Marketing Principles exam 1 review PDF

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outline of chapters and review for test...

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EXAM 1 REVIEW

marketing

goods, services and ideas supply chain

the definition of value for a consumer/customer

reasons companies must consider employees, stakeholders and society in marketing plans

the core aspects of marketing

the elements of the marketing mix and how they relate to value

B2B, B2C, C2C

An organizational function and a set of processes for creating, capturing, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Things you can see and touch; activities that are consumes the same time they are produced. the set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction (e.g., transportation companies) into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers.

How customers weigh the benefits of individual purchasing decisions against the costs of these purchases It affects the company regarding work effort and the image of the company*** 1. Market helps create value 2. Satisfying customer needs and wants 3. Marketing entails an exchange 4. Marketing requires product, price, place, and promotion decisions 5. Marketing can be performed by both individuals and organizations 6. Marketing affects various stakeholders Product: Creating Value Price: Capturing Value Place: Delivering Value Promotion: Communicating Value The process by which businesses sell to consumers is known as (business-to-consumer

EXAM 1 REVIEW

B2C) marketing; whereas the process of selling merchandise or services from one business to another is called business-to-business (B2B) marketing; This third

category, in which consumers sell to other consumers, is consumer-toconsumer (C2C) marketing

marketing eras

Product-Oriented Era: Product will sell itself… “Customers can have any color they want so long as it’s black” Sales-Oriented Era: 1920-1950 Personal selling and advertising (produced more than the consumers demanded) Market-Oriented Era: Focus on what consumers wanted and needed before they designed, made, or attempted to sell their product or services Value-Based Marketing: What you get for what you give.

Developing Marketing Strategies and Marketing Plans

1. 2. 3.

Identifies a firm’s target markets A related marketing mix (its four Ps) The bases on which the firm plans to build a sustainable competitive advantage Marketing Plan: A written document composed of an analysis of current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, action programs, and projected or pro forma income statements.

elements required in order to create a marketing strategy

Step 3: Identify opportunities  Segmentation  Targeting  Positioning Step 4: Implement marketing mix  Product  Price

EXAM 1 REVIEW

ways to achieve an SCA (as they relate to customer, operational, product, location)

 Place  Promotion Customer excellence: Focuses on retaining loyal customers and excellent customer service Operational excellence: Achieved through efficient operations and excellent supply chain and human resource management Product excellence: Having products with high perceived value and effective branding and positioning

five steps in creating a marketing plan (also know the three phases)

CDSTEP

STP

strategic business unit

product lines

Locational excellence: having a good physical location and internet presence 1. Business mission & objectives 2. Situation Analysis 3. Identify Opportunities(segmentation, targeting, positioning) 4. Implement marketing mix 5. Evaluate performance using marketing metrics Cultural, Demographic, Social, Technological, Economic, and Political forces Segmentation Targeting Positioning A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have different mission or objectives A group of related products under a

EXAM 1 REVIEW

market share

single brand sold by the same company The portion of a market controlled by a particular company or product

portfolio analysis Growth strategies: market penetration, market development, product development, diversification

Market penetration: Employs the existing marketing mix and focuses the firm’s efforts on existing customers Market Development: Employs the existing marketing offering to reach new market segments, whether domestic or international Product Development: Offers a new product or service to a firm’s current target market

lifetime value of customers

search engine optimization

value proposition

pop-up store

social media

Diversification: firm introduces a new product or service to a market segment that it does not currently Prediction of the net profit attributed to the entire future relationship with a customer. Maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of result returned by a search engine An innovation, service or feature intended to make a company or product attractive to customers A retail store that is opened temporarily to take advantage of a trend or a seasonal product (short lived…apparel and toy industries Content distributed through online and mobile technologies to facilitate

EXAM 1 REVIEW

relevancy in social media marketing blogs, corporate, professional, personal, micro

reach

showrooming

touch point hit

page view bounce rate

Social networking sites Media-sharing sites Thought sharing sites  Blog periodic posts  Corporate blogs: website created by a company and often used to educate customers  Professional: written by a person who review and give recommendations on products and services  Personal: a person who receives no products or remuneration for their efforts  Micro: short sentences, short videos, or individual images (i.e. Twitter) Total number of different people or households exposed, at least once, to a medium during a given period Customers go to a store to touch, feel, and even discuss a product’s features with a sale associate, and then purchase it online from another retailer at a lower price. Any point of contact between a buyer and a seller A request for a file made by web browsers and search engines. Misinterpreted as a metric for website success; however, the number of hits typically is much larger than the number of people visiting a website The number of times an Internet page gets viewed by any visitor. The percentage of times a visitor

EXAM 1 REVIEW

click path conversion rate keyword analysis

ROI

4E framework

ethical values marketers should embrace (AMA code of ethics)

understand why people act unethically (from the book)

Distinguish between ethics and social responsibility

leaves the website almost immediately, such as after viewing only one page Shows how users proceed through information on a website Percentage of customers that buy a product after viewing it An evaluation of what keywords people use to search on the internet for their products and services Return on Investment ROI= (Net Profit/Cost of Investment) x 100 1. Excite customers with relevant offers 2. Educate them about the offering 3. Help the experience products, whether directly or indirectly 4. Give them an opportunity to engage with their social network “As marketers…we not only serve our organizations but also act as stewards of society in creating, facilitating and executing the transactions that are part of the greater economy. Managers often face the choice of doing what is beneficial for them and possibly the firm in the short run and doing what is right and beneficial for the firm and society in the long run. Social: Voluntary actions taken by the company to address the ethical, social, and environmental impacts of business operations and the concerns of its stakeholders. Ethics: Social and environmental

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four steps in ethical decision-making

integration of ethics into marketing strategy ways in which corporate social responsibility programs help various stakeholders

Understand how customers, the company, competitors and corporate partners affect marketing strategy

Recognize why marketers must consider the macroenvironment when making decisions

considerations in production and promotion. 1. Identify Issues 2. Gather information and identify stakeholders 3. Brainstorm and evaluate alternatives 4. Choose a course of action Planning phase, Implementation phase, control phase Employees  Increase the number of people who work there  Happy employees offer better service to customers Customers:  Increases consumer awareness  Better brand equity and sales in long term Marketplace  When one firm leads in CSR others must follow or risk going out of business Society  Companies cannot ignore societal demands for them to act responsibly. A firm that fails to do so causes damage to other stakeholders. A firms target market, marketing mix, and method of obtaining a sustainable competitive advantage Culture, demographics, social trends, technological advances, economic situation, and political/regulatory environment

EXAM 1 REVIEW

Recognize the characteristics of generational cohorts

Recognize social trends and their impact on marketing Core competency

Corporate partners Channels

Salad bowl Greenwashing

Generation Z: digital natives Generation Y: age ranging from teenagers to adults Generation X: both parents worked Baby Boomers: 78 million Americans Shapes consumer values in the United States and around the world Ability to identify with wants and needs of the target customer and communicate the company’s brand image and product value in such a way as to elicit a favorable reaction from the target customer. Parties that work with the focal firm are its corporate partners People, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption A mix of people made up of every corner of the world Exploiting a consumer by marketing products or services as environmentally friendly, with the goal of gaining public approval and sales

Ideas: intellectual concepts and they can be marketed as well....