MKT 305 1st Edition Exam #1 Study GuideWhat are the 4 P’s of marketing?Identification, selection, and development of a productDetermination of its priceSelection of a distribution channel to reach the customer’s placeDevelopment 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 supportTarget 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 finaluser or consumer • When picking opportunities, it is important to consider what revenue source(s) you want to pursueAcquire new customersRetain existing customersEnhance customer value to increase purchase amountCustomer 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 companyExamples of Competitive AdvantageProduct – innovation or brand equityPrice – best valuePlace – availabilityPromotion – 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 expectedBe 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 companyStrategy: The skill of making or carrying out plans to achieve a goalExamples-• Low-cost SupplierContinuous cost reduction, tight cost control, typically requires high market share• DifferentiationCreation of something unique, barriers to replication, possible brand loyalty• NicheService a particular target market with unique needsChanges in technology affect marketing in two ways:Opportunities for new productsNew processes (ways of doing things)Competitive Advantage – A condition that puts one company at a favorable advantage over another companySustainable Competitive Advantage – A long-term competitive advantage that is not easily duplicated by competitorsValue Proposition:VP = Benefit – CostValue 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 EnvironmentsPure/Perfect CompetitionMany consumers buying a standardized product from numerous businessesLow barriers to entry, many choices, no dominant businessPrice driven by supply and demandMonopolistic competitionMany sellers but selling differentiated productsOne or few large sellers with heavy market influenceOligopolySimilar products, few sellers, typically large and of comparable sizeHigh barriers to entryPrice changes from one force changes from others because of product similaritiesWhat is the SWOT analysis and can you apply it?• S – Strengths• W – Weaknesses• O – Opportunities• T – 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 yetWhat 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, observationalEx. Quality, style, healthy, environmentally friendly, etc.Naming product marketsWhat (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 mixBe able to discuss and identify the different influences on consumer