Question:

Hi Colleagues, Final Project: Covers chapters 1 through chapters 16 In the future you may be asked to write a marketing plan. For the final project you are to provide what the marketing plan is and research the different components of the marketing plan. You will also provide how the marketing plan is helpful to the organization. The final project in qualitative and you are not required to provide any quantitative data. Specific information on the marketing plan is in chapter 16 of our e-book. Figure 16.2 gives us an example of the Marketing Plan Outline. Please use any of the concepts we have covered within this course. The Final Project needs to be in a word document and in APA format. Page requirement is at least 4 pages in length. This does not include the cover and reference pages. Make sure to provide at least four outside sources to support your work Submit your work to turnitin and then to this assignment folder

CHAP TER 1 What Is Marketing? What makes a business idea work? Does it only take money? Why are some products a huge success and similar products a dismal failure? How was Apple, a computer company, able to create and launch the wildly successful iPod, yet Microsoft's rst foray into MP3 players was a total disaster? If the size of the company and the money behind a product's launch were the dierence, Microsoft would have won. But for Microsoft to have won, it would have needed something it's not had in a whilegood marketing so it can produce and sell products that consumers want. So how does good marketing get done? 1. DEFINING MARKETING L E A R N I N G O B J E C T I V E 1. Dene marketing and outline its components. Marketing is dened by the American Marketing Association as \"the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging oerings that have value for customers, clients, partners, and society at large.\"[1] If you read the denition closely, you see that there are four activities, or components, of marketing: 1. Creating. The process of collaborating with suppliers and customers to create oerings that have value. 2. Communicating. Broadly, describing those oerings, as well as learning from customers. 3. Delivering. Getting those oerings to the consumer in a way that optimizes value. 4. Exchanging. Trading value for those oerings. The traditional way of viewing the components of marketing is via the four Ps: 1. Product. Goods and services (creating oerings). 2. Promotion. Communication. 3. Place. Getting the product to a point at which the customer can purchase it (delivering). 4. Price. The monetary amount charged for the product (exchanging). Introduced in the early 1950s, the four Ps were called the marketing mix, meaning that a marketing plan is a mix of these four components. If the four Ps are the same as creating, communicating, delivering, and exchanging, you might be wondering why there was a change. The answer is that they are not exactly the same. Product, price, place, and promotion are nouns. As such, these words fail to capture all the activities of marketing. For example, exchanging requires mechanisms for a transaction, which consist of more than simply a price or place. Exchanging requires, among other things, the transfer of ownership. For example, when you buy a car, you sign documents that transfer the car's title from the seller to you. That's part of the exchange process. Even the term product, which seems pretty obvious, is limited. Does the product include services that come with your new car purchase (such as free maintenance for a certain period of time on some models)? Or does the product mean only the car itself? Finally, none of the four Ps describes particularly well what marketing people do. However, one of the goals of this book is to focus on exactly what it is that marketing professionals do. marketing \"The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging oerings that have value for customers, clients, partners, and society at large.\" creating In marketing, a term that involves collaboration with suppliers and customers in order to generate oerings of value to customers. exchanging The act of transacting value between a buyer and a seller. 6 PRINCIPLES OF MARKETING VERSION 2.0 1.1 Value Value is at the center of everything marketing does (Figure 1.1). What does value mean? FIGURE 1.1 Marketing is composed of four activities centered on customer value: creating, communicating, delivering, and exchanging value. value Total sum of benets received that meet a buyer's needs. See personal value equation. personal value equation The net benet a consumer receives from a product less the price paid for it and the hassle or eort expended to acquire it. marketing concept A philosophy underlying all that marketers do, driven by satisfying customer wants and needs. market oriented The degree to which a company follows the marketing concept. When we use the term value, we mean the benets buyers receive that meet their needs. In other words, value is what the customer gets by purchasing and consuming a company's oering. So, although the oering is created by the company, the value is determined by the customer. Furthermore, our goal as marketers is to create a protable exchange for consumers. By protable, we mean that the consumer's personal value equation is positive. The personal value equation is value = benefits received - [price + hassle] Hassle is the time and eort the consumer puts into the shopping process. The equation is a personal one because how each