MRKTNG 3000 1nd Edition Exam 1 Study Guide Lectures 1 4 Lecture 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 that may 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 the company 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 vision a 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 on i Industry competitiveness ii Availability of substitute products iii Potential entrants iv Supplier power v Buyer power 2 Organization objectives must be specific measurable and action commitments 3 Organizational strategies choice of major directions the organization will take in pursuing its objectives a Strategies based on products and markets b Strategies based on competitive advantage c Strategies based on value 4 Organizational portfolio plan Other important terms BCG portfolio model matrix used as a way to allocate resources Sustainable competitive advantage advantage versus competition that can be maintained consistently over time 1 Customer excellence retaining loyalty with excellent customer service 2 Operational excellence efficient operations excellent supply chain management 3 Product excellence Achieving effective branding and product positioning SWOT analysis used to evaluate strengths weaknesses opportunities and threats in a business venture 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 force to 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 main benefit Another way marketers position products is using the brand s essence This is an abstracted benefit that relate to the consumer goal