Study Guide Mktg 351 Principles of Mktg The test will be 50 questions You will have 70 minutes I cannot review your fleshed out study guides but there will be time in my day to answer some questions Midterm 1 All Versions Feb 27 8 00 9 30 AM Review and know parts of and rationales for doing the Marketing Plan 1 Marketing Plan document that is designed to communicate the marketing strategy for an offering Use the corporate strategy and mission and combine them that with an understanding of the market to develop the company s marketing plan a Parts i Market research Gather information on the customers wants and needs how they want to acquire dispose of the product and what makes up personal value equation ii Create right offering Products and services are developed bundled together at a price then tested in the market then must decide how to alter the product add new ones or drop old ones iii Planning for delivery of value How will we make it and get it into the market iv Creating plan for communicating value How can they make consumers aware of what there is to offer and how can they convince them to purchase this 2 Purpose of the plan is to influence executives suppliers distributors and other important stakeholders of the firm so they will invest money time and effort to ensure the plan is a success Same for Strategic Plans 1 Components of Strategic Planning Process an assessment of an organizations internal and external environments 1 Situation Analysis 2 SWOT analysis 3 Mission Statement company defines its business DIAGRAM for firm and process Strengths Weaknesses Opportunities Threats defines the purpose of the organization and answers the question of how a 1 Process that helps organizations allocate their resources to capitalize on opportunities in the marketplace Not every company has all levels statement a Corporate Level Plan developed for the corporation as a whole to take place at the corporate level b Business Level plans developed for each strategic business unit typically has their own mission c Functional Level Strategies and actions implemented at this level must be consistent with and help an organization achieve its objectives at both the business and corporate levels Develop plans to increase sales and increase profits at business level helping corporation d Functional Level marketing Understand the relationship between the two plans Strategic planning supports the Value Proposition and the Marketing Plan helps businesses develop and document this strategy Understand need to forecast and methods including moving average and exponential smoothing 1 Forecasting is important to be able to implement strategy 2 3 Sales force composition an estimate of future sales based on the sum of estimates from all of the company s Judgment techniques forecasting methods that rely on someone s estimates salespeople what will be sold or what will happen 4 Executive opinion a forecasting method in which an executive or group of executives provides a best estimate of 5 Expert opinion a forecasting method in which the forecast is based on an objective third party expert s best estimate of what will happen in the market and how that will influence sales 6 Trend analysis a group of forecasting methods that base the future period of sales on the rate of change for the previous periods of time 7 Moving average a trend analysis type of forecasting method that estimates sales based on average rate of change over a group of previous periods of time the rate changes as the oldest period is dropped off and the most recent period added in 8 Exponential smoothing a method of trend analysis forecasting that weights more recent periods of time more heavily than more distant periods of time 9 Correlational analysis a form of trend analysis that estimates sales based on the trends of other variables 10 Leading indicator a correlate that occurs before the variable being forecasted 11 Response models sophisticated statistical models used in forecasting that are based on how customers have responded in the past to marketing strategies 12 Market test the test launch of a product s complete marketing plan to ensure that it reaches buyers gets positive reactions and generates sales of the product Know the value proposition and how we define value in 351 1 Value proposition a statement that summarizes the key benefits or value for target customers it explains why customers should buy a product why stakeholders should donate or why prospective employees may want to work for an organization 2 Value total sum of benefits received that meet a buyer s needs 3 Personal value equation value benefits received price hassle 4 Hassle the time and effort the consumer puts into the shopping process Know the Porter 5 forces model 1 The framework of the five forces model helps organizations understand their current competitors as well as organizations that could become competitors in the future a Rivalry b Substitute Products c New Entrants d New Competitors e Bargaining power of suppliers f Bargaining power of buyer Know what green marketing is a What green marketing is and its opportunities for marketers and its threats to marketers b Green Marketing i Marketing environmentally safe products and services in a way that is good for the environment doing more to engage in sustainable practices that help protect the environment and conserve natural resources c Opportunities and threats i Saves the company and ultimately the consumer money ii Sustainability ethics and social responsibility influence an organizations planning process and the strategies they implement Know types of strategies by purposes e g for existing markets new markets etc 1 Strategies what the firm will do to meet its objectives a Existing markets i Market penetration strategy selling more of existing products and services to customers Ex special promotions and low prices ii Product development strategy creating new products or services for existing markets Adding new kind of Mountain Dew b New markets give opportunity to expand by the organization i Market development strategy selling existing products to new customers Foreign markets often ii Diversification strategy offering products that are unrelated to other existing products produced Know all about licensing exporting franchising FDI Etc 1 Licensing sell the right to use some aspect of the production process trademark or patent to individuals in foreign markets 2 FDI Foreign direct investment