MAR3023 Exam 1 Review PDF

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Mike Brady MAR3023 remote class, Exam 1 review, key terms and concepts, graphics...

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Exam 1 Review (40 multiple choice) ●

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One of the first parts of the strategic planning process involves taking a complete assessment of the firm. The process includes describing (1) what the company does well (strength), (2) what it doesn’t do well (weakness), (3) identifying things the firm can take advantage of (opportunity) and (4) noting things it should be concerned about (threat). The process is known as: SWOT analysis Doritos is a brand that has high market share but it’s in a low growth market. For Pepsi, which owns the brand, Doritos would be classified as which of the following on the BCG grid: Cash cow

Product development to satisfy unmet consumer needs: The first goal of marketing is to identify unmet consumer needs and then develop products that fill those needs. ● The power of branding/marketing: consumer reports rate the generic products objectively the same as or better than the branded products ● Dr. Brady’s approved definition of marketing: “Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development” - Phil Kotler ● 4 Ps: Product, place, promotion, price ● Marketing’s core strategies: ● Creation: ■ Value: what you get / what you give up ● Reward cards, value menu, babysitting ■ Relationships: establish long term mutually satisfying buyer-seller relationships ● Segment marketing: gender, age, race, education, income, early adopters ● Identifying opportunities ● Know the history of marketing ● Simple trade era: made by hand and grown ● Production era: firms produced what they could make ● Sales era: firms pushed products using aggressive sales tactics ● Marketing era: focus on customer orientation ● Societal era: firms now serve three entities: customers, shareholders, and society Stakeholders - who are they? ● 4 Ps/ the marketing mix/ marketing leverage ● Product: goods, services ideas ● Place/distribution: make products available in quantities desired ● Promotion: inform individuals or groups about the organization ● Price: decisions and actions associated with establishing pricing objectives and policies ● Game changers ● “Destination products” have such a strong following that people will go out of their way to get it ● Misconceptions of marketing

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○ Iceberg metaphor: what most people see: promotion ○ Marketing vs. advertising ○ Holistic view Time as related to marketing ○ What effect does time have in marketing: as time goes by and a company makes money, competitors come in and companies have to convince you that the original product is superior ○ Competitors force firms to promote their products in order to differentiate them from close competitors Power of branding and advertising Macro-marketing strategies ○ Creating value - how do companies do this? ○ Creating relationships ○ Segment market ■ Coke, diet coke, coke zero, etc. ○ Identifying opportunities ■ Market opportunity: where circumstances and timing meet to create strategic window ■ Core competency: things firm does well SWOT analysis ■ Strength, weakness, opportunity, threat ■ Strengths with opportunities, weakness into strength, threats into opportunity ● Strategic business unit - division within larger parent company ■ Internal marketing ■ External marketing ● BCG’s matrix - star, cash cows, question marks, dogs

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People and firms to know: ■ Warren Buffet: “it takes 20 years to build a reputation, and five minutes to ruin it” ■ Pepsi: started by Caleb Bradham ■ Berkshire Hathaway: diverse portfolio, Warren Buffet ■ Ralph Nader: consumer advocate The internal environment ■ Market opportunity ■ SWOT analysis

■ SBUs Origins of Marketing Strategy ■ Mission Statement ● Vision - How is this different than Mission? ■ Corporate Strategy ■ Business-Unit Strategy ■ Marketing Strategy ■ Marketing Mix (4 P’s) ● Market Share: the percentage of a market that actually buys a specific product ● Successful SBU’s ■ Market Share ■ Matrix: star, cash cow, question mark, dog ● Internal Marketing ■ Empowerment ■ Chick-fil-A ■ Southwest Airlines The external environment ● Environmental forces: ■ Competitive ■ Sociocultural ■ Technological ■ Economic ■ legal/regulatory ■ Political Competitive structures ● Monopoly: an organization has no competitors so it is the sole source of supply, illegal ● Oligopoly: few sellers control supply ● Monopolistic: firms in competitive industries attempt to differential a product ● Pure competition: a large number of sellers with similar products and low barriers to entry, (farmers market) Corporate Social responsibility ● Pyramid of CSR ●

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Marketing citizenship Responsibilities: economic, legal, ethical, philanthropic Cause related marketing: linking products to a particular social cause, on-going or short-term Strategic philanthropy: uses core competencies/resources to achieve organizational and social

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benefits ● Sustainability ● Consumerism ● Community relations Marketing ethics ● Trust issues ● Ethical issue relating to ■ Promotion: manipulative or deceptive sales promotion, tactics, and publicity ■ Product: marketers fail to disclose risks, existing conditions, product quality ■ Price: price fixing, predatory pricing, personalized pricing ■ Place: cereal box psychology...