Bus M 300 Exam 1 Study Guide Lectures 1 6 Lecture 1 January 16th What is marketing o The process of planning and executing the conception and pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives o Marketing focuses on discovering and satisfying consumers needs o It is the head of the company and it drives the company o The process of establishing and maintaining mutually beneficial exchange relationships with customers and other stakeholders Thus marketing is responsible for customer value creation CVC Product development management PDM the design and implementation of new products services and the management of existing products Customer relationship management CRM the customer attraction and retention communication of information to customers and the development of customer relationships Supply chain relationship SCM the selection and management of suppliers the distribution channel and channel pricing Elements influencing marketing o Economic environment Interest rates and gas prices Hybrid automobiles o Competitive Environment of competitors in the segment effects price quality and service Dick s Sporting Goods in Btown o Social Cultural Environment Trends religion ethnic background Dunkan Diet Craze o Technical Environment Internet tv radio etc iPhones o Political Environment Tariffs taxes laws Alcohol advertising Tactical Marketing Marketing Mix o Product good service idea place person o Price assignment of value o Place availability of product o Promotion activities to inform consumers Marketing o Product orientation Manufacturing is king Gets the product to the market in the most cost effective manner possible o Selling concept Selling existing products Generates profits for the firm by moving products and services o Market orientation Fulfilling existing and emerging customer needs Building long term customer relationships Entire company is consumer focused Generates profits through relationships Marketing concept Customer focused listening and acting on customer needs Striving to build long term relationships Embedded in the market orientation Been around since the 1950s Anything can be marketed o Services marketing building sales and profit for a dry cleaner a dentist a lawyer or an airline o Place marketing attracting people to a particular place o Idea marketing cultivating support for an idea o Organization marketing cultivating support for an organization o Event marketing building interest in a rock concert or an art auction o Person marketing building interest in a candidate or a celebrity Target market one or more specific groups or potential consumers toward which an organization directs its marketing program Lecture 2 January 21st The Decision Making Process o Step 1 Problem Recognition Perceiving a need Consumer sees a difference between her current state of affairs and some desired state of affairs o Step 2 Information Search seeking Value A consumer searches for appropriate information to make a reasonable decision o Step 3 Alternative Evaluation Assessing Value Represents both the objective attributes of a brand and the subjective attributes used to compare different products and brands Evaluation of alternative purchase choices Evoked Set brands actually considered during a choice process Evaluative criteria dimensions used Consideration set Group of brands that are considered Heuristics mental shortcuts to simplify decision Brand loyalty repeated purchasing based on a conscious decision to continue buying a specific brand o Step 4 Purchase Decision Buying Value Situational Influences on Consumer Decisions The Physical Environment i e atmosphere includes such elements as arousal dull or exciting o pleasurable surroundings o decor smells temperature o in store displays Time temporal available to make a decision may include a sense of time poverty Antecedent a consumer s mood or amount of cash on hand Social Influences on Consumer Decisions o Step 5 Post Purchase Behavior Value in Consumption or Use Lecture 3 January 28th What is Marketing Research o It is the process of defining a marketing problem and opportunity systematically collecting and analyzing information data and recommending actions Why do it o It is impossible to sell products or services that customers do not want o Learning what customers want and how to present it attractively drives the need for marketing research Reduces risks for the firm Marketing Research Process o Linear in nature o Step 1 Defining the Problem Research that does not have a specific actionable purpose is a waste of time Know what you need to know Examples Awareness preference competitive strengths vulnerabilities Tendency to Switch Target Characteristics Things to Consider Don t confuse symptoms with the real problem In marketing falling sales are a symptom that some aspect of the marketing mix that is not working properly Sales may be falling because price competition has intensified because buyer preferences have changed or they may not understand what the product is Example o A fried Indian bread mix named Ha Psu Shu Tse one of the few Native American Food products sold in the United States was experiencing poor sales The company felt that the product was not being advertised heavily enough and hired a consultant to develop a new advertising theme o The consultant suggested instead that the name might be the problem not the advertising Educating consumers to the fact that Ha Psu Shu Tse means Red Corn helped increase sales Step 2 Determining the Research Plan Research Processes Exploratory Research o Exploratory research is not designed to provide conclusions but to investigate or explore possible problems or opportunities Would people be interested in our new product or idea Will consumer buy electric automobiles If we add new flavor lines to our ice cream will sales volume increase o Exploratory research is often qualitative words based in nature and can take a variety of forms Focus groups group interviews Projective techniques use scenarios to get people s attention Case studies the observation of other firms or organizations Ethnography observing consumers in their natural setting Consumer Interviews one on one interviews Descriptive Research o Descriptive Research is often quantitative measurement numbers based and takes many forms o Uses data to describe show or summarize data about something specific o Can be used to draw