GradeBuddy Mktg 350 1st EditionExam # 4 Study GuideChapter 1 Marketing definition- an organizational function and set of processing for creating,capturing, communicating, and delivering value to customers and for managing customer relationships in a way that benefit the organization and it’s stakeholders.Core aspects of marketing- (exchange, product/service, businesses/individuals, 1.Entrepreneurial 2. Expands global presence 3. Persuasive across channel members4. Enriches societyMarketing mix – Product (creating value), Price (Capturing Value), Place (DeliveringValue), and Production (Communicating Value)Market – a group of people with common problems to solve or needs to satisfy. Theyalso have money to satisfy these needs. Supply chain management- describes all activities necessary to get the product to all the right customers when the customer wants it.Value- how much you pay for what you get in returnValue co-creation- companies work with customers to see what they wantProduction oriented, sales oriented, marketing oriented, value-based eras- 1. Production (1900-2000) product will sell itself 2. Sales era (1920-1950) over production/ relied heavily on personal selling and advertising 3. Marketing era (1950-1990)- customer became king—choices over quality and price 4. Value-Basedera (1990-now) satisfy needs and wants of customers. Value driven companies- share information, balance benefits with costs, build relationships with customers How to improve value-Relational orientation- long-term relationship with customers (returning customers). Transactional orientation- selling to customers one time (build new houses after a floodChapter 2 Marketing strategy – 3 components of- 1. Identify target market 2. Develop the marketing mix (4 Ps) that satisfies the target market 3. Build a basis upon which your firm plans to build a sustainable competitive advantage Sustainable competitive advantage- is an advantage over competition that is not easily copied, and thus can be maintained over a long period of timeTarget market- is a group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise.macro strategies (exh 2.1)-1. Customer excellence (service) – loyal customers Customer relationship management- CRM 2. Operational excellence- (low price is not a sustainable competitive advantage but the reason that they can keep the price so low is) 3. Product excellence- (not necessarily the best product but well positioned one – clear distinctive brand image) 4. Locational excellence- once location is acquired, no one else can take it away as long as you’re thereGrowth strategies – market penetration, market development, etc Growth Strategies Markets I Products  Current NewCurrent Market Penetration (coke in morning)Product Development (coke with like)New Market Development (Coke in North Korea)Diversification (Coke selling coffee)3 phases of strategic marketing process (planning, implementation, etc) Planning Phase  Implementing Phase Control Phase 1. Mission statement 2. SWOT 3. STP 4. Implement marketing mix 5. Evaluate and make adjustment. SWOT-: Situational analysis – SWOT (Strengths, Weaknesses, Opportunities, Threats) SW=internal OT=external Segmentation, Targeting and Positioning (segmentation- break heterogeneous population-market- and breaking it down into smaller homogeneous subsets-segments) targeting, to develop a clear, distinctive, desirable, understanding of our product compared to the competition—make them like our product best—the place the product occupies in the mind of the consumer EX: Volvo=safety, Cadillac= luxury for elders, Hyundai=cheap) BCG portfolio analysis – know components and axes as well as categoriesGrowth I Market shareHIGH LOWHIGH STARS A+ QUESTION MARKS ALOW CASH COWS C DOGSChapter 4 Ethical issues associated with marketing - Greed and short-term profitserious long-term consequenceslong term success  creating value over the long run Creating an ethical climate (3 things) – 1. Values (Establish, Share, Understand) 2.Rules (Management commitment, Employee dedication) 3. Controls (Reward, Punishment) Corporate social responsibility- voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. Exhibit 3.8 – ethical decision metric (6 tests) 1. Publicity test- how would you feelof info was leaked 2. Moral mentor test- someone you admire- would they do this 3. Admire observer- someone you admire- how would they feel of they saw you doing it 4. Transparency test- can you give a clear explanation about your behavior in a court of law 5. Golden rule test- treat others how you want to be treated- how wouldyou feel of you were on the receiving end 6. Person in the mirror test- can you face yourself after you have done this \Chapter 5Customer is at center of mktg. environment every thing the company does they should be focused on the consumer1. 3 components of immediate environment- Company—Successfully leveraging company capabilities a. Core competencyb. Existing knowledge, facilities, patents applied to new markets, nee products etc. 2. Corporate partnersa. Firms are part of alliancesb. Align with competitor, suppliers, etc.c. Just in time delivery system (JIT)i. From factoryto retailer 3. Competition a. Know strengths and weaknessesb. Proactive rather than reactive strategy (legally- reverse engineering, find financial information, look up mission statement, Google earth)(illegal- breaking into headquarters, posing as potential customer) 6 macro-environmental factors including specifics about:Culture passed down from generations, learned from families, changes over time Country/regional culture - Soda vs. pop vs. coke Demographics-- provides an easily understood snapshot of the typical consumer in a specific target market Age, gender, income, education, raceGenerational cohorts- - people who have similar purchasing behaviors because of shared experiences (based on ages)Gender and gender roles- Male/female roles have been shifted—marketing has changes to reflect these shifts – role are becoming blurred – Women in workforce have different purchasing behaviors – still doing many traditional jobs be careful with gender neutrality Ethnicity – and specific characteristics of each group- by 2050,