Study Guide T 1 - Eaton PDF

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Summary

Chapter 1 - Describe the purpose of marketing - An organizational plan that creates, communicates and delivers value to the consumer - Understand the concepts of marketing mix and demographics/psychographics - Marketing Mix - Combination of factors that companies use to market themselves - 4 Ps - Pr...

Description

Chapter 1 • Describe the purpose of marketing • An organizational plan that creates, communicates and delivers value to the consumer • Understand the concepts of marketing mix and demographics/psychographics • Marketing Mix • Combination of factors that companies use to market themselves • 4 Ps • Product • Place • Price • Promotion • Demographics • Group level tools • Psychographics • Individual Level tools • Compare and contrast the different marketing management philosophies of the evolution of the marketing concept • Production Orientation • Based on one size fits all • Efficiency of the supply chain • Selling Orientation • Focus on aggressive sales tactics to get consumers to buy more • Marketing Orientation • Finding answer for consumers • customization • Societal Orientation • Finding answers while benefitting society • Explain and examine the different facets of the market orientation construct • Gathering market intelligence • Disseminating information • Coordinated response • Apply the marketing concept to real-world business situations Chapter 2 • Marketing Environment • Be able to categorize micro and macro environmental factors • Micro • Consumers, Competitors, Suppliers • Macro • Government, economic cycle, social • Understand Porter’s Five Forces with respect to Competitive Rivalry • Consumer threats • Supplier threat • New product threat • New entrant threat • Explain the important factors related to three of the six Marketing Environment Factors by focusing on: • Social Changes • Core values, women in the workforce, changes in households • Levels of Competition • Generic/Form/Industry/Brand • Consumer Markets • Age trends, generation characteristics, ethnic trends • Business Markets • Be prepared to explain:

Types of business products Business market demand categories • Derived demand • Components of a product • Things that go together to make a product • Joint demand • Complimentary goods • PB&J • Buying situations • Straight rebuy • Modified rebuy • New task • Compare and contrast business markets and consumer markets • Business markets are usually on a much larger scale Segmentation, Targeting and Positioning • Thoroughly explain the STP process • Segmentation • Finding the right markets for each product • Better define a certain segment needs • Targeting • Select most appropriate market • Evaluating segments and selecting which segments have similar needs • Positioning • Target marketing messages with the 4 P’s • How companies make their image and offering in the market look to consumers • Compare and contrast the four different segmentation bases (Demographic, Psychographic, Behavioral and Needs) • Demographics • Age, gender, income • Psychographics • Values, lifestyle, personality, activities, Interests, opinions • Behavioral • 80/20 principle • 80% of demand comes from 20% of customers • Platinum members • Needs • Fulfills a need • Niche • Skymall • Explain the pros and cons of the four primary targeting strategies (Undifferentiated, Differentiated, Niche, Micromarketing) • Undifferentiated Segmentation • One size fits all • Assembly line things like Model T • Pros: Efficiency in production • Cons: Unimaginative products, easy for competition to appear • Differentiated • A strategy that chooses two or more market segments and develops a marketing mix for each • Pros: Greater financial success, Econmies of scale • Cons: Cannibalization, High costs • Niche • Concentrated strategy focused on a niche product and only on that niche product. • Pros: Concentration in resources and costs, Small firms can compete, Strong positioning • •

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Cons: Can’t really spread out, Segments could be too small or changing quickly, Larger competitors could market to niche • Micromarketing • One to one marketing with a goal to increase customer loyalty over the long term. • Consumers are wanting things that are just for them, earning companies loyalty. • Pros: Consumers gets exactly whats needed • Con: expensive Describe the value proposition, and positioning statement concepts • Value proposition • Answers question of why I should buy your brand • Value is relationship of price and quality • Positioning statement • Comparing yourself to the others Explain the perception-related concepts of perceptual mapping, repositioning, Weber’s Law, the Zeigernik effect and repositioning • Perceptual mapping • Mapping where a brand is on two characteristics • Repositioning • A1 Steak sauce • Change the brand over time as society changes • Webers Law • The greater the initial stimulus the bigger threshold needed to notice a difference • Zeigernik effect • People remember incomplete tasks better than complete. Planning and Marketing in an Organization • Differentiate between Market Strategy and Market Tactics • Strategy • Asking the Why are we doing this • Planning • Upper management • Tactics • The What are we doing • The actions taken to implement our strategy • Understand Strategic Planning Elements, especially: • SWOT • Strengths • Internal • Helpful • Weaknesses • Internal • Harmful • Opportunities • External • Helpful • Threats • External • Harmful • Strategic Business Units (SBUs) • Different lines in a company • Product categories • Samsung with Galaxy S and Note • Honda • Cars • Motorcycle • ATV •

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BCG Matrix • Question mark • Little market share but high market growth • Questionable as in which direction to go to make money • Dogs • Little market share and market growth • Trouble making profits from this • Cash Cow • High market share but low market growth • High earners but difficult to develop new ways to profit • Stars • High market share and market growth • Make money and has potential to increase even more Compare and contrast Competitive Advantage strategies • Cost • Best value • Efficient labor • Usually simple one size fits all • Product differentiation • Loyalty • Strong dealer network reliable product • Image • Niche • Targets a small segment of the market • Small resources of a company • Limited geographically Comprehend the growth strategies from the Strategic Opportunity Matrix • Market Penetration • Aggressively market your existing products in the same market • More locations • Product development • Market new products in your existing markets • Market development • Offer same products in different locations geographically • Diversification • Acquire new products and have them sold elsewhere from your usual stores • Amazon and Whole foods Have a working understanding of Consolidation Strategies as well as the Balanced Scorecard • Retrenchment • Lower your resources to a line of products or services • Pruning • Stop delivering or providing a line of products or services • Divesting • Stop selling or providing a whole department worth of product or services. •

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