2-4 What is marketing? Traditionally, marketing is the way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted. “An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”—American Marketing Association WHAT IS ADVERTISING?
2-13 Brand 1.Coca-Cola 2.Microsoft 3.IBM 4.General Electric 5.Intel 6.Nokia 7.Toyota 8.Disney 9.McDonald’s 10.Mercedes-Benz Market Value ($ Billions) $67 $57 $56 $49 $32 $30$28 $28 $22 Table 2.1 Most Valued Global Brands Source: Interbrand Group; quoted in “Best Global Brands,” Business Week, August 7, 2006, p. 54. Reprinted with permission.
2-17 The Marketing Plan Steps in the Marketing Process 1.Research the consumer marketplace and competitive marketplace and develop a situation analysis or SWOT analysis. 2.Set objectives for the marketing effort. 3.Assess consumer needs and wants, segment the market into groups, target specific markets. 4.Differentiate and position the product relative to the competition. 5.Develop the marketing mix strategy. 6.Evaluate the effectiveness of the strategy.
2-24 The Marketing Mix: Pricing Price is based on: –Cost of making and marketing the product and seller’s expected profit level –Also, based on what the market will bear, competition, economic well-being of customer, value of product, and the consumer’s ability to gauge the value Pricing strategies: –Customary pricing (e.g., movie theaters) –Psychological pricing for affluent customers