MKT 319 - chapter 1
Were the world's most ethical firms still profitable in 2008?
Yes.
EXAMPLE
Coca-Cola has demonstrated a commitment to using each of the four Ps - product, price, place, and promotion - to drive global success. As the influence of firms like Coca-Cola spreads around the world, they must increasingly focus on their responsibility to conduct themselves as good corporate citizens and behave ethically in their dealings with those affected by the company's actions at home and abroad.
Most successful firms that excel at managing their supply chains efficiently and have made delivering value a competitive advantage in their industries:
Coca-Cola, Walmart, UPS.
PLACE includes the activities a firm undertakes to make its product available to potential consumers.
Companies must be able to distribute products to customers where they can buy and consume them without difficult. Even if you have the right product at the right price, if customers cannot easily purchase the product they will likely find a substitute.
GREATER DEMAND ON COMPANIES
- Corporate Social Responsibility - Stakeholder Responsibility
The Value of Marketing consists of three components:
1. Creating Value (perceived benefits known as customer value) 2. Communicating Value 3. Delivering Value
Starting salaries for this year's business grads grew by 8% to $55,635.
Average starting salaries for the class of 2013 rose 2.4% to $45,327
What is logistics?
That part of the supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.
Wants
The form of human needs take as they are shaped by personality, culture, and buying situation.
Brand
The name, term, symbol, design, or any combination of these that identifies and differentiates a firm's product.
Customer Value
The perceived benefits, both monetary and non monetary, that customers receive from a product compared to the cost associated with obtaining it.
Stakeholder Responsibility
The obligations an organization has to those who can affect whether or not the firm achieves its objectives. - Firms have responsibilities to a variety of internal and external stakeholder groups.
What is the importance of technology as it relates to the future of marketing??
- As technology and other changes impact the business world, firms will need to explore new models that address what customers want and how they prefer to receive information. - To create, communicate, and deliver value, marketers must use all the tools and strategies at their disposal to satisfy the needs and wants of customers.
The Marketing Mix: The Four P's
- Price - Product - Place --> Distribution - Promotion The marketing mix represents everything that a firm can do to influence demand for its good, service, or idea. The four Ps of the marketing mix provide marketers with the tools to increase customer awareness, sales, and profitability. The marketing mix typically begins with the product because, without it, a firm has few, if any, decisions to make when it comes to price, place, or promotion. Executive Perspective: Of all elements in the marketing mix, promotion is probably themes critical. We are part ad agency and part retail-strategy consultant.
Consumer wants/needs/ demands (understand what they are and why they are important)
- The difference between needs and wants impacts the way companies market their product to customers. - Marketers do not create needs; they are a basic part of our human makeup.
Global Marketing
A marketing strategy that consciously addresses customers, markets, and competition throughout the world. - Global forces impact every marketing decision - 1 in every 9 jobs in U.S. is supported by exports. - In 2012, U.S. exports worth more than $2 trillion. - U.S. world's leading exporter of beef, wheat, corn, and copyrighted material. - Exports account for 14% of total U.S. economy.
Relationship Marketing
A marketing strategy that focuses on attracting, maintaining, and enhancing customer relationships. - Marketers create value for customers when they develop products that allow consumers to satisfy their needs and wants through exchange relationships.
Corporate Social Responsibility
An organization's obligation to maximize its positive impact and minimize its negative impact on society. CSR is expanding to include a wide range of initiatives, such as creating corporate charitable foundations, supporting minority activities, and demanding responsible business practices throughout the organization. The most admired companies in the world that consistently issue CSR reports and publicize CSR initiatives are: Disney and Nestle.
Marketing
An organizational function and set of processes for creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its employees, customers, investors, and society as a whole.
Nonprofit Organizations employ about one in ten American workers or 13.5 million people and they continued to employ and even hire workers during the recession that began in late 2007.
As with for-profit firms, marketing efforts are an essential part of the success of nonprofit organizations. Successful marketing helps nonprofit organizations, including hospitals, charities, universities, zoos, and churches, attract membership and much-needed funds.
