BUAD 301 014 Intro to Marketing Exam 1 Study Guide Topic 1 Introduction marketing the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large marketing should be regarded as broad activity in companies not just a department marketing provides long term value rather than narrow exchange of money marketing focuses on the wants and needs of the buyer Topic 2 Marketing Strategy Situation analysis Design a business portfolio considering your environment and company Plan a marketing strategy marketing mix situation analysis examines what is happening currently in the various environments in which one organization operates Also called an environmental audit external audit external environment an analysis of industry environment and macro environment market review competition review pure competition monopolistic competition oligopolistic competition pure monopoly distributive channels and intermediaries customers end users supply internal audit internal environment macro environmental scanning internal audit analysis of organization itself through its marketing goals objectives organizational resources and internal structure culture It determines organization s strengths weaknesses in relation to competitors and includes analysis of current state of marketing program internet based approach Business Portfolio that a company owns The collection of businesses and products that make up a company all brands Porters Five Forces Understand the industry you are entering The Five C Analysis outlines 5 dimensions of marketing environment crucial for marketing managers to understand before making decisions 1 Customer analysis b what is your market size market growth potential c what are the customer needs segmentation d how will we satisfy those needs e how do they make decisions 2 Context analysis 6 external environments that impact business a what is your market i who buys ii why do they buy how do they buy iii iv where do they buy v when do they buy a demographic environment b economic environment c socio cultural environment d political legal environment e technological environment f natural environment 3 Company analysis a what resources does your firm have b what are your firm s strengths weaknesses c what is your firm s value proposition to the customer d what is your company s mission strategy 4 Collaborators Complementers analysis a suppliers b distributors c retailers d key influencers e complementary products 5 Competitor analysis a who are your competitors and what are they doing b how is their product different from yours c what are their strengths weaknesses goals d how are they meeting customer s demands e how is their product different from yours f what are their capabilities BCG Matrix Business Portfolio Analysis classification of businesses Question Mark operate in high growth market but have a low market share Most businesses start off as a question mark they require a lot of cash Star if the heart business is successful it becomes a star This is the market leader in a high growth market doesn t necessarily produce a positive cash flow for the company Cash Cow when the market s annual growth falls to less than 10 the star becomes cash cow if it still has the largest market share enjoys economies of scale Dog weak market share in a low growth market generates low profit loss holding such a business is usually due to expectation regarding the market turnaround or becoming the leader this grid crystallized the relationship between market growth and market share to help determine the overall prospects for various business units it is used to teach managers to take all that the Cash cow is worth divest dogs invest in stars and weigh the risks rewards of question marks Growth Strategies Ansoff s Product Market Expansion Grid 1 market penetration making more sales to current customers w o changing products 2 market development identifying developing new markets for a company s product 3 product development offering modified or new products to current market 4 diversification companies may consider acquiring or starting new businesses unrelated to their core competencies S W O T analysis S trengths W eaknesses specialist marketing expertise new innovative product or service location of your business quality processes procedures lack of marketing expertise undifferentiated product or service location of business poor quality good or service damaged reputation O pportunities a developing market mergers joint ventures strategic alliances moving into new market segment new international market market vacated by an ineffective competitor T hreats new competitor in your market price wars with competitors competitor has a new innovative product or service competitors have superior access to channels of distribution new taxation Elements of the Marketing Mix the four P s 1 Product a a product is a set of benefits from which customers derive value b physical goods v services physical can be touched once you buy them you keep them services are deeds performed by one party for another you can t keep them amount consumers value benefit that product provides cost of delivering these benefits how much do will customers pay to get same substitute benefits elsewhere how informed is customer b the objective choose price that maximizes long run profit i ii i ii iii iv 2 Price a the issues 3 Promotion a awareness b persuasion c reminder d educate 4 Place distribution a which distribution channel should company use i ii iii integrated intermediaries third party intermediaries exclusive selective intensive coverage Key Notes what makes a strategy good or bad is its responsiveness to the environment many factors are uncontrollable environment legal factors etc even good marketers can make bad decisions many ways to approach marketing strategy Topic 3 Marketing Research marketing research activities involving the systematic gathering recording processing and analyzing of consumer data the purpose of which is to inform marketing management decisions ex the sale of Pepsi has gone down that information won t help unless we know Goals of Marketing Research understand what happened predict what will happen must understand why something happened to predict why the went down if it will continue etc we want to influence consumers companies need information about their customers needs marketing