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

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.