MKT 3010 1st EditionExam # 1 Study Guide Lectures: 1 - 6Know all vocab from the following chapters as well as the information belowChapter 1- What is marketing?o Activity set of institutions, an process for creating, capturing, communicating, delivering,and exchanging offerings that have value for customers, clients, partners, and society at large.- How do marketing activities relate to the 4 Ps and what is entailed in each component of the marketing mix? How does supply chain management relate to delivering value?o Price: money, time energy—capture value; Product: goods, services, ideas—create value;Promotion: informs, persuades, and reminds people to buy—Communicates value; Place: supply chain management—Delivering the value (supply chain management is very important in getting the right quantity of the product to the right place at the right time to ensure satisfied customers.- How is a profitable exchange denoted in equation format? What does each component entail?o Value= Benefits Received—(Cost+ Hassle): value is the concept of marketing, benefits received are what the buyer gets out of purchasing the product, cost and hassle is all themoney, time, and effort a customer buys the product for- What is the marketing concept? o Philosophy underlying everything marketers do—strive to satisfy customer needs and wants- What is the fundamental purpose of marketing?o Value: Create value in order to benefit the firm, partners, customers, and society- What is entailed in value-based marketing and how do firms become value driven? o Builds a relationship with the customer to strive for customer loyalty. This can be achieved through special offers, sharing information and balancing costs with benefits. Value based marketing may actually cost more but the outcome of the product will be more personalized and satisfying.- What are the four business eras and how do they differ?o Production-oriented era: focused on making the product, and a lot of it- until the 1920’so Sales-oriented era: focused on how much of the product was sold- around WWII until 1970’so Market-oriented era: product based, bettering it- between the 50’s and 90’so Value-based era: Focusing on a customer relationship- today- Who engages in marketing and how are they defined?o For profit companies B2B- Business to Business: sell to other business B2C- Business to Consumer: sell directly to customer Some businesses my practice botho Non-profit companies: companies that are not working to make a profito Individuals- C2C (Consumer 2 Consumer): ex. eBay- Why is marketing important?o To help please and benefit the customer, share holders, and firm.- Marketing is NOT _____.o Just buyers and sellers exchanging moneyo About making profito A random activityChapter 2- What is a marketing strategy?o Identifies a firms target market, a related marketing mix (it’s 4 P’s), and the basis on which the firm plans to build a sustainable competitive advantage.- Who engages in strategic planning within the firm?o Corporate level plans  Top executives- set goals for entire companyo Business level plans  Strategic business units- varies for every firmo Functional level plans  Departmental- goals given to employees directly- Strategic Marketing Planning Process – What is the function? What is the goal? What are the steps?o Document: marketing plano Function: allocate resources to meet the goals of the firmo Goals:  How we accomplish our objectives How do we deliver value How can we stay competitiveo Steps: Define mission, Assessment of organization’s internal and external environment, Identify and evaluating opportunities using STP, Implementing marketing mix and allocate resources, Evaluate performance using marketing metrics- What is a mission statement? What is its purpose?o purpose of organization, type of business, general goals and objectives to accomplish- the mission statement rarely changes- What is a competitive advantage? What tool can we use to identify a competitive advantage? What are examples of competitive advantages?o Create a sustainable competitive advantage- way to stay ahead in the market, can be within the mission statement but often is taken out V-something of value I-difficult to imitate R- rare in the marketplace O- organization can support it- Types of competitive advantageo Customer excellence: great customer service compared to everyone elseo Company Culture: environment in the workplace, employee empowerment- this will lead to good talent and good producto Intellectual Property- patents- protects others from copying your producto Operational excellence- supply chain Often leads to lower prices: walmarto Product excellence- high perceived value for product- Appleo Locational excellenceo Social responsibility- environmentally friendly, VERY IMPORTANTTO STICK TO if company is built on this- What is a SWOT analysis? What does each part of the SWOT entail (including examples)?o S- strengths (internal to the firm)o W- weaknesses (internal to the firm)o O- opportunities (outside firm)o T- threats (outside firm) are there ways to use our strengths to turn threats into opportunities- What is involved in each part of STP and what is important to understand about these steps in relation to consumers?o Segmentation- Divide the marketplaceo Targeting- evaluate attractiveness of each segmento Positioning- define the marketing mix- want to clear, distinct, and create desire- How is value involved with each of the 4 P’s? o Firms want to develop products that customers will find valuable, charge a good price that customers will view as a good value, customer must find value in the place through having the product readily accessible, firms use promotion to communicate the value of their product- How do firms evaluate performance? What is entailed?o Using metrics- measuring system that quantifies a trend, dynamic, or characteristic. Whythings happen and to predict the future.- How do metrics utilized to evaluate performance vary? o Accountability- not all mistakes or short falls are of the fault of the marketing department, some lie outside controlo Objectives and metrics- did we meet our objectives? Hard to measure brand equityo Financial metric- this is used to tell how well products are doing- easy to measure, just financial proofo Portfolio analysis (pg. 39 in book)- shows how to best allocate resources- What is portfolio analysis and what does it