BCOR 2400 Exam 1 Study Guide Chapter 1 Exchange Both parties better off Mktg is the activity for creating communicating delivering and exchanging offerings that benefit customers organization stakeholders and society Satisfying Consumer Needs Wants 3 C s and 4 P s of Marketing Mktg seeks to discover consumer needs and wants and satisfying them 3 C s external market environment customer company competitors 4 P s product place promotion price controllable factors Product bundle of benefits that meets consumer needs Promotion communication Place distribution Price what the consumer thinks the product is worth Requirements for marketing to occur 2 parties with unsatisfied needs Desire and ability to be satisfied A way for the parties to communicate promotion Something to exchange Product Customer Value Combination of benefits received by targeted buyers that includes quality convenience on time delivery before sale and after sale service From the customers point of view value means different things to different people Customer Value Proposition Cluster of benefits that an organization promises customers to satisfy their needs built through promotion Through the consumer experience with the 4 P s that the consumer defines the brand3 Marketing Cycle Utility Value of product to consumer price paid to the firm by target market benefit retained by target market utility Total value price utility Utility the benefits or customer value received by users of the product it is what consumers pay for in an exchange transaction Form Utility the product Possession Utility ease of purchase Time utility available when needed Place utility available where needed Increase Utility Central market Middlemen enhances time place and posession Value Strategies Best product best price best service Environmental Forces uncontrollable Customer Experience Social economic technological competitive regulatory acts of god natural disasters The internal response that customers have to all aspects of an organization and its offerings What firms think they offer customers vs what customers say they receive Customer Relationship Management CRM process of identifying prospective buyers understanding them intimately developing favorable long term perceptions of org and its offerings Branding Brand tangible and intangible attributes of a company or product Promise and all the associations that come to mind COMPANIES OWN PRODUCTS COMSUMERS OWN BRANDS Brand Equity the value that a company holds from a product with a recognizable name as compared to competition Criticisms of Marketing Poorly designed products makes people too materialistic makes people buy things they don t need and cant really afford annoying advertising ad s create an unrealistic standard problems in society bad quality unsafe products exploits the poor less educated packaging and labeling often confusing and deceptive Ethics and Social Responsibility Chapter 2 Strategic Business Unit SBU a way to organize and operate a company in smaller components Allows a company to invest and allocate resources thoughtfully Strategic Planning Process Business Portfolio Analysis looking at SBU s and treating each like a different portfolio Est by BCG Can influence market share Question mark star cash cow dog Normal progression through BCG matrix intro decline Investment options grow build maintain harvest divest Stars build maintain Question Marks grow build harvest Cash Cows Hold Dogs Harvest Divest Helps u decide how to invest SWOT analysis strengths weaknesses opportunities threats Helps you make strategic choices BCG Boston Consulting Group est Business Portfolio Analysis Build a strength correct a weakness exploit opportunity avoid a threat Look inside and outside the organization Identify industry trends Analyze competitors Assess the org Research present and prospective customers Goal strike a balance regarding cash generation cash usage future growth and risk Strategic Planning Process Key Concepts Points of Difference what makes our product different Target Markets which products to which markets Market Segmentation Which products to which markets Product Positioning A promise you own in the customers mind Ex Starbucks Patagonia Market Environment Economic Environment Social Environment Demographic Trends Unemployment inflation GDP income levels productivity etc Aging population more women in the workplace marriage delayed etc Technological Environment Ex DVD vs Netflix Cloud going mobile data synthesis pay anywhere etc Competitive Environment Nature of your market Monopoly oligopoly monopolistic comp pure competition can influence how you market and price products New products pricing sales tactics advertising etc Regulatory Environment Elements to guide employees Phone use in vehicles FDA regulations tobacco packaging labeling etc Core values principles guiding the biz Mission statement of function in society Organizational culture set of values ideas attitudes and norms of behavior that is learned and Competencies skills tech resources that distinguish from other organizations should be distinct shared among the members enough to provide a comp adv Diversification analysis helps a firm search for growth opportunities within current and new markets products Market penetration increase sales of existing product Market development current products to new markets Product development new products to current markets Diversification new products to new markets Chapter 3 Scanning the Marketing Environment scanning todays marketplace shows the many important trends that influence marketing Social economic tech competitive regulatory Social Forces Demographics breaking down people into groups to determine descriptive data age gender marital status etc gives data about WHO is this customer Millennials Marital status divorce blended family Racial and ethnic diversity multicultural marketing Racial and ethnic groups are concentrated in geographic regions of the US Culture changing values value consciousness Psychographics study reveals lifestyles MSA Metropolitan Segmented Area can look at a map to see where certain people are Economic Forces Technological Forces products Inflation recession gross income total money I make disposable income money after taxes discretionary income money after necessities unemployment Important because it ll affect our ability to price sell advertising etc Connectivity intelligent data collection green infrastructure 3d tech plummeting