organization should try to satisfy customer’s needs through coordinated activities that also allow it to achieve its own goals Evolution of the Marketing Concept ● Production orientation = 19th century ○ Attaining manufacturing efficiency ● Sales orientation ○ Early 20th century ○ Supply exceeds demand = a need to sell products exists ● Product orientation ○ 1950s ○ Determining customer needs ● Market orientation ○ 1970s ○ Determining customer needs Product Orientation ● Focuses on MRP ● Gathering info about the product ● Shares it across the firm ● Uses it to determine KSA’s and required technology to support the product Market Orientation ● Focuses on CRM ● Gathering info about customer need ● Shares it across the firm ● Uses it to build long-term relationship Marketing Strategy ● An action plan for ○ Developing ○ Pricing ○ Distributing ○ Promoting products ● Meet the needs of specific customers ● The 4 p’s ○ Product ○ Price ○ Place ○ Promotion The Marketing Mix ● Keys to developing effective marketing strategy ○ Maintain right marketing mix ○ Satisfy target market ○ Developing long-term customer relationships ● Successful companies have at least one dimension of value that surpasses all others The Market ● Group of people who have a need, purchasing power, the desire and authority to spend money on goods, services, and ideas ● Target market = specific group of consumers company wants to focus its marketing efforst ● Niche market = narrower segment focus usually a smaller well-defined group with a unique and specific set of needs ● Market segmentation = collection of individuals, groups, or organizations having relatively similar needs and desires for products Market Segmentation ● Collection of people, groups, or organizations having relatively similar needs and desires for products ● Demographic ● Geographic ● Psychographic ● Behavioristic Market Strategies ● Firm develops one approach to appeal to all consumers - assume all have similar needs ● Firm develops a single marketing approach for a single target market ● Firm develops differing marketing approaches for different target markets Marketing Research ● Systematic and objective process to collect info about potential customers ● Surveys ● Focus groups ● Interviews ● Libraries ● Gov’t agencies ● Trade associations Emergence of Digital Marketing ● E-business = 1990s ○ Carry business using the internet ● Digital media = mid 2000s ○ Electronic media that functions using digital codes ● Digital marketing = 2012 ○ Using digital media to develop communications and exchanges with customers Benefits of Digital Communication ● Allowed companies to… ○ Lower costs and increase the speed of communication and transactions ○ Create new ways to distribute goods ○ More precisely target markets and reach new markets worldwide ○ Become interactive with customer and obtain feedback faster ● Similar to traditional marketing Product ● A good service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumers ● The most visible variable of the marketing mix Product Development Process ● Idea generation ● Product screening ● Concept testing ● Business analysis ● Product development ● Testing marketing ● Commercialization Product Considerations ● Product focused or market focused ● customers/targets ● Trying for a new market or upsell to current ● Opportunities or problems to be solved ● Business objectives you want to achieve ● Competition ○ Their level of product and service quality ● Digital media ● Product line = group of closely related products that are treated as a unit because of a similar marketing strategy or production ● Product mix = all the products offered by the category Classifying Products: Consumer ● Convenience ○ Widely available for immediate consumption ○ Purchased without research ○ Gallon of milk ● Shopping ○ Comparative in nature ○ Price, features, quality, style, service, and image all influence the decision to buy ○ Clothing, furniture ● Specialty ○ Price not strong consideration ○ No willingness for substitutes ○ Buyer knows what they want ○ Designer clothing, art, antiques Classifying Products: Business ● Used directly or indirectly ○ Raw materials ○ Major equipment ○ Accessory equipment ○ Component parts ○ Processed materials ○ Industrial services Identifying Products ● Branding = is the process of identifying products ○ Name ○ Term ○ Symbol ○ Design ● Trademark = a brand registered with us patent and trademark office ○ Protected from use by any other firm Brand Categories ● Manufacturer brands = initiated and owned by the manufacturer to identify products from production to point of purchase ● Private distributor brands= cost less than manufacturer brands ○ Owned and controlled by wholesaler or retailer ● Generic products = no brand name, often come in simple packages, and carry out their generic name Packaging ● External container that holds and describes the product ● Protection ● Economy ● Convenience ● Promotion Labeling ● Presentation of important info on the package (often by law) ● Ingredients or content ● Nutrition facts ● Care instructions ● Suggestions or use (recipes) ● The manufacturer’s address and toll-free number ● Website ● Price = a value placed on a product or service that is exchanged between a buyer and a seller Pricing Strategy ● Maximize profits and sales ● Boost market share ● Maintain the status quo ● Survival ● New product pricing ○ Price skimming ○ Penetration pricing ● Psychological pricing ○ even/odd ○ symbolic/prestige pricing ● Price discounting ○ Quality discounts ○ Seasonal discounts ○ Promotional discounts ● Price comparison = allows consumers to compare prices to find the best deals Price Considerations ● Price is the most flexible element of the marketing mix ● Discounts and sales can be quickly communicated ● Deals websites allow consumers to compare prices of products ● Digital media can enhance a product’s value by providing service, info, and convenience ● Competitor’s price Distribution ● The least flexible element of marketing mix ● Method used to get a product or service through various distribution channels to the ultimate purchaser or end-user ● How and where the consumer buys the product or service Distribution Strategy ● Commits resources and establishes contractual relationships ● Difficult to change ● Expansion into new markets may require new distribution strategy ● Marketing channel = group of interdependent organizations that moves products/services from the producer to the end buyer or user ● Retailers= buy products from manufacturers and sell them to customers for uses other than resale ○ Direct to buyer ● Wholesalers = intermediaries that buy from producers or other wholesalers and sell to retailers ○ Middlemen ● Supply chain = the interrelated systems involved in moving a product or service from supplier to customer ● Transforms raw materials and components into a finished product that is delivered to the end customer ● Supply chain management ○ Goal of matching supply and demand in the most effective way ■ Mission impossible ● Marketing channels = most channel options involve at least one marketing intermediary Retailers ● Department stores ● Discount stores ● Convenience stores ● Supermarket ● Hypermarket ● Warehouse club/showroom ● Dual distribution= movement of product through more than one channel ○ Used to maximize the firm’s coverage or to increase cost-effectiveness ● Reverse channels = channel designed to return goods to the producer ● Product considerations ○ Unit value ○ Perishability ○ Size, bulk, and weight ○ Standardization ● Company considerations ○ Market standing ○ Financial resources ○ Management ○ Volume of production ● Market considerations ○ Consumer or business ○ Number of locations ○ Size and frequency of order ○ Buying habits ● Middlemen considerations ○ Availability ○ Attitudes ○ Services ○ Sales potential Physical Distribution ● Transportation ○ The shipment of products to buyers ○ Railroads, trucks, air, and pipelines ○ Factors to consider: ■ Cost ■ Capability to handle the product ■ Reliability ■ Availability ● Warehousing ○ Design and operation of facilities to receive, store, and ship products ● Materials handling ○ Physical handling and movement of products in warehouses and transportation ○ Can increase efficiency and reduce costs
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