MKT 2101 Exam 1 Study Guide combination of products services info or exp offered to a market to satisfy a philosophy in which achieving organizational goals depends on human wants that are backed up by buying power Wants BP D state of felt deprivation including physical social and individual form of human needs take as they are shaped by culture and individual personality Chapter 1 Needs Wants Demands Market Offerings a need or want The Marketing Concept knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors affordable performance and innovative features undertakes a large scale selling promotion effort profitable relationships with them consumers will favor products that are available highly consumers favor products that offer the most in quality art and science of choosing target markets and building consumers will not buy enough of the firms products unless the firm o Marketing Management o Production concept o Product Concept o Selling concept Customer equity Customer lifetime value lifetime of patronage total combined customer lifetime values of all of the company s customers value of the entire stream of purchases a customer makes over a Chapter 2 Steps in Strategic Planning process of developing and maintaining a strategic fit between the organizations goals capabilities and its changing marketing opportunities o Mission Statement organizations purpose what it wants to accomplish in a larger environment o Business Portfolio collection of businesses and products that make up the company o SBUs a business unit within the overall corporate identity which is distinguishable from other businesses ex a company s division o Portfolio analysis process by which management evaluates the products businesses that make up the company o BCG Growth Share Matrix Stars high growth share build into cash cow via investment Cash cow high share low growth maintain cash high share low growth build into stars or dogs Dogs low share growth maintain or divest o Ansoff s Product Market Expansion Matrix Product Development new product in existing market ex Google Android Market Penetration sell existing products in existing markets ex Coke in US Market Development sell existing products in new market ex McD in China Diversification sell new products in new markets ex Pintrest 1 Segmenting dividing a market into groups according to needs characteristics or behavior 2 Targeting evaluating each market segment selecting 1 or more segments to enter 3 Differentiation creating superior customer value by differentiating the market offering 4 Positioning arranging a product to occupy a clear distinctive desirable place relative to competition The perceptual map The marketing mix set of tactical marketing tools that a firm blends to produce the response it wants in the target market o 4 P s seller view Product variety features quality brand name Price list price discount Place channels coverage locations Promotion advertising sales o Buyer s view SWOT Analysis Customer solution customer cost convenience communication o Strengths internal capabilities that may help a company o Weaknesses internal limitations that may interfere with a company o Opportunities external factors that the company may be able to exploit o Threats current and emerging external factor that may challenge the company Chapter 3 The microenvironment actors close to the company that affect its ability to serve its customers o Company areas departments inside the company ex HR o Suppliers provide resources needed add value to company ex McDonald s coffee o Intermediaries help company to promote sell distribute to final buyers ex retailer o Competitors marketers must seek to gain strategic control ex Dunkin vs Starbucks o Publics any group that has potential or actual interest in an organizations ability to achieve its objectives ex investors media general public o Customers ex end consumers business reseller The macroenvironment larger societal forces that affect the macro Economic economic factors that affect consumer purchase power Demographic study of human population ex gender age race Natural natural resources needed ex access to raw materials Technological technology standards trends of given society ex Product life cycle Political forces laws can influence how firms operate ex gov incentive to buy electric cars Cultural forces institutions and other forces that affect a society s basic values o Generational groups Baby boomers 1946 1964 occupy 25 of population control 80 of wealth 50 of consumer spending think young Generation X ers 1965 1976 most educated group spend carefully less materialistic Millenials Gen Y ers 1977 2000 ethnically diverse technology customize Chapter 4 Secondary data info that already exists ex internet o Advantages available quickly cheaper o Disadvantages may not be relevant accurate or current Primary data consists of info collected for the specific purpose at hand ex research contact methods sampling o Advantages hands on data o Disadvantages people could lie in surveys Observational Research gathering primary data by observing relevant people actions and situations Ethnographic research form of observational research that involves sending trained observers to watch and interact with consumers in their natural environment Survey research gathering primary data by asking people Q s about their knowledge attitudes preferences and buying behavior Experimental Research gathering primary data by selecting matched groups of subjects giving them different treatments controlling related factors and checking for differences in group responses Probability samples offer each population member a known chance of being selected ex simple random sample cluster or area sample Nonprobability samples selected in a non random manner which means sampling errors cannot be computed ex convenience sample snowball sample Chapter 5 Consumer decision making model o Input the environment process buyer s black box output buyer response Subcultures group of people with shared value system based on common life experiences o Ex Nationalities religions racial groups geographic regions etc Social factors o Reference groups ex friends co workers o Opinion leaders are recruited as brand ambassadors or for buzz marketing Personal factors occupation economic situation Maslow s hierarchy of needs o Self Actualization needs self development realization o Esteem needs self esteem