MGM TEST REVIEW SHEETChapter 1Marketing~ Ad Age’s Top 5 “Marketers of Century”1. Procter & Gamble: multiple branding strategy (allows diff brand names and products under same company), a. Owns over 100 products, b. invented brand management contract, c. 60 Billion $/yr company, d. First to online advertise, e. Credited with “Soap Opera” term, f. Spends a lot of time on consumer research2. McDonald’s: single operator in 60’s, major franchise, emphasis on “tweens”, uses transformational advertising which allows products to transform into experiences and events.a. Problems: social trends & bad rep with health issues hurt Mcd’s in 2000, “super size” slowed innovationb. Solution: price promotion (lazy way to market), Hamburger University (employee training), healthy meals now, option to sub fruits & milk in kid’s meal3. Coca Cola: most powerful brand name, brand equity is very strong, a. Brand equity: value of firm (subtract) value of all tangible assets b. 60% of total value is brand, but people like taste of Pepsi 4. Budweiser: 1st national Brewery, #1 market share nationwide, a. creative diversity- key to developing products and keeping alive5. Nike: uses Family Branding: same name on all products; familiarize Lowering product price is not good marketing strategy, improving product quality is more stable and sustainable.~ Marketing: The activity of creating, communicating, delivering, and exchanging offerings that benefit the organization and its stakeholders at large. The purpose of business is to create & retain value.1. Customer Value: The unique combo of benefits received by targeted buyers at specific price2. Assessing and Satisfying consumer needs 3. Marketing Exchange is what happens any time two or more people trade goods or services. 4. In marketing theory, every exchange is supposed to produce "utility," which means the value of what you trade is less than the value of what you receive from the trade. (each better off after trade)5. The Exchange Process- the trade of things of value between buyers and sellers so that each is better off after trade a. 4 types of utility: Time, Place, Form, Possession 6. Marketing Mix:a. Promotioni. Advertising, salesforce, PR, direct marketingb. Producti. Variety, quality, design, brand name, packaging c. Placei. channels, locations, inventory, transportation d. Pricei. list price, discounts, payment periods7. Marketing Program: a program that integrates mix to to provide a good/service or idea to prospective buyers,8. Marketing Orientation- focuses on continuously collecting information about customers needs, sharing this information across departments, and using it to create customer value (benefits received by targeted buyers)a. Production Era- goods were scarce and buyers were willing to accept whatever available, major focuswas how to make more b. Sales Era- manufacturers produced more goods then consumers could consume, competition increasedc. Marketing Concept Era- turning point, want to satisfy customer needs & make profit, as well as achieve organization goal, focus was on customer satisfaction, companies started looking outward (market research for targeted markets)d. Customer Relationship Era- firms seek continuously to satisfy high expectations of customers9. Market Share: Ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including, the firm itself. Sales/tot= market share10. S.T.P Marketing: Segmentation, targeting, Positioning how you communicate about your products,Chapter 2Marketing and Corporate Strategy~ Mission is a statement of the organization’s scope1. Sony: “Become the company most known for changing the worldwide poor-quality image of Japanese products” 2. Marketing Myopia: a problem where a company has a tendency to view their mission too narrow, only consider short range goals and focus on one aspect out of many, companies need to grow with technology to be successfula. EX) horse and buggy- didn’t see themselves as transportation company, did not succeedb. EX) trains should have had planes but narrowed themselves3. Specific & Measurable Objectives: the organization seeks to achieve: SMART (Specific, Measurable, Attainable, Relevant, Time-based)a. Sales Revenueb. Profitc. ROI (Return on Investment d. Qualitye. Social Responsibility4. Market share: the ratio of sales revenue of the firm to total sales revenues of firms in industrya. Biggest impact on investmentb. Important because when market power increases:i. Market power increases, production cots decrease, entry barriers increase5. Relative Market share: ratio of firm’s raw market share divided by the raw market share of the firm’s largest competitor.6. Why focus on Market Growth rather than SIZE?a. Dynamic (no static): markets change, products come & gob. Future- oriented: to be successful, you should know where market is headed7. Experience curve: the more units you produce of something, the less it costs8. Strategic Directions:a. Core Competencies: special capabilities that give edge and become the competitive advantage, to reach market place success. i. Ex. FedEx: cost efficient logistics (first to develop a hub where all shipments arrive then are delivered)ii. Wal-mart: Low costs logistics (buys good at lower cost than othersb. Competitive Advantage: unique strength relative to competitors that provide superior returns (quality, service, time, cost innovation)i. Ex. FedEx reliable overnight delivery (94% reliable- cannot be matched)9. PLANNING:a. SWOTi. internal strengths and weaknesses and its external opportunities and threatsunderstanding different partsof market you’re going to goafter do not go after all segments ex. Cannon diff product w diff pricesIdentify all different segments of the market, all different types of consumers, all want diff thingsSuccessful path: question mark, star, cash cow Unsuccessful: dog, question mark, starA faster growing market is more $$ to compete inBoston Consulting Groups (BCG): , framework for thinking about different productsProduct Portfolio Analysis: portfolio of diff products use as way to structure product goalsii. Identify trends, analyze competitors, assess organization, then research organizations present and prospective customersiii. ACTION: build on strength, correct weakness, exploit opportunity, avoid disaster laden threat b. STPi. Segmentation: identify all relative segments ii. Targeting: choose one or more of segments to