Completed Assignments: 1. Wiki contribution a. ...

the process of educating consumers on the benefits and features of your products or services to encourage them to buy more of your products or services. 2. Set up this blog 3. HBR article, Marketing Myopia 4. Chapter 1 of The Marketing Plan Handbook

Learning goals/outcomes/questions: 1. What is Marketing? Self monitoring report: Reflection and review: http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx

Definition of Marketing
The following definitions were approved by the American Marketing Association Board of Directors: Marketing: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007) Marketing Research: Marketing research is the function that links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. (Approved October 2004) Wiki Contribution:

... the process of educating consumers on the benefits and features of your products or services to encourage them to buy more of your products or services. Marketing Myopia - HBR The big idea: Concentrate on meeting customers needs rather than selling products. Myths: 1) An expanding and affluent population will ensure growth. When markets are expanding, we assume we dont have to think imaginatively about our products. We increase the efficiency of making our products, rather than boosting the value those products deliver to customers. 2) There is no competitive substitute for our major product. This belief makes our companies vulnerable to dramatic innovations from outside our industries. 3) We can protect ourselves via mass production. Focusing on mass production emphasizes our companys needs when we should be emphasizing our customers 4) Technical R&D will ensure our growth. We may be tempted by breakthroughs and organize our company around technology when we should remain focused on satisfying our customers needs. Bottom line need to be customer oriented, not product oriented. Examples: Products movies railroad petroleum Customer Need entertainment transportation energy/fuel/transportation

Selling <> Marketing. Selling focuses on the needs of the seller while marketing focuses on the needs of the buyer. Q> with regard to the thought that petroleum companies should develop alternative energy vehicles, that argues against the fact that companies should focus on their core competence.

Chapter 1 Marketing Planning Today y Marketing is ubiquitous y More choices today than in past y Consumers demand brands with credibility and a positive image y Developing trust is important y Customers, employees and stakeholders and looking to organizations to make a difference Marketing and Value y Marketing is about creating, communicating, delivering, and exchanging offerings that provide value. y Value relationship between perceived benefits and perceived total price. The Purpose of Marketing Planning y Development of a marketing plan o Covers a set period and summarizes market intelligence to develop actions and measurements of marketing goals y In a nutshell: provide value, build relationships, make a difference 1. Research and analyze  Identify influences on your objectives, strategies, and performance. 2. Understand markets and customers  Decide which customers to target and how to provide valued by meeting their needs. 3. Plan segmentation, targeting, positioning  Focus on opportunities, then use positioning for competitive advantage 4. Plan direction, objectives, marketing support  Objectives must fit with the organizations overall mission and goals 5. Develop marketing strategies and programs  Strategies must fit with segmentation, targeting, and positioning decisions 6. Plan metrics and implementation control  Be specific, realistic to measure progress towards objectives y Need to link the marketing effort to higher-level strategies and goals Preparing for Marketing Planning: consider how your plan will provide value in a competitively superior way y The four Ps the Marketing Mix every plan uses all four of these 1. Product offering 1. Both tangible and intangibles 2. Think about all of the components and about customers perceptions of the offering as a whole 2. Pricing 1. What should the company charge for its product?

2. How customers perceive offering value 3. How the organization positions the product 4. What the products costs are 5. Competitive structure of the market 3. Place (channel) 1. How, when, where to makes goods/services available to customers 4. Promotion o Advertising o PR o Sales promotions o Personal selling o Direct marketing (catalogs/email) y Supporting the marketing mix o Customer service o Internal marketing y Guiding principles to provide value, build relationships, and make a difference 1. Anticipate change  Monitor the environment for trends 2. Engage everyone  All company employees must be engaged 3. Seek alliances  Suppliers y Raw materials y Parts/components y Products for resale  Channel members y Wholesalers y Retailers y Agents/brokers y Transportation firms y Storage firms  Partners y JV partners y Outsource vendors y Strategic alliance partners y R&D partners  Customers, and community leaders y Consumers y Business customers y Product users y Purchase influencers y Community leaders 4. Make marketing meaningful  Intrinsic meaning because marketing satisfies customer needs

Bezos video Early days of Amazon Bell rang with each order Many mistakes, many learnings Everything I Know (Bezos) 1. Obsess over customers a. the only reason Amazon exists b. covers many mistakes 2. Invent on behalf of the customers a. really important to invent b. dont accept either/or solutions 3. Think long term (5-7 years) a. Rare b. Initiatives may take 5 years to pay shareholder dividends c. You may be misunderstood 4. Its always day 1 a. Always more innovation Zappos Bezos admired this customer Starting point for Zappos Totally unique culture a significant asset Growth is possible

Talbott Video 30 minutes long What is marketing? Amazon articulates the essence of marketing. Prezi presentation --Philip Kotler You can learn marketing in a day. Unfortunately it takes a lifetime to master. Marketings role is to sense the unfulfilled needs and wants of people and invent attractive solutions. Society is part of Marketings vision. Creating is a part of the process. Creating solutions is the challenge. Social media used to market You Tube, e.g. Bezos videoagain!

Questions: Does JB embrace the ideas of Levitt? What Business is Amazon in? How does Bezos intend to keep Amazon from becoming obsolete? Are there concrete tactics that demonstrate Amazons attempts to stay relevant? What are they doing now to avoid myopia? Will discuss in Breeze. 12 weeks of class organized around 4 points of Bezos. 1. Customer Obsession y Consumer research y CRM and CLV o Build the brand o Make it measurable o Fix it when its wrong y Environmental analysis y STDP (segmentation targeting differentiation positioning 2. Invention The marketing mix the four Ps or four Cs Marketing Myopia Creative destruction how can your business become obsolete by an invention? We produce things because we want to satisfy needs. Example of Myopia (Buster Brown) y Production focus y Failure to innovate in channel choice (sold thru wholesalers) y Needed to be in brand building (not clothing) y Needed to open retail store (not wholesale) 3. Every day is day 1 y Learn and adjust! y Reinvent the Drill y Embed Mission in the culture! y Creatively Destroy