Markt 300 1st Edition Exam 1 Study Guide Lectures 2 10 Lecture 2 September 8 Things a firm should do in producing A Bike Analyze Needs Predict Wants Estimate Demand Predict When Determine Where Estimate Price Decide Promotion Estimate Competition Provide Service Production v Marketing Marketing making sure the right goods and services are provided Production w in marketing making goods and or providing services Together they create customer satisfaction Marketing is a part of most aspects of our lives It has evolved over time Marketing Stimulates New Ideas i e zip lock on dog food bag Revolution Breakthrough Breakthrough ideas that fundamentally change the products that we use and or how we use them The Marketing Concept Marketing Orientation Trying to carry out the marketing concept Maintaining a customer orientation All departments work together guided by customer needs Focus on profit objective or other overall objective NOT just trying to unload what the firm has produced Value Equation Satisfied customer Benefit Cost Dissatisfied customer Benefit Cost Customer Lifetime Value Relationships that develop satisfied customers Who purchase more over time Lifetime value of customers Marketing firms should identify opportunities to enhance customer equity them coming back Social Responsibility Concerns a firm s obligation to improve its positive effects on society and reduce its negative effects Marketing ethics are the moral standards that guide marketing decisions and actions Micro Macro Dilemma Micro macro dilemma what is good for some producers and consumers may not be good for society as a whole Chapter 1 Concepts to Apply What is marketing Why is marketing important to you How does marketing differ from production Why is this distinction important How is customer satisfaction linked to the marketing concept Explain the relationship between customer satisfaction and profit What is the micro macro dilemma Examples How can you resolve it ethically Name a recent product evolution Why do you feel it is an evolution not a revolution Term Production actually making goods or performing services Customer Satisfaction extent to which a firm fulfills a customer s needs desires and expectations Innovation the development and spread of new ideas goods and services encouraged by marketing Marketing the performance of activities that seek to accomplish an organization s objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to consumer or client Macro marketing a social process that directs an economy s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society Economies of scale as a company produces larger numbers of a particular product the cost of each unit of the product goes down Buying looking for and evaluating goods and services Selling involves promoting the product i e personal selling advertising customer service etc Transporting the movement of goods from one place to another Storing holding goods until customers need them Standardization and Grading sorting products according to size and quality Financing provides the necessary cash and credit to produce transport store promote sell and buy products Risk taking bearing the uncertainties that are part of the marketing process Lecture 3 September 10 Chapter 2 Concepts to Apply What are the benefits to marketing Planning Explain how a situation analysis affects a SWOT and objectives Hint Look at the planning process Diagram the relationship between the situation analysis the SWOT the Critical Issues and the Marketing Objectives Provide an explanation using consumer package good Which of the 4 p s is most important Explain your rationale How does satisfying a need differ from providing a benefit Explain by using an actual brand example Give an example of a breakthrough opportunity is it evolutionary or revolutionary What are the 4 types of market growth strategies Describe the circumstances that would drive the selection of each Key terms Strategic Management Planning the managerial process of developing and maintaining a match between an organization s resources and its market opportunities Target Market a fairly homogenous similar group of customers to whom a company wishes to appeal Market Mix the controllable variables the company puts together to satisfy this target group made up of product place promotion price Target Marketing marketing mix is tailored to fit some specific target customers Mass Marketing the typical production oriented approach vaguely aims at everyone with the same marketing mix Channel of Distribution any series of firms or individuals that participate in the flow of products from producer to final user or consumer Personal Selling direct spoken communication between sellers and potential customers Customer Service a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase key to repeat business Mass selling communicating with large numbers of customers at the same time usually uses a wide variety of media Advertising the main form of mass selling any paid form of non personal presentation of ideas goods or services by an identified sponsor Publicity any unpaid form of nonpersonal presentation of ideas goods or services Sales Promotion those promotion activities other than advertising publicity and personal selling that stimulate interest trial or purchase by final customers or others in the channel Marketing Plan a written statement of a marketing strategy and the time related details for carrying out the strategy Customer Equity the expected earnings stream profitability of a firm s current and prospective customers over some period of time Breakthrough Opportunities opportunities that help innovators develop hard to copy marketing strategies that will be very profitable for a long time Competitive Advantage a firm has a marketing mix that the target market sees as better than a competitor s mix Differentiation the marketing mix is distinct from and better than what is available from a competitor S W O T Analysis identifies and lists the firm s strengths weaknesses opportunities and threats Marketing Penetration trying to increase sales of a firm s present products in its present markets probably through a more aggressive marketing mix Market Development trying to increase sales by selling