Introduction to Marketing
Introduction to Marketing MKT 327
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This 10 page Class Notes was uploaded by Jeanette Orn on Saturday September 19, 2015. The Class Notes belongs to MKT 327 at Michigan State University taught by Forrest Carter in Fall. Since its upload, it has received 25 views. For similar materials see /class/207244/mkt-327-michigan-state-university in Marketing at Michigan State University.
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Date Created: 09/19/15
Class 1 What is Marketingquot Key TermsConcepts I The essence of marketing is to form 7 and 7 in order to create deliver and capture value in the marketplace 11 Marketing is the most comprehensive of all the business functions having also a critical role for 7 as a whole and for 7 of individuals Class 2 The Invisible Handquot Readings Marketing s Role in A Global Economy Key Terms MLket 7 group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and or services 7 a way of satisfying those needs 0 Central Market 7 convenient places where buyers and sellers can meet one onone to exchange goods and services Macro Marketing 7 a social process that directs an economy s ow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society Social mechanism or proces 7 marketing is an important social process marketing is both a set of activities performed by organizations and a social process Economic System 7 the way an economy organizes to use scarce resources to produce good and services and distribute them for consumption by various people and groups in the society Market Discrepancies 0 Quantity 7 producers prefer to produce and sell in large quantities Consumers prefer to buy and consume in small quantities 0 Assortment 7 producers specialize in producing a narrow assortment of goods and services Consumers need a broad assortment Market Separations o M 7 producers tend to locate where it is economical to produce while consumers are located in many scattered locations 0 m consumers may not want to consume goods and services at the time producers would prefer to produce them and time may be required to transport goods from producer to consumer Information 7 producers do not know who needs what where when and at 0 what price Consumers do not know what is available from whom where when and at what price Values 7 producers value goods and services in terms of costs and competitive 0 prices Consumers value them in terms of economic utility and ability to pay 0 Ownership 7 producers hold title to goods and services that they themselves do not want to consume Consumer want good and services that they do not own Universal Marketing Functions O O O O 0 Mg 7 looking for and evaluating goods and services Transportation 7means the movement of goods from one place to another Standardization and grading 7 involve sorting products according to size and quality this makes buying and selling easier because it reduces the need for inspection and sampling Financing 7 provides the necessary cash and credit to produce transport store promote sell and buy products Information 39 quot or quot 39 quot Selling 7 involves promoting the product selling advertising and other direct and massselling methods Mg 7 involves holding goods until customers need them Risk Taking 7 involves bearing the uncertainties that are part of the marketing process A rm can never be sure that customers will want to buy it s products Class 3 Marketing in Actionquot Readings Chapter 1 L0 l4amp5 Key TermsConcepts 0 Relationship Marketing 7 links the organization to it s individual customers employees suppliers and other partners for their mutual longterm bene t 0 In terms of selling a product relationship marketing involves a personal ongoing relationship between the organization and it s individual customers that begins before and continues after the sale 0 Huge manufacturers have difficulty with this 0 Online shopping loses that personal connection 0 Marketing Program 7 a plan that integrates the marketing miX to provide a good service or idea to prospective buyers 0 Discovering what the prospective customers need 0 This plan can be either favorable by buying or unfavorably by not buying Class 4 Core Conceptsquot Readings Chapter 1 L0 1amp2 Key Terms M7 to deliver genuine bene ts in the offerings of goods services and ideas marketed to customers Want Loyalty Satisfaction Basic Economic Utilities 7the bene ts or customer value received by users of the product 0 Form utility 7 production of the good or service Place utility 7 having the offering available where consumers need it Time utility 7 having it available when needed 0 O 0 Possession utility 7 the value of making an item easy to purchase through the provision of credit cards or financial arrangement Customer Value 7 the unique combination of benefits received by targeted buyers that includes quality convenience ontime delivery and both beforesales and aftersales service at a specific price Exchange 7the trade of things of value between buyer and seller so that each is better off after the trade Marketspac 7 an information and communicationbased electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitalized offerings Marketing Mix 7 elements of a mix that are the controllable factors 7 product price promotion and placecalled controllable factors because they are under the control of the marketing department in an organization 0 Promotion Communication17 a means of communication between the buyer and seller m 7 what is exchanged for the product Place Distribution17 a means of getting the product to the consumer Product 7 a good service or idea to satisfy the consumer s needs