MKTG 409 1nd Edition Exam 1 Study Guide Lectures 1 7 Lecture 1 January 14 Chapter 1 Strategic Marketing Marketing 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 communicate Exchange Transfer of goods services and ideas in return for something of value Components of Strategic Marketing Focus Customer Marketing Mix o Product Goods Services or ideas o Price The value that is exchanged for a product o Distribution Place Making products available at the right time and place o Promotion Activates to inform individuals or groups about the organization and its products Environmental Forces Economic Political Legal Technological Socio cultural Competitive Regulatory Evolution 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 Resources Mission and goals A statement of what the organization wants to be Lecture 2 January 16 Chapter 1 Strategic Marketing Continued Market Competitive Growth Strategies Product Present Present Market Penetration New Product development New Market Development Diversification SWOT analysis Internal Positive Strengths Negative Weaknesses External Opportunities Threats In conclusion Marketing decisions should flow from strategies and managing growth involves marketing Chapter 3 The Marketing Environment Environmental Scanning The Process of collecting information about forces in the marketing environment Environmental Analysis Making sense of the information collected and applying it Responding to Environmental Forces Environmental Forces Similarity Uncontrollable Controllable Passive Reactive Active Reactive Competitive 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 need Lecture 3 January 21 Chapter 3 The Marketing Environment Continued Competitive Structure Type of structure Number of Competitors Monopoly one Ease in market Product Examples Many barriers Almost no substitutes Homogeneous Water utilities Product differentiation Homogenous Levi Oligopoly few Some barriers Monopolistic Competition Pure Competition Many Few Barriers Unlimited No Barriers UPS Agricultural corn Economic ForcesThe 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 forces Pro competitive legislation Preserves competition Consumer Protection Legislation protect people and environment Know these major laws Sherman Clayton FTC Robinson Patman Wheeler Lea Lanham Know following federal Regulatory Agencies FTD Federal Trade Commission has the most influence on marketing activities FDA CPSC FCC EPA FPC Other Self Regulating Jet Blue s Customer Bill of Rights Industry Groups Better Business Bureau Watchdog Groups Firms must keep up with technology to keep their status as market leaders Affects products offered the manufacturing process and prices Sociocultural 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 Research Marketing Research class slogan You can t manage it if you can t measure it It should be Accurate Fast and Inexpensive but not all three at the same time Marketing 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 problem Valuable information is Relevant High Quality Timely and Complete Steps 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 question 2 Designing the research project o Research Design An overall plan for obtaining the information needed to address a research problem or issue Based on problem statement hypothesis type of data needed and availability of data o Hypothesis An informed guess or assumption about certain problems or circumstances o Reliability When a research technique produces almost identical results o Validity When a research method measures what it is supposed to measure Types 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 Continued Steps of the Marketing Research Process continued 3 Collecting Data o Primary Data Directly from respondents and addresses a specific problem o Secondary Data Is compiled both inside and outside the organization i Internal From internal databases and financial statements sales reports ii External From company that collects data like JD Power or US Census o Qualitative Research Interviews is exploratory and subjective while quantitative Experiments and surveys is conclusive o Types of Contact methods In person Mail Telephone On line o Research instruments include Written Oral and mechanical instruments o Special issues includeI Defining and measuring constructs Must be clear in definitions II Writing survey Questions Open ended Dichotomous yes no and multiple choice The way the question is asked can influence answer Avoid Bias like Two questions in one Or double barrel III Sampling Procedures