Marketing Review PDF

Ch 1 Marketing is a set of business practices designed to Need: One of the basic Market refers to the world of trade Marketing Mix: Product, Price, Place and Promotion plan for and present an organization's products or necessities o...

Ch 1 Marketing is a set of business practices designed to Need: One of the basic Market refers to the world of trade Marketing Mix: Product, Price, Place and Promotion plan for and present an organization's products or necessities of life ​ Not practical to sell products to everyone Set of activities that the firm uses to respond to the services in ways that build effective customer Want: particular way in which ​ Marketing costs money and marketers should seek out wants of its target markets. relationships persons choose to fulfil their potential customers who have an interest and ability to ​ Requires thoughtful planning with an need, which is shaped by their purchase it Marketing: emphasis on ethical implications culture, knowledge, and ​ Helps create value personality. Target Market: Consumers who want and can afford such a product ​ Is about satisfying customer needs and Marketing plan: specifies their marketing activities wants for a specific period of time. Demand is demonstrated by your Market entails an exchange: Trade of things of value between the buyer ​ Marketing entails an exchange ​ Broken down into components on how ability and willingness to act on and the seller so that each is better off as a result ​ Requires product, price, place and the product or service will be conceived those needs and wants ​ Sellers provide goods and services, communicate and promotion decisions or designed, how much it should cost, ​ To understand facilitate the delivery of their offering to consumers ​ Can be performed by both individuals how it will be promoted and how it will customer needs and ​ Buyers complete exchange by giving money and and organizations get to the consumer wants the company information to seller ​ Secure in many settings must identify the customers or market. Product: Fundamental Purpose: Price: Everything the buyer gives Place: Delivering Value Promotion: Communicating value ​ To create value by developing a variety up; Time, Money or Energy ​ Marketing Channels, Distribution Intensity, Locations, Is communication by a marketer that informs, of offerings to satisfy customer needs ​ Discounts, List Price, Retailers, Online, Supply Chain, Logistics persuades, and reminds potential buyers about a ​ Brand, Size, Quality, Features, Allowances, Costs, product or service to influence their opinions or Packaging, Warranty Payments Period, Describes all the activities necessary to get the product from the elicit a response. Credit Terms manufacturer or producer to the right customer when that customer ​ Advertising, Sales Promotion, Personal Goods: Items that you can physically touch Marketers must determine the wants it. Selling, Public Relations, Direct ​ Primary function to fulfil some need but price of a product carefully on the ​ Also known as Supply chain management" Marketing, Digital Media value stems from what they can provide basis of the potential buyer's ○​ Set of approaches and techniques that firms ​ Goods will go unsold if marketers cannot and how they are marketed (in terms of belief about its value employ to efficiently and effectively integrate communicate their value to customers environmental benefits) ​ Key to determining is their suppliers, manufacturers, warehouses, Services: figuring out how stores and other firms involved in the transaction ​ Intangible customer benefits that are much customers are With this goods and services are produced and distributed in the right produced by people or machines and willing to pay so they quantities, to right locations and at the right time while minizming costs cannot be separated from the producer are satisfied and the and satisfying the service levels required by the customers Ideas: Includes thoughts, opinions, philosophies, and seller gets a intellectual concepts reasonable profit ​ Exchange of value occurs when they adopt or become purchasers of the idea that the group marketed Acronyms: Marketing performed by both individuals and organizations: Social Media: Integral part of their marketing and communications Value Based Orientation: Customer Lifetime Value : CLV B2B: Process of businesses selling merchandise or services from one strategies. Customer Relationship Managements: CRM: business to another Marketing Impacting Stakeholders: ​ Using data to assist in maintaining the relationship B2C: Businesses sell to consumers ​ Works in the nonprofit sector not only necessary for making ​ Collects information to help increase customer relationships C2C: Consumers sell to consumers profits ​ Finding ways to retain long-term customers Social Media: Integral part of their marketing and communications ​ All entities market to one another; university has a strategies. marketing program to attract and retain students  ​ Product orientation ​ Sales orientation ​ Market orientation ​ Value-based orientations Focus on developing and distributing View marketing as a selling Focusing on what consumers want and need Provide customers with greater value than their competitors innovative products with little function where companies try to before they design, make or attempt to sell Go above and beyond on product or sales concern about whether the products sell as many of their products as their products and services Focus on TBL: best satisfy customer's needs possible rather than focus on Believe consumers have choice and make People (Consumer needs) making products consumers really purchase decisions Profits (Long-term profitable relationships with customers and suppliers) Henry Ford: " Customers can have want Quality, convivence, and price; "Customer is Plant: (Do all this in a way that is socially and