Communicating ValueProduct PlacePricePromotionCreating ValueDelivering ValueExam 1 – Study GuideTools 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 orientationMarketing-activity, set of institutions and processes for:-creating-communicating-delivering-exchanging offerings that have value forcustomers, clients, partners, and societyExchange-desired outcome of marketing-people giving up something for something else they wouldrather-conditions for exchange:-at least 2 partners-something of value-communication & delivery-freedom to accept/reject-desire to deal with the partyMarketing Management Philosophies-production, sales, marketing, societal marketing,sustainability marketing-Production: internal capabilities of the firm-Sales: aggressive sales techniques & belief thathigh 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 interestsSustainability Marketing-emphasizes triple bottom line: Environmental, societal, & economic-analyzes social & ecological impacts of productsComparing the Sales & Market Orientations1. Organizations focus2. Firms business3. Who product is directed to4. Firm’s primary goal5. Tools used to achieve the goalDefining a Firms Business-use “benefits” instead of “goods/services”-ensure customer focus-encourages innovation & creativity-stimulates an awareness of changes in customer preferenceSales vs. Market OrientationsFocus Business For Who Goal ToolsSales Inward Good service Everyone Max sales Primarily promotionMarket Outward Satisfy wants Specific groups Customer satisfactionCoordinated use of all market activitiesWhy 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 awarenessMarketing Plan Elements1. Situation Assessment-Macro Trends-Target Market Strategy-Industry trends-Marketing Mix (4P’s)-Competitive Analysis2. SWOT Analysis(Strengths, Weaknesses, Opportunities, Threats)-Business Mission Statement-Objectives-Marketing Strategy -Marketing Mix (Product, Promotion, Price, Distribution)3. Implementation Evaluation ControlGuidelines 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 mixOR-concentrate on one marketing segmentOR-appeal to multiple markets w/ multiple marketing mixesSWOT 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 areasof 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 landscapeDefining 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 statementMarketing Objectives (SMART)-Specific-Measurable-Attainable-Realistic-TimedCriteria for Good Marketing Objectives = SMART1. Communicate marketing & management philosophy2. Provide management direction3. Motivate employees4. Forces executives to think clearly5. Allow for better evaluation of resultsCompetitive 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 strategiesProduct/Service Differentiations-brand names-product reliability-strong dealer network-image-serviceCost Competitive Advantage-obtain cheap raw material-create efficient operations-Sources of Cost Reduction:experience curves, product design, reengineering, efficient labor, government subsidiesNiche Competitive Advantage-used by small companies-used in limited geographic markets-product line may be focused on specific product categorySources of Sustainable Competitive Advantage-patents, copyrights, locations, equipment, technology, customer service, promotionStrategic 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 marketsProduct-tangible goods, ideas, services-physical unit, package, warrantyPrice-what buyer must give up for a product-most flexible of the 4 P’s-competitive advantage-price x units sold = total revenuePlace-product availability; when & where customers want them-all activities from raw materials to finished products-ensure products arrive in usable condition @ designated placesPromotion-role to bring exchanges via informing, educating, persuading & reminding-personal selling, advertising, sales promotions, PREthical 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 normsEthical 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