MKT 305 1st Edition Exam 1 Study Guide What are the 4 P s of marketing Identification selection and development of a product Determination of its price Selection of a distribution channel to reach the customer s place Development and implementation of a promotional strategy What does outbound marketing cover Advertising Public relations Online presence Promotions Sales support etc What does inbound marketing cover Product strategy definition and roadmap Competitive analysis Pricing Sales support Target market A group of potential customers with defined similarities that the company wants to sell to Marketing mix Controllable variables the company puts together to satisfy the target market Channel of Distribution Any series of firms that participate in the flow of products from producer to final user or consumer When picking opportunities it is important to consider what revenue source s you want to pursue Acquire new customers Retain existing customers Enhance customer value to increase purchase amount Customer Lifetime Value The total value of all purchases made by a customer during their relationship with a company What is an ROI in marketing Return on Investment These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Competitive Advantage A condition that puts one company at a favorable advantage over another company Examples of Competitive Advantage Product innovation or brand equity Price best value Place availability Promotion personal sales Marketing Plan A written statement of a marketing strategy and the timeline for supporting activities What marketing mix will be offered Who the target market is How long the offer will last What resources dollars and time are required What results are expected Be able to identify the following for Business to Business and Business to Consumer relationships Target market be as specific as possible The 4P s for that company Competitive advantage for that company Strategy The skill of making or carrying out plans to achieve a goal Examples Low cost Supplier Continuous cost reduction tight cost control typically requires high market share Differentiation Creation of something unique barriers to replication possible brand loyalty Niche Service a particular target market with unique needs Changes in technology affect marketing in two ways Opportunities for new products New processes ways of doing things Competitive Advantage A condition that puts one company at a favorable advantage over another company Sustainable Competitive Advantage A long term competitive advantage that is not easily duplicated by competitors Value Proposition VP Benefit Cost Value is the extent to which a good or service is perceived by its customer to meet his or her needs or wants measured by the customer s willingness to pay for it Competitive Environments Pure Perfect Competition Many consumers buying a standardized product from numerous businesses Low barriers to entry many choices no dominant business Price driven by supply and demand Monopolistic competition Many sellers but selling differentiated products One or few large sellers with heavy market influence Oligopoly Similar products few sellers typically large and of comparable size High barriers to entry Price changes from one force changes from others because of product similarities What is the SWOT analysis and can you apply it S W O T Strengths Weaknesses Opportunities Threats RED BLUE OCEANS in marketing Defines markets based on type of competition Red oceans established markets defined boundaries competition understood Blue oceans industries markets not in existence yet What is the difference between a company s mission and vision Vision Compelling Picture of what the future 10 years will look like because our company existed a picture that inspires action loyalty and dedication A future State of Being Mission Company Purpose Why do we exist For what reason This should also be compelling What s our Purpose today Screening Criteria Can include quantitative and qualitative criteria Quantitative Empirically measurable or approximated Ex Sales profit units warranty rate market share etc Qualitative Subjective observational Ex Quality style healthy environmentally friendly etc Naming product markets What Product type To meet what Customer user need For whom Customer types Where Geographic area A Market Segment is a relatively homogeneous group of customers who will respond to a marketing mix in similar ways Market Segmentation is used to help select target markets and develop suitable marketing mixes Single target market approach pick one market segment as your target market Multiple target market approach pick two or more segments and treat each as separate target markets Combined target market approach pick two or more segments and treat them as one target market with a single marketing mix Be able to discuss and identify the different influences on consumer behavior