Principles of Marketing Exam Review, Chapters 1, 2, 10, 11

Study Notes

Marketing Fundamentals

AMA Definition of Marketing: Involves creating, communicating, delivering, and exchanging offerings valuable to customers, clients, partners, and society.
Exchange Process: Involves giving up something to receive value in return.

Marketing Management Philosophies

Orientations:
- Production Orientation: Focus on manufacturing efficiency.
- Sales Orientation: Emphasis on aggressive sales techniques.
- Market Orientation: Prioritizes customer needs and preferences.
- Societal Orientation: Considers long-term societal welfare.

Customer Value and Satisfaction

Value Elements: Performance, realistic pricing, informed customers, and service support.
Customer Satisfaction: Recognized as crucial for retention.

Strategic Marketing

Relationship Marketing: Practices include loyalty programs to foster customer engagement.
Empowerment of Employees: Enhances service delivery and customer interactions.
Marketing Myopia: A warning against defining business solely in terms of products rather than customer benefits.

Marketing Mix and Planning

Marketing Mix: Blend of product, price, place, and promotion strategies.
Mission Statement: Clarifies the business purpose and future goals, focusing on market needs.
Ansoff Product-Market Matrix: Strategies include Market Penetration, Market Development, Product Development, and Diversification.

Components of a Marketing Plan

Key Components: Mission, Situation Analysis (SWOT), Marketing Objectives, Strategy, Implementation, Evaluation, and Control.
Competitive Advantage: Achieved through Cost Leadership, Product Differentiation, or Niche targeting.

Product Definition and Types

Product Definition: Anything offered to satisfy a need or want.
Consumer vs. Business Products: Distinction based on usage and purchase purpose.
Types of Consumer Products:
- Convenience Products: Low-cost, frequent purchases.
- Shopping Products: Comparatively more expensive, less frequently bought.
- Speciality Products: Unique characteristics, brand loyalty.
- Unsought Products: Not actively sought by consumers.

Product Strategy

Product Line and Mix:
- Product Line (Depth): Variants within a product category.
- Product Mix (Width): Various product lines offered by a company.
Product Line Extensions: Introduction of variants, e.g., Cherry Coke.
Product Modifications: Changes in quality, function, or style to enhance appeal.

Branding and Trademarks

Branding: Identifying products with a name, term, symbol, or design (e.g., Nike and the Swoosh).
Brand Types:
- Manufacturer Brands vs. Private Labels (wholesaler/retailer).
- Individual vs. Family Branding strategies.
Co-branding: Collaboration between brands for mutual benefit.
Trademarks: Legal protection against generic naming.

New Product Development

Definition of New Products: Innovations such as discontinuous innovations, new lines, additions to lines, and improvements to existing products.
Development Process Steps: Detailed exploration of each stage from idea generation to launch.
Sources for New Ideas: Customers, employees, competitors, distributors, and suppliers - methods including focus groups and brainstorming.

Product Adoption and Lifecycle

Adoption/Diffusion Process: Stages include Innovators, Early Adopters, Early Majority, Late Majority, and Laggards.
Product Life Cycle (PLC): Stages include Introduction, Growth, Maturity, and Decline; each stage has unique market characteristics.

Description

Prepare for your Principles of Marketing exam with this comprehensive review covering key concepts from Chapters 1, 2, 10, and 11. Topics include the AMA definition of marketing, the exchange process, management philosophies, and customer satisfaction. Test your knowledge and ensure you're ready for success.