Kelli Berg MKTG2201 Review Chapter 1 Marketing is 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 o Marketing is delivering value to stakeholders Stakeholders are everyone who is affected by a transaction buyers sellers investors community residents citizens of nations where goods services are made or sold Marketers aim to satisfy needs o Need recognition of any difference between consumer s current state and desired o Want subjective way consumer satisfies needs in specific ways that are culturally socially influenced i e two people are hungry and need food one wants a trail mix one wants a cheeseburger o Benefit outcome sought by a customer that motivates buying behavior satisfies o Demand customers desires for products coupled with the resources needed to state need or want obtain them Utility sum of benefits we receive when we use a good or purchase what creates value o Form utility raw materials finished products o Place utility making products available where customers want them o Time utility store products until they are needed o Possession utility allowing the customer to own use and enjoy the product Exchanges at the heart of every marketing act is an exchange relationship the buyer receives a good service or idea that satisfies a need and the seller receives something of equivalent value Any good service or idea that can be marketed is a product Value proposition fairly and accurately sums up the value that will be realized if the good or service is purchased products direct competitors o Differential benefits unique qualities that set products apart from competitors o Distinctive competencies a superior capability of a firm in comparison to its Ex Coca Cola s success in global markets is related to its distinctive competencies in distribution and marketing communications o Types of sustainable competitive advantage Effective product benefits must be both different from the competition and things customers want Value chain is a series of activities including o Inbound logistics bringing in materials to make the product o Operations converting the materials into the final product o Outbound logistics shipping out the final product o Marketing promoting and selling the final product o Service meeting the customer s needs by providing additional support Marketing mix combination of the product itself the price of the product the place where it is made available and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers Four P s product price promotion and place o Product create value o Price capture value o Promotion communicate value o Place delivering value Chapter 2 Business planning identifies and builds on a firm s strengths helps managers at all levels make informed decisions in a changing business environment Code of business ethics standards of behavior to which everyone in the company must adhere Levels of business planning one year Steps in strategic planning 1 Define the mission a Strategic planning top level corporate management five years b Functional planning top functional level management like the CMO six months c Operational planning supervisory managers day to day monthly What business are we in What customers should we serve How should we develop the firm s capabilities and focus its efforts 2 Evaluate external internal environments Internal controllable elements strengths weaknesses External outside of the firm opportunities threats 3 Set organizational or SBU objectives Specific Measurable Attainable Sustainable 4 Establish the business portfolio Develop range of products and or brands to reduce dependence on one product line or one group of customers Portfolio analysis evaluates firm s business mix and assesses the potential of an organization s strategic business units BCG growth matrix 5 Develop growth strategies a Product market growth matrix Chapter 3 Elements of the microenvironment close to the company o The company o Suppliers o Marketing intermediaries o Customer markets o Competitors o Publics o Demographic Elements of the macroenvironment larger societal forces Includes marketing agencies resellers distribution firms Aging population Great Recession of 2008 2009 o Economic o Natural o Political o Cultural Air water pollution o Technological RFID technology transmitters inside all products Laws gov agencies and pressure groups Increasing popularity of social responsibility Chapter 5 Decision making process 1 Problem recognition 2 Information search 3 Evaluation of alternatives 4 Product choice 5 Postpurchase evaluation Motivation internal state that drives us to satisfy needs by acting towards a goal o Promotion focus goals based on achieving specific good goals o Prevention focus goals based on preventing specific bad things from happening Create brand personalities to appeal to different types of people Social influences o Culture society s personality o Rituals weddings funerals Disney s princess wedding reenactments o Subculture group within a society religious group o Social class rank within a society people within certain classes often display similarities in occupation education and income level Chapter 6 Differences in B2B and B2C o Multiple buyers in B2B o Less B2B customers o B2B customers buy higher quantity higher cost o Businesses are often grouped together Silicon Valley o Most demand for B2B products is derived inelastic fluctuating and joint Derived demand demand for business or organizational products caused by demand for consumer goods services Inelastic demand changes in price have little or no effect on amount demanded Fluctuating demand modest changes in consumer demand can create large increases or decreases in business demand product life expectancy Joint demand two or more goods are necessary to create a product Types of B2B customers o Producers purchase products for the production of consumer goods services o Resellers buy finished goods for the purpose of reselling renting or leasing to consumers and other businesses o Organizations government and nonprofits Business buying situations o Straight rebuy o Modified rebuy o New task buy Buying center o User actually needs the product o Initiator begins buying process by recognizing need for product o Gatekeeper controls flow of info to other members purchasing agent o Influencer