MKTG 409 1nd EditionExam # 1 Study Guide Lectures: 1 -7Lecture 1 (January 14)Chapter 1: Strategic MarketingMarketing: Process of creating distributing, promoting and pricing goods, services, and ideas to facilitate satisfying exchange relationships with stakeholders in a dynamic environment. It comes from economics surprisingly. Requires:- Two or more Parties with unsatisfied needs (Also need the desire and ability to exchange something to satisfy needs)- A way for parties to communicateExchange: Transfer of goods, services and ideas in return for something of valueComponents of Strategic Marketing:- Focus – Customer- Marketing Mix – o Product- Goods, Services, or ideaso Price - The value that is exchanged for a producto Distribution(Place) – Making products available at the right time and placeo Promotion- Activates to inform individuals or groups about the organization and its products- Environmental Forces- Economic, Political, Legal, Technological, Socio-cultural, Competitive, RegulatoryEvolution of the Marketing Concept:Product of orientation -> Sales Orientation -> Marketing Orientation Marketing Orientation: An organization-wide commitment to researching and responding to customer needs; the lifetime value of customer; 80/20 means 80% of sales come from 20% of customer base.Why study marketing? It is over half the cost of most products, Economic growth, Build skills and relationships.Components of Strategic Planning:Organizational mission and goals -> Corporate and business strategies-> Analysis of organization’s strengths and weaknesses-> Marketing, Production, Finance, Human ResourcesMission and goals: A statement of what the organization wants to beLecture 2 (January 16) Chapter 1: Strategic Marketing ContinuedCompetitive Growth Strategies:Product:Present NewPresent Market Penetration Product developmentNew Market Development DiversificationSWOT analysis:Positive NegativeInternal Strengths WeaknessesExternal Opportunities ThreatsIn conclusion: Marketing decisions should flow from strategies and managing growth involves marketingChapter 3: The Marketing EnvironmentEnvironmental Scanning- The Process of collecting information about forces in the marketing environmentEnvironmental Analysis- Making sense of the information collected and applying itResponding to Environmental Forces: Environmental Forces Uncontrollable ControllablePassive Reactive Active ReactiveCompetitive Forces and Types of competitors:- Brand Competitor- closest substitute- Product Competitor- Different type of product that fills need- Generic Competitor- Fulfill need in a much different way- Total Budget- Buy something else that will not fulfill needLecture 3 (January 21)Chapter 3: The Marketing Environment ContinuedMarketSimilarityCompetitive Structure:Type of structure Number of CompetitorsEase in market Product ExamplesMonopoly one Many barriers Almost no substitutes Water utilitiesOligopoly few Some barriers Homogeneous UPSMonopolistic CompetitionMany Few Barriers Product differentiationLeviPure CompetitionUnlimited No Barriers Homogenous Agricultural cornEconomic Forces-The business cycle: Prosperity -> Recession-> Depression -> Recovery (Start over)Legal and Regulatory Forces: - Pro-competitive Legislation- Consumer protection Legislation- Encouraging compliance with laws and regulations- Regulatory agencies- Self-regulator forcesPro-competitive legislation- Preserves competitionConsumer Protection Legislation- protect people and environmentKnow these major laws:- Sherman- Clayton- FTC- Robinson Patman- Wheeler-Lea- LanhamKnow following federal Regulatory Agencies:- FTD – Federal Trade Commission has the most influence on marketing activities- FDA- CPSC- FCC- EPA- FPCOther:- Self-Regulating (Jet Blue’s Customer Bill of Rights)- Industry Groups (Better Business Bureau)- Watchdog GroupsFirms must keep up with technology to keep their status as market leaders; Affects productsoffered, the manufacturing process and pricesSociocultural Forces: Demographic and Diversity characteristics, Cultural Values, and consumerism (Organized efforts by individuals, groups, and organizations to protect consumers’ rights)Lecture 4 (January 23) Chapter 5: Marketing ResearchMarketing Research class slogan: You can’t manage it if you can’t measure itIt should be Accurate, Fast, and Inexpensive but not all three at the same timeMarketing Research: The systematic and objective process of generating information for aid in making marketing decisions (Deals with uncertainty); Are two types:- Basic Research- Attempts to expand the limits of knowledge; more general- Applied Research- Conducted when a decision must be made about a specific real-life problemValuable information is Relevant, High Quality, Timely, and CompleteSteps of the Marketing Research Process (Don’t have to memorize order)1. Locating and defining issues – o Make sure you are trying to find the answer to the right question2.Designing the research projecto Research Design: An overall plan for obtaining the information needed to addressa research problem or issue; Based on problem statement, hypothesis, type of data needed, and availability of datao Hypothesis: An informed guess or assumption about certain problems or circumstanceso Reliability: When a research technique produces almost identical resultso Validity: When a research method measures what it is supposed to measureTypes of Marketing Research:- Exploratory- To clarify ambiguous situations- Conclusive- To clarify characteristics or verify insights; Note is can be almost impossible to prove causality (Need Temporal sequence, concomitant variation and nonspurious association)Lecture 5 (January 28)Chapter 5: Marketing Research ContinuedSteps of the Marketing Research Process continued3.Collecting Datao Primary Data- Directly from respondents and addresses a specific problemo Secondary Data- Is compiled both inside and outside the organization;i. Internal – From internal databases and financial statements, sales reportsii. External – From company that collects data like JD Power or US Censuso Qualitative Research (Interviews) is exploratory and subjective while quantitative(Experiments and surveys) is conclusiveo Types of Contact methods: In person, Mail, Telephone, On-lineo Research instruments include Written/Oral and mechanical instruments o Special issues include-I.