Final Exam Study Guide Marketing Chapter 1 processes for creating communicating delivering exchanging offerings that have value for customers clients partners society at large the activity or set of instructions Marketing Management Philosophies product oriented organization focus on internal capabilities of firm rather than desires and needs of the marketplace sales orientation based on beliefs that people will buy more products via aggressive sales techniques market orientation focus on satisfying customer wants and needs while meeting organizations objectives societal marketing orientation includes preservation or enhancement of individuals and society s long term best interests Reasons to study Marketing mtkg affects the allocation of goods services that influence a nation s economy standard of living understanding mktg is crucial to understanding most businesses career opportunities in mktg are diverse profitable expected to increase understanding mktg make consumer s informed Chapter 2 strategic marketing planning the managerial process of creating and maintaining a fit btwn the organizations objectives resources the evolving market opportunities Marketing Plan 1 Business Mission Establishes boundaries for subsequent decisions objectives strategies Focus on the market or markets the org is attempting to serve 2 Performing a Situation Analysis internal external SWOT analysis i Strengths internal ii Weaknesses internal iii Opportunities external iv Threats external When examining external O T use environmental scanning i Macro environmental factors social demographic economic technological political legal competitive 3 Setting Objectives SMART i Specific ii Measurable iii Attainable iv Realistic v Timed Good objectives i Communicate marketing management philosophy ii Provide mgmt direction iii Motivate employees iv Force executives to think clearly v Allow for better evaluation of results 4 Select Target Markets Market Opportunity Analysis MOA describes estimates the size sales potential of market segments Assessment of key competitors After market segments defined 1 perused by firm 3 strategies to select tarket market i Appeal to entire market with 1 marketing mix ii Concentrate on 1 segment iii Appeal to multiple segments with multiple marketing mixes 5 Define marketing Mix 4P s Product i Tangible goods ides or services Place Distribution Promotion Pricing i Making products available when and wehre customers want them i Advertising public relations sales promotion personal selling i What a buyer gives up to obtain a product ii Easiest to change in the marketing mix 6 Establish ways to implement evaluate control the plan Implementation people must perform the actions in the plan Evaluation see if objectives are obtained Control provides mechanisms for evaluating marketing results Competitive Advantage 1 Cost Experience curves Efficient labor No frills goods services Government subsidies When a firm provides something unique that is valuable to buyers beyond just a lower INVEST Stars large profits Cash Cow Market dominance INEVEST HEAVY or DROP Problem Child need Cash Dogs small market share low growth INVEST DROP Product design Reengineering New methods of service delivery Product innovations 2 Product service differentiation price 3 Niche strategies Comes from targeting unique segments with specific wants needs Strategic Alternatives Help market penetration product development market development diversification Managers use portfolio matrix RIGHT Chapter 3 Ethical Decision Making 1 Consequences of decisions 2 Relies on rules laws to guide decision making 3 Based on theory of moral development a Preconventional morality b Conventional morality c Post conventional morality Ethical Behavior Ethical conduct shaped by societal elements o Family education religion social movements Businesses create a code of ethics o Help employees identify acceptable business practices o Effective internal control on behavior o Help employees avoid confusion when determining whether decisions are ethical o Facilitate discussion about right vs wrong Corporate Social Responsibility 4 components 1 Economic 2 Legal 3 Ethical 4 Philanthropic increase profitability Main goal economic profitability but sustainability can Chapter 4 External marketing environment 1 Social Most difficult for mktrs to anticipate People o all ages have broader range of interest defying traditional consumer Changing gender roles more women into workforce inc of men shopping Greater of dual career families time saving goods services US population growing at a slower rate can t rely on profits from expanding 2 Demographic profiles markets Population growing older appeal to middle aged elderly 3 Economic Recession mktrs maintain reduce prices to counter effects of decreased demand Inflation mktrs try to maintain level pricing to avoid losing brand loyalty concentrate on increasing production efficiency customer service 4 Technological 5 Political legal Monitoring new tech is essential to keeping up with competition Mkters responsible for remaining aware of abiding by regulations Ex s Sherman Act Clayton Act Federal Trade Commission Act Robinson Patman Act Wheeler Lea Amendments to the FTC Act 6 Competitive variables Number of competitors a firms faces Relative size of competitors Degree of interdependence within an industry Mktrs must understand how external environment changes b c can control them Multiculralism represented when all major ethnic groups in an area city country etc are roughly equally 1 Growing multiculturalism marketers more challenged Chapter 5 Global Marketing Firms who adopt a global vision able to o Identify global mktg opportunities o Understand nature of global networks o Create effective global mktg strategies o Compete against foreign competition in domestic mkts Multinational firms international traders that operate across borders o Vast size financial technological material resoucces o Have ability to overcome trade problems save on labor costs tap new tech Environmental factors o Culture Societal values attitudes beliefs language customary business practices o Economic technological development Depends on stage of industrial development affects family incomes o Political structure actions Shaped by political ideology tariffs quotas boycotts exchange controls trade agreements mkt groupings o Demography Size of population age geographic distribution o Natural resources Opening e commerce internet