BUS 101 - Intro to Business - Marketing Overview
Hello. This is Professor Bruce Turley booth and in, this video I will go over the major concepts, of a, marketing, strategy, now. Marketing, itself is a very large topic so this video will not be able to go into each and every single one of the. Different, marketing, strategy. Elements but. By the end of the video you, should get a pretty good sense of what a marketing, strategy, is, alright. Let's go ahead and get started in this. Video I will go over some definitions, and then. Quickly go through a marketing, history and then, discuss elements, of a marketing, strategy, a. Market. Is a group of people who, have a want or need and this can also be a set of wants and needs who. Also have the, purchasing, authority and ability, to. Spend money on goods services, and ideas. Marketing. According, to the American, Marketing Association is. Defined, as 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 a, shorter. Definition. Of marketing, is that, of creating, communicating. And capturing. Value, in, many. Ways marketing. Is nearly. As old as there. Have been people trying, to exchange goods, I'm sure you've seen images. From. Your books or movies about. Ancient. Places like Greece, or, Rome or, China, where. There are busy, market. Markets. And traders, using. The persuasive. Skills to. You. Know have customers, buy their goods right. And these traders, probably. Would not have used, the term, marketing, to describe what they were doing, but, the idea, of exchange. Really. Is at the heart of marketing. Well. That was then, during. The pre Industrial, Revolution where. And we will call that the simple trade era where you know people made, handmade goods and they were using their oral. Mostly oral persuasive. You, know skills to, try to get folks to exchange, their. Goods. Our. Modern. Concept, of marketing. Really, started, during. The industrial. Revolution of. The. 18th and 19th century. And this really began in England. And, that was really called the production, orientation, and what that meant was that because of the, rapid.
Social Change largely. Driven by. Technological. And scientific, innovation. What. Happened, was that the. Production, of the goods was. Largely. Separated. From. The. Way consumers, you, know. Access. Them on how they were consumed, so that, mass production. Because. It was there was a lot of it being done and the goal was to get it to as many customers, as possible, there. Needed to be the, development, of a transportation, infrastructure. And a, lot of what we would call the marketing. Concern, at the time was. How to manage. The distribution of, those goods well. When these came, to the United States and 1860s. That was also, our concern. Was. That we were making a, lot, of these goods right. Because, one, they were generally scarce the goods themselves were generally scarce and, the, producers, the manufacturers, could make could, sell as many, of them as they could produce as, long as you know people could afford them and so, their focus here, - in the United States was. How to distribute. Those, goods at the, lowest possible, cost so, that they could then. Enter. New markets and, sell as, many goods and of course make as much money as possible. Well. By the 1920s, and 50s, there, were so much, of these goods in the market the competition. Grew and so. The focus of marketing, then turned into selling. And so we call that time sales, orientation. And so, the marketing efforts then were on communicate. And, advertising. And. Branding in. A way that. Would help, the company. Sell, their goods. Even. Though they were still producing. A. Lot. Of goods, of many vacuum, cleaners, and you. Know washing, machines and the like they. Really turn their, attention. To convince, the, customer to, buy their particular goods so that's why it's called the. Sales orientation. And. To. Differentiate, really, their product, from another. Now. During the 1960's. And 90s the. Markets, even, though they were the same size became. Increasingly. Saturated. And so, this gave rise to, what.