environmentally responsible) any color they want so long its king" black" - in reference to ford cars only Depend on heavy personal selling Market is a buyers' market since consumers VB must implement its strategy according to what its customers value: being black so consumers have no and advertising to attract wield tremendous power -​ Benefits can range from speed, convivence, size, accuracy, price, cost savings or choice/ product differentiation customers Marketers role is to understand and respond to user friendliness. Believe that is customers try the needs of consumers and do everything Value: Reflects the relationship of benefits to costs, or what you get for what you give Manufactures believed that products products they will like them possible to satisfy them ​ Customers seek a fair return in goods or services for their money and scarce time would sell itself; build a product they Focus on what products can offer Satisfied customers become loyal and ​ Products that meet specific needs and offered at a price perceived provides value want and develop and selling after it not what customer needs long-term and contribute to TBL: (Triple Value Cocreation: Customers engage and act as collaborators to create the product or is developed Bottom Line) service. Ch 2: Marketing Strategy Identifies Multiple sources of advantage: ​ A firm's target market ​ WestJet: consistently positioned as a reliable carrier and ​ Related marketing mix (4Ps) customers do not have unreasonable expectations ​ Bases upon which the firm plans to build a sustainable competitive advantage ○​ Good value meets expectations, customer service, maintains customer relationship, great prices. Sustainable Competitive advantage: An advantage over the competition that is easily not copied and thus can be maintained over a long period of time ​ Acts like a wall or barrier in a market and makes hard for competitors to contact customers Customer excellence: Focuses on retaining loyal customers and excellent customer Operational excellence: Achieved through efficient Product excellence: Having products Locational excellence: Having a service operations and excellent supply chain and human with high perceived value and good physical location and Internet Ex: strong brand, unique merchandise resource management effective branding and positioning presence Customers get the merchandise desired, when they - People need convenience and Loyalty is more than preference but also not supporting or buying competitors want it, how they want it and at a lower cost. -Difficulty as brands can easily need to be aware, regardless when its cheaper match or copy the product benefits - Ex: McDonalds is consistently View customers as a lifetime value perspective rather than a transaction basis = To ensure value, profitability and satisfy customers -Can maintain by investing in brand everywhere and is easily accessible Modern Customer Retention Program Achieve efficiencies by developing sophisticated and positioning the product in a - Places with maximum market Method to retaining: distribution and information systems CLEAR and DISTINCTIVE way reach, (intersections) - Create emotional attachment, loyalty programs, benefits or reward system, - Sell merchandise in a particular region and reinforcing that image - High density of stores in some combine and create membership data to develop a deeper understanding - Obtain special terms of purchase that are not markets - Provide outstanding customer service: consistently offering services available to competitors - Hard as humans cannot be as consistent; only way to ensure is through - Receive popular merchandise that may be short organizational culture instilled in humans supply - Referred to as building a reputation; requires time and effort Marketing Plan: ​ Carefully plan their marketing strategies to react to changes in the environment. Competition and their customers Marketing Plan: A written document composed of an analysis of the current marketing situation, opportunities and threat for the firm, marketing objectives and strategy specified terms of the 4 Ps, action programs and projected or pro forma income ​ Important that everyone knows what they are planning to accomplish, objectives and how it is expected to be competed Planning Phase Implementation Phase Control Phase Step 1: Marketing Executives and Step 2: Evaluate the situation by assessing how Step 3: Marketing Managers identify and Step 4: Implement the marketing mix by Step 5: Control: Evaluating the managers define the mission and various players (Inside and Out) affect the evaluate different opportunities by engaging in (4Ps) performance of the marketing objectives of the business organization's potential for success a process known as product, price, place and promotion (4Ps) strategy by using marketing segmentation, targeting and positioning (STP) How to allocate its scarce resource to its metrics and taking any necessary Mission Statement: A broad Perform a Situation Analysis: SWOT: various products and services corrective actions description of a firm's objectives ​ Assess the internal environment To identify and evaluate opportunities for and the scope of activities it plans with regard to strength and increasing sales and profits Product and Value Creation: Metric: Measuring system that to undertake weaknesses and external -Understand customer needs and wants through - Firms develop products that customer quantifies a trend, dynamic or ​ Answers: Why type of environment in regard to market research and determine which segment perceive as valuable enough to buy characteristic businesses and what do opportunities and threats to pursue and how to position products and ​ Explain why things we need to do to ○​ Help determine where service to meet needs - Price and Value for Money happened and to accomplish our goals strong or weak and how - Charge a price that