consumer judges the benets of a product will vary, as will the time and eort he or she puts into shopping. Value, then, varies for each consumer. One way to think of value is to think of a meal in a restaurant. If you and three friends go to a restaurant and order the same dish, each of you will like it more or less depending on your own personal tastes. Yet the dish was exactly the same, priced the same, and served exactly the same way. Because your tastes varied, the benets you received varied. Therefore the value varied for each of you. That's why we call it a personal value equation. Value varies from customer to customer based on each customer's needs. The marketing concept, a philosophy underlying all that marketers do, requires that marketers seek to satisfy customer wants and needs. Firms operating with that philosophy are said to be market oriented. At the same time, market-oriented rms recognize that exchange must be protable for the company to be successful. A marketing orientation is not an excuse to fail to make prot. CHAPTER 1 WHAT IS MARKETING? Firms don't always embrace the marketing concept and a market orientation. Beginning with the Industrial Revolution in the late 1800s, companies were production orientation. They believed that the best way to compete was by reducing production costs. In other words, companies thought that good products would sell themselves. Perhaps the best example of such a product was Henry Ford's Model A automobile, the rst product of his production line innovation. Ford's production line made the automobile cheap and aordable for just about everyone. The production era lasted until the 1920s, when production-capacity growth began to outpace demand growth and new strategies were called for. There are, however, companies that still focus on production as the way to compete. From the 1920s until after World War II, companies tended to be selling orientation, meaning they believed it was necessary to push their products by heavily emphasizing advertising and selling. Consumers during the Great Depression and World War II did not have as much money, so the competition for their available dollars was sti. The result was this push approach during the selling era. Companies like the Fuller Brush Company and Hoover Vacuum began selling door-to-door and the vacuum-cleaner salesman (they were always men) was created. Just as with production, some companies still operate with a push focus. In the post-World War II environment, demand for goods increased as the economy soared. Some products, limited in supply during World War II, were now plentiful to the point of surplus. Companies believed that a way to compete was to create products dierent from the competition, so many focused on product innovation. This focus on product innovation is called the product orientation. Companies like Procter & Gamble created many products that served the same basic function but with a slight twist or dierence in order to appeal to a dierent consumer, and as a result products proliferated. But as consumers had many choices available to them, companies had to nd new ways to compete. Which products were best to create? Why create them? The answer was to create what customers wanted, leading to the development of the marketing concept. During this time, the marketing concept was developed, and from about 1950 to 1990, businesses operated in the marketing era. So what era would you say we're in now? Some call it the value era: a time when companies emphasize creating value for customers. Is that really dierent from the marketing era, in which the emphasis was on fullling the marketing concept? Maybe not. Others call today's business environment the one-to-one era, meaning that the way to compete is to build relationships with customers one at a time and seek to serve each customer's needs individually. For example, the longer you are customer of Amazon, the more detail they gain in your purchasing habits and the better they can target you with oers of new products. With the advent of social media and the empowerment of consumers through ubiquitous information that includes consumer reviews, there is clearly greater emphasis on meeting customer needs. Yet is that substantially dierent from the marketing concept? 7 production orientation A belief that the way to compete is a function of product innovation and reducing production costs, as good products appropriately priced sell themselves. production era A period beginning with the Industrial Revolution and concluding in the 1920s in which production-orientation thinking dominated the way in which rms competed. selling orientation A philosophy that products must be pushed through selling and advertising in order for a rm to compete successfully. selling era A period running from the 1920s to until after World War II in which the selling orientation dominated the way rms competed. product orientation A philosophy that focuses on competing through product innovation. marketing era From 1950 to at least 1990 (see service-dominant logic era, value era, and one-to-one era), the dominant philosophy among businesses is the marketing concept. value era From the 1990s to the present, some argue that rms moved into the value era, competing on the basis of value; others contend that the value era is simply an extension of the marketing era and is not a separate era. one-to-one era From the 1990s to the present, the idea of competing by building relationships with customers one at a time and seeking to serve each customer's needs individually. 