We Understand, today as a marketing, department. Main. Focus. There within. The organization. Was. Not only should. We produce, this particular, product but where should it be sold and how, much should they charge for it so that's you, know pricing. Consideration. And then, how you would then communicate. The value, of this, particular product to. The. Customer, and so. This is when Mark modern, marketers, started, doing market research to, understand. What. Customers, wants, and needs. Are and, then to. Really, allocate, funding. Within. That department called, the marketing department, so that they could do their work and. Increasingly. Marketers. There were interested, in the, brand the, branding, aspect of the company and what, that means is that you know the particular kind of message. About. What. The. Company. Is about or its character, or set of values, and what it stands for that, sort of thing so. Today, the. 1990s. And present, this, has continued, to evolved particularly, because we now have many. More technological. Tools to help us understand, how, customers. Access, information about, the product, where, they actually. Engage. You know product information is, not necessarily. On newspapers. Right there, are many ways that a customer, can learn about a product and. Including. Reviews, that. Like. Yelp and Google reviews. And the light that. We. Now have what's called customer, centric, orientation. And that's really paying, attention to, how. The, product, is. Consumed. By the customer, what, they expect. It to be like and it is really, really quite dynamic. Before. We go into the. Marketing strategy, concepts, let's talk about what the role of marketing, really is, marketing. Is one, of the business, functions, within, a company, operations. Is a business function, within. Which HR, human, relations, resides, and then. There's marketing, and there's, financing. Marketing. Provides. Revenue to, sustain a firm and. Whereas. The other functions, will spend the money marketing. Central. Function. Is to bring in revenue. In the. Creation. Of marketing efforts, there are two things at least two things it needs to be able establish, and sustain, one. Is that, a trust and, then. Relationships. Because, those. Two elements really, has, a lot to say about. The. Long term viability of, a business. There's. Also further clarify, marketing, in terms. Of what it is not it is, not manipulating. Customers, to get them to buy products, or services, they do not, want all. Right it is not just, selling or advertising, a lot, of people think that that's what marketing is it, is an aspect of marketing. Or two aspects of marketing but it is not, mark, the only thing about marketing it, is a systemic approach to. Satisfying, customers, and at, the heart of marketing, as we have discussed earlier is, this, idea, of, exchange. During. The simple, trade. Era the, notion, of exchange, was pretty straightforward, I have watermelons. I'd like you to I have my watermelons, and what, do you have to exchange for that that, could have been another good it, could have been some kind of currency. Today. The. What. Is being exchange is far more complicated so. For example, in Starbucks, they sell coffee of course, but they sell more than just coffee and. You can say well yeah they serve tea and and also. Snacks. But, they're also really. Exchanging. An experience. For, your, currency. For, your funds, right.
So, They're providing, you an. Atmosphere. Where. You can go ahead and relax and, enjoy your coffee and, spend time with friends or, study, or have, access to Wi-Fi a place, for you to be able to relax. And enjoy. Your. Cup of coffee they're not just exchanging, coffee or a drink. Here. Is. An. Advertising, from, Bobby Brown which, is a high-end. Cosmetic. Company and you. Can see from their advertising here, they're, saying from coffee cocktails, without smudging and they're. Trying. To have. You by their, long-wear, eye pencil, or too long wear mascara, but. It's, they're really. Exchanging. Something else you know it's not really the eye pencil, or the mascara, they're exchanging for, your limited. Funds it, is the idea that, you can be more glamorous, right. More attractive. A better, version of you in a natural, way so, they're, exchange their is not just product, it is also an image a, sense of self a projection, of who you think you'd. Like to be by. Wearing their eye pencil, or their, mascara. Here. Is an image of a. Tesla. Electric. Car and, the. The, market, retail, price for this is probably in eighty thousand, dollars depending on your package and, it's. A beautiful car it's, an innovative car and it. Is also, exchanging. The notion. You. Know being part of the future where. We are no longer dependent on fossil fuels, and it, also has, a message of. Sustainability. Right, so they're not just exchanging. A car a beautiful. Car a highly, and car for, your your. Your money they really are trying, to sell a lifestyle. And a belief system. You. Of course are in school, and you're. Looking, to. For. Value, in your. Education, you, are coming, in here and taking classes you, are looking for certain benefits, whether those benefits are not tangible you can't put your arms around them they are future, driven, right, you're trying to get skills and knowledge so that you. Can be better off in the future but, those have costs, right, that you have to, and there's tuition, costs, their book costs there's time costs, there are costs in terms of the, kinds, of impact. And sacrifice. That your family, or friends would. Have to bear with. You in order for you to get this education but. At the end of the day you. Are looking, for value that, you are going to be able to move forward in your life and have choices. Right, and so you really, are exchanging. This time and, the money that you have you're, putting forth for this education, because.
