MAR 301 1st Edition Exam 1 Study Guide GENERAL CONCEPTS Marketing Concept to find effective and efficient means of making the firm do what serves the interest of the customer is an outside in job not inside out Main objective to listen to customers identify their needs and marshal the resources of the organization to provide products and services that create value for them Also creates value for our shareholders Means of production are responsive to customer needs Efficient markets o Supply matches demand o Prices match value delivered o Inventories are available in correct volumes o Goods and services are distributed efficiently o Consumers are well informed about choices available How does it relate to Sales advertising other functions What is the role of marketing and Misconceptions Goes beyond simple exchanges build long term customer relationships create customer value maintain customer satisfaction and connect with customers on an emotional lifetime value of the customer 4P s Product promotion price and place 5C s Customers competitors company competencies Collaborators Context Product Orientation firms focus on the product itself and how to produce it most efficiently They bring to market goods and services they are convinced are best for customers Marketing myopia shortsighted railroads Hollywood dry cleaners grocery stores Sales Orientation focus their efforts on doing whatever is necessary to persuade customers to buy Still pervasive today Marketing representatives Customer Orientation success will come to firms that best understand the perceptions needs and wants of its customers and satisfies them through the design communication pricing and delivery of competitively viable offerings Instead of trying to change the customer to fit what the firm has to offer instead change the firm to fit the customer needs THE MARKETING STRATEGIC PLANNING PROCESS Planning phase o Identify the business mission o Analyze the situation market environment SWOT set business objectives Marketing Strategy and Implementation Phase o Identify Opportunities Segmentation targeting positioning o Implement Marketing Mix Product price place promotion Control Phase o Evaluate performance using market metrics THE PRODUCT LIFE CYCLE can differ with market Introduction growth maturity decline PORTFOLIO MODEL Method to manage the product portfolio Companies use matrix to determine strategic options for growth Boston Consulting Group Matrix Market Growth Rate High Launch Introduce Low Harvest Divest High Low Relative Market Share Market penetration low risk increase sales of existing products to existing markets Product development risky don t know whether it ll ever come to market Market Development risky Introduce existing products to new markets Diversification high risk emphasize both new products and new markets to achieve growth CONSUMER BEHAVIOR Understanding Consumer Customer owns behavior perceive a fit between product and a need Ability to act Manager owns understanding what of customer behavior why of customer behavior how to translate what and why into decisions and actions Influences on and of Consumer Behavior Perception and message encoding cognitive processes affect and emotion beliefs and attitudes social and cultural influences CONSUMER searches for info makes choices forms preferences Consumer Research market strategy marketing mix MODELS for decision making AIDA Attention awareness and information gathering Interest Deliberation attitude formation Desire Action Hierarchy of Effects Awareness Recall and recognition Beliefs Attitude persuasion Intention Behavior trail or repeat 5 steps decision making process influenced by culture situation and psychological factors 1 Need recognition 2 Information search 3 Evaluation of alternatives 4 Purchase 5 Post purchase behavior B2B MARKETING Business to Business Types of Business products Raw materials Processed materials Component parts Major equipment Accessory equipment Supplies Business services Players in B2B Producers Mfrs OEMS Resellers wholesalers marketing reps retailers Other businesses that need to buy materials machinery or other equipment Even computers in order to do business Governments federal state county etc Institutions civic clubs churches colleges unions The link between B2B B2C multiplier effect small changes in consumer demand can produce major changes in business demand Nature of b2b marketing Informative intensive highly structured decision making can be political focus is on justification Highly involved customers Focus on the Total Value Proposition encompassing product features lifecycle costs of operation service assistance replacement costs Performance guarantees often required Demand is derived from the demand for consumer products Demand fluctuates more than demand for consumer products Demand for one item affects demand for other related products joint demand B2B buyers are less price sensitive