MKTG 350Test 1 Study GuideChapter 1 Marketing (Definition)- About creating, capturing, communicating, and delivering VALUECore aspects of marketing (exchange, product/service, businesses/individuals, etc.)- Helps create value- Is about satisfying customer NEEDS and WANTS- Entails an exchange- Requires PPPP decisions- Can be performed both by individuals and organizations- Occurs in many settingsMarketing mix- Price (Capturing Value)- Product (Create Value) – Goods, Services, Ideas- Promotion (Communicate Value)- Place (Deliver Value)Market (Components of)- Society, Customers, Employees, Supply Chain- Definition = Group of people with common problems to solve or needs to satisfy, have money to do thatSupply Chain Management- Group of firms that make and deliver a given set of goods and services- Raw material -> Manufacturer -> Retailer -> ConsumerValue- Determined by customer- How much you pay for what you get in return- “What you get for what you give”Value co-creation- When companies are involving customers in creating value- Lay’s ChipsProduction oriented, sales oriented, marketing oriented, value-based eras- Production Oriented (1900-1920) = Good product will sell itself- Sales Oriented (1920-1950) = Depends on heavy doses of personal selling and advertising- Market Oriented (1950-1990) = “Customer is King”, All about satisfying customers needs and wants- Value Based Era (1990-NOW) = Companies satisfying wants and needs but giving better value than competitionValue driven companies- Share Information, Balance Benefits and Costs, Build relationships with customers- Example: TargetHow to improve value- By having relational orientation (long-term relationship) with consumersChapter 2 Marketing Strategy (3 Parts)- Identify target market- Develop marketing mix (PPPP) to satisfy target market- Identify a basis upon which firm plans to build a sustainable competitive advantageSustainable Competitive Advantage- Advantage over the competition that is not easily copied, can be maintained over a long period of timeTarget Market- Group of customers toward which a business has decided to aim its marketing efforts and merchandise4 Macro Strategies- Customer Excellence (Chick-Fila) – Retaining loyal customers and excellent customer service.- Operational Excellence (Wal-Mart) – Efficient operations and excellent supply chain / human resource management.- Product Excellence – Products with high perceived value and branding/positioning- Locational Excellence – Good physical location and internet presenceGrowth Strategies- Market Penetration = Current Market, Current Product- Market Development = New Market, Current Product- Product Development = Current Market, New Product- Diversification = New Market, New Producto Related Diversification (Coca-Cola selling water)o Unrelated Diversification (Coca-Cola selling water skis)3 Phases of Strategic Marketing Process- Planningo Mission Statemento SWOT- Implementationo Identify Opportunities (STP)o Implement Marketing Mix (PPPP)- Controlo Evaluate Using Marketing MetricsSWOT- Situation Analysis- Strengths and Weakness of internal environment- Opportunity and Threats of external environmentSegmentation, Targeting and Positioning - Segmentation = Break into segments based on characteristics / lifestyle- Targeting = Find best market (target) for success- Positioning = Develop a clear and distinct understanding of the product compared to competition. Positive differentiation.Boston Consulting Group Portfolio Analysis- Stars = High Growth Rate and High Market Share (Toyota Prius)- Question Mark = High Growth Rate and Low Market Share- Cash Cow = Low Growth Rate and High Market Share (Product sells itself – Toyota Camry)- Dogs = Low Growth Rate and Low Market Share (Ready for deletion, wasting time – Toyota Cruiser)Chapter 4 Ethical Issues Associated With Marketing- If focus is greed and short-term profit = Serious long term consequences- Defective / Harmful Products- Price Gauging / Price Dumping- Deceptive AdvertisementsCreating an Ethical Climate (3 things) - Values – Establish. Share, Understand- Rules – Management commitment, Employee Dedication- Controls – Reward / PunishmentCorporate social responsibility- The voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns stakeholders have.Ethical Decision Making- Identify Issue -> Gather Information and Identify Stakeholders -> Brainstorm and Evaluate Alternatives -> Couse of ActionEthical Decision Metric (6 tests)- Publicity Test – How would you feel if your decision was published on the front page of the newspaper- Moral Mentor Test – Think of the person you admire the most and ask if they would do the same thing. If the answer is no, you shouldn’t be doing it.- The Admired Observer Test – Think of someone you admire and ask yourself what they would think if they saw you doing it.- Transparency Test – Can you give a clear explanation of your behavior in the court of lawand be okay with it?- Person In The Mirror – Can you face yourself after you have done this? How can he lookhimself in the mirror and handle his conscious?- The Golden Rule Test – How would you feel if you were on the receiving end of this? How would you feel if you were the one being treated?Chapter 5Customer/ Consumer is at Center of Marketing Environment - Everything a company does should be focused on the consumer (their NEEDS and WANTS)3 Components of an Immediate Environment- Company, Competition, Corporate Partners6 Macro-Environmental Factors Including Specifics About:1. Culture = Shared meanings, beliefs, morals, values, and customs of a group of peoplea. Country/Regional Culture = Important regarding taste, dress, ceremonies, artifacts. Regional (Coke vs. Pop) Country (English vs. Spanish)2. Demographics = Looks at age, gender, income, education, and racea. Generational cohorts – People that have similar purchase behaviors because of share experiences.i. Seniors (69+) – Travel a lot, loyal to made in USA products, careful with money, value-orientedii. Baby Boomers 1946-1964)– Very much about being their own individual, trying to retain youth, bigger spenders than parents, outlive their money, big on anti-aging productsiii. Generation X (1965-1976) – Latch Key children, children of divorce, more about life balance, helicopter parents, more cynical nowiv. Generation Y (1977-2000) – The