MAR3023 Exam 1

Day 2:
What is marketing? The process of creating, promoting,
distributing, and pricing goods, services, and ideas to facilitate
satisfying exchange
-Marketing is the answer to the question of why you buy a
product.
-The aim of marketing is to make selling unnecessary
What makes a product good? Why do so many people want to
buy it?
-Product Benefits (taste and caffeine Starbucks coffee for
example, or taking cooler selfies)
-Product Placement( Starbucks coffee is everywhere)
-Price, The right $ is not always the low $. Exclusivity for example
(starbucks is expensive so it makes people think its exclusive and
it develops a quality Perception).
The 4 Ps : Product, Price, Place, Promotion

Product development is a core marketing function. Without a

good product, a firm cannot be successful. The first goal of
marketing is to identify unmet consumer needs and then develop
products that fill those needs.
Price. Identifying the price that maximizes revenue is also part of
marketing.
-Price is important as it connects marketing to finance,
economics, and accounting because price dictates profit margin
which drives all financial indicators.
Place. Making your product accessible by placing it in short reach
of the consumers. A good product wont maximize potential sells
if you only sell it in one city, no ones going to drive from Tally to
Atlanta to buy a coke.
Promotion. Some say you dont need promotion if the first of the
three Ps are successful (aasics, 4Rivers, and Krispy Kreme dont
advertise, the product is so good they dont need to advertise
because their sales are still high). Developing new and trendy
products that the consumers have never seen and revolutionizes
the market( Spanx for example). Promotion isnt just
advertisement through commercials and posters, Game changer
in pricing and distribution is considered promotion (redbox
putting blockbuster out of business due to making movies
cheaper and more accessible.)

Marketing is the foundation of every business!

-So we talked about product, price, and distribution of marketing
so farstarted with these as most people forget they are the
jobs of marketers
how being successful in these 3 makes promotion
unnecessary
realistically not the case
So now switch gears to promotion the visible part of marketing
tip of the iceberg why do we need it?
Answer: 1. Time/Reality (Over time, the market reacts with
competitor proucts that have similar benefits, so marketing
is needed for an edge).
2.Its a powerful tool (Brands are powerful tool in
expressing consumers, for example Nike is considered
cool because it is a popular brand due to its constant
advertisement). Another example is Fiji water compared to
Walgreens brand water, both are basic H20, but Fiji has a
brand name that is priced higher which people buy).
3. It worksreally well ( consumers dont buy unfamiliar
products)
Marketing is the process by which companies determine what
products or services may be of interest to customers, and the strategy
to use in sales, communications and business development.
- Phil Kotler
The aim of marketing is to make selling unnecessary Peter Drucker
Day 3:

Branding:
-Interestingly all cheaper products rated higher or as good
as the brand name brands
happens very often
So you might ask, how does this happen? Why do we
believe the more expensive products are better when
consumer reports clearly indicate they are not?
Firms spend lot of money to make you believe the
brand has value, so can charge more with a higher
profit margin
Same thing happened with these products not surprising
to me
Difference is the amount of money these companies
spending on promotion ITS POWERFUL and very effective

History of Marketing:

-Simple Trade Era (Pre-1860s) Some form of marketing, just looked like
nothing today. Had to make it, grow it, shoot it, traded
VERY inefficient if wanted to variety had to make yourself, which is
difficult to do. This lasted up until industrial revolution.
-Production Era( Pre-1920s) Led to production era
Signfies in the sense that people had access to very few products still,
so sellers could really dominate the market in that they could decide
availablity since their demand was so high. I dont want to say they
had a monopoloy, but good products like the model T ford were so new
and unique the seller could pretty much demand what they wanted.
Demand high as buying products much easier than making it
Consumers did not have many alternatives. Little competition
Main thing was to get your manufacturing processes correct, didnt
have to worry about promotion, or even what the consumer wanted
-Sales Era (1920s) people buying buying and buying up until the great
depression. Went from situation where had money to spend and then
become risk averse and dont have money to spend. so all these
products from the production era (like the model t) were being mass
produced, but no longer flying off the shelves racking un in inventory.
Results in the sales era as now have to convince people to buy had
to change minds about not spending their money. Where stereotype
comes from of aggressive promotion now going to sell what we make,
not make what we sell.
Focus on short term profit maximization just trying to keep doors
open

-***The Marketing Era (1940s-1990s) Interesting because

so far have not really mentioned consumers yet, because
before the marketing era, companies were not really
concerned about the consumers
in production era didnt need to be going to buy
regardless
in sales era, only concerned about funneling down
the distribution channel. Now actually worry about what
customers wanted. Customer central focus
Key Terms that came out of the marketing era:
-Costumer Centric Marketing: collaborative relationships
based on customers individual needs and concerns
-Relationship Marketing: long term mutually satisfying,
buyer seller relationships.

