BusAdmin 360 1st Edition Lecture 2 Outline of Last Lecture I. Introduction to Marketing II. Begin Ch. 1Outline of Current Lecture I. Ch. 4-Determine when ethical breaches occur and what to do to resolve them.-Learn and utilize question sets to determine whether firm and individual actions areethical.-Understand ways that firms can be proactive about marketing ethics. II. Ch. 2-Define and understand marketing strategy-Understand the elements of a marketing plan, specifically the SWOT analysis-Learn about a firm’s product portfolio Current LectureCh. 4, EthicsWhat is Ethics? Business Ethics: Moral dilemmas that might arise in a business settingMarketing Ethics: Specific to marketing, include ethics related to the product, advertising, pricing…Corporate Climate: Firms values and core beliefs AMA Code of Ethics-Be honest-You have a responsibility to the firm, customers, other employeesCorporate Social Responsibility:Voluntary actions taken by a company to address the ethical, social, and environmentalimpacts of its business operations and concerns of stakeholders -Bad: Nike-sweatshopsThese 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.Walmart-negatively impacts smaller local stores-Good:Tylenol recall of 1982Toyota owning up to acceleration problems Ch. 2, Marketing Strategy Marketing Strategy: Firm’s target market, marketing mix, and the method of obtaining a sustainable competitive advantageSustainable Competitive Advantage: Something that a company can persistently do better than its competitors Operational Excellence: Involves a firm’s focus on efficient operations and excellent supply chain management-To lower costs:Monetary costsAcquisition costsMaintenance costsSupply chain costsTo increase convenience-Obtain reliability-Become easy to use-Tradeoffs: Lower customizationLower level of service Customer Intimacy (excellence): Involves a focus on retaining loyal customers and excellent customer service-High level of customization-High levels of service-Offer a complete solution-Access to a wide selection-Obtain advice and consult-Feeling of an “experience”-Tradeoffs: Higher costsSomewhat lower performance Product Leadership (excellence): Involves a focus on achieving high-quality products-Access to high performanceMore featuresMore functionalityLatest technologiesComplexityLinked with aesthetics and style-Portray sophistication-Tradeoffs: Higher costsLower customization Locational Excellence: A good physical location and Internet presence How to Survive? -Product leader? Product development lifecycle Always create new product lifecycles“Fencing” – gentle, combatants are well protected-Customer intimacy?Share of Wallet Strategy: Marketing term referring to the amount of the customer's total spending that a business captures in the products and services that it offers. Increasing the share of a customer's wallet a company receives is often a cheaper way of boosting revenue than increasing market share. “Capture” a customer then get all of their money -Operational excellence? Volume strategy“Street fight” – dirty and ugly The Marketing Plan Marketing Plan: Includes an analysis of the current marketing situation, opportunities and threatsfor the firm, marketing objectives and strategy (the 4 P’s), action programs, and methods of evaluation-Three phases: Planning Phase: Define the mission and vision of the business, evaluate the situation both inside and outside of the organization-Mission Statement: Broad description of a firm’s objective and the scope of activities it plans to undertake-SWOT Analysis: Situation analysis, assess the internal environment (STRENGTHS and WEAKNESSES) and the external environment (OPPORTUNITIES and THREATS) Implementation Phase: Identify and evaluate different opportunities, using: segmentation, targeting, positioning, and the 4 PsControl Phase: Evaluating the performance of the marketing strategy using marketing metricsIdentifying and Evaluating Opportunities -SegmentationMarket Segment: Consumers who respond similarly to a firm’s marketing efforts-Who will you target? -TargetingTarget Market: Evaluating each segment’s attractiveness and deciding which to pursue-How will you target them? -PositioningMarket Positioning: Process of defining the marketing mix variables (4 P’s) so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products-Where do you fit in the consumer’s mind?-4 P’s: Product, Price, Place, Promotion-Product and value creation:Products, services – Amazon.com, 3M, Dell, Marriott-Price and value capturePricing strategies-Place and value deliveryWhere to sell? -Promotion and value communicationHow do we communicate our message to our target markets? Evaluating Performance -MarketingMarket share, share of wallet, surveys, impressions, site visits, click-through-SalesGross sales, net sales, territory growth (percentage), number of accounts, sales pipeline/projected sales, forced rank comparison-Financial metricsROI, ROA (Return on Assets; Return on investment)Portfolio Analysis Market Share: Percentage of a market accounted for by a specific entity, used to establish the product’s strength in a particular market (your firm’s total sales/entire market total sales)Example: Market share 3D televisions: Sony: 43.3%Samsung: 36.1 LG Electronics: 6.1 Other: 14.5Relative Market Share: Sales of the focal product divided by the sales achieved by the largest firm in the industry (your firm’s % market share/top competitor’s % market share). -Market share of >1 means you are the market leader that outperforms the next biggest by this factor. A relative market share <1 shows how far away you are from being the market leader.Market Growth Rate: Annual rate of growth of the specific market in which the product competes Growth Strategies Market Penetration Strategy: Employs the existing marketing mix and focuses the firm’s efforts on existing customers. Market Development Strategy: Employs the existing marketing offering to reach new market segments. Product Development Strategy: Offering a new product or service to a firm’s current target market.Diversification Strategy: Firm introduces a new product or service to a market segment that it does not currently
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