Introduction to business: marketing

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1. Marketing cc licensed ( BY NC SD ) flickr photo by TF28 ❘ tfaltings.de: http://flic.kr/p/8R1gEq
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
3. In your notes, write the first word that comes to mind:
4. marketing
5. Four P's • Product • Price • Place • Promotion
6. What is marketing?
7. Marketing creating, communicating, and delivering value to customers
8. cc licensed ( BY NC ND ) flickr photo by imagematters1: http://flic.kr/p/2cDA5w
9. Product <-> Something of Value • Product? –Goods –Services • Value? –Money –Something else?
11. Product?
12. Something of value?
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
14. cc licensed ( BY ) flickr photo by Slideshow Bruce: http://flic.kr/p/74JKE2
15. cc licensed ( BY NC ND ) flickr photo by Daniel Pouliot: http://flic.kr/p/6JyKDJ
16. Utility = usefulness • Form • Place • Time • Possession
17. Transactions -> Relationships • Why? • New customers cost more than old –5-10x, Sears study found 12x
18. Customer lifetime value • Value of long-term business from customer • Taco Bell? • $12,000 • Starbucks? • $14,000 • Publix? • $75,000 • Lexus? • $600,000
19. Customer Equity • combined customer lifetime values of all customers
20. cc licensed ( BY NC SD ) flickr photo by mliu92: http://flic.kr/p/9NHpEK
21. Cadillac v. BWM • 1976: Cadillac had 52% luxury market share –Poor customer equity • BMW: lower market share –higher customer equity
22. cc licensed ( BY NC ND ) flickr photo by Motovique: http://flic.kr/p/b34us4
23. Customer Equity • BWM now #1 luxury brand, ahead of Mercedes-Benz • Cadillac market share dropped to 8%
24. cc licensed ( BY ) flickr photo by comedy_nose: http://flic.kr/p/cZ1ZWS Target marketing
25. The market cc licensed ( BY ) flickr photo by Muffet: http://flic.kr/p/adCYv
26. Market segmentation cc licensed ( BY ) flickr photo by Muffet: http://flic.kr/p/af7Vr
27. Target marketing cc licensed ( BY NC ) flickr photo by presta: http://flic.kr/p/6838Fd
28. Segmentation methods • Demographic • Geographic • Psychographic • Behavioral
29. Marketing Mix • Four P's: • Product • Price • Place • Promotion
30. Marketing research • Market? • Primary data • Secondary data
31. Primary data • Observation • Surveys • Interviews • Focus groups • Experiments –Cherry Vanilla Dr. Pepper: 61 formulas, 3904 tastings –Frito Lay chips: 4-psi breaking strength
32. Primary data • Advantages? –Recent –Relevant –Proprietary • Disadvantages? –Expensive –Time to design/collect –Expertise in research design/analysis?
33. Secondary data • Already-existing information • Census • CIA World factbook
34. Secondary data • Advantages? –Fast –Inexpensive –Professional design/analysis • Disadvantages –May be out of date –May ask wrong questions –No competitive advantage