Lecture Notes: Marketing Fundamentals PDF

Okay, here is the conversion of the information in the document into a markdown format. ### MKT337 ## Lecture 1: What is Marketing? *(Lang of Busi)* **Marketing Thesis**: Marketing is something that everyone has witnessed, it is built on #'s, w/o marketing business will suffer. ### Questions/Voc...

Okay, here is the conversion of the information in the document into a markdown format. ### MKT337 ## Lecture 1: What is Marketing? *(Lang of Busi)* **Marketing Thesis**: Marketing is something that everyone has witnessed, it is built on #'s, w/o marketing business will suffer. ### Questions/Vocab * What is Marketing? (make own def.) * Product * Sales * Market * Societal * Why is Nike failing? * Why are Hokas taking over? ### 4 Marketing Management Philosophies *(comps. can use all 4 simultaneously or can change blt 2+)* 1. Product: What does busi. have to offer? 2. Sales: How to push aggressively to meet numbers? 3. Market: Based on who you are selling to, what do cust. want/buy? 4. Societal: Products should be made to help society, think Products made w/ rearcled materials ### Sales V.S Market Organizations | Sales | Market | | ---------------- | --------------------------------------- | | less pezorable | more perzorable | | more demanding | Includes more details | | Take me to Jacksonville | Going to moms for christmas | **Nike** * failing to innovate * failing to fix ethical issues * failing to lorry products back on shelf * fight against Hokas and Ors * Lostry market share, prohs ke back ## Chapter 2: Strategic Planning for Competitive Advantage **Thesis**: Frameworks matter to business because they are repeaterble a method to communicate, master, facilitates formulation of a strategy. Guery business has a strategy, but antica great business experutes the strategy Managers creating and maintaining a fit b/t ongs. objectives and resources and the evolving market oppurtunities * **Strategic business units (SBU)** Comply separate from parent company ### Strategic Marketing Main Questions 1. What is the org's main activity at a specific time? 2. How will the org reach its goals? ### Ansoff's Strategic Opportunity Matrix: Compares current/new products w/ current/new markets and creates 4 Strategies | | Present Market | New Market | | :---------- | :---------------------------------------------------- | :------------------------------------------------------------- | | Product | Market Penetration | Market development | | New Product | Product Development | Diversification | | Description | Grow market share for current product and customers | Attract new customers to current product | | Example | Chipotle earn lots every \$1 spent reach 1,250 to get | Caseys store plans to open 350 new stores over a few years | | Products | Existing market | New market | | :---------------- | :-------------------------------------------- | :--------------------------------------- | | Existing product | Market penetration | Market Development | | Modification | New product development | Diversification | | example | Heinz creates 4 new spicy sauces | Pepsi Co. markets fruit juice, Gatorade | ### Innovation Matrix Categorizing of new project innovation based on levels of risk. * **Core:** Shows cove innovations. Includes incremental changes to reach existing customers: a change in packaging, slight reformulation, and added services. * **Adjacent:** on existing capabilities in new ways. * **Transformational:** w/ break through innovations that disrupt the market. ### Portfolio Matrix Managers plot position of each business unit/brand/product based on industry growth rate and relative market share. The Boston Consulting Group Matrix is a matrix used for this analysis | | High | Low | | :------- | :---------------------------------------------------------------------------------------------------------------------------------------------------- | :-------------------------------------------------------------------------------------------------------------- | | High | Stars: High MS and High growth markets; need lots of cash inflows to finance growth & Generate consideroude Income Strategy Invest more Funds for future | Question Marks: Problem children, Low MS, High G. must choose to support of more cash or defund, if you do nothing, it will be a child. | | Low | Cash Cows: High MS and Law growth maintain status for long time to gerercule cash to fuel otters, price leader maintaining dominance | Dogs Generate little profits, position relative to completion, recommed to withdraw | | Strategy | Generate cash flow Milk profits to finance growth of stars and question marks | Withdrawing can be sold to other companies | ### 4 Strategies 1. **Build** Use when Low Msin a High G. Requires financial resources, use if problem has potential to be stars 2. **Hold** Use when High MS in Low G. should be sustained milk cash flows 3. **Harvest** Use to reap profits w/o concern for long; good for problem children, cash cows, days 4. **Divest:** Use for days and problem children, may be adventures to divest SBUC w/ low share in low growth markets ### General Electric Model Looks at market attractiveness and company strength | | High | Invest/grow | Invest/grow | | :----------------- | :---------------- | :---------------------- | :------------------ | | Market attractiveness | cautious invest | Harvest /divest | Medium divest/invest | |invest | invest| | | low |Harvest medium Harvest divest | low Harvest medium| Business Position: How strong is the company against its competitors? What is the SBUs current market shareDoes it hav a competitive advantage * **Market attractiveness:** Market size? porfibility? growth rate" **Strategic Plan**: Once strategy is determined crate. Business mission statement 1. Situation SWOT 2. Marketing strategy (target market ) 3. Marketing mix ( product, price and place) 4. Implementation 5. Evaluation and control **Step 1**: MISSION STMT. Defining the company's purpose in marketing, not too broad or too narrow. **Step 2**: SWOT ANALYSIS: Identify the organization's Strengths, Weaknesses, Opportunities, and Threats | Internal | External | | :------------------------------- | :-------------------------------- | | Strengths: Core competencies | Opportunities: Launch new products | | Weaknesses : Company at a advantage | Threats: factors that limit | *Note: Create objectives that fulfill firth mission* **S: What does your company excel at?** **W: Where do you need improvements?** **0: Where can you grow?** **T: Who or what poses a risk to your success?** ### Competitive Advantage 1. **Cost**: Company is low competitor, which having good progress Margins to achieve * Economies of Scale * Efficient Labor * No-frills goods and services * Government subsidies * Product design\ * Reengineering * Production innovation * New methods of service delivery 2. **Product/Services Differentiation**: offer something that more than just in price 3. **Niche**: Company seeks small tagment of market #### Strategy Create Marketing Objectives * Plan will identify target strategy that benefits that are needed ### MM4-P's Marketing Mix is a unique blend of product, place, promotion, and pricing to reach or excharge with a target audience. #### Mission Analysis * Identify what is valuable **B2B Customer**: What is extremely important