MKTG 311 1st EditionExam # 1 Study Guide Lectures: 1 - 6Lecture 1 (January 14)Chapter 1: Creating Customer Relationships and Value through MarketingWhat is Marketing and the Marketing Process?Marketing is a process by which companies create for the customer and build long term relationships, and capture value from customers in return. The Marketing Process has five parts,1.) Understand the marketplace and customer needs and wants 2.) Design a customer driven marketing strategy 3.) Construct an integrated marketing program that delivers superior value 4.) Build Profitable Relationships and create customer delight 5.) Capture value from customers to create profits and customer equity.Key terms: Needs, wants, benefits, demand, markets (mass market, market segment, and target market), exchangeNeeds: The difference between a consumer’s actual state and an ideal state.Wants: A desire for a particular product to satisfy a need in specific ways that are culturally influenced.Benefits: Occurs when a product satisfies a need/want.Demand: Desire and ability/resources to purchase.Market: All of the consumers with the need and resources to make the exchange.Exchange: Occurs when something is obtained for something else.Mass Market: All possible consumers in the market regardless of their specific differences.Market Segment: Distinct group of customers that are similar to each other, yet distinct from the rest of the market.Target Market: Select which market segment/s we want to go after.What is the Evolution of the Marketing Concept?1.) Production Era: Focus about efficient production and distribution of goods. Early 20th century to the 1920’s Marketing was insignificant. Firms viewed the market as homogenous (they went after everyone!)2.) Sales Era: About the hand sell. Aggressively pushing the product. 1920’s to 1980’s. Marketing was viewed as a sales function. Focus was on one time sales, not building a relationship. Example- used car sales.3.) Marketing Concept Era: Satisfying customer needs better than the competition. 1950’s to 1980’s. Satisfaction of customer needs. Tailor the product. Integrated marketing effort(Step 3. 4P’s)4.) Customer Relationship Era: Focus is on customer and societal long term well-being. 1980’s to Present day. Looking for ways to satisfy needs that benefit society and are profitable. One to one relationship marketing.What are the 4P’s?Product: Goods, services, idea, place, person.Price: Assignment of value.Place: Channel of distribution. Involves desired time and location.Promotion: Activities the market engages in.Lecture 2 (January 16) Chapter 2: Developing Successful Marketing and Organizational StrategiesWhat are the 3 Levels of Business Planning?1. Strategic: Conducted by top level managers. Looks at the overall big picture. Looks atoverall long term growth.2. Functional: Conducted by mid-level managers. Includes various functional areas such as marketing! Includes a 5 year plan in support of the strategic plan, plus a detailed annual plan.3. Operational: Conducted by first line managers. Focuses on the day to day execution of the functional plan. Includes a detailed annual plan, semi-annual and quarterly plan.What is the Strategic Planning Process? What is the Mission Statement, Objectives and the Internal/External Environment, and Developing the business Portfolio?Strategic Planning Process involves multi-product companies with self- contained divisions (like SBU’s- Strategic Business Units) organized around products/brands. Each SBU has their own mission statement, objectives, managers, resources, competitors. Example- Disney’s 5 Strategic Business UnitsI. Strategic Planning Steps1. Define the Organization’s Mission- What makes a good mission statement?o Market Orientedo Is centered on the customer’s needso Specific and Realistico Fit the market environment. Example- Girl Scoutso Address the firms distinctive competencieso Motivating!*Social element- Reflects an ideal that is morally right and worthwhile.2. Set company or SBU’s objectives- They are an outgrowth of the mission statement, objectives tell us what the firm hopes to accomplish. Objectives are SMART (Specific, Measureable, Achievable, Realistic, Time Based) based.- Types of objectives: Profitability, sales, market shares, quality, customer satisfaction.- Step 2 also includes evaluating the internal/external environmento Internal environment- Strength and weaknesses. Controllable elements inside the firm, affect how well the firm operates. Examples- physical facilitates, relationship with suppliers, financial stability, and corporate cultures.o External environment- Opportunities and threats. Elements outside the firm affect it positively/negatively. Examples-Consumers, economy, competition, government, cultural trends.3. Design the Business Portfolio- 2X2 Matrix- Developed by BCG (Boston Consulting Group) helps the firm determine how to best allocate resources.What is the BCG Business Portfolio Analysis Matrix?Stars- This is a product that takes off, high market shares, high market growth. Example- Chevy CruzeQuestion Marks- Low market share, potential for high market growth. Example- Chevy SonicDogs- Low market share, low market growth. Example- Saturn Oldsmobile PontiacCash Cows- Main stay products, low market growth, high market share. Example- Cadillac Corvette BuickLecture 3 (January 21)What is the Diversification Analysis Matrix?Market Penetration- Increase sales of existing products in existing markets. Example- A new advertising campaign viral.Product Development- Creating new products in existing markets. Example- New clothing line.Diversification- Emphasize new markets and new products at the same time. Example- Enter Brazilian market and new clothing line.Market Development- Enter new markets with existing products. Example- New geographic market, new target market, Brazilian market.What is the Functional Planning Process? What happens in each ring and how is it different fromthe Strategic Planning Process?I. Functional Plan1. Customer Value2. Target Market Process- Segmenting- identify/describe- Targeting- evaluating/selecting markets- Differentiation- unique product- Positioning- how does the product fit?3. 4P’s- Product- Features, variations, branding, packaging- Price- Assignment of value- Place- Where and when the product is delivered- Promotion- Activities the marketer engages in. Example- Advertising, sales promotion and public relations,