BMGT350 exam 1 Chapters 1 7 To speed things up this is what I made so far And to reiterate what Whitney said about the exam it s about 60 MC mostly application based questions so be sure you know how to apply the terms and concepts to real examples Chapter 1 Overview of Marketing Marketing the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers client partners and society at large Four Marketing Management Philosophies Production orientation if you produce it they will come Focus on what you do best What is easy to produce with current equipment Sales Orientation The idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits Marketing Orientation Focuses on satisfying customer needs and wants while meeting objectives What do our customers need What might they want Need to obtain information about customers and determine how to make them decide to purchase your product Societal Orientation Organization exist not only for the customer but for society as a whole Try to preserve customer and society s long term interests Difference between Sales and Market Orientations Differences in Firm s Business Sales Orientation Often focused on current set of products Market Orientation Focused on identifying new needs and wants of customers Encourages innovation Difference in Targeting Sales Orientation Mass Market Market Orientation Target various market segment each with different needs Organization Focus 4 Sales Orientation Inward focus on firm s revenue profitability goals via aggressive sales tactics Doesn t try to develop long term relationship Market Orientation Outward focus on customers which often suits in maximizing revenue and profits Provide Customer Value Create Satisfied Customers Build Relationships with Customers The relationship between benefits and the sacrifices necessary to obtain those benefits If you are trying to increase your customer value EX Zappos Create products that perform People don t buy products that don t work Earn trust Create a stable base of loyal customers to help a firm grow and prosper Avoid unrealistic pricing People won t pay a premium to see products and take them home would rather cheaper prices online People will pay a premium for excellent customer service Give the buyer facts Customers want informative advertising and knowledgeable sales people Offer organization wide commitment in service and Learn how to keep everyone focused on great after sale support customer service Co creation Allow customers to create their own products Chapter 2 Marketing Strategy Strategic Marketing Planning The managerial process of creating and maintaining a fit between the organization s objectives and resources and the evolving market opportunities Goal is long term profitability and growth Are your current market s going to last Strategic business units Large companies that manage a number of very different business Each SBU strategic business unit should have its own resources to operate basic business functions Strategic Opportunities for Growth Ansoff s Opportunity Matrix Market Penetration Increase market share among current target market with same product LEAST RISKY Example Getting a person to use cinnamon sugar on more than just French toast Market Development Attracting new customers to an existing product Example McDonalds s moving it s business to China Product Development Strategy entails the creation of new products for existing markets Example Taco bell introducing Doritos Taco Diversification markets Increasing sales by introducing new products in new Can be risky and successful Boston Consulting Group Model Evaluating current product mix A fast growing market leader The iPad Star Hold Build could be considered a star Cash Cow Hold Generates more cash than it needs to maintain its market share It is in a low growth market Should not spend much to try to increase market share just allocate money it makes from product to products where growth prospects are greatest Problem Children Also called a question mark Shows rapid growth but poor profit margins It has a low market share in a high growth industry Problem child s need a great deal of cash to keep its market share Has low growth potential and a small market share Will usually be discontinued Ex Surprisingly Pepsi is a dog because Coca Cola is a Cash Cow Dog 4 basic strategies after evaluating your SBU s Build If a company believes it has something that can become a star probably a problem child then it can decide to give up short term profits and use its financial resources to accomplish this goal Marketing plan Hold If you have a very successful cash cow then you want to preserve the market so you can take advantage of the cash flow Harvest Use this for problem children and dogs basic goal is to increase the short term cash return without too much concern for the long run impact Do this by reducing the investment and enjoy positive cash flow Divest Getting rid of SBU s with low shares of low growth markets Problem children and dogs are appropriate for this Marketing planning Designing activities relating to marketing objectives and the changing marketing environment Basis for all marketing strategies and decisions Marketing plan A written document that acts as a guidebook of marketing activates for the marketing manager Steps Mission Statement A statement of the firm s business based on a careful analysis of benefits sought by present and potential customers and an analysis of exciting and anticipated environmental conditions Avoid Marketing Myopia defining a business in terms of goods and services rather than in terms of the benefits customers seek Situation or SWOT analysis Analysis of Strength Things the company does well in relation to competition Weaknesses Things the company does not do well compared to competition Opportunity Conditions in the external environment that favor the firm s strengths Threats Conditions in the external environment that could be damaging to the firm s success Performing a SWOT analysis allows firms to identify their competitive advantage which is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition Competitive Advantage Cost Comparative Advantage Being the low cost competitor in an industry while maintaining
View Full Document
Unlocking...