-Customer Relationship Management: using information

about customers to develop and sustain desirable
customer relationships.
-Green Marketing: maintaining, supporting, and enhancing
the natural environment.
-Relationship Marketing Era (1990s-2010) Not only focus on what they
want, need long term relationships with them.
Not short term profits, want them for the long hall. Lock customers into
our product. Things like rewards cards and frequent flyer miles came
out did not exist before the 90s didnt have technology
Important because.states true. net present value keep customers
around for long time leads to healthier financial customers in the long
term. Heard of the 80-20 rule? Telecommunications industry could
learn from this treat new customers better than old customers dont
know why.
Some companies really good at this
publix, disney, chic-fil-a will be healthy over the longterm
-Societal Marketing Era (1960s-present) Companies didnt think about
being green or philantropic causes until fairly recently.Ben and jerry
one of very first one to do this, disney too, toms. Serve stockholders,
customers, and society as a whole

Popular Macro-Marketing Strategies

-Value: What you give versus what you are getting in return. Value is all
about reducing costs. Reducing costs isnt only way to raise value,
making a product more convenient or providing benefits is another
example.
-Relationship Marketing: What is Disney good at other than their theme
parks and movies? Their relationship with costumers. More so building
relationships with people fantasy, magic, and the belief things at
Disney can happen that cant happen anywhere else
-Relationships in Action: Employees create good relationship with
constumers. Chick-fil-a employees go the extra mile
-Segmenting Customers: altering our core product so that it taps into a
slightly different segment of the market. Cokes market is for fat people
who crave sugar and caffeine, so they made coke zero and diet coke to
target a different segment of the market.
-Market Opportunities: Great companies take advantage of great
opportunities
Market opportunity- where circumstance and timing meet to create
strategic windows
Core competencies- things a firm does well
DAY 3:

Warren Buffet took over Berkshire Hathway and turned it into a

conglomerate holding company with a diverse portfolio of businesses.
Based in Omaha

Firms you should know:

Berkshire Hathaway
Pepsi (owns multiple brands like 7up, mountain dew,
quaker etc)

Market Opportunities:
Market opportunity-where circumstance and timing meet to create
strategic windows
Identification of Market Opportunity:
Ebay first mover C-toC marketing
Recession and wal-mart(low prices)
Starbucks was an opportunity for mcdonalds( Mccafe competitor)
A SWOT analysis (alternatively SWOT matrix) is a structured
planning method used to evaluate the strengths, weaknesses,
opportunities and threats involved in a project or in a business venture.
Strategic Business Unit (SBU)- a division or unity within a larger parent
company
FSU has 15 SBUs: COB, criminology, medicine, music nursing, film ETC
Market share- the percentage of a market that actually buys a specific
product. Apple has 81% of the market for digital music player.
Internal Marketing:
Internal Marketing (targeting customers that already purchased your
product by trying to make them long-time customers)
Empowerment- giving employees power to act immediately, decisively,
and without fear in order to attain satisfaction and delight.
External Environment:
Environmental Forces- economic, competitive, political, technological,
sociocultural, legal and regulatory.
Types of competitors: brand competitors, product competitors, generic
and total budget competitors.
Competitive structure:

Monopoly- when an organization has no competitors so that it is

the sole source of supply.
Oligopoly- when a few sellers control supply
Monopolistic- When firms in competitive industries attempt to
differentiate a product.
Pure competition- exists when there are a large number of sellers
with similar product and low barriers to entry.
Federal Trade Commission (FTC)
-most heavily influences marketing activities
**-large portion of its resources spent on curbing false
advertisement and misleading pricing.