Marketing Exam 1 Review Chapter 1 What is marketing Marketing Process Creating value for customers and build strong customer relationships in order to capture value from customers in return Needs state of deprivation Wants needs shaped by culture and individual personality Demands Human wants that are backed by buying power Market Offerings Customer needs and wants are fulfilled through market offerings Marketing Myopia focuses on specific products rather than benefits experience want to avoid Customer Value benefit that the customer gains from using a product compared to the cost of obtaining a product Customer Satisfaction depends on the product s perceived performance in delivering value relative to a buyer s expectations What markets will we serve How can we serve these customers the best Marketing Concept Inside out technique Starting Point Market Focus Customer Needs Means Integrated marketing Ends Profits through customer satisfaction Customer Relationship Management building and maintaining profitable customer relationships Production Concept consumers will favor products that are available and affordable Product Concept consumers will favor products that offer the most in quality performance and innovative features Selling Concept consumers will not buy enough of the firm s products unless the firm undertakes a large scale selling and promotion effort Marketing Concept achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do Societal Marketing Concept idea that the company s marketing decisions should consider consumers wants the company s requirements consumers long run interests and society s long run interests Chapter 2 Strategic Planning a fit between marketing opportunities and organizational goals and capabilities Mission Statement Market oriented and based on satisfying customer needs Meaningful and specific yet motivating Emphasize company s strengths in the market Should NOT be stated in sales or profits Corporate goals convert the mission into targeted levels of performance Measurable means of how well a mission is being accomplished Business Portfolio the collection of businesses and products that make up the company BCG Growth Share Matrix Build Hold Harvest Throw Out Money from cash to to star to cash cow Growth Strategies Market Penetration company growth by increasing sales of current products to current products to current market segments without changing the product Market development company growth by identifying and developing new market segments for current company products Product Development Company growth by offering modified or new products to current market segments Diversification company growth through stating up or acquiring businesses outside the company s current products Marketing Objective build business relationships in the market Value Chain The series of internal departments that carry out value creating activities to design produce market deliver and support a firm s products Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs characteristics or behaviors and who might require separate products or marketing programs Market targeting involves evaluating each market segment s attractiveness and selecting one or more to enter Positioning arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of the customer SWOT Analysis Marketing Plan Executive summary Current marketing situation Threats and opportunity analysis Objectives and issues Marketing strategy Action programs Budgets Controls Return on marketing investment marketing ROI the net return from a marketing investment divided by the costs of the marketing investment Chapter 3 Microenvironment actors close to the company customers are the most important actors Market Intermediaries firms that help the company to promote sell and distribute its goods to final buyers Public Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives Microenvironment Demographics human populations in terms of size density location age gender race occupation and other statistics Economic Environment Factors that affect the buying and spending of consumers Chapter 4 Management Information Systems MIS people and procedures dedicated to assessing information needs developing the needed information and helping decision makers to use the information to generate and validate actionable customer and market insights Marketing Research Process Exploratory Research marketing researched used to gather preliminary information that will help define the problem and suggest a hypothesis Descriptive Research marketing research used to better describe marketing problems situations and markets Causal Research Marketing research used to test hypothesis about cause and effect relationships Secondary Data information that already exists somewhere having collected for another purpose Primary Data information collected for the specific purpose at hand Questionnaires vs Mechanical Instruments Questionnaire most common Mechanical meters on cable boxes etc Customer Relationship Management CRM managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty