What is marketing?
an organizational function and a set of processes for creating, capturing, communicating, and delivering VALUE to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Four Elements of the Marketing Mix..
- Product- what does the customer want? What needs does it need to satisfy?
- Promotion- Where and when can you get across your marketing messages to your target market?
- Place- Where do customers look for your product at?
Utility- the sum of the benefits we receive from using a product/service
- Form Utility- raw materials to finished products
- Place Utility- Product's Availability (Location)
- Time Utility- Product's Availability (Delivery)
- Possession Utility- Owning and Using the Product
What's in the Value Chain?
Sustainable Competitive Advantage
- Locational Excellence- Being in conveinent places and easy to get to
- Operational Excellence- Efficient operations, excellent supply chain management
- Customer Excellence-
- Product Excellence - Being better than your competitors
is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro-forma income (and other financial) statements.
is a broad description of a firm’s objectives and the scope of activities it plans to undertake.
occurs by having products with high perceived value and effective branding and positioning.
uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.
stands for segmentation, targeting, and positioning, and is used to identify and evaluate opportunities for increasing sales and profits.
Sustainable Competitive Advantage?
an advantage over the competition that is not easily copied, and thus can be maintained over a long period of time.
- Stars- High Market Growth Rate and High Relative Market Share
- Question Marks- High Market Growth Rate and Low Relative Market Share
- Cash Cows- Low Market Growth Rate and High Relative Market Share
- Dogs- Low Market Growth Rate and Low Relative Market Share
Step 1 of the Marketing Plan
Business mission and objectives (Planning Phase)
Step 2 of the Marketing Plan
Situation Analyis, SWOT (Planning Phase)
Step 3 of the Marketing Plan
Identify Opportunities (Segmentation, Targeting, Positioning) (Implementation Phase)
Step 4 of the Marketing Plan
Implement marketing mix (Product, Place, Price, Promotion) (Implementation Phase)
Step 5 of the Marketing Plan
Evaluate performance using marketing metrics (Control Phase)
- Current Products and Services and Current Market- Market Penetration
- New Products and Services and Current Market- Product Development
- Current Products and Services and New Market- Market Development
- New Products and Services and New Market- Diversification
People act only in ways that maximize their own best interests.
People act in ways that pursue pleasure and avoid pain.
explains natural human motivation – human nature.
humans can make choices based on motivations which are higher than base instinct.
People should act in a way that seeks the best interests of others.
People should act in a way that maximizes the overall good of a situation.
Corporate social responsibility?
describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.
5 Steps in the Consumer Decision Making..
- Step 1- Need Recognition (Functional and Psychological needs)
- Step 2- Search for Info (Internal and External Search)
- Step 3- Evaluate Alternatives (Mental Shortcuts- Price, Brand, Product Presentation)
- Step 4- Purchase
- Step 5- Post Purchase
Maslow's Hierarchy of Needs..
Segmentation- 1. Strategy or Objectives 2. Segmentation Methods
Targeting- 3. Evaluate Segment Attractivesness 4. Select Target Market
Positioning- 5. Identify and Develop Positioning Strategy
- 1. Defining the Objectivces and Research Needs (Type of date and Type of Research)
- 2. Designing the Research (Secondary and Primary Data)
- 3. Data Collection Techniques- Exploratory Research= Observation, In-Depth Interviews, Focus Groups, Social Media...Conclusive Research= Experiments, Survey, Scanner, Panel
- 4. Analyzing Data and Developing Insights-
- How much faith should marketing managers place in research? Three key considerations include:
- –Validity – extent to which the research actually measures what was intended.
- –Reliability – the extend to which the research is free of errors.
- –Representativeness – extent to which sample is similar to target population.
- 5. Action Plan and Implementation
- Strengths- Helpful (internal)
- Weaknesses- Harmful (internal)
- Opportunties- Helpful (external)
- Threats- Harmful (external)
Kant's Categorical Imperative
“Act only according to that maxim by which you can at the same time will that it should become a universal law.”
Paraphrase: “My self-interest is enlightened if it would be a good thing for everyone to do what I am doing.”