Chapter 1 – Marketing Concepts. * Definitions. * Needs – basic things that are required’ when acted up by a social force, they become wants. * Wants – not necessarily a need; when wants are backed by purchasing power they become demands. * Demands – what the consumer demands of the supplier. * Exchange – occurs when there is a need or a wand; when 2 or more parties give something of value to each other. * Value – difference between what one gets (benefits) and what one gives (costs). * Marketing – organizational function and set processes for creating, communicating, and delivering value. * Era’s of Marketing. * Product Orientation. * Belief: that a quality product will sell itself; focus on mass production; sell at low prices. * Problem: ignores customers’ needs; “better mousetrap” fallacy. * Production Orientation. * Belief: Mass production; make large quantity of goods widely available at low prices and customers will come. * Henry Ford and the assembly line – “any color as long as its black”. * Problems: ignores customers’ needs. * Selling Orientation. * Belief: customers resist buying inessential products and you have to convince them to buy; advertising & hard selling important. * Problem: customers’ needs are ignored & customers come at the end of the process. * Marketing Concept. * Belief: a companywide consumer orientation. * Problem: customers can give only marginal ideas for new products & so innovation suffers. * Relationship Orientation. * Belief: Build a long time relationship with your customers; not a 1 time sale. * Societal Marketing Orientation. * Belief: pay attention to how products effect society as a whole. * * Marketing Myopia. * Ted Levitt – look at the customers’ needs you are fulfilling; don’t define yourself narrowly in terms of your products. * Growth
Increase interest rates
Creative destruction. Chapter 3 – Marketing Environment. * Marketing Environments. * Competitive Environment. * Direct competition – firms that produce same or similar products. * Decline (Recession)
Lower interest rates
Ex. Coke vs. Pepsi. * Indirect competition – firms that produce substitute goods. * Ex. Coke vs. Orange Soda. * All firms compete with each other. * Economic Environment. * Business cycles. * 5-7 years
Demand – high in growth phase; Low in decline. * Price sensitivity – low in growth; high in decline. * High priced, new product introductions – high in growth; low in decline (generics). * Manager takes loan & invests – when rates are low & benefits are coming soon. * Political-Legal Environment. * Technological Environment.
Chapter 5 – Consumer Behavior. * Consumer behavior – study of individuals’ motives. * Interpersonal Factors. * Social & cultural forces. * Culture – a set of values and beliefs of a society; traditions that are enduring. * American core values: accumulate wealth, instant gratification, equality, humane, work hard, play hard, patriotic, capitalistic, materialistic, education, freedom, individualism, youth, beauty, health conscious, efficiency, etc. * Sub-cultures – group of people with specific needs. * Reference groups – membership (belong to), aspirational (want to belong to), dissociative ( don’t want to belong to). * Family. * Personal Factors. * Perception. * Reality – gap between actual quality and perceived quality is sales. * Relative – base perception on other things we know, compare between products. * Physical aspect – closure; given incomplete things, people like to