Chapter 1 Marketing the activity set of institutions and processes for creating and capturing communicating delivering and exchanging offers that have value for customers clients partners and society at large Marketing plan a plan that specifies the marketing activities for a specific period of time Entails an exchange sellers offer a product communicate availability and deliver Buyers provide money and information Marketing mix 4 P s o Product creating value Developing a good service or idea to satisfy customer needs o Price Capturing value What the buyer gives up for the product o Place Delivering the value proposition Activities necessary to get the product to the right customer when that customer wants it o Promotion communicating the value proposition Value the relationship of costs to benefits Value cocreation customers participate in the creation of value ie customization Chapter 2 Marketing strategy advantage o The specific actions a firm intends to implement to appeal to potential customers o Includes target market marketing mix 4 P s and the basis for a sustainable competitive o Sustainable competitive advantage advantage over the competition that is not easily copied and can be maintained over a long period of time Four strategies to create deliver value o Customer Excellence Focuses on retaining loyal customers and excellent cust service o Operational Excellence Achieved through efficient operations and excellent supply o Product Excellence Having products with high perceived value and effective branding chain HR management and positioning o Locational Excellence good physical location internet presence Marketing Plan o A written document composed of an analysis of the current marketing situation opportunities and threats for the firm marketing objectives and strategy specified in terms of the four P s action programs and projected or pro forma income and other financial statements o Three phases with five steps Planning phase Define business mission and objectives conduct situation analysis Implementation phase Identify opportunities implement marketing mix Control phase Evaluate performance using marketing metrics Define the Business Mission Conduct a Situation Analysis o Mission Statement a broad description of a firm s objectives o SWOT analysis strengths weaknesses opportunities and threats o CDSTEP cultural demographic social technological economic and political forces Identifying and Evaluating Opportunities using STP segmentation targeting and positioning o Segmentation marketing efforts Market segment consists of consumers who respond similarly to a firm s Market segmentation Dividing the market into groups of customers with different needs wants or characteristics who therefore might appreciate products or services geared towards them o Targeting o Positioning Target marketing targeting deciding which segment to pursue Market positioning defining the marketing mix variables so that target customers have a clear distinctive desirable understanding of what the product does or represents in comparison with competing products Implement Marketing Mix and Allocating Resources o 4 P s Product Price Place Promotion Evaluate Performance Using Marketing Metrics o Metric a measuring system that quantifies a trend dynamic or characteristic Used to explain why things happened and to project the future Portfolio Analysis o Analyzing the firm s various products businesses o Market share of a market accounted for by a specific entity Relative market share Product s relative strength with the largest firm in the industry o Market growth rate annual growth rate of the specific market in which the product competes o Stars high market growth rate high market share often require heavy resource investment especially in promotions and new production facilities to fuel their rapid growth o Cash cows low market growth rate high market share Have already received heavy investments and continue to generate resources o Question Marks high market growth rate low market share require significant resources to maintain and potentially increase market share o Dogs low market growth rate low market share Shouldn t be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes Growth Strategies Employs current marketing mix and focuses firm s efforts on existing customers o Old markets new products Offers a new product or service to current target market o Old markets old products Market Penetration Product Development o New markets old products Market Development o New markets new products Diversification Employs existing marketing mix to reach new market segments Introduces new product service to a market segment that is not currently being served Value based marketing aims to provide greater value to consumers than competitors offer Immediate Environment o Company Capabilities o Competitors Successful marketing firms focus on satisfying customer needs that match their core competencies Critical for marketers to understand competitors including strengths weaknesses and likely reactions to the marketing activities that their own firm undertakes o Corporate partners Macroenvironmental factors o CDSTEP Culture demographics social issues technological advances economic situation and political regulatory environment Chapter 5 o Chapter 4 Business ethics the moral or ethical dilemmas that might arise in a business setting Marketing ethics examines ethical problems specific to marketing Ethical climate having a set of values that guides decision making and behavior that everyone in the firm must understand and be able to translate into the business activities of the firm These values must then be translated into rules that are enforced Corporate social responsibility voluntary actions taken by a company to address the ethical social and environmental impacts of its business operations and the concerns of its stakeholders o Different than ethical business practices Framework for Ethical Decision Making o Identify issues o Gather information and identify stakeholders o Brainstorm and evaluate alternatives o Choose a course of action Ethical tests o Publicity Test see action put on front page of a newspaper o Moral Mentor Test Would person I admire do this o Admired Observer Test Want a person who admired me to see this o Transparency Test Could I give a clear explanation to satisfy impartial moral judges o Person in the Mirror Test Can I look