8 service-dominant logic An approach to business that recognizes that customers do not distinguish between the tangible and the intangible aspects of a good or service, but rather see a product in terms of its total value. service-dominant logic era The period from 1990 to the present in which some believe that the philosophy of service-dominant logic dominates the way rms compete. oering The entire bundle of a tangible good, intangible service, and price that composes what a company oers to customers. PRINCIPLES OF MARKETING VERSION 2.0 Still others argue that this is the time of service-dominant logic and that we are in the servicedominant logic era. Service-dominant logic is an approach to business that recognizes that consumers want value no matter how it is delivered, whether it's via a product, a service, or a combination of the two. Although there is merit in this belief, there is also merit to the value approach and the oneto-one approach. As you will see throughout this book, all three are intertwined. Perhaps, then, the name for this era has yet to be devised. Whatever era we're in now, most historians would agree that dening and labeling it is dicult. Value and one-to-one are both natural extensions of the marketing concept, so we may still be in the marketing era. To make matters more confusing, not all companies adopt the philosophy of the era. For example, in the 1800s Singer and National Cash Register adopted strategies rooted in sales, so they operated in the selling era forty years before it existed. Some companies are still in the selling era. Recently, many considered automobile manufacturers to be in the trouble they were in because they work too hard to sell or push product and not hard enough on delivering value. Creating Offerings That Have Value Marketing creates those goods and services that the company oers at a price to its customers or clients. That entire bundle consisting of the tangible good, the intangible service, and the price is the company's oering. When you compare one car to another, for example, you can evaluate each of these dimensionsthe tangible, the intangible, and the priceseparately. However, you can't buy one manufacturer's car, another manufacturer's service, and a third manufacturer's price when you actually make a choice. Together, the three make up a single rm's oer. Marketing people do not create the oering alone. For example, when the iPad was created, Apple's engineers were also involved in its design. Apple's nancial personnel had to review the costs of producing the oering and provide input on how it should be priced. Apple's operations group needed to evaluate the manufacturing requirements the iPad would need. The company's logistics managers had to evaluate the cost and timing of getting the oering to retailers and consumers. Apple's dealers also likely provided input regarding the iPad's service policies and warranty structure. Marketing, however, has the biggest responsibility because it is marketing's responsibility to ensure that the new product delivers value. Communicating Offerings communicating In marketing, a broad term meaning describing the oering and its value to potential customers, as well as learning from customers. Communicating is a broad term in marketing that means describing the oering and its value to your potential and current customers, as well as learning from customers what it is they want and like. Sometimes communicating means educating potential customers about the value of an oering, and sometimes it means simply making customers aware of where they can nd a product. Communicating also means that customers get a chance to tell the company what they think. Today companies are nding that to be successful, they need a more interactive dialogue with their customers. For example, Comcast customer service representatives monitor Twitter. When they observe consumers tweeting problems with Comcast, the customer service reps will post resolutions to their problems. Similarly, JCPenney has created consumer groups that talk among themselves on JCPenney-monitored Web sites. The company might post questions, send samples, or engage in other activities designed to solicit feedback from customers. Mobile devices, like iPads and Droid smartphones, make mobile marketing possible too. For example, if consumers check-in at a shopping mall on Foursquare or Facebook, stores in the mall can send coupons and other oers directly to their phones and pad computers. CHAPTER 1 WHAT IS MARKETING? FIGURE 1.2 A BMW X5 costs much more than a Honda CRV, but why is it worth more? What makes up the complete oering that creates such value? Source: Wikimedia Commons. FIGURE 1.3 Social media sites like Foursquare and Facebook have a location feature that allows consumers to post their location. Retailers can then use this to send coupons and other special oers to the consumer's phone or pad for immediate use. Source: Flickr. Companies use many forms of communication, including advertising on the Web or television, on billboards or in magazines, through product placements in movies, and through salespeople. Other forms of communication include attempting to have news media cover the company's actions (part of public relations [PR]), participating in special events such as the annual International Consumer Electronics Show in which Apple and other companies introduce their newest gadgets, and sponsoring special events like