Chapter One Book Notes
Chapter One Book Notes MKT 3010
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This 3 page Class Notes was uploaded by Nazifa Islam on Monday September 5, 2016. The Class Notes belongs to MKT 3010 at Clemson University taught by Carter Willis McElveen in Fall 2016. Since its upload, it has received 93 views.
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Date Created: 09/05/16
MKT 3010 Chapter One: Overview of Marketing What is Marketing? • The American Marketing Association states that “marketing is the activity, set of institutions, and the processes for creating, capturing, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large.” • Marketing plan: something that firms develop that illustrate their plan of activities for a certain period o The marketing plan has a few important key factors § How will the product be viewed/designed § How much will it cost § Where/how will it be promoted § How will we reach our audience • Core Aspects of Marketing o Marketing helps create value o Marketing is about satisfying customer needs and wants o Marketing entails an exchange o Marketing requires product, price, place, and promotion decisions o Marketing can be performed by both individuals and organizations o Marketing occurs in many settings • The marketplace refers to the world of trade o But it can be broken down into groups of similar interests • It is not practical for a marketer to be able to sell their product to everyone • Exchange: the trade of things of value between the buyer and the seller so that each is better off as a result. (This is what marketing is about) • Marketing Mix KNOWN as the 4 p’s: four interrelated sects that marketing is divided into 1. Product: Creating Value • Develop a variety of offerings: good, services, ideas • Goods: items you can physically touch • Services: intangible customer benefits that can’t be separated from the consumer (Buying a movie ticket TO watch the movie, not to just have the ticket) • Getting your eye examined (service), getting glasses (good) • Ideas: Concepts, opinions, and philosophies 2. Price: Capturing Value • EVERYTHING has a price • It’s everything the buyer gives up (money, time, energy) in exchange for a product • It’s important to figure out how much the customers are willing to pay so they’re satisfied and the seller gets a reasonable profit 3. Place: Delivering the Value Proposition • Get it to the right customer when they want it • Marketing channel management/supply chain management: set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction (maybe transportation companies) into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time while minimizing system wide costs and satisfying the service levels required by the customers. 4. Promotion: Communicating the Value Proposition • Inform, persuade, and remind potential buyers why your product is great § B2C (business-to-consumer) : Retailers will buy merchandise in bulk and sell it to you in smaller amounts § B2B (Business-to-business): Selling merchandise or services from one business to another § C2C: Consumers sell to other consumers § Production-Oriented Era: Around the turn of the 20 century, most firms believed that a product would sell itself o Didn’t really care about satisfying the individual needs of a customer § Sales-oriented Era: Between 1920 and 1950 o People became more self-sufficient and did things on their own instead of needing to go out and buy it § Marketed-Oriented Era: After World War 2. Started focusing more on what consumers wanted and needed. § Value-Based Marketing Era: Most successful firms these days. o Want to give customers greater value than their competitors did o Value: reflects the relationship of benefits to costs, or what you get for what you give. o Value cocreation: Customers act as collaborators with a manufacturer or retailer to create the product or service How Do Marketing Firms Become More Value Driven? 1) Sharing Information Ø Marketers share information about customers and competitors Ø Collect purchase information and research customer trends 2) Balancing Benefits with Costs Ø Use available customer date to find opportunities to satisfy customers Ø Satisfying customers, keeping costs down, and developing long-term loyalties is key 3) Building Relationships with Customers Ø Relationship orientation: A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship Ø Firms focus on the lifetime profitability of the relationship, not just one transaction o Apple making all of their new phones with the same charger attempts to build this relationship Ø Customer Relationship Management (CRM): A business and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers. § Only 10 percent of the world’s population uses Facebook. § Supply chain/marketing channel: Group of firms that make and deliver a given set of goods and services § Entrepreneurs: A person who organizes, operates, and assumes the risk of a new business venture. o Key is to satisfy unfilled needs (Netflix, amazon, OWN)
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