Prior to 1920s

Focus on producing

High quality product will sell itself

before 1950s

focus on selling

have to peruade customer to buy

Since 1950s

change to satisfying customer needs

shift from sellers market (more buyers than goods) to buyers market (more goods than buyers)

Since 1990s

furthering marketing era

developing long-term relationships with customers

lifetime value of customer

failing to recognize scope of business

focusing too much on product rather than customer

producing original ideas

valuable skill for marketers, help develop solutions to marketing problems

used to be more transaction based marketing- simple exchange

now longer-term approach (returning customers)

Functions of Marketing

exchange functions

1. Buying
2. Selling

Functions of Marketing

physical distribution functions

1. Transporting
2. Storing

Functions of Marketing

facilitating functions

Standardizing & Grading

Financing

 Risk Taking

Securing Marketing Info

moral standard of behavior expected by society

companies do their best to abide by code of ethics

upper level management

process of determining organization's primary objectives

adopting course of action to achieve objectives

Tactical Planning

implementing activities specified in strategic plan

five competitive forces that influence planning strategy

Potential New Entrants- internet reduces barriers to entry

Bargain Power of Buyers- internet shifts power to buyers

Bargain Power of Suppliers- internet increases bargain power of sup

Threat of Substitutes- internet increases substitutes

Rivalry Among Competitors- all factors increase competiton

company's strengths

what customers value and competitors can't duplicate

blending of four strategy elements (price, promotion, place, product)

Product Strategy- decisions on what goods to offer, customer service, design, etc

 Place (Distribution) Strategy- ensure customers find products in proper quantitites at right time and place

Promotion Strategy- the way seller's communicate to buyers

Price Strategy- method of setting profitable and justifiable prices

key business units within diversified firms

separate divisions within org

each has its own manager, objectives, resources

Stars- high market share and high growth

invest funds into future growth

Cash Cows- high market share and low growth

milk profits to finance other divisons

Question Marks- low market share and high growth

either invest funds for growth or disinvest

Dogs- low market share and low growth

consider withdrawing

provides critical view of organization

helps in evaluation

Strengths, Weaknesses, Opportunities, Threats

Leverage- Strenghts, Opportunities

Constraints- Weaknesses, Threats

Should we compete?

In what markets?

How?

Price, Promotion, Place (Distrib), Product

Public, Proliferation, Policy

regultes safety of foods, dietary supplements, vitamins, drugs

1936- prohibits price discrimination in sales to wholesalers, retailers

prohibits selling at low prices to eliminate competition

describes business activities taking place via Internet

Five categories:

1. e-tailing (virtual stores)
2. business-to-business transactions
3. electronic data interchanges (EDI)
4. e-mail, IM, blogs
5. gathering, use of demographic info via web

selling to consumers over internet

Benefits- lower prices, convenience, personalization

five levels of need

person must at least partially satisfy lower level before higher needs can affect behavior

Self Actualization (top) (education, social events, luxury goods)

Esteem Needs (jewelry, makeup, clothing)

Social Needs (clothing, cars, entertainment)

Safety Needs(alarm system, insurance, smoke detector)

Physiological Needs (bottom) (vitamins, medecine, food)

psychographic segmentation used to predict consumer behavior

eight categories: actualizers, fulfilleds, believers, achievers, strivers, experiencers, makers, and strugglers