the Susan G. Komen Race for the Cure. 9 10 PRINCIPLES OF MARKETING VERSION 2.0 Delivering Offerings delivering In marketing, as in delivering value, a broad term that means getting the product to the consumer and making sure that the user gets the most out of the product and service. supply chain All of the organizations that participate in the production, promotion, and delivery of a product or service from the producer to the end consumer. logistics The physical ow of materials in the supply chain. exchange The transaction of value, usually economic, between a buyer and seller. Marketing can't just promise value, it also has to deliver value. Delivering an oering that has value is much more than simply getting the product into the hands of the user; it is also making sure that the user understands how to get the most out of the product and is taken care of if he or she requires service later. Value is delivered in part through a company's supply chain. The supply chain includes a number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to consumers. The actual group of organizations can vary greatly from industry to industry, and include wholesalers, transportation companies, and retailers. Logistics, or the actual transportation and storage of materials and products, is the primary component of supply chain management, but there are other aspects of supply chain management that we will discuss later. Exchanging Offerings In addition to creating an oering, communicating its benets to consumers, and delivering the oering, there is the actual transaction, or exchange, that has to occur. In most instances, we consider the exchange to be cash for products and services. However, if you were to y to Louisville, Kentucky, for the Kentucky Derby, you could \"pay\" for your airline tickets using frequent-ier miles. You could also use Hilton Honors points to \"pay\" for your hotel, and cash back points on your Discover card to pay for meals. None of these transactions would actually require cash. Other exchanges, such as information about your preferences gathered through surveys, might not involve cash. When consumers acquire, consume (use), and dispose of products and services, exchange occurs, including during the consumption phase. For example, via Apple's \"One-to-One\" program, you can pay a yearly fee in exchange for additional periodic product training sessions with an Apple professional. So each time a training session occurs, another transaction takes place. A transaction also occurs when you are nished with a product. For example, you might sell your old iPhone to a friend, trade in a car, or ask the Salvation Army to pick up your old refrigerator. Disposing of products has become an important ecological issue. Batteries and other components of cell phones, computers, and high-tech appliances can be very harmful to the environment, and many consumers don't know how to dispose of these products properly. Some companies, such as Oce Depot, have created recycling centers to which customers can take their old electronics. Apple has a Web page where consumers can ll out a form, print it, and ship it along with their old cell phones and MP3 players to Apple. Apple then pulls out the materials that are recyclable and properly disposes of those that aren't. By lessening the hassle associated with disposing of products, Oce Depot and Apple add value to their product oerings. K E Y T A K E A W A Y The focus of marketing has changed from emphasizing the product, price, place, and promotion mix to one that emphasizes creating, communicating, delivering, and exchanging value. Value is a function of the benets an individual receives and consists of the price the consumer paid and the time and eort the person expended making the purchase. R E V I E W Q U E S T I O N S 1. What is the marketing mix? 2. How has marketing changed from the four Ps approach to the more current value-based perspective? 3. What is the personal value equation? We want to hear your feedback At Flat World Knowledge, we always want to improve our books. Have a comment or suggestion? Send it along! http://bit.ly/wUJmef CHAPTER 1 WHAT IS MARKETING? 11 2. WHO DOES MARKETING? L E A R N I N G O B J E C T I V E 1. Describe how the various institutions and entities that engage in marketing use marketing to deliver value. The short answer to the question of who does marketing is \"everybody!\" But that answer is a bit glib and not too useful. Let's take a moment and consider how dierent types of organizations engage in marketing. 2.1 For-Profit Companies The obvious answer to the question, \"Who does marketing?\" is for-prot companies like McDonald's, Procter & Gamble (the makers of Tide detergent and Crest toothpaste), and Walmart. For example, McDonald's creates a new breakfast chicken sandwich for $1.99 (the oering), launches a television campaign (communicating), makes the sandwiches available on certain dates (delivering), and then sells them in its stores (exchanging). When Procter & Gamble (or P&G for short) creates a new Crest tartar control toothpaste, it launches a direct mail campaign in which it sends information and samples to dentists to oer to their patients. P&G then sells the toothpaste through retailers like Walmart, which has a panel of consumers sample the product and provide feedback through an online community. These are all examples of marketing activities. For-prot companies can be dened by the nature of their customers. A B2C (business-to-consumer) company