You, Expect, that the value in the future is going to be much bigger, than, the costs. In. Order to deliver on that value, the. Marketing, concept, then. Has to satisfy the. Customers, wants, and needs through. Coordinated. Activities, that largely, occur in the background so, by the time you pick up the salad ingredients, for your meal that night a lot. Of things will have had occurred, before you got there and those. Things would have had to be thoughtfully, considered, so. That you would then reach, out for that salad piece and say ah that's, what I want and that's what I need tonight in order to make my, salad. The. Coordinated, activities, are really are, a result, of a. Marketing strategy, and a, marketing strategy, has five steps and these are bro into, three larger. Phases. So the first phase is that a planning, and in, that stage, a. Company. Will need to define its marketing, objective, what, was, is it trying to increase, sales by a certain percentage by a certain time is. It trying to. Enter. A particular market, by, a certain time is, it trying to increase, its market share by. A certain percentage or a number of. Customers. By a certain time. Within. That planning phase a company. Would also need to do what's called a situation, analysis, and you, may have heard it called SWOT and the. Esta and the SW. Is really the internal. Analysis, of. The. Company's strengths, and weaknesses, the, things that it does not do well yet as well. As the things it does do well okay, and then there are the, OT stands, for opportunities. And threats and this, is an external, analysis. Of the, opportunities. Within, the market and the threats within the market so it's very important, to understand, what a, company, may be getting itself into the. Second, phase is that of implementation. And this. Is. About. Targeting. You know understanding, the larger market, and doing. A segmentation, of that market, so, that can be positioned, to succeed there and step. Four is that. Of, developing. And implementing, what's called the marketing, mix the, marketing, mix is also. Called the four PS and the, four PS are product, price, place. And promotion, I'll. Go over this in a little bit more detail, and, the. Last step is that of. What's. Called a control, phase and that is measuring. To. What degree the objective, itself was, achieved, and that's really fairly important. Let. Me now go back to step 3, because. This is a fairly, significant. Element. Of the marketing strategy so. It's important understand that a market, is can. Be subdivided in two segments, and that. Each segment represent. Customers, with similar, wants and needs and the. They can be profiled. By. Their demographics. So that would be age gender. Education. Household. Type that, sort of thing and, lifestyles. As, well as psychographics. It's very complicated, but the idea is that each, segment is, a, set, of customers, with similar, wants and needs and, that. Given. The. Business limited, resources. It's. Time the. People within. The, talent within the company and the amount of resource it has it. Cannot target. The entire market, that, it generally needs to target one segment. 102. Segments. Depending on, how much money it has it is, not possible. For a company, to. Target. Everyone. In the world right. It's it's they don't have enough resources for that so, they do need to make some choices about how. They're going to position themselves in the market space and this. Is where they can then create. Value. Or communicate, that value, or capture, the value. Because. Of the, company's, particular. You. Know offering, and its ability to do that as well, as its ability to deliver on that value okay, because it has certain advantages, internally. They may have the kind of technological. You. Know tools to deliver on their on. Their idea or their product or service, let's. Go over an example of what this may be like so. In the entire market, of coffee drinkers, and, there may be instant, coffee drinkers, there, might be drip coffee drinkers, those. Who will only drink organic coffee. Those. Who love to hang, out in coffee houses. Those. Who want specialty. Coffee, not just any old coffee, I suppose, and older. Those who are look for whole bean coffee that. They then take home and grind themselves, and make a home, right. And so, as a company we. May have to decide, exactly. What, kind of product and service we will be able to deliver. And Stan, make and make profit, so.
For This example let's choose a, company whose chosen to, be a coffee, house they'll. Offer specialty. Coffee drink drinks. And, that. Will be its target, segment, and. So they, can actually choose, you. Know one. Or two of these kinds, of coffee drinkers, and collapse, them into one and that will be their choice but that will be their defined, target. Segment. After. Identifying. A target, segment, a company. Will want to have, a position. Within. That segment, because other, competitors. Are gonna want to be in there too let's. Say for example that this is a specialty, coffee house and they, want to be different. Than. Another, coffee. House so that customers, will choose them over another, so, in this case they may offer. A variety of. Specialty. Drinks, that are made out of premium. Coffee beans, and it, will be offered in a sophisticated, comfortable. Atmosphere where. They will be greeted, and served by friendly baristas and where. There will be free Wi-Fi, ok. And they may even have other, events, say, in this in this coffee house like art, shows or music and so, that's the position within. This particular target, segment, because they're not going to be the only company trying, to make money in a segment you know offering. These. Kinds of things to their, customers, so they're gonna have to have a positioning. Statement. In. Doing, so they're going to have to deliver a, set, of marketing. Strategies, and this, is really the heart of the marketing strategy I mean all of this is part of the marketing strategy right, you have to plan you, have to choose your market and then you have to have a set of strategies to capture. Your market so this is the heart of it now let's talk about the four PS the, four PS are product. Price. Place. And, promotion. For. This example I will talk about a line of Bobbi, Brown cosmetics called. Lipsticks so and. The, product, the. Things that we consider there is the, idea itself and this, is after. There, has been some market research to. Figure out you. Know what the, customer. Profile would, be receptive, to so these are based on their wants and needs and then, there's, the idea of idea. Screening, right, and so. In this, phase the marketer, would. Then look into the organization's. Resources. And objectives, and. Assess. Whether or not the firm can, actually, produce and, market this particular product. In. The step. Then. They will then develop that concept, so that you know they can move forward with testing, and they, will do what's called a business analysis, and this, is a basic assessment. Really, of the products. You. Know kind of fit within the marketplace and, its. Potential, profitability, I mean you don't want to put a product. Out there that's going to require a lot of the company's resources only, to find out that it will not be profitable, then. They will go into product development and, it. Develops. You know a prototype, that. Will, be. Able to measure, its. You, know value its tangible, attributes. And as. It is perceived. By the. Customer, then, there is test marketing, and in, test marketing, there, will be a trial. Launch. Of the, product and it's. Going, to be in just limited areas, of the market just, see how it how it goes you know before you produce everything. Out there it's, important, to see how the market the product will actually, perform.
