1Marketing Exam 1Chapter 2 Strategic Planning for Competitive AdvantageCompetitive Advantage: the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition - consumers value and are willing to pay for it- difficult or impossible for competitor to copyThe Market Plan: has to fit into business strategy STEP ONEGood Mission Statement: describes what your business does, provides boundaries for all brands, communicates to everyone what you do, as well as what you do not doSustainable Competitive Advantageloya -Loyal customer-efficient operations,  great value2Functional areas of Organizations- human resources - fin. And acct - IT - Operations - Marketing and SalesMarketing Objectives: statement of what is to be accomplished through marketing activities- Specific - Sales, revenue, profit- measureable - growth- Achievable - safe products- Reasonable - new product lines- Time Specific - innovative- fast movingSTEP TWOConduct a Situation Analysis using SWOT S: StrengthW: WeaknessO: Opportunity in external environmentT: Threats in external environmentSTEP THREEIdentify and Evaluating Opportunities Using STPSegmentation: the process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or service geared especially for themTargeting: the process of evaluating the attractiveness of various segments and then deciding which to pursue as a marketPositioning: defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing productsSTEP FOURImplement Marketing Mix and Allocate ResourcesProduct and Value Creation: is of value to a consumer and can be offered through a voluntary marketing exchange (benefit is greater than the cost) (heart of marketing mix) (creation of value is key to success)Price and Value Capture: price is what a buyer must give up to obtain a product. Most flexible of the 4 P’s and quickest to change- Cost- based: determine price of producing product and add a fixed amount above that total- Competitor- based: involves pricing below, at, or above competitor offering- Value- based: first determining the perceived value of the product from the customer’s point of view and then pricing accordingly Promotion and Value Communication: advertising, public relations, personal selling, sales promotion, new mediaPlace and Value Delivery: product must be readily available, availability, raw materials -> finished goods, products arrive in usable conditionSTEP FIVEEvaluate Performance using Marketing MetricsPresent Market:- Market Penetration: sell more of your current product to current customers- Product Development: develop new products for your current customersNew Market- Market Development: finding new customers for your current products- Diversification: new customers and new products3Implementation Evaluation and ControlProduct Compare Make neededPrice with changesPromotion objectivesPlace Why Write a Marketing Plan1. evaluation of actual and expected performance2. clearly stated activities to work toward common goals3. reference for the success of future activities4. an examination of the marketing environ.5. awarenessChapter 3 Marketing EthicsBusiness and Marketing EthicsUnethical Marketing- deceptive or unfair marketing practices ( misleading claims)- offensive marketing materials (sex, stereotypes)- Objectionable marketing practices (high pressure techniques, selling disguised as marketing)- materialism ( we are what we own)- marketing to special populationsEthics- societal - organizational - professional: American Marketing Assoc. – individualWhy behave Ethically?- customers develop more positive attitudes towards the firm and its products- ethical abuses often lead to social or govt. pressure for more controls and regulationsCreating Ethical ClimateValues: establish, share, understandRules: management commitment, employee dedicationControls: reward, punishmentCreating Ethical Guidelines Code of Ethics- helps identify acceptable business practices - diff situations requiring specialized knowledge- helps control behavior internally - complex decision making- avoids confusion in decision making - need for consistency- facilitates discussion about right and wrongAmerican Marketing Association Code of Ethics- generally accepted code in marketing- flows from general norms of conduct to specific values- subareas within marketing have their own code of ethics to deal with specific issuesCorporate Responsibility (CSR)- refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business and the concerns of its stakeholders4The Link between Ethics and CSR- firms should implement programs that are socially responsible- employees should act in an ethically responsible mannerEthical Decision Making FrameworkStep 1 Step 2 Step 3 Step 4Identify Issues Gather info and Brainstorm and Choose a Course ident. Stakeholders evaluate alternatives of actionSTEP ONE: Identify issues- data collection methods - hiding the real purpose of the study- marketing research firm issues - using results to mislead or even harm the publicSTEP TWO: Gather info and identify the stakeholders- identify all ethical issues and relevant legal info- identify all relevant stakeholders and get their input on any identified ethical issueSTEP THREE: Brainstorm alternatives- halt market research? - make responses anonymous? - institute training on the AMA code of ethics?STEP FOUR: Choose a course of action- weigh the alternatives- take a course of action that generates the best solution for the stakeholders- investigate any potential legal issues5Chapter 4 External EnvironmentCan’t control external environ. Micro.Culture demographicsPolitical/ SocialLegalEcon. TechnologyMacroThe Companysuccessful companies have core competencies-technical/subject know how- close relationships with customers and suppliers- product development- corporate cultureCriteria- not easy for competitors to imitate- can be leveraged widely to many products and marketsCompetitors and Competitive Intelligence- firms collect and synthesize info about their position with respect to rivals; enables companies to anticipate market