customer perceive as project the future and objectives to compete in the ​ Segmentation: giving them good value for the products ​ Compare results for market. Firms will be Market Segment: Consists of consumers who and service they receive regions, business units better positioned to respond similarly to a firm's marketing efforts - Pricing is the only activity that generates and product lines address things Market Segmentation: Process of dividing the revenue ​ Determine why its ​ Includes examining market trends, market into distinct group of customers where goals were achieved or customer analysis, competitive each individual group has similar needs, wants Place and Value Delivery not to make analysis or characteristics who therefore might -​ Firm must be able to make the appropriate ​ CDSTEP: Cultural, demographic, appreciate products or services geared for them product or service readily adjustments social, technological, economic and - Ex: Hertz car rental company accessible Review implementation methods political forces or change them or change/ - Targeting: Target Marketing: Process of - Promotion and Value Communication: reconsider mission statement Use information to anticipate and interpret identifying the various market segments it Communicate value of offering or change and allocate resources pursues, evaluates its attractiveness and decides proposition through a variety of media which to pursue Out of the way locations to expand their market ​ Positioning: Ex: Retailers: add value to their offerings Market Positioning: Involves the process of Must consider the efficient and effective defining the marketing mix so that customers methods have a clear, distinct, desirable understanding of what the product does or represents in comparison with competing products Marketing Analytics 2.1: Social Responsibility Performance Metrics: Increase Stars: Upper Left Quad: High growth markets and ​ Study results suggest that people see and in companies reporting CSR metrics on their impact high market share products: require a heavy resource react to mobile advertising within 400ms on environment and diversity of workforce, energy investment and rapid growth and can become cash ​ Used eye tracking: EEG: conservation and policies on human rights of cows Electroencephalography employees and suppliers Cash Cows: Low Left Quad: Low growth markets Who Is Accountable for Performance: Strategic Planning is NOT Sequential but are high market share products; already received ​ Business unit and manager are held - Suggests that managers follow a sequence, can investment and have excess resources to continue accountable for only things they can move back and forth and revision takes place that and power other products. Use excess resources to control changes the objective or product fund other projects Performance Evaluations are used to pinpoint problems: Manager only held accountable for their Portfolio Analysis: Evaluates the firm's various ? (Question Marks): Upper Right Quad: High inadequacy products and businesses and allocates resources growth but have low growth market shares: Often according to which products are expected to be the the most managerial intensive products require Performance Objectives, Marketing Analytics and most profitable for the firm in the future significant resources, can become stars if use extra Metrics: funds or withdraw. - Compare firm's performance over time or to ​ SBU: Strategic Business Unit: A division of the company that can be managed Relative Market Share: X axis Dogs: Low Right Quad: Low growth markets and competing firms through sales and profits somewhat independently from other Market Growth Rate: Y Axis low market shares, can generate enough resources - View the firm's products or services as a portfolios; profits of one may fuel the others divisions since it markets a specific set of but not destined for stars and should be phased out - Sellers identify precisely which advertisement products to a clearly defined group of unless needed to complement or boost the sales of generates purchases and sales customers another product ​ Product Line: Group of products that Financial Performance Metrics: consumers may use together or perceive - Increase sales by lowering prices but it affects as similar overall gross margin. Attempt to maximize one can lower another. Be aware of consequences - Measure the relative level of sales and profits - Metrics depends upon - The level of the organization at which the decision is made & The resources the manager control Market Penetration: Employs the existing Market Development: Product Development: Offers a new Diversification: Introduces a new product or service to a market segment that is currently not marketing mix and focuses the firm's efforts Employes the existing product or service to a firm's current served on existing customers marketing offering to reach target market Can be related or unrelated opportunities ​ Encourage customers to patronize new market segments ​ Marvel launches new series - Related: the current tatget market or marketing mix shares something in common with the the firm more and buy more (domestic or international) for current fans new opportunity ​ Requires greater marketing efforts ​ Marvel purses ​ Marvel owned by Disney >Firms may purchase from existing vendors or use similar distribution or management of increased advertising, sales, such a market as it and allows them to access all system similar to current consumers promotions or intensified enhances viewing of the products - Unrelated: New business lacks common elements with present business distributions in global markets ​ Developing series allows for >Do not capitalize on core strengths associated with market and can be viewed as risky Ex: Marvel; expanded movie offerings; more the further growth Ex: marvel starts a childcare industry in current markets and products