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Introduction to business: marketing

Ted Major
March 10, 2016

Introduction to business: marketing

CC-BY-SA

Ted Major

March 10, 2016
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  1. Marketing
    cc licensed ( BY NC SD ) flickr photo by TF28 ❘ tfaltings.de: http://flic.kr/p/8R1gEq

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  2. Quiz
    • Closed book/closed notes
    • Put away phones until quiz is over
    • You may collaborate with your team
    • You are responsible for the answers on your
    quiz
    • You do not have to choose the same answers
    as your team

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  3. In your notes, write the first word that
    comes to mind:

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  4. marketing

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  5. Four P's
    • Product
    • Price
    • Place
    • Promotion

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  6. What is marketing?

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  7. Marketing
    creating, communicating, and delivering
    value to customers

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  8. cc licensed ( BY NC ND ) flickr photo by imagematters1:
    http://flic.kr/p/2cDA5w

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  9. Product <-> Something of Value
    • Product?
    –Goods
    –Services
    • Value?
    –Money
    –Something else?

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  10. View Slide

  11. Product?

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  12. Something of value?

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  13. Value of personal information
    • Address; $.50
    • Zip: $.50
    • Education: $12.00
    • DOB: $2.00
    • Employment: $13.00
    • Phone: $.25
    • Unlisted: $17.50
    • Cell: $10.00
    http://www.turbulence.org/Works/swipe/calculator.html

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  14. cc licensed ( BY ) flickr photo by Slideshow Bruce: http://flic.kr/p/74JKE2

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  15. cc licensed ( BY NC ND ) flickr photo by Daniel Pouliot: http://flic.kr/p/6JyKDJ

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  16. Utility = usefulness
    • Form
    • Place
    • Time
    • Possession

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  17. Transactions -> Relationships
    • Why?
    • New customers cost more than old
    –5-10x, Sears study found 12x

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  18. Customer lifetime value
    • Value of long-term business from customer
    • Taco Bell?
    • $12,000
    • Starbucks?
    • $14,000
    • Publix?
    • $75,000
    • Lexus?
    • $600,000

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  19. Customer Equity
    • combined customer lifetime values of all
    customers

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  20. cc licensed ( BY NC SD ) flickr photo by mliu92: http://flic.kr/p/9NHpEK

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  21. Cadillac v. BWM
    • 1976: Cadillac had 52% luxury market
    share
    –Poor customer equity
    • BMW: lower market share
    –higher customer equity

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  22. cc licensed ( BY NC ND ) flickr photo by Motovique: http://flic.kr/p/b34us4

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  23. Customer Equity
    • BWM now #1 luxury brand, ahead of
    Mercedes-Benz
    • Cadillac market share dropped to 8%

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  24. cc licensed ( BY ) flickr photo by comedy_nose:
    http://flic.kr/p/cZ1ZWS
    Target marketing

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  25. The market
    cc licensed ( BY ) flickr photo by Muffet: http://flic.kr/p/adCYv

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  26. Market segmentation
    cc licensed ( BY ) flickr photo by Muffet: http://flic.kr/p/af7Vr

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  27. Target marketing
    cc licensed ( BY NC ) flickr photo by
    presta: http://flic.kr/p/6838Fd

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  28. Segmentation methods
    • Demographic
    • Geographic
    • Psychographic
    • Behavioral

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  29. Marketing Mix
    • Four P's:
    • Product
    • Price
    • Place
    • Promotion

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  30. Marketing research
    • Market?
    • Primary data
    • Secondary data

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  31. Primary data
    • Observation
    • Surveys
    • Interviews
    • Focus groups
    • Experiments
    –Cherry Vanilla Dr. Pepper: 61 formulas,
    3904 tastings
    –Frito Lay chips: 4-psi breaking strength

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  32. Primary data
    • Advantages?
    –Recent
    –Relevant
    –Proprietary
    • Disadvantages?
    –Expensive
    –Time to design/collect
    –Expertise in research design/analysis?

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  33. Secondary data
    • Already-existing information
    • Census
    • CIA World factbook

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  34. Secondary data
    • Advantages?
    –Fast
    –Inexpensive
    –Professional design/analysis
    • Disadvantages
    –May be out of date
    –May ask wrong questions
    –No competitive advantage

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