Class notes MKT 300

Module 1 ​- ​Marketing Concept Marketing Can Be Performed By Individuals and Organizations ● B2B - business to business ○ i manufacturers would come down to talk to ASU to buy projectors ● B2C- business to consumer ○ Buying TV at Best Buy ● C2C - customer to consumer ○ Buying things online or selling things online Marketing Impacts Various Stakeholders ● Society, customers, employees, supply chain ● Affects everyone directly and indirectly Marketing Helps Create Value ● Production ○ What can we do or make best ● Sales ○ How can we sell more aggressively ● Marketing ○ What do customers want and need ● Value-based marketing ○ What do customers want and need while providing more value than the competition Learning Check Questions ● What marketing management philosophy focuses solely on what manufacturers can make? ○ Production Making Strong Connections with Markets Pays Off ● Finding potential customers is one thing ● You must also strive to create a ​relationship ​with them.. Why? ● This is the key to ​long term success ​for a company ○ There might be a disconnect between the company and the employee ■ i car dealership vs a car “salesman” Importance of Relationships ● Lifetime customer value ○ Prediction of all the value a business will earn from their entire relationship with a customer ● Cost of acquiring new customers vs. keeping an existing customer ○ What’s more costly? ○ Existing customer is a lot more valuable ● Value of loyal customers ● Cost of lost customers ○ Average family spend $X/ week ● Costs ​five to eight times​ as much to acquire a new customer vs. keeping an existing one ● 90% of profits come from repeat purchases ● Reducing customer defections by 5% can increase profits by 25-85% ● Value of loyal customers ○ To longer customers stay with a company the more willing they are to: ■ Pay premium prices ■ Make referrals ■ Increase their annual buyings ■ Demans less “hand-holding” Module 1 - Marketing Mix Marketing Mix or “4Ps’ ● Product, Price, Promotion, Place (Distribution) Product: Creating Value ● The fundamental purpose of Marketing is to create ​value ● To develop a variety of offerings to satisfy