1-1 CHAPTER 1 Introducing Marketing

1-2 Important role marketing can play in the success of an organization. Organizations with successful marketing strategies share common characteristics. Different kinds of marketing. Strategic workings of marketing components.

1-3 It’s a way of thinking about business, rather than a bundle of techniques. Creates a consistent competitive advantage in order to “identify, satisfy and retain customers.” Helps create a relationship between people and products, customers and companies Monitors and makes necessary adjustments as the relationship changes. Contributes to the growth of the firm.

1-4 Planning and executing the conception Pricing Promotion Distribution of ideas, goods, services To create exchanges that satisfy customer and organizational objectives

1-5 Marketing is a functional area within an organization that deals with exchanges that take place in markets outside the organization.

1-6 Philosophy – “Customer Satisfaction” Reflected in - High quality products Fair pricing Convenience 100% satisfaction policy This has necessitated – High standard of production Efficient billing system Extensive, responsible communication networks Computerization, etc.

1-7 Marketing is most successful when the philosophy, tasks and manner of implementing available technology are coordinated and complementary with other functional areas within the organization.

1-8 Important to assess marketing’s role in the firm Provides career opportunities Helps create more effective consumers and citizens

1-9 Consumer content Attention to customers Company Capabilities Communication Competition Cross-functional contact Community Contact

1-10 The organization provides product, services or ideas to consumers that will satisfy their needs e.g., 3M

1-11 Monitor changing characteristics, values, interests and behaviors of customers Co-ordinate new products or increasing sales with needs of consumers Provide consumers with more value than competitors

1-12 Well coordinated functional areas Basic tools e.g., requisite plant capacity, technical know-how, capital, good management

1-13 Cues shape consumer attitudes and beliefs Cues come from organization, competitors, media like newspapers, T.V., Internet etc.

1-14 Communication with employees, particularly in service industries

1-15 Long-run and positive communication between company and customer groups e.g., British Airways

1-16 A company misidentifies its competition e.g. by assuming that their only competition is like-titled organization

1-17 Companies employ whatever means necessary, short of breaking law, to gather intelligence about competitors Internet acts as a key source of information

1-18 Marketers need holistic vision, cross- functional competency Cultivate knowledge about aspects of business that currently or potentially affect marketing’s success

1-19 Maintain contact with the environment within which the organization operate. Engage in pro- societal activities and conduct business in an ethical, responsible manner

1-20 Companies must play the marketing game Understand their competitor’s strengths and weaknesses SWOT analysis

1-21 Micro-marketing: success of the individual firm e.g., Wal-Mart’s pricing strategy Macro-marketing: economic welfare of every person and institution operating within the society e.g., Yen devaluation

1-22 Service products: intangible; consumed as produced; difficult to standardize; may require customer input e.g., US Bank Goods product: opposite in these criteria e.g., Nabisco International

1-23 For-profit measure success in terms of profitability, ability to pay dividends, or pay back loans Nonprofit organizations exist to primarily benefit society; special laws guide them e.g., Denver Art Museum

1-24 Mass: wide separation, indirect communication between manufacturer and ultimate user e.g., Sony Direct: establishes more personal connection e.g., Time magazine Internet – involves a completely different process for evaluation, decision-making, purchase and delivery of goods e.g., Trip.com

1-25 Local – close proximity, faster adjustments Regional – larger geographic area, more plants, distribution networks, more adjustments National – country-wide distribution, different versions of the marketing ‘mix’ and strategy

1-26 International – Concern for legal, cultural issues; product, sales people still from home country, profits repatriated e.g., Ford Global – more commitment, direct investment in host country e.g., Qwest

1-27 Consumer Goods : individuals consume finished product e.g., Kraft Industrial: other businesses or institutions that consume the product as part of the business; in assembly of final product e.g., IBM

1-28 Customer-centered orientation must be extended to other interacting function and institution- e.g., human resources, regulatory institutions

1-29 Monitors and reacts to changes in corporate plan Basic components – mission situation analysis objectives marketing mix/strategies implementation budgeting evaluation

1-30 “ Plans are nothing, planning is everything” -Dwight D. Eisenhower

1-31 Satisfy the customer Establish a clear company image Make marketing central to the organization Be proactive Develop a strategy consistent with the situation