Why can Apple charge higher price than its competitors without fear of losing sales?
Because of the value customers place on Apple products.
Exchange
An activity that occurs when a buyer and seller trade things of value so that each is better off as a result. EX: Customers who purchase online from Amazon exchange information like their email address and mobile phone numbers, which allows marketers to target them for a future exchange when new products are released.
Ethics
Moral standards expected by a society. EX: Enron completely ignored ethical standards. The consequences of not adhering to an ethical code can be serious. Ignoring ethical considerations has destroyed some of the largest companies in the world over the past 15 years, including Enron, telecommunications giant WorldCom, Arthur Andersen, and AIG Marketers may confront decisions that will boost short-term sales at the expense of the long-term reputation of the company and should weigh all ethical considerations of the marketing mix Employees may have to choose between the short-term benefit of a commission and the potential long-term damage to their personal brand if they don't adhere to ethical standards
EXAMPLE
Most people need transportation of one kind of another; it's marketing's job to satisfy that need in a way that also meets the customer's wants, perhaps for a luxury car.
What specifically do you think are the contributing factors to the most ethical firms making positive returns even in times of a recession?
Open Ended.
PROMOTION is all the activities that communicate the value of a product and persuade customers to buy it.
Promotion includes advertising, public relations, personal selling, and sales promotion A successful firm's whole promotional strategy is better than the sum of its parts. It effectively integrates advertising, public relations, personal selling, and sales promotion to communicate a product's value to potential customers An integrated approach will always be important to the success of a promotional strategy, but in recent years, the way a firm executes its promotional activities has evolved The term social media refers to a group of Internet-based applications that allow the creation and exchange of user-generated content. Firms that use social media for promotion try to create content that attracts attention and encourages readers to share the content with their social networks Social media communication is driven by word of mouth, meaning it results in free media rather than paid media. It's also become easily accessible to anyone with Internet access
PRICE is the amount of something - money, time, or effort - that a buyer exchanges with a seller to obtain a product.
Setting price is one of the most important stategic decisions a firm faces because it relates to the value consumers place on the product. Pricing is typically the easiest marketing mix element to change, making it a powerful tool for firms looking to quickly adjust their market share or revenue. Revenue is a function of the price of a product multiplied by the number of units sold. If the firm sets the price too high, it will sell fewer units, thus reducing revenue. If the firm sets the price too low, it may sell more units, but could still see a reduction in overall revenue if the money earned from the additional units sold isn't enough to offset the lower price.
Needs
States of felt deprivation. Consumers feel deprived when they lack something useful or desirable like food, clothing, shelter, transportation, and safety.
Global Marketing (continued)
Exports account for 14 percent of the total U.S. economy The idea of globalization, the increasingly interconnected nature of the world economy, evokes different reactions from different people International trade agreements, such as the North American Free Trade Agreement (NAFTA) that relaxed trade restrictions between the U.S., Canada, and Mexico, can be viewed both positively and negatively depending on an individual's circumstances Less than 5% of the world's population lives in the United States, which leads marketers to seek ways to promote and sell their products to the billions of potential consumers living outside the U.S. Global marketing is a marketing strategy that consciously addresses customers, markets, and competition throughout the world Brand refers to the name, term, symbol, design, or any combination of these that identifies and differentiates a firm's products
Prior to the 1920's, most firms throughout the United States and the rest of the developed world focused on production.
Henry Ford's production line innovation and success manufacturing the Model A automobile represents perhaps the height of the production orientation, during which firms believed that quality products would sell themselves.
EXAMPLE:
Hershey's marketing dealt with at first no marketing whatsoever. In the 1960's when M&M and Mars were coming up, that's when competition forced them to start marketing.
PRODUCT is a specific combination of goods, services, or ideas that a firm offers to consumers.
Products can also take the form of services, such as those provided by an attorney or electrician, or ideas, like those offered by a consultant.
The Key ingredient for creating value is....
providing consumers with benefits that meet their needs and wants. A firm must communicate not only what its product is but what value that product brings to potential customers.