Marketing study test

• Marketing includes the activities, instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
• Consumer needs arise when a person feels deprived of basic necessities like food, clothing, and shelter.
• Efforts must concentrate on certain needs of a specific group of potential consumers, known as a target market.
• The 4 P's (Product, Price, Promotion, Place) are aimed toward the needs of the consumer.
• Customer value proposition consists of a cluster of benefits that an organization promises customers to satisfy their needs.
• Consumer wants are needs shaped by a person's knowledge, culture, and personality.
• The 4 P's are elements of the marketing mix: Product, Price, Promotion and Place.
• A market consists of people with both the desire and the ability to buy a specific offering.

Production Era

• The production era occurred in the early years of the United States up until the 1920s.
• Goods were scarce, and buyers were willing to accept available goods.
• Goods were available and the consumer was willing to make do with the current market.

Sales Era

• The sales era spanned from the 1920s to the 1960s.
• Manufacturers could produce more goods than buyers could consume.
• Competition grew, leading firms to hire more salespeople to find new buyers and continued into the 1960s for many American firms.

Marketing strategy

• During the marketing concept era many firms focus on continuously collecting data on customers needs.
• They would the share that info across departments to create customer value for customers.
• Customer Relationship Management (CRM) is the process of identifying prospective buyers and understanding them intimately.
• The need to create long-term perceptions of the organization so that buyers will choose them.
• This long-term perspective requires the involvement and commitment of managers and employees.
• This also encourages a growing application of information, communication, and Internet technology.

Customer Value

• Customer value concept is the unique combination of benefits received by targeted buyers.
• Benefits can Include quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
• Strategic marketing planning considers aspects of company marketing and promotion to create effective strategies.
• A market-oriented mission establishes where a business is headed, what it wants to accomplish, and clearly pinpointing a purpose.
• A market-oriented purpose or mission focuses on the customer or customers, rather than the product itself.
• Goals and objectives are statements of a task to be achieved, often by a specific time that convert an organization's mission into long- and short-term performance targets.
• Common types of goals and objectives include profit, sales, market share, and quality.

Boston Consulting Group Matrix

• Question marks are Strategic Business Units (SBUs) with a low share of high-growth markets that require large cash injections to maintain or increase market share.
• Stars are SBUs with a high share of high-growth markets that may need extra cash to finance their rapid future growth and will likely become cash cows when growth slows.
• Cash cows are SBUs that generate large amounts of cash, far more than they can use due to their dominant shares of slow-growth markets. They provide cash to cover overhead and invest in other SBUs.
• Dogs are SBUs with low shares of slow-growth markets may generate enough cash to sustain themselves but are no longer real winners for the organization.
• Dogs SBUs may be dropped if they consume more cash than they generate, unless relationships with other SBUs, competitive factors, or strategic alliances exist.

Product/Market Expansion Matrix

• Market Penetration involves "Selling more of the existing products in existing markets."
• Product Development involves "Introducing new products to existing markets."
• Market Development concerns "Introduction existing products to new markets."
• Diversification introduces "Introducing new products to new markets."
• Strategic marketing process; Organizations allocate their marketing mix resources to reach target markets

Strategic Marketing Process

• Strategic marketing process, which is is broken into 3 phases: planning, implementation, and evaluation.

Planning Phase Steps

• Step 1: Conduct a Situation (SWOT) Analysis.
• Step 2: Define Market-Product Focus and Goal Setting.
• Step 3: Establish the Marketing Program.
• Market segmentation aggregates prospective buyers into groups or segments.
• Situation analysis (SWOT) takes stock where the firm or product has been recently, where it is now, and where it is headed with organization’s marketing plans.
• In Market-Product Focus and Goal Setting, products are directed toward specific customers.
• The Marketing Program involves developing the program's marketing mix the 4 P's (Product, Price, Promotion, Place) and its budget.

Implementation Phase

• Involves carrying out the marketing plan that emerges from the planning phase.
• Four components needed; obtaining resources, designing the marketing organization and defining tasks, also executing the plan.
• Small business owners often obtain funds from personal savings, family and bank loans.
• Managers obtain resources by taking profits from BCG stars or cash cows.
• Designing the Marketing Organization includes detail the marketing department's typical structure.
• Defining Precise Tasks, Responsibilities, and Deadlines aims for team members to know tasks and deadlines. Scheduling activities are managed using a Gantt chart.
• Executing the Marketing Program requires attention to detail for marketing strategies and tactics.
• Marketing strategy, which is a marketing goal, is achieved via a specific specified market.
• Marketing tactics are day-to-day operational marketing actions for the marketing mix. Writing ads and setting prices for new product lines are examples of marketing tactics.

Evaluation Phase

• Compare the results of the marketing program with the goals in the written plans to identify deviations.

Planning gap

• The Planning gap is the difference between the projection of the path to reach a new sales revenue goal and the path of a plan already in place
• The 5 types of environmental factors are Social, Economic, Technological, Competitive, Legal and Regulatory.
• Social environmental forces are about communication, obtaining information, and offering opinions.
• Economic environmental factors influence demand, as social media is affected when the cost smartphones reduces.
• Technological environmental factors include software integration, server speed, and data storage.
• Competitive environmental factors include the rivalry with other platforms, easy switching for users and constant appearance for new social networks target groups.
• Legal & Regulatory environmental factors influence growth such as trademark guidelines or data protection.

Trends of the 5 environmental factors

• Social trends include demographic shifts and cultural changes.
• Economic trends are made up of macroeconomic conditions and consumer income.
• Technology trends include impact on customer value and data analytics.
• Competition includes alternative firms of Competition and Small businesses.
• Regulatory trends involve laws protecting competition, marketing mix actions, and self-regulation.

Consumer Behavior

• Consists of the actions a person takes in purchasing and using services, including the mental and social processes.

Purchase Decision Progress

• The purchase decision process is the stages a buyer passes through in choosing what products and services to buy.

Problem Recognition

• The first step of The purchase decision process. Starts when a buyer recognizes a problem caused by internal stimuli.
• Marketers need to identify the circumstances that trigger this need to spark interest.

Information Search

• The second step of the purchase decision process, consumers often search for limited amounts of information. Companies must identify the hierarchy of attributes that guide consumer decision making (MARKET PARTITIONING)

Alternative Evaluation

• The third step of the buyer decision process consumer sees each product as a bundle of varying abilities to deliver benefits. Attitudes via experience lead to attitudes. Consumers combining their brand beliefs according to importance

Purchase Decision

• The fourth step of the buyer decision process is all sub-decisions such as quantity, risk or the attitude of others.

Post Purchase Behavior

• The fifth step of the buyer decision process, a consumer may express disappointment in product after hearing of features of better products
• Therefore, a marketer must monitor post purchase satisfaction and actions.
• Level of involvement is the personal, social, and economic significance of the purchase to the consumer.
• Maslow's hierarchy can be used to determine the best position for a product and what the customer is interested in.