Efficiency 0 O O O 0 Effectiveness I A firm achieves growth by having its 7 rate be significantly higher than its 7 rate the opposite of retention rate II Marketers must identify its targeted community s 7 then through the effective execution of its marketing miX get potential customers to express those needs as 7that those customers have the 7 and the 7 to address thus creating a demand III 7 are transformed into 7 by successfully using the marketing miX variables to provide time 7 7 and ownership utilities and as a result create 7 Class 5 Overview of Planning Pt 1 Readings Chapter 2 L0 1 3 Key Terms 0 Types of Organizations 0 Business Films for pro t 7 privately owned organization that serves its customers to earn a pro t so that it can survive I m7 the money left after a business rrn s total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings 0 Nonpro t 7 nongovernmental organization that serves its customers but does not have a pro t as an organizational goal 0 Strategy 7 an organization s longterm course of action designed to deliver a unique customer experience while achieving its goals 0 Core Component 7 ultimate goal is to survive I Unique Position I Competitive Advantages I Adaptability 0 Dual Paths I Acguisition strategie 7 needs are recognized and turned into wants and demands bringing customers in Retention strategie 7 keep customers satis ed long enough for them to become loyal and then turned into relationships 0 Organizational Levels 0 Corporat 7 top management directs overall strategy for the entire organization top management usually means the board of directors and senior management of cers with a variety of skills and experiences that are invaluable in establishing overall strategy Strategic Business Unit SBU17 subsidiary division or unit of an organization that markets a set of related offerings to a clearly de ned group O of customers managers set a more speci c strategic direction for their businesses to exploit valuecreating opportunities 0 Functional 7 groups of specialists actually create value for the organization at this level organization s strategic direction becomes its most speci c and focused 0 Corporate Vision 0 Core Values 7fundamental passionate and enduring principles that guide an organization s conduct over time 0 Mission 7 statement of the organization s function in a society that often identi es its customers markets products and technologies 0 Corporate Philosophy Culture17 set of values ideas attitudes and norms of behavior that is learned and shared among members of an organization 0 Objectives statements of an accomplishment or task to be achieved often by a specific time 0 Marketing Goals objectives 0 Pro t and or ROI 7most firms seek to maximize profits 7 to get as high a financial return on their investments ROI as possible 0 Sales 7 if profits are acceptable a firm may elect to maintain or increase its sales even though profits may not be maximized 0 Market Share 7 the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry including the firm itself A firm may choose to maintain or increase its market share sometimes at the expense of greater profits if industry status or prestige is at stake 0 Growth Rate 0 QualityProduct Patent 7 a firm may offer the highest quality 0 Customer Satisfaction customers are the reason the organization exists so their perceptions and actions are of vital importance Satisfaction can be measured with surveys or by the number of customer complaints an organization receives Class 6 Overview of Planning Pt2quot Readings Chapter 2 L0 4 6 Key Terms 0 Corporate Vision 0 Core Values 0 Mission 0 Corporate Philosophy 0 Objectives 0 Strategic Directions I Core competenc 7 an organization s special capabilities 7 the skills technologies and resources that distinguish it from other organizations and provide customer value Growth diversi cation strategies 7 knowing where the organization is at the present time and allows them to set a direction for the rm and allocate resources to move in that direction Portfolio Strategie 7 technique managers use to quantify performance measures and growth targets to analyze their rms strategic business unites as though they were a collection of a separate investment 0 Information Foundation 0 Situation analysi 7taking stock of where the firm or product has been recently where it is now and where it is headed in terms of the organization s marketing plans and the external forces and trends affecting it o SWOT analysi 7 an acronym describing an organization s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats 0 Marketing Strategy 7 means by which a marketing goal is to be achieved usually characterized by a specific target market and a marketing program to reach it 0 Marketing dashboard 7the visual computer display of the essential information related to achieving a market objective 0 Marketing metric measure of the quantitative value or trend of a marketing activity or result 0 Segmentation 7 aggregating prospective buyers into groups or segments that have 1 common needs and 2 will respond similarly to a marketing action 0 Product position 0 Points of difference 7 characteristics of a product that make it superior to competitive substitutes 0 Marketing Tacti 7 daytoday detailed operational decisions essential to the overall success of marketing strategies 0 4 P sMarketing Mix Product 7features brand name packaging service warranty Prii7 list price discounts allowances credit terms payment period Promotion 7 advertising personal selling public relations sales promotion direct marketing Place 7 outlets channels coverage transportation stock level
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