like P&G sells products to be used by consumers like you, while a B2B (business-tobusiness) company sells products to be used within another company's operations, as well as by government agencies and entities. To be sure, P&G sells toothpaste to other companies like Walmart (and probably to the army, prisons, and other government agencies), but the end user is an individual person. Other ways to categorize companies that engage in marketing is by the functions they fulll. P&G is a manufacturer, Walmart is a retailer, and Grocery Supply Company (http://www.grocerysupply.com) is a wholesaler of grocery items and buys from companies like P&G in order to sell to small convenience store chains. Though they have dierent functions, all these types of for-prot companies engage in marketing activities. Walmart, for example, advertises to consumers. Grocery Supply Company salespeople will call on convenience store owners and take orders, as well as build in-store displays. P&G might help Walmart or Grocery Supply Company with templates for advertising or special cartons to use in an in-store display, but all the companies are using marketing to help sell P&G's toothpaste. Similarly, all the companies engage in dialogues with their customers in order to understand what to sell. For Walmart and Grocery Supply, the dialogue may result in changing what they buy and sell; for P&G, such customer feedback may yield a new product or a change in pricing strategy. 2.2 Nonprofit Organizations Nonprot organizations also engage in marketing. When the American Heart Association (AHA) created a heart-healthy diet for people with high blood pressure, it bound the diet into a small book, along with access to a special Web site that people can use to plan their meals and record their health-related activities. The AHA then sent copies of the diet to doctors to give to patients. When does an exchange take place, you might be wondering? And what does the AHA get out of the transaction? From a monetary standpoint, the AHA does not directly benet. Nonetheless, the organization is meeting its mission, or purpose, of getting people to live heart-healthy lives and considers the campaign a success when doctors give the books to their patients. The point is that the AHA is engaged in the marketing activities of creating, communicating, delivering, and exchanging. This won't involve the same kind of exchange as a for-prot company, but it is marketing. When a nonprot organization engages in marketing activities, this is called nonprot marketing. Some schools oer specic courses in nonprot marketing, and many marketing majors begin their careers with nonprot organizations. Government entities also engage in marketing activities. For example, when the U.S. Army advertises to parents of prospective recruits, sends brochures to high schools, or brings a Bradley Fighting Vehicle to a state fair, the army is engaging in marketing. The U.S. Army also listens to its constituencies, as evidenced by recent research aimed at understanding how to serve military families more nonprot marketing Marketing activities conducted to meet the goals of nonprot organizations. 12 social marketing Marketing conducted in an eort to achieve social change. PRINCIPLES OF MARKETING VERSION 2.0 eectively. One result was advertising aimed at parents and improving their response to their children's interest in joining the army; another was a program aimed at encouraging spouses of military personnel to access counseling services when their spouse is serving overseas. Similarly, the Environmental Protection Agency (EPA) runs a number of advertising campaigns designed to promote environmentally friendly activities. One such campaign promoted the responsible disposal of motor oil instead of simply pouring it on the ground or into a storm sewer. There is a dierence between these two types of activities. When the army is promoting the benets of enlisting, it hopes young men and women will join the army. By contrast, when the EPA runs commercials about how to properly dispose of motor oil, it hopes to change people's attitudes and behaviors so that social change occurs. Marketing conducted in an eort to achieve certain social objectives can be done by government agencies, nonprot institutions, religious organizations, and others and is called social marketing. Convincing people that global warming is a real threat via advertisements and commercials is social marketing, as is the example regarding the EPA's campaign to promote responsible disposal of motor oil. 2.3 Individuals If you create a rsum, are you using marketing to communicate the value you have to oer prospective employers? If you sell yourself in an interview, is that marketing? When you work for a wage, you are delivering value in exchange for pay. Is this marketing, too? Some people argue that these are not marketing activities and that individuals do not necessarily engage in marketing. (Some people also argue that social marketing really isn't marketing either.) Can individuals market themselves and their ideas? In some respects, the question is a rhetorical one, designed for academics to argue about in class. Our point is that in the end, it may not matter. If, as a result of completing this book, you can learn how to more eectively create value, communicate and deliver that value to the receiver, and receive something in exchange, then we've achieved our purpose. K E Y T A K E A W A Y Marketing can be thought of as a set of business practices that for-prot organizations, nonprot organizations, government entities, and individuals can utilize. When a nonprot organization engages in marketing activities, this is called nonprot marketing. Marketing conducted in an eort to achieve certain social objectives is called social marketing. R E V I E W Q U E S T I O N S 1. What types of companies engage in marketing? 