Chapter 1 - Overview of Marketing.md

Chapter 1 - Overview of Marketing

marketing: an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders

marketing plan: 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 Ps, action programs, and projected or pro forma income (and other financial) statements

Marketplace can be segmented or divided into groups of people who are important to an organization for particular reasons
- i.e., men versus women
Although marketers would prefer to sell their products and services to everyone, it is not practical to do so
- marketing costs money
- good marketers carefully seek out potential customers who have both an interest in product and ability to buy it

exchange: the trade of things of value between the buyer and the seller so that each is better off as a result
Exchange: The Underpinning of Seller – Buyer Relationships

Marketing traditionally has been divided into a set of four interrelated decisions and consequent actions known as the...
marketing mix (four Ps): Product, price, place, and promotion – the controllable set of activities that a firm uses to respond to the wants of its target markets
The Marketing Mix

Fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs
goods: items that can be physically touched
- shoes, coke, iPad, etc.
service: intangible customer benefits that are produced by people or machines and cannot be separated from the producer; any intangible offering that involves a deed, performance, or effort that cannot be physically posessed
- atmosphere, concerts, etc.
- When people buy tickets, they are paying not for the physical ticket stub, but for the experience they gain
Many offerings in the market combine goods and services.
ideas: intellectual concepts – thoughts, opinions, and philosophies
- marketing "ideas" – such as through presentations and people purchase when they follow through with idea

Everything has a price, although it doesn't always have to be monetary.
Price is everything the buyer gives up – money, time, and/or energy – in exchange for the product.
Marketers must determine the price of a product carefully on the basis of the potential buyer's belief about its value.

Represents all the activities necessary to get the product to the right customer when that customer wants it.
- For Starbucks, it means expanding its storefronts constantly and proactively
Place more commonly deals specifically with retailing and marketing channel management, also known as supply chain management
Supply chain management: the 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 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 systemwide costs and satisfying the service level required by the customers.

Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response.
Can generally enhance a product's or service's value.

Marketing intermediaries, such as retailers, accumulate merchandise from producers in large amounts and then sell it in smaller amounts.
business-to-consumer (B2C) marketing: the process in which businesses sell to consumers
business-to-business (B2B) marketing: the process of buying and selling goods or services to be used in production of other goods and services, for consumption by the buying organization, or for resale by wholesalers or retailers
consumer-to-consumer (C2C) marketing: the process in which consumers sell to other consumers
Individuals can undertake activities to market themselves
- resumé and the cover letter you submit, the way you dress for an interview, etc.
Marketing can be performed by both individuals and organizations

Although marketing is a way to facilitate the sale of products to customers or clients, it can also affect other stakeholders
- i.e., supply chain partners, society at large
Partners in the supply chain include wholesalers, retailers, or other intermediaries such as transportation or warehousing companies
- All of these entities are involved in marketing to one another
Marketing also can aim to benefit an entire industry or scoiety at large
- Dairy industry target its "Milk Life" and "Body by Milk" campaigns at different target segments (children, adults, etc.) and benefits milk industry and society at large.

During the turn of 20th century, most firms were production oriented and believed a good product would sell itself.
- Manufacturers were concerned with product innovation, not with satisfying needs of individual consumers
- "Customers can have any color they want so long as it's black"

Depended on heavy doses of personal selling and advertising to overcome overproduction in an era of lower consumption

Consumers had choices: make purchasing decisions on the basis of factors such as quality, convenience, and price
Manufacturers and retailers thus began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products and services.

Most successful firms today are market oriented – have transcended a production or selling orientation and attempt to discover and satisfy their customers' needs and wants.
Good marketing is more than simply discovering and providing what consumers wanted and needed; to compete successfully, they would have to give their costumers greater value than their competitors did
value: reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives
Customers seeks a fair return in goods/services for their hard-earned money and scarce time.
They want products/services that meet specific needs or wants and offered at a price they believe is a good value.
A creative way to provide value to customers is to engage in...
value cocreation: customers act as collaborators with a manufacturer or retailer to create the product or service
- when clients work with their investment advisors, they cocreate their investment profolios
- NikeID sneakers