MARK 3321 1st Edition Exam 1 Study Guide Lectures 1 4 CH 1 Overview of Marketing Marketing o The activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large o Focuses more on what marketing can do instead of the process 5 Necessary conditions for exchange o 1 At least two parties o 2 Something of value o 3 Communication and delivery o 4 Freedom to accept or reject o 5 Desire to deal with other party 4 Marketing Management Philosophies o o o o Production orientation Internal capabilities of the firm Usually in 1920s How can we sell more aggressively Sales orientation Aggressive sales techniques and belief that high sales result in high profits Usually in 1950s Market orientation Satisfying customer needs and wants while meeting objective After 1950s Societal orientation Satisfying customer needs and wants while enhancing individual and societal well being Outward focus on marketing o o o Customer value The relationship between benefits and the sacrifice necessary to obtain those benefits Usually happens before buying product or service Customer satisfaction The customer s evaluation of a good or service in terms of whether it has met their needs and expectations Usually happens after buying product or service American customer satisfaction index Relationship marketing what do customers want and need and how can we benefit society A strategy that focuses on keeping and improving relationships with current customers Video case Wahoo Fish Taco o Customer value Benefits Food Atmosphere Customer service Sacrifice Price Time CH 2 Strategic Planning for Competitive Advantage Ansoff s Strategic Opportunity Matrix will be on exam o o Market penetration Doesn t change the market or product Trying to get existing customers to buy more of the product Product development o o Market development Serving new markets with existing products Ex opening new stores in different locations Diversification Create new products to sell to new target groups Maybe selling products from different industries Strategic business units SBU o Introduce new products to existing customers SBU has A distinct mission and specific target market Control over its resources Its own competitors Plans independent of other SBU s Boston Consulting Group BCG Matrix o Stars o Question Marks o High growth industry high demand Could have lots of growth and market share Cash cows Have a product that generates lots of profits o Dogs o Not much growth or profits Example of relative market share o Can use those profits for new products Firm A 60 Has 2 1 market share High market share Firm B 30 Has 5 1 market share Low market share Firm C 10 17 to 1 market share Low market share Only industry leaders can be considered in the High category for relative market share Marketing Plan o A written document that acts as a guidebook of marketing activities for the marketing manager Elements of a marketing plan o 1 Business mission statement o 2 Situation or SWOT analysis o 3 Objectives o 4 Marketing Strategy Target market strategy o Marketing mix o Product o Promotion o Distribution o Price 5 Implementation Evaluation Control Defining the Business Mission o A firm s mission statement is answers the question What business are we in o Should avoid marketing myopia which is defining a business in terms of goods and services rather in terms of the benefits customers seek o Better ways we are a communications company we are in the transportation business Internal Strengths things the company does well Weaknesses things the company does not do well External Opportunities conditions in the external environment that favor strengths Threats conditions in the external environment that do not relate to existing strengths or favor areas of current weakness Environmental scanning o Examples of myopic statements we are a telephone company we are in the airline business Situation of SWOT analysis o The collection and interpretation of information about forces events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan Competitive advantage o The set of unique features of a company and its products that are perceived by the target market as significant and superior to competition o Types Cost Can offer products at a cheaper price than the competition Walmart with low prices Product service differentiation Tom thumb with in store experience Niche strategies Associating products with a different group Building sustainable competitive advantage o Cannot be copied by competition o Can be used for number of years Setting marketing plan objectives o Statement of what is to be accomplished through marketing activities To be useful stated objectives should be Realistic Measurable Time specific Compared to a benchmark The activities of selecting and describing one or more target markets and developing and maintain a market mix that will produce mutually satisfying exchanges with target markets Describing the target market o Marketing objective Marketing strategy o Whole foods with health food movement After conducting a Market Opportunity Analysis MOA firms can utilize one of three general strategies for selecting target markets Entire market Multiple segments One segment Marketing Mix The Four P s o Product o Place distribution o Promotion o Price Following up on the marketing plan o Implementation o Process that turns a marketing plan into action assignments Evaluation and control Have the marketing objectives been achieved Marketing audit A thorough systematic periodic evaluation of the objectives Strategies structure and performance of the marketing organization CH 3 4 Ethics and Social Responsibility The Marketing Environment Ethical guidelines o A code of ethics Helps identify acceptable business practices Helps control behavior internally Avoids confusion in decision making Facilitates discussion from right and wrong Pyramid of Corporate social responsibility o Philanthropic o Ethical o Be profitable Corporate social responsibility o Sustainability Obey the law Economic Do what is right Avoid harm Legal o Be a good corporate citizen The idea that socially responsible companies will outperform their peers by focusing on the world s social problems and viewing them as opportunities to build profits and help the world at the same time Green marketing o The development