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BUAD 301-014 Intro to MarketingExam 1 Study GuideTopic 1: Introductionmarketing: 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 buyerTopic 2: Marketing Strategy~ Situation analysis~ Design a business portfolio considering your environment and company~ Plan a marketing strategy (marketing mix)situation analysisexamines 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 approachBusiness Portfolio : The collection of businesses and products that make up a company (all brandsthat a company owns) Porters Five Forces:Understand the industry you are enteringThe Five “C” Analysisoutlines 5 dimensions of marketing environment crucial for marketing managers to understand before making decisions1. Customer analysisa. what is your market?i. who buys?ii. why do they buy?iii. how do they buy?iv. where do they buy?v. when do they buy?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. demographic environmentb. economic environmentc. socio-cultural environmentd. political/legal environmente. technological environmentf. natural environment3. Company analysisa. 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 analysisa. suppliersb. distributorsc. retailersd. key influencerse. complementary products5. Competitor analysisa. 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 Analysisclassification 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 StrategiesAnsoff’s Product-Market Expansion Grid1. market penetration - making more sales to current customers w/o changing products2. market development - identifying & developing new markets for a company’s product3. product development - offering modified or new products to current market4. diversification - companies may consider acquiring or starting new businesses unrelated totheir core competenciesS.W.O.T. analysis● S trengths○ specialist marketing expertise○ new/innovative product or service○ location of your business○ quality processes/procedures● W eaknesses○ 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 taxationElements of the Marketing Mix (the four “P”s)1. Producta. a product is a set of benefits from which customers derive valueb. physical goods v. servicesi. physical can be touched, once you buy them you keep themii. services are deeds performed by one party for another, you can't “keep” them2. Pricea. the issues:i. amount consumers value benefit that product providesii. cost of delivering these benefitsiii. how much do/will customers pay to get same/substitute benefits elsewhereiv. how informed is customerb. the objective: choose price that maximizes long run profit3. Promotiona. awarenessb. persuasionc. reminderd. educate4. Place (distribution)a. which distribution channel should company usei. integrated intermediariesii. third party intermediariesiii. exclusive/selective/intensive coverageKey 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 strategyTopic 3: Marketing Researchmarketing research: activities involving the systematic gathering, recording, processing, and analyzing of consumer data, the purpose of which is

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