Week 1 Notes MKTG
Week 1 Notes MKTG MKTG 3310-001
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This 6 page Class Notes was uploaded by William Burkett on Friday August 28, 2015. The Class Notes belongs to MKTG 3310-001 at Auburn University taught by MICHAEL KINCAID in Fall 2015. Since its upload, it has received 69 views. For similar materials see PRINCIPLES OF MARKETING in Business at Auburn University.
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Date Created: 08/28/15
Marketing notes 82515 Exam Tuesday sep 1st I What is marketing 0 The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return I Anything a company does to satisfy the customers needs with their product or services I Relationship value I Old view 0 Telling and selling I New view I Satisfying the customers needs 0 Goals 0 Attract new customers by promising superior value 0 Keep and grow current customers by delivering satisfaction 0 Understand the marketplace 0 What do the customers needwant 0 Design your product to fit that need I Need want 0 Need I Actual state goes down Effects your life I Need to restore state of life 0 Want I Opportunity to improve your actual state I How do marketers get you to buy what you don t need I Sell opportunity to be better 0 Turn want into need 0 Extra features only need a ip phone everybody has smartphones 0 Market driven strategy 0 Segmentation I Pick out a target audience 0 Differentiate I Make it appealing to the target audience 0 Superiority I Deliver a better product 0 Create customer delight I Exceed customer expectation 0 Understanding the Marketplace and the customer needs 0 Marketers must understand 5 core concepts I Needs wants demands 0 Research focus groups social media search results use to deliver value I Market offerings products services and experiences 0 Devise a product that meets the demand of the target audience I Value and satisfaction 0 Make it worth their while to buy your product and make it fit their needs I Exchanges and relationships I Markets 0 Needs 0 States of felt deprivation I Wants 0 The form human needs take as they are shaped by culture and individual personality 0 Demands 0 Human wants that are backed by buying power 0 Virtual Consumption 0 Have a need or a want but don t have the ability and opportunity to buy the product Imagination dreaming about a new car I Customer needs wants and demands 0 Types of needs I Physical 0 Food clothing warmth and safety I Social 0 Belonging and affection 0 Common opinion can change turn a person to a product or away from it I Individual needs 0 Learning knowledge and self expression 0 Market offerings product services and experiences 0 Some combination of products services information or experiences offered to a market to satisfy a need or want I Product place price and promotion 0 Marketing Myopia I The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by the products I Sell the benefit not the tool or product I Customer value and satisfaction 0 Customers form expectations about the value and satisfaction that various market offerings will deliver I If marketers set expectations too low they may satisfy those who buy but may not attract enough buyers 0 Markets all potential and actual buyers of a product or service Suppliers gt company competitors gt marketing intermediaries gt Final consumers 0 Designing a customer driven marketing Strategy 0 Designing a winning marketing strategy requires answers to the following questions I What customers will we serve what s our target market I How can we serve these customers best what s our value proposition 0 Value positioning statement value proposition For nontechnical marketers Who struggle to find ROI in social media Our product is a web based analytics software that translates engagement into revenue I Apple 0 For target consumer 0 Who statement of need 0 Our product is product category 0 That statement of benefit 0 Example 0 O O 0 For average people I Who want a simple product that works and fits basic needs I It is a computer product that fits basic internet and processing needs with good reliability 0 Marketing Management 0 The art and science of choosing target markets and building profitable relationships with them I Car companies have different models of cars to fit their consumers wants and needs I Chevy has different types of cars 0 Target markets refer to product lines 0 Marketing Management Orientations 0 Organizations design and carry out their marketing strategies under 5 alternate concepts I Production concept efficiency I Product concept marketing myopia focus on product features I Selling concept pushing the product to customer I Marketing concept focus on customer I Societal marketing concept what s good for society environmental not releasing production waste into pond etc 0 The societal Marketing concept 0 A company s marketing decisions should consider consumers wants the companies desires consumers long run interests and society s long run interests 0 Preparing an integrated marketing plan and program 0 Marketing mix tools I Product I Price I Place I Promotion 0 The firm must blend each marketing mix tool into a comprehensive integrated marketing program Thursday Aug 27 If it s not on the power point or wasn t discussed in class then it wont be on the test 0 Business portfolio 0 The collection of businesses and products that make up the company Designing the business portfolio 0 The company must I Analyze its current business portfolio or strategic business units SBU s should receive more less or no investment I Develop strategies for growth and downsizing that will shape the business portfolio Portfolio analysis the process by which management evaluates the products and businesses that make up the company 0 The purpose of analysis I To direct resources toward more profitable businesses while phasing out or dropping weaker ones 0 Basis of evaluation I Attractiveness of SBU s market or industry I Strength of SBU s position within that market or industry Value chain 0 The series of internal departments that carry out the value creating and delivering operations of the company The BCG growth share Matrix Y axis Market growth rate X axis Relative market Share High 0 Star 0 Question Mark low 0 cash cow 0 Dog 0 High 0 Low Stars need heavy investments to finance their rapid growth Cash cows need less investment to hold their market share Question marks require a lot of cash to hold their share let alone increase it 0 Dogs do not promise to be large sources of cash The productmarket expansion Grid OOOOOO O 0 Existing products 0 New products 0 Existing products 0 Market penetration 0 Product development 0 New markets 0 Market development 0 Diversification 0 Market penetration increasing sales of current products to current market segments without changing the product 0 Market development Identifying and developing new market segments for current company products 0 Product development offering modified or new product to current market segments 0 Diversification Starting up or acquiring businesses outside of the company s current products and markets Developing strategies for growth 0 Under armor has grown at a blistering rate under its multi pronged growth strategy I They have used all 4 growth strategies to grow Partnering with other company departments 0 WalMart s ability to help buyers save money Live better depends on the contributions of its value chain people in all of the company s departments Value delivery network O The network made up of the company its suppliers its distributers and ultimately its customers how partner with each other to improve the performance of the entire system 0 Marketing Strategy 0 How we hope to create value for you I The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships I Refer to the above form 0 Market segmentation O Dividing a market into distinct groups of buyers who have different needs characteristics or behaviors and who might require separate products or marketing programs 0 Market Segment I A group of consumers who respond in a similar way to a given set of marketing efforts Demographics Psychographics value attitude Social aspirations Behaviors 0 Benefits sought 0000 0 Market Targeting 0 The process of evaluating each market segment s attractiveness and selecting one or more segments to enter I Can I communicate with the group Can they support my investment Can they afford to buy my product I Positioning 0 Arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers I A hyper successful position alienates those that are not in the target market 0 Mini van Escalade Nike Jordan shoes 0 Differentiation 0 Actually differentiating the market offering to create superior customer value 0 Burt s Bees 0 Business developed by daughter of rich family who was kicked out I Earth friendly natural personal care products for the Greater Good a deceptively simple statement that forms the backbone of its marketing strategy 0 Marketing mix 0 The set of tactical marketing tools From sellers perspective I Product I Place I Price I Promotion 0 The firm blends to produce the response it wants in the target market 0 Product 0 Variety quality design features brand name packaging services 0 Price 0 List price discounts allowances payment period credit terms Promotion 0 Advertising Personal selling sales promotion Public relations Place 0 Channels Coverage Locations Inventory Transportation Logistics 4 Cs form the byers view 0 Customer solution 0 Customer cost 0 Convenience 0 Communication SWOT Analysis Internal Strengths internal capabilities that 0 Weaknesses internal limitations that may help a company reach its may interfere With a company s objectives ability to achieve its objectives External Opportunities external factors that 0 Threats current and emerging the company may be able to exploit to its advantage external factors that may challenge the companies performance Positive 39 Negative