creating, distributing, promoting && pricing goods, services, & ideas. maintain favorable relationships w/ stakeholders
must be available at the right time and in convenient locations. inventory control procedures, transportation, etc
ex: subways in strip malls & in walmart
activities to inform others about the organization and its products. can educate on political and social issues or sustain interest in an extremely old product (soap)
customer's subjective assessment of benefits relative to costs in determining worth of a product
customer value = customer benefits - customer costs
subjective, some may value convenience, others cheapness
time * effort a customer spends to find & purchase desired product.
also, risk! (can reduce w/ warranties, 100% satisfaction guaranteed)
competitive, economic, political, legal, tech., etc. forces that SURROUND the customer & AFFECT the marketing mix. can produce uncertainty & opport
ex: obesity = more diet products
satisfy a customer's NEEDS rather than not pursue opports
ex: pandora and itunes, vs cd players...
should also consider l-t needs of society (SUVs vs electric cars)
organization-wide commitment to research & respond to customer needs
must create information system to find their needs (ex: amazon survived the dot-com b/c they understood customer wants)
CLV (customer lifetime value)
80% of profits comes from 20% of customers
some customers who need a lot of hand-holding or return things too often may be too expensive to retain
means for utilizing resources in marketing, production, finance, R&D, HR to reach co's goals.
focus on corp culture, competition, differentiation, diversification
Ex: Barnes & Noble took advantage of opportunity when borders declared bankruptcy. invited them to shop at B&N
strategic business unit (SBU)
division, product line, other profit center w/in parent co.
each sell a distinct set of products
group of individuals/organiz that have ability, willingness, & authority to purchase these products
1st mover advantage
an innovative co. that can achieve L-T competitive advantages by being 1st in marketplace
rep as pioneer, period of time w/o rivals, HIGH COSTS, can estb patents fast!
can learn from 1st mover mistakes, reverse engineer, lower cost
face stronger competition...
selecting target market
must be chosen before adapting marketing mix to meet customer needs.
ex: toyota yaris
marketing mix decisions
consistency (w/ corp strategy) & flexibility (to adapt when markets change).
collecting info abt forces in marketing environment
political action, technology can shape environ.
co's can control environm to an EXTENT
other co's that market products which can be substituted for your products in the same geographic area
co's that market products w/ similar features, benefits to same customers at similar P
diet coke vs diet pepsi
this is what MOST competitors concentrate on
compete in same product class, markets products w/ diff features, benefits, P
iced tea vs coke
provide very diff products that satisfy the same BASIC customer needs
tap water vs coke
total budget competitors
co's that compete for the LIMITED financial resources of the same customers
gum vs coke
co offers a product w/ no close substitutes, only source of the S
tolerated b/c of the huge financial resources needed to develop them (ex: water utility)
EXTREMELY large # of sellers, none can signif. influence P or S
monitoring the competition
understand how other co's strategize & how their strategies affect OUR strategies
(ex: when Delta lowers P, so do other co's)
changes in economy affected by S&D, buying power, willingness to spend, consumer expenditure lvls, intensity of competitors
unemployment EXTREMELY high, wages low, disposable income = minimum, consumers lack confidence in economy
economy moves FROM recession/depression TOWARD prosperity
(ex: difficult to tell how prosperous & how fast economy will recover)
willingness to spend
inclination to buy b/c of expected satisfaction from product
factors include future employment, income, P, family sizes, economic conditions
polotical officials ok w/ particular firms/industries create/enforce fewer laws!! marketer's job to influence them
preserve competition, end antitrade practices, Sherman Antitrust Act
(ex: wachovia manipulated bidding process for contracts)
influences in society & its culture that changes attitudes, beliefs, norms, lifestyles
# singles rising, more diverse new baby boom, birth rate is declining, more immigration, baby boomers getting older