MKT 300 1nd Edition Lecture 3Outline of Last Lecture II.Chapter 1 TermsIII. Chapter 1 Concepts to ApplyOutline of Current Lecture IV. Chapter 2 Terms V.Chapter 2 Concepts to Apply Current LectureIV. Chapter 2 Terms • Strategic (management) planningPlanning strategies to guide a whole company.Managerial process of developing and maintaining a match between an organization’s resources and its market opportunities • Marketing management processPlanning marketing activities, directing the implementation of the plans and controlling these plans • Target marketa fairly homogeneous group of customers to whom a company wishes to appeal• Marketing mixThe controllable variables the company puts together to satisfy this target group 4 PsProduct, place, promotion, price • Marketing strategySpecifies target market and a related marketing mix • Target marketingMarketing mix is tailored to fit some specific target customers• Mass marketingTypical production oriented approach-vaguely aims at everyone in the same marketing mix These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Everyone’s the same and a potential customer • Channel of distributionAny series of firms or individuals that participate in the flow of products from producer to final user or consumer • Personal sellingInvolves direct spoken communication between sellers and potential customers Face to face, phone, Skype • Customer serviceA personal communication between a seller and a customer who want the seller to resolve a problem with a purchase Key for repeat business Expensive • Mass sellingCommunicating with large numbers of customers at the same time• AdvertisingMain from of mass selling; any paid from of non-personal presentation of ideas, goods or service by an identified sponsor • PublicityUnpaid form of non-personal presentation of ideas, goods or services • Sales promotionRefers to those promotion activities, other advertising publicity, and personal selling that stimulate interest, trial, or purchase by final customers or others in the channel • Marketing planWritten statement of a marketing strategy and the time related details for carrying out the strategyIt should have: what marketing mix will be offered to whom and how long; what company resources (shown as costs) will be needed at what rate, and what results are elected • Customer equityEstimates profitabilityThe expected earnings stream (profitability) of a firm’s current and perspective customers over some period of time • Breakthrough opportunitiesHelp innovators develop hard to copy marketing strategies that will be veryprofitable for a long time• Competitive advantageA firm has a marketing mix that the target market sees as better than a competitors mix • DifferentiationMarketing mix is distinct from what is available from a competitor • SWOT analysisDerived from the situation analysis Analyze personal strengths and weaknesses and target opportunities andthreats - OT is external market environment Identifies and lists firm’s strengths weakness opportunities and threats • Market penetrationTrying to increase sales of a firm’s present products in its present markets probably through a more aggressive marketing mix• Market developmentTrying to increase sales by selling present products in new markets Think E-Z-Go golf carts for malls airports etc. • Product developmentOffering new or improved products for present marketsCampbell soup less sodium soup • DiversificationMoving into totally different lines of business perhaps entirely unfamiliar products, markets or even levels in the production marketing system McDonalds’ hotels in Switzerland V. Chapter 2 Concepts to Apply • What are the benefits to marketing planning?The decisions that decide what business the company is in and the strategies it will follow usually determine success or failure. “one time” strategy decisions While firms regularly monitor their market and adapt strategies most firms find that some strategies work better than others and some don’t work at allEffective strategy planning significantly increases the chances for success• Explain how a situation analysis affects a SWOT and objectives (hint look at the planning process. diagram relationship between the situation analysis, the SWOTthe critical issues and marketing objectives)Customers, company and competition determine the strengths, weaknesses, objectives and threats • Which of the 4 P’s is most important?All are equally important • How does satisfying a need differ from providing a benefit? Explain with brand exampleSlim Fast example…need must link to acceptable sellable benefit. Not benefit to solve need of losing weight by making it embarrassing for men to drink health drinks• Give an example of a breakthrough opportunity is it evolutionary or revolutionary?Breakthrough opportunity: help innovators develop hard to copy marketingstrategies that will be profitable for a long timeEvolution: small changes but does not change the way we think Pedigree dog food zip bagRevolution: breakthrough something that changed the way people thoughtabout data. Fundamentally change the products/create new. Instant coffee• what are the 4 types of marketing growth strategies? Describe the circumstance that would drive the selection of each. ◦ market penetration (same product, same market), market development (new market, same product), product development (new product, same market), diversification (new product, new