Introduction to business: marketing

CC-BY-SA

Transcript

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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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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