Marketing Exam 1 - exam 1 study guide with notes from the book and lecture PDF

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exam 1 study guide with notes from the book and lecture ...

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Marketing- Buying and selling  Important to understand 1. The consumers 2. The economy 3. Your career 4. It is the key to successful business 5. Everyone has to market themselves Product Placement  Music, movies, TV, books, etc.  Visual, audible, use, integrated (most effective), virtual placements  How does it happen? Not always planned  Upfronts- Shopping to get products in shows and music  Mere Exposure- Repeated exposure to a brand increases liking for a brand  Associative networks- The images and associations with the characters or story  Catalysists for product placement- Channel surfing, TIVO, fragmented media i.e. internet, Netflix, economical, performance Marketing Mix 1. Product  Creating the offering  Service of product 2. Price  Capturing the value  Not always money (ex: Dignity) 3. Place  Delivering (how you get the good/offering to the customer  How the product is perceived 4. Promotion  Communicating Value  Fundamental purpose of marketing o Create value  Benefits o Firm, partners, customers and society o Cocreation (ex: monograms Profitable Exchange  Personal value equation  Value= Benefits received – [cost + hassle]  Ex: TJ Maxx vs Nordstrom The Marketing Concept  Philosophy underlying everything marketers do  Seek to satisfy customer needs and wants History 1. Production Oriented Era (Sell what we make) 2. Sales Oriented Era (Good Salesmen) 3. Market Oriented Era (Customer is king)

4. Value Based Marketing Era (Now) Value Based Marketing  Customer value 1. Offer products the perform 2. Earn trust 3. Avoid unrealistic pricing 4. Give buyers the facts 5. Offer organization-wide commitment in service and sales support 6. Co-creation  Customer satisfaction Who engages in Marketing?  For profit companies  Nonprofit  Individuals Marketing is NOT:  All about the money  Making a profit  Random activity Strategy:  What is the organization’s main activity at a particular time?  How will it reach its goals? 1. Defines and identifies a firm’s target markets 2. A related marketing mix (4 P’s) 3. The bases upon which the firm plans to build a sustainable competitive advantage Customer Excellence (cusotmer service)

Locational Excellence (convienence)

Customer Value

Oprational Excellence (efficency)

Product Excellence (superior product)

Why have a marketing plan? 1. If you fail to plan, you plan to fail 2. Overall analysis of how the firm is going to get the marketing strategy accomplished 3. Helps employees and management work toward common goals

4. Allows the marketing manager to enter the marketplace with an awareness of possibilities and problems Marketing Objectives  Realistic  Measurable  Time specific  Consistent with and indicating the priorities of the organization Marketing Plan Step 1: Business mission and objectives  What business are we in?  Should focus on the market or markets the organization is trying to serve rather than a good or service offered  Don’t want to be broad  Also may include sustainable competition advantage Marketing Myopia- Defining a business in terms of goods and services rather in terms of the benefits that customers seek Step 2: SWOT Analysis    

S- Things the company does well W- Things the company does not do well O- Conditions in the external environment that favor strengths T- Conditions in the external environment that do not relate to existing

strengths or favor areas of current weakness Environmental Scanning  Helps identify opportunities and threats o Social o Demographic o Economics o Technological o Political/Legal o Competitive Step 3: Identify and evaluating opportunities using STP o Segmentation- Which segments of customers can you satisfy (divide) o Targeting- Evaluation of each segments’ attractiveness o Positioning- How are you positioning the product within the target segments Step 4: Implement marketing mix and allocate resources o Product, place, price, promotion Step 5: Evaluate performance and make adjustments o Who is responsible for performance? o Performance objectives and measures o Financial performance metrics o Portfolio analysis Portfolio Matrix:

Stars (Has potential to burn out)

Probelm Children (lots of potential, just not making it happen)

Cash Cows (little investment, little maintence, lots of money)

Dogs (lazy, lots of money, lots of time, get rid of it)

Stars: o High market growth o High market share o Cash neutral o Hold Problem Child: o High market growth o Low market share o Cash absorbing o Build Cash Cow: o Low market growth o High market share o Cash generating o Harvest or milk Dog: o Low market growth o Low market share o Cash neutral o Divest Growth Strategies Products and Services Markets Current Current Market Penetration New Market Development

New Product Development Diversification

Target Market  Defined group most likely to buy a product o Changes as consumers age o External elements change consumers’ desires Marketing Environment

Center = Customers Microenvironment: o Company- leveraging core competency (what you’re good at) applied to new markets, new products, etc. o Competition- Competitive intelligence (CI), know strengths and weaknesses, proactive rather than reactive o Corporate Partners- Firms are part of the alliances, align with competitors, suppliers, etc, Just in time delivery systems (JIT)  Microenvironment o Culture  Country culture vs. regional o Multiculturalism- Occurs when all major ethnic groups in an area that are roughly equally represented o US trend toward greater multiculturalism o Regional dimensions Demographics  People are the basis for any market  Demographic characteristics relate to buyer behavior o Tailoring products to what customers value o Demographic cohorts have their own needs, values, and consumption patterns Income  Purchasing power in income  ___ tracks income  Many middle class families feel the decline in purchasing power in recent years  Middle class is shrinking (Middle class restaurants are rebranding towards being cheaper) Education  Single highest determinant in purchasing power  Related to income, more education equals more spending power Gender  Male/female rolls have been shifting  Marketing has changed to reflect the shifts  Parents are more likely to be teams Social Trends  Thrift-Attempting to save more, spend less on luxuries, didn’t dip into their savings  Health/wellness concerns-Worldwide pandemics/epidemic, child obedience o Disney doesn’t allow bad kids to be in the channel  Greener customers- customers who appreciated firms efforts to supply them with environmentally friendly merchandise o Greenwashing- Faking/elaborating on your greens Privacy Concerns  Loss of privacy, identity theft, do not call, do not email  Marketers could learn about you and market to you –NO!  ...