2. What is the dierence between nonprot marketing and social marketing? 3. What can individuals do for themselves that would be considered marketing? We want to hear your feedback At Flat World Knowledge, we always want to improve our books. Have a comment or suggestion? Send it along! http://bit.ly/wUJmef CHAPTER 1 WHAT IS MARKETING? 13 3. WHY STUDY MARKETING? L E A R N I N G O B J E C T I V E 1. Explain the role marketing plays in individual rms and society as a whole. 3.1 Marketing Enables Profitable Transactions to Occur Products don't, contrary to popular belief, sell themselves. Generally, the \"build it and they will come\" philosophy doesn't work. Good marketing educates customers so that they can nd the products they want, make better choices about those products, and extract the most value from them. In this way, marketing helps facilitate exchanges between buyers and sellers for the mutual benet of both parties. Likewise, good social marketing provides people with information and helps them make healthier decisions for themselves and for others. Of course, all business students should understand all functional areas of the rm, including marketing. There is more to marketing, however, than simply understanding its role in the business. Marketing has tremendous impact on society. 3.2 Marketing Delivers Value Not only does marketing deliver value to customers, but also that value translates into the value of the rm as it develops a reliable customer base and increases its sales and protability. So when we say that marketing delivers value, marketing delivers value to both the customer and the company. Franklin D. Roosevelt, the U.S. president with perhaps the greatest inuence on our economic system, once said, \"If I were starting life over again, I am inclined to think that I would go into the advertising business in preference to almost any other. The general raising of the standards of modern civilization among all groups of people during the past half century would have been impossible without the spreading of the knowledge of higher standards by means of advertising.\"[2] Roosevelt referred to advertising, but advertising alone is insucient for delivering value. Marketing nishes the job by ensuring that what is delivered is valuable. 3.3 Marketing Benefits Society Marketing benets society in general by improving people's lives in two ways. First, as we mentioned, it facilitates trade. As you have learned, or will learn, in economics, being able to trade makes people's lives better. Otherwise people wouldn't do it. (Imagine what an awful life you would lead if you had to live a Robinson Crusoe-like existence as did Tom Hanks's character in the movie Castaway.) In addition, because better marketing means more successful companies, jobs are created. This generates wealth for people, who are then able to make purchases, which, in turn, creates more jobs. The second way in which marketing improves the quality of life is based on the value delivery function of marketing, but in a broader sense. When you add all the marketers together who are trying to deliver oerings of greater value to consumers and are eectively communicating that value, consumers are able to make more informed decisions about a wider array of choices. From an economic perspective, more choices and smarter consumers are indicative of a higher quality of life. 3.4 Marketing Costs Money Marketing can sometimes be the largest expense associated with producing a product. In the soft drink business, marketing expenses account for about one-third of a product's priceabout the same as the ingredients used to make the soft drink itself. At the bottling and retailing level, the expenses involved in marketing a drink to consumers like you and me make up the largest cost of the product. Some people argue that society does not benet from marketing when it represents such a huge chunk of a product's nal price. In some cases, that argument is justied. Yet when marketing results in more informed consumers receiving a greater amount of value, then the cost is justied. 14 PRINCIPLES OF MARKETING VERSION 2.0 3.5 Marketing Offers People Career Opportunities Marketing is the interface between producers and consumers. In other words, it is the one function in the organization in which the entire business comes together. Being responsible for both making money for your company and delivering satisfaction to your customers makes marketing a great career. In addition, because marketing can be such an expensive part of a business and is so critical to its success, companies actively seek good marketing people. At the beginning of each chapter in this book, we prole a person in the marketing profession and let that person describe for you what he or she does. As you will learn, there's a great variety of jobs available in the marketing profession. These positions represent only a few of the opportunities available in marketing. Marketing research. Personnel in marketing research are responsible for studying markets and customers in order to understand what strategies or tactics might work best for rms.