Exam 1 Study Guide Tools of Marketing Philosophies Product Price Place Production Marketing mentality how a product is explained to the public using and 4 P s attitude philosophy management orientation Marketing activity set of institutions and processes for creating communicating delivering exchanging offerings that have value for customers clients partners and society Exchange desired outcome of marketing people giving up something for something else they would rather conditions for exchange at least 2 partners something of value communication delivery freedom to accept reject desire to deal with the party Marketing Management Philosophies production sales marketing societal marketing sustainability marketing Creating Value Product Place Promotion Price Delivering Value Communicating Value Production internal capabilities of the firm Sales aggressive sales techniques belief that high sales result in higher profits Market satisfying customer needs wants while meeting objectives Societal satisfying customer needs wants while enhancing individual societal well beings 1990 s present Orientations Production Orientation what can we make do best if you build it they will come Sales Orientation how do we sell more aggressively selling collecting disregards market needs Market Orientation what do customers want focuses on customer needs wants distinguishes products from competitors Societal Marketing Orientations what do customers want organization exists not only to satisfy customers but also to preserve enhance social interests Sustainability Marketing For Who Goal Max sales Specific groups Customer satisfaction Tools Primarily promotion Coordinated use of all market activities emphasizes triple bottom line Environmental societal economic analyzes social ecological impacts of products Comparing the Sales Market Orientations 1 Organizations focus 2 Firms business 3 Who product is directed to 4 Firm s primary goal 5 Tools used to achieve the goal Defining a Firms Business use benefits instead of goods services ensure customer focus encourages innovation creativity stimulates an awareness of changes in customer preference Sales vs Market Orientations Focus Inward Good service Everyone Business Sales Market Outward Satisfy wants Why Write a Marketing Plan provide basis for comparison of actual expected provides clearly stated activities to work toward goals serves as reference for the success of future activities provides examination of marketing environment allows entry into marketplace with awareness Marketing Plan Elements 1 Situation Assessment Macro Trends Target Market Strategy Industry trends Marketing Mix 4P s Competitive Analysis 2 SWOT Analysis Strengths Weaknesses Opportunities Threats Business Mission Statement Objectives Marketing Strategy Implementation Evaluation Control 3 Marketing Mix Product Promotion Price Distribution Guidelines for Designing Marketing Strategies Macro Trends social demographic economic technological political legal trends Competitive Analysis Target Market Strategy segment market based on groups w similar characteristics analyze market based on attractiveness of market segments select 1 more target markets appeal to entire market w one marketing mix OR concentrate on one marketing segment OR appeal to multiple markets w multiple marketing mixes SWOT Analysis Strengths things company does well Weaknesses things not done well Opportunities conditions in external environment that favor strengths Threats conditions in external environment that do not relate to existing strengths or favor areas of current weaknesses strength weaknesses examples production costs marketing skills financial resources image technology Opportunities Threats ex s target market expanding social media mobile technology competitive landscape Defining a Business Mission answers what business are we in focuses on markets rather than goods services strategic business units SBU s may have a mission statement Marketing Objectives SMART Specific Measurable Attainable Realistic Timed Criteria for Good Marketing Objectives SMART 1 Communicate marketing management philosophy 2 Provide management direction 3 Motivate employees 4 Forces executives to think clearly 5 Allow for better evaluation of results Competitive Advantage set of unique features of a company its products that are perceived by target markets as significant superior unique to competition types cost product service differentiation niche strategies Product Service Differentiations brand names product reliability strong dealer network image service Cost Competitive Advantage obtain cheap raw material create efficient operations Sources of Cost Reduction experience curves product design reengineering efficient labor government subsidies Niche Competitive Advantage used by small companies used in limited geographic markets product line may be focused on specific product category Sources of Sustainable Competitive Advantage patents copyrights locations equipment technology customer service promotion Strategic Alternatives market penetration inc market share among existing customers market development attract new customers to existing products product development create new products for present markets diversification introduce new products into new markets Product tangible goods ideas services physical unit package warranty Price what buyer must give up for a product most flexible of the 4 P s competitive advantage price x units sold total revenue Place product availability when where customers want them all activities from raw materials to finished products ensure products arrive in usable condition designated places Promotion role to bring exchanges via informing educating persuading reminding personal selling advertising sales promotions PR Ethical Behavior unwritten rules governing interaction ex wait in lines please thank you honest polite ethics moral principles values that govern conducts of the individual morals the rules people develop as a result of cultural values and norms Ethical Development Levels pre conventional morality based on what will be punished childish self centered conventional moves toward expectations of society concerned over legality post conventional concerned about how they judge themselves concerned if it is right in the long run Factors that Influence Ethical Decisions extent of problems top management actions potential consequences social consensus probability of harmful outcome time until