Exam 1 Review Dr Mike Brady MAR 3023 01 What Marketing is and what it isn t o IS Product development to satisfy unmet consumer needs marketers identify unmet consumer needs and then develop products that fill those needs It s the business function that develops the products that people want to buy because they know they need them and because they can afford them and because they can find them o ISNT Comparison to Advertising and Sales Advertising and selling are parts of marketing for sure but referring to marketing in this way misses the true essence of marketing Marketing s core strategies o Creating value and relationships o Segmenting Markets o Identifying opportunities Know the history of Marketing o Production Era firms produced what they could make as long as its black no one cared about colors What happened to end this era The depression hit o Sales Era firms pushed products using aggressive sales tactics changing their minds o Marketing Era focus on customer orientation Known as the great awakening where customers became the central focus of the organization Jacksonville test market Where companies try out their products because jax has perfect demographics jax is like a small US o Societal Era firms now serve three entities competitor orientation inter functional orientation customer orientation Introduced green marketing Adds society s best interest to the mix by making products recyclable and environmentally friendly 4 P s o Product Goods services ideas best product in 2011 fords mykey allowed parents to place a speed limit on their children s car o Place Distribution Make products available in quantities desired Minimizing costs on inventory transportation and storage o Promotion o Price Inform consumers about the firm and its product Determining product prices and the value of exchange Product differentiation think about all of the different varieties and packaging of products Ex there are many varieties of coke products which displays the concept of product differentiation for specific consumer needs Segmenting Breaking down the market into different groups depending on consumers different needs Warren Buffet the oracle of omaha Third wealthiest person in the world Worth 47 Ralph Nader a well known consumer advocate the father of consumerism Berkshire Hathaway a conglomerate holding company with a diverse portfolio of businesses based in Omaha They own GEICO Kraft Foods Inc a large food manufacturer that owns 12 food brands with more than PEOPLE you should know billion FIRMS you should know 1 billion in sales SWOT analysis o Strengths weaknesses opportunities threats o Matching strengths to opportunities o Converting weaknesses to strengths o Converting threats to opportunities Strategic Business Unit SBU division of a parent company A division or unity within a larger parent company FSU has 15 SBUs business education law medicine ect o Internal Marketing employee o External Marketing customer Market share the percentage of a market that actually buys a specific product BCG Boston consulting group they created the grid below BCG grid identifies which of your business units are successful which have opportunities and which should be levered This grid is designed to display the four types of business units Star cash cow question mark Empowerment giving employees the power to act immediately decisively and without fear and dog in order to attain satisfaction delight Environmental Forces o Competitive types of competitors Brand Generic Product Total Budget Monopoly when an organization has no competitors so that it is the sole source of supply Oligopoly when a few sellers control supply o Sociocultural demographic diversity cultural values consumerism o Technological o Economic Business cycle o Legal regulatory regulatory agencies FTC How does the new flying law impact lighter sales If you have to get rid of a lighter every time you go on plane there happy because you have to buy another one Any small law impacts the company o Political corporate donations Top corporate donors AT T UPS Pfizer Why would UPS care about whats going on in another country Changes will influence the price in America as well FTC Federal Trade Commission Most heavily influences marketing activities Large portion of its resources spent on curbing false advertising and misleading pricing Marketing Research process of designing gathering analyzing and reporting information that may be used to solve a marketing problem o Gives managers answers to important questions In 1957 market researcher James Vicary claimed that quickly flashing messages on a movie screen had influenced people to purchase more food and drinks Types of Research o Applied Research research designed to solve a specific problem usually for a specific company Ex why aren t people purchasing the newest 3 dimensional cell phone o Basic Research research designed to extend knowledge of marketing phenomena Two types of Data the research at hand objectives at hand o Secondary Data information that has been collected for a purpose other than o Primary data information that has been gathered specifically for the research Marketing Research process of designing gathering analyzing and reporting information that may be used to solve a marketing problem Approaches to a Market Research Study o Exploratory describes less structured data collection methods example focus groups o Descriptive describes the characteristics of a population example regression o Causal identifies cause and effect between variables example experiments Casual is when you have a lot of information at hand On test The answer to the question How do you decide which research approach to use It depends on how much information you have Market Segmentation process of dividing up a large group of consumers into smaller groups that have similar wants and needs The groups are designed to have similar wants and needs o Segmentation Bases Demographics Geographics Psychographics Usage Demographics describe characteristics of a population gender age ethnicity education religion Geographics Region city cize urban rural Psychographics personality motives lifestyle Behavioristic Benefits loyalty price sensitive Usage Use related segmentation categorizes consumers in terms of product service or brand usage characteristics such as usage rate awareness status and degree of brand loyalty Rate of usage segmentation differentiates among heavy users medium users light users and nonusers of
View Full Document
Unlocking...