In A limited fashion and then. Provided. That it has survived, all these six steps and. All. Engines, go then. It goes into what's called. Commercialization. And this is the full introduction, of the. Complete, marketing, strategy, around that, product. So it launches. Pretty much into the market. Then what, we have is, price. And there, are many considerations. Around, price. But. Generally, speaking the. Things that we need to consider when, it comes to pricing objectives, are, whether or not we're trying to maximize profits. So then you choose a price, that will allow us to do that are. We trying to boost our market. Share within. The, segment that we've chosen and so, we may have 10%, of the market and we want to have 15%, of the market, well that will require a different kind of pricing, scheme are, we trying to maintain our status quo, within. That market I'm just trying to you know keep what we have are, we trying to survive and so, pricing. Strategies. We'll, have to consider what. Our pricing, objectives, are, going to be. Then. There is this notion, of place, and please. Can. Be many, many, things but it's, really sometimes, known, as a distribution. Strategy, and it. Has particular, considerations. Around, where. The. Product. Will. Be distributed. So will it be. Available. In, retailers, well, the, company, do, direct marketing, direct selling will. It make it available to. Wholesalers. And then, there's this idea of supply. Chain management and that, is so that you know it tries to understand, how to improve the, distribution of. Its. Products, through the different, ways that it's trying to make it available whether it's me retailers. Through. You, know third parties, like like, the retailers, and wholesalers and. The, like and so. There are things like market. Coverage, whether. Or not they're going to make. This, product, distributed. Widely. Or is it selective, right, and, so these, are the kinds of things or is it exclusive even, and then there's the physical distribution itself. How this.
Is Going to, actually. Get in the hands of the. Customers, whether. You, know so. There's transportation. Consideration. Warehousing. Consideration. And materials. Handling, consideration. The. Fourth P is that a promotion, and this, is typically what most people, will think of when they think of marketing this would be the visible side of marketing, so this is what the ads the, personal selling and publicity. So, for example when celebrities, endorse. Products, there's. Also a distinction between push, and pull promotional. Strategies, so, a push strategy is, one. That is sort of top-down it's, when a. Manufacturer. Or, a company, will, create, incentives. For. Retailers. Or salespeople to make a product more available. To customers, so they may discount. The pricing, of the. Products. To, the retailers, so the retailer, would be motivated, to, sell that product because they could make more money on. Those products or, another. Strategies, that a pull strategy, a pull strategy is more bottom-up, and uses. Promotion. To, create consumer, demand, for a product so that consumers. Will, then exert. Pressure on that. Company an. Example. That your book uses is that of t-mobile and t-mobile. At the time was the only carrier, that did not offer iPhone, the. IPhone to its customers, and. Because. It wasn't compatible, with its own technological framework, so, Apple, you, know largely, sidestep, t-mobile. And, but. This created pressure for. Tea t-mobile. To get in the game and offer the iPhone because it was losing market, share and, so, it did that it made ahead in went. Ahead and. Updated. Its systems so that it could then offer, the. IPhone, all. Right so that's a quick overview of major, elements, of the marketing concept now. Mentioned. Earlier marketing. Is a very large topic and if you wanted to learn more about this. Function. Of business, you can take courses like management, 282, which, will go dive deeper, into the, principles, of marketing and then, if you wanted to learn more about social media marketing there. Are at least two classes, that we offer and, that would be business 134. And business. 135. All. Right thank, you so much for watching and I. Will talk again with you soon.