4 P’s : product, price, distribution, promotion

Marketing - is the process of creating, distributing, promoting, and pricing goods, services, and
ideas to facilitate satisfying exchange relationships with customers and to develop and maintain
favorable relationships with stakeholders in a dynamic environment
- Marketing is to develop satisfying exchanges from which both customers and marketer’s
benefit (both customers and marketer expect to gain something of value from the
exchange)
Marketing deals with PRODCUTS, DISTRIBUTION, PROMOTION, and PRICE

The marketing mix: everything starts with the customer (trying to build relationships and value)
 want to create value with your customer

Organizations generally focus on their marketing efforts on a specific group of customers, or

Target Marketing

1. The product variable: A good (cell phone), service (car wash), or idea (master class/ a
workout subscription – paying for “ideas”)
2. The distribution variable: “supply chain”
 Distribution – sportify uses digital distribution to allow consumers to stream videos,
podcasts, and music. For paid premiums, users can view entertainment uninterrupted by
commercials.

3. The promotion variable

4. The price variable
Customer value = customer benefits – customer cost (Lowest price. Convenience. Availability.)

Value-Driven Marketing (Ex: L.L. Bean creates value for customers with its products guarantees,
liberal return policies, and strong customer service. The firm competes with Amazon.com as the
number one customer service champion.)

- Marketing builds Relationships with customers & other stakeholders

To maintain an exchange relationship: buyers must be satisfied with the good, service, or idea
obtained

Stakeholders - constituents who have a “stake” or claim, in some aspect of a company’s

products, operations, markets, industry, and outcomes
Stakeholders include:
-customers
- employees
-investors and shareholders
-Suppliers
-Governments
-Communities
-Competitors

Marketing occurs in a Dynamic Environment.

Compared to marketing-mix variables, an organization has far less control over the forces of the
environment
Marketing concept – A managerial philosophy that an organization should try to satisfy
customers’ needs through a coordinated set of activities that also allows the organization

Evolution for the marketing concept

1. The Production Orientation (ex: space X Elon Musk)
2. The Sales Orientation (“How can we shift to selling products to consumers” (Ex: Wolf of
Wallstreet)
3. The Market Orientation

Implementing the marketing concept

 - Customer relationship management – using information about customers to create
marketing strategies that develop and sustain desirable customer relationships
- Achieving the full profit potential of each customer relationship should be the
fundamental goal of every marketing strategy

Relationship Marketing:
Customer Lifetime Value – A key measurement that forecasts a customer’s lifetime economic
contribution based on continued relationship marketing efforts

About one half of a buyer’s dollar goes towards marketing cost

- Green Marketing: a strategic process involving stakeholder assessment to create
meaningful long-term relationships with customers while maintaining, supporting, and
enhancing the natural environment
- Market orientation combined with social responsibility improves overall business
performance
From 25 to 33 percent of all civilian workers in the United States perform marketing activities
The marketing field offers a variety of interesting and challenging career opportunities
throughout the world

Chapter 5 – Marketing Research

Our biggest priority is customers, and we are solving a problem as marketers

- How can marketing research be helpful with solving problems? Data (sales, reviews,
how to make decisions)

Marketing research – the systematic design, collection, interpretation, and reporting of info to
help marketers solve specific marketing problems or take advantage of marketing opportunities
- Process for gathering info that is not currently available to decision makers
Its purpose is to inform an organization about:
- Customers’ needs and desires
- Marketing opportunities for products
- Changing attitudes and purchase patterns of customers

Marketing research can:

- Help a firm better understand market opportunities
- Help a firm ascertain the potential for success for new products
- Help a firm determine the feasibility of a particular marketing strategy
- Help a firm develop marketing mixes to match the needs for customers
- Improve a marketer’s ability to make decisions

Marketing challenges
1. Data and analytics
2. Content marketing (ex: podcasts selling things on their show)
3. Business growth
 4. Metrics/performance measurements
5. Lead generation (ex: ISU/Michigan St. bought your ACT/SAT scores in high school and
sent you a universities broacher)
6. Website/digital
7. Customer engagement/loyalty (brands that are huge on loyalty)
8. Budget
9. Brand management
10. Targeting/segmentation/personalization

Types of research
- Marketing research can involve two forms of data:
Qualitative data yields descriptive non-numerical information (Qualitative is open ended)
Quantitative data yields empirical information that can be communicated through numbers
(Quantitative is numbers)

Exploratory Research: research conducted to gather more info about a problem or to make
tentative research

Customer Advisory boards – small groups of actual customers who serve as sounding boards
and offer insight into their feelings and attitudes toward a firm’s products and other elements
of its marketing strategy
Focus Groups

Conclusive Research – designed to verify insights through objective procedures and to help
marketers in making decisions
Descriptive research – more specific data to clarify the characteristics
Experimental research – Research that allows marketers to make causal inferences about
relationships

Five steps of marketing research

1. Locating and defining issues or problems
2. Designing the research project
3. Collecting data
4. Interpreting research findings
5. Reporting research finding

Research design – an overall plan for obtaining the info needed to address a research problem
or issue
- This step requires formulating a hypothesis
Hypothesis – an informed guess or assumption about a certain problem or set of circumstances
Reliability – a condition that exists when a research technique produces almost identical results
in repeated trials
- A reliable technique is not necessarily valid
Validity – a condition that exists when a. Research method measures what it is supposed to
measure

Primary data- data observed and recorded or collected directly from respondents
Secondary data – data compiled both inside and outside (ex: USA today newspaper is important
sources of secondary data)

Collecting primary data is lengthier, more expensive, and more complex

Marketing information systems (MIS) Can be important asset for developing effective marketing
strategies

Database – a collection of info arranged for easy access and retrieval

Single source data- info provided by a single marketing research firm

Customer relationship management (CRM) - employs database marketing techniques to

identify different types of customers and develop specific strategies for interacting with each
customer
Big Data – Massive data files that can be obtained from both structured and unstructured
databases
- Often consist of high- volume data that marketers can use to discover unique insight
and. Make more knowledgeable marketing decisions

Marketing Analytics – uses tools and methods to measure and interpret the effectiveness of a
firms marketing activities