Slides_before_Pre_1 - AEM 240 Marketing Welcome! AEM240...

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1 CORNELL AEM240 Marketing AEM 240 Marketing Welcome! CORNELL Questions we will consider over the course of the semester. .. CORNELL Proposition Marketing starts with economics but goes beyond economics… Economics teaches us that as prices go up, the quantity purchased and sales go down, yet marketers can provide long lists of exceptions to this core theory. Recently, Disney World raised its ticket price 45% but. .. Attendance increased 25% Revenues increased 75% CORNELL Product Strategy ± Some argue that the abundance of goods in the U.S. has reached embarrassing proportions. Nearly 40,000 new grocery products in 2007 alone. Why? Is it because we really need another breakfast cereal? CORNELL Distribution Strategy Wal-Mart may now not only be the world’s biggest company, it may be the most boring-- cookie cutter sameness, no service, mediocre perishables. --Why is it so successful? --Will anything be able to stop its growth?! Producer Manufacturer Wholesaler Retailer Consumer 0 50 100 150 200 250 $US Billions 1980 2003 CORNELL Pricing Strategy • Medication for Gaucher disease--an inherited, enzyme deficiency, disorder—may cost $500,000 per year. – How is that price established? – How do pharmaceutical firms cover fixed costs? – Should they be required to set prices to be affordable for the sick and indigent? – Should they set prices to maximize profits for shareholders?
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2 CORNELL Six Key Marketing Concepts • Price vs value • Economic utility • Marketplace orientations • Total quality management • Customer satisfaction • Marketing mix factors Price vs Value Value = Taste Quality Nutrition Recipes Information Safety Freshness Fun Price CORNELL Price vs Value Value = Benefits Price CORNELL direct indirect 2) Economic Utility ± Degree to which customer wants/needs are satisfied ± Marketers may create by: 9 Form 9 Time 9 Place 9 Possession AEM240 Marketing CORNELL CORNELL Production orientation Production orientation Some industries and organizations remain at the production-orientation stage. Other industries and organizations have progressed only to the sales- orientation stage. Sales orientation Production orientation Sales orientation Marketing orientation Many industries and organizations have progressed to marketing- orientation stage CORNELL • Where Are We Now? – Customers Competencies Competitive advantage Quality--TQM Benchmarking--TQM – Competitors • Where do we want to go? – BCG Matrix – Market Product Analysis Setting Strategic Directions Next time. ..
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3 Strategies to promote TQM ± Involving top management ± Marketing audit ± Continuous improvement ± “Benchmarking” ± Focus on customer satisfaction AEM240 Marketing CORNELL ..an approach involving all employees in continually improving products & work processes to achieve world class performance. ..
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Slides_before_Pre_1 - AEM 240 Marketing Welcome! AEM240...

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