MRKTNG 3000 1nd EditionExam # 1 Study Guide Lectures: 1 -4Lecture 1 (January 27)Introduction to marketing- what is marketing? What are marketing’s tasks? What are the benefits and costs in marketing? Marketing is the “process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”-Marketing is defined by communication between two parties (the buyer and seller, etc.)Marketing’s tasks:1. Discover consumer needs. Is there actually a need? What do consumers desire at the moment?-Marketers research the potential consumers (the market) to gather information about their needs and discover what they want. If a new product fails because no one is buying it, it is because it failed to identify consumer needs. 2. Satisfy consumer needs. This is done so through the 4 P’s, also known as the marketing mix 4 P’s: Price, promotion, product, placement (or channels of distribution)When considering the entire marketing process, one must first discover consumer needs, then develop the concept for products, and satisfy consumer needs by finding the right combination of product, price, promotion, and placement. The process repeats itself when the marketers consider the needs of other potential consumers and gather information about them. The potential benefits of a product are:-Functional (food, toothbrush, etc.)-Social (Cell phone, social media, email, etc.)-Personal (Gym membership, trophies, etc.)-Experiential (Movies, games, gambling, etc.)The potential costs of a product are:-Monetary (tuition and book fees, etc.)-Temporal (time spent, etc.)-Psychological (stress, etc.)-Behavioral (expending energy, etc.)Lecture 2 (January 29) Analyzing the marketing environment- how do companies identify potential changes/trends thatmay affect them? What are the stages of strategic marketing plans? Companies use market research to identify potential changes/trends that may affect them. Marketers use a marketing environment analysis framework to assess the current environment. The immediate environment consists of the company’s competition, corporate partners, and thecompany itself. The macro environment consists of demographics, social, technological, economic, political/legal, and cultural elements. The four stages of the strategic marketing plan are:1.Defining the mission/visiona. In which industry/business should we operate?b. What is our sustainable competitive advantage?c. Dependent on Porter’s Five Forces Model Industry profitability dependent oni. Industry competitiveness ii. Availability of substitute productsiii. Potential entrantsiv. Supplier powerv. Buyer power2.Organization objectives- must be specific, measurable, and action commitments 3.Organizational strategies- choice of major directions the organization will take in pursuing its objectivesa. Strategies based on products and marketsb. Strategies based on competitive advantagec. Strategies based on value4.Organizational portfolio planOther important terms:BCG portfolio model- matrix used as a way to allocate resourcesSustainable competitive advantage- advantage versus competition that can be maintained consistently over time1.Customer excellence- retaining loyalty with excellent customer service2.Operational excellence- efficient operations, excellent supply chain management3.Product excellence- Achieving effective branding and product positioning SWOT analysis- used to evaluate strengths, weaknesses, opportunities, and threats in a businessventure Lecture 3 (February 3)Comparison of Chile and China- How do the differences in population affect each country’s economy? What are the advantages/disadvantages of each country’s form of government in terms of doing business in each country?-Chile has a small population (17 million), compared to China’s over 1 billion. Their respective populations mean that both countries depend on exports, as Chile does not have the work forceto produce enough goods and China has too many people to supply enough goods. -Chile is a republic that is generally pro-business and pro-trade, with a market-oriented economy. Chile is one of the most pro-free trade countries in the world, relying on imports because of their small population. China, on the other hand, is a communist government with more control on their economy and population. This means there is more protection from economic fluctuations and better for Chinese companies. In the long run, however, there is more risk involved with China’s form of government. -Chile has a higher standard of living, with a GDP rank of 72, compared to China’s 123. -Both have aging populations-Both export large amounts of goods, with Chile focusing on copper, fruits and vegetables, and China exporting mainly manufactured goods. Lecture 4 (February 10)The first step in marketing is market segmentation. This is the process of dividing the total market for a good or service into several, smaller, internally homogenous groups. The process is:1) Identify segmentation variables and segment the market, 2) Develop profiles of resulting segments. Segmenting is important because consumers in the market have different buying habits, a different way of using the good or service, and different motives for buying. Market segmentation allows managers to visualize their potential customers and design a proper marketing mix. There are different types of market segmentation- Demographic, geographic,psychographic, geodemographic, loyalty status, user status, and benefits gained from the product. The second step is targeting. This is the process of choosing how to market to consumers. There are different ways to do this. The first is mass marketing, or no segmentation, which is one product for all consumers. The second way is niche marketing, which is one product for one segment. The third way is differentiated marketing, which is multiple products for multiple segments. Fourth and last is individualized marketing, which is the customization of a product/service for an individual. In order to be considered important, the potential market must be substantial, reachable, and responsive.The third step is positioning. This is the way a product is portrayed to potential consumers. Marketers must show that the brand is superior to others in the same product category. The benefits selected must illustrate that the brand has a point of difference on the