BMGT 350 EXAM 1 REVIEW Chapter 1 An Overview of Marketing What is marketing All activities required to acquire and retain customers Create and deliver some offering of value Exchange some offering of value Communicate o o o Guiding functional area of most organizations o With out marketing there is no customers and no revenue o Financial benefit retention Activities and processes are both art and science What is marketed Goods products Services Events People Places Organizations 4 Philosophies Guiding Marketing 1 Production focuses on internal capabilities if we build they will buy a Ex Furniture Industry slow cycle times b Does not consider if the product meets the needs of the marketplace 2 Sales people will buy more goods if aggressive sales techniques are used a Lack of understanding of the needs of the marketplace b Dot com business focused on technology not customers 3 Market Orientation satisfying customer needs and wants while meeting objectives a Marketing concept social and economic justification for an organization s existence is the satisfaction of customer wants and needs wile meeting organizational objectives 4 Societal satisfying needs and wants while enhancing societal well being a Ex environmentally friendly products TOMS Sales vs Market Orientation Differences in organizational focus o o Customer value the relationship between benefits and the sacrifice necessary to obtain those benefits Offer products that perform earn trust avoid unrealistic pricing give the buyer facts offer services after sales support co creation etc Customer Satisfaction the customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations o Relationship marketing strategy that focuses on keeping and improving relationships with current customers Empowerment delegation of authority to solve customers problems quickly Teamwork collaborative efforts of people to accomplish common objectives Sales inward focus on revenue via aggressive sales tactics o o o o Market outward focus on customers resulting in increased revenue Differences in the firm s business Sales focused on a current set of products defines business in terms of its products o o Market focused on identifying needs defines business in terms of the benefits to customers Differences in targeting focus o Sales mass market target all 1 o Market target various market segments each with different needs Differences in the firms primary goal Sales achieve profitability through sales volume o o Market make profit by creating customer value Differences in the tools used Sales intensive promotional activities selling advertising o o Market product decisions place distribution promotion decisions pricing decisions Providing Customer Value Satisfaction Relationships with Customers Create products that perform earn trust avoid unrealistic prices provide facts quality Financial Bonds o o Loyalty programs Stable pricing for loyal customers Social Bonds o o o o o o Structural Bonds B2B Sense of community Special treatment or privileges Ex Harley Davidson Shared equipment ordering system Joint investment Tasks of Marketers Capturing marketing insight Customers competitors external environment Develop strategy plans o Growth strategy targeting positioning Identify strengths weaknesses and adaptations Develop marketing mix Product branding Price strategy Promotion force ads Place distribution o o o o Evaluate and revise o Situation Analysis Marketing research Segment the market Target market selection Position Marketing mix Customer acquisition and retention Profits Chapter 2 Strategic Opportunities for Growth THE MARKETING PLAN The Nature of the Marketing Plan Strategic planning the managerial process of creating and maintaining a fit between the organization s objectives and resources and the evolving market opportunities Marketing planning designing activities relating to marketing objectives and the changing marketing environment Marketing plan written document that acts as a guidebook of marketing activities o Elements business mission statement situation SWOT analysis objectives marketing strategy target market marketing mix implementation evaluation control 2 1 Defining the mission statement Mission statement a statement of the firms business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions Marketing myopia defining a business in terms of goods and services rather than in terms of the benefits customers seek Strategic business unit a subgroup of single businesses or collection of related businesses within the layer of the organization 2 Conducting Situation Analysis SWOT analysis Identifying internal strengths and weaknesses and also examining external opportunities and threats should be integrated into marketing plan strategy Leverage or exploit current strengths Improve upon current weaknesses Pick opportunities that leverage current strengths or avoid threats Identify ways to defend against potential threats o o o o Environmental scanning collection of interpretation of information about forces events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan 3 Setting Objectives Marketing objective a statement of what is to be accomplished o Any recommended change to marketing should have an objective o Realistic Measurable Time Specific Comparable to a Benchmark Sales objectives sales volume sales growth rates market share etc Customer readiness objectives brand awareness bran preference purchase intention trial rate etc Customer Objectives reduce complaints increase satisfaction reduce acquisition costs increase new customers lower churn rate increase retention rate etc Strategic Direction Strategic Marketing Planning creating maintaining a fit between organization s objectives resources and evolving market opportunities o Goal is long term profitability and growth o Key element of marketing strategy strategic opportunities for Growth Ansoffs Opportunity Matrix Boston s Consulting Group Portfolio Matrix Ansoffs identifies NEW opportunities for growth Market Penetration increase revenue without changing product or target increase market share among existing customers o Increase customers by stealing from competitors Change price place promotion o Product Development same market segment with new product
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