MKT 3013 1st EditionExam 1 Study GuideCHAPTER ONE ( OVERVIEW OF MARKETING)What is Marketing?Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing planA written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marking objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income statement. Exchange The trade of things of value between the buyer and the seller, so that each is better off as a result. * Marketing is about Satisfying Customer Needs and WantsMarketing Mix (4 Ps)Product, price, place, and promotion – the controllable set of activities that a firm uses to respond to the wants of its target markets. *Product: Creating ValueThe fundamental purpose of Marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. Goods Items that can be physically touched. ServiceAny intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Ideas Intellectual concepts – thoughts, opinions, and philosophies. * Price: Capturing ValuePrice is everything a buyer gives up (money, time, energy) in exchange for the product - The key to determining prices is to figure out how much customers are willing to pay and assess whether a profit can be made at that point 1* Place: Delivering the Value Proposition Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it Where would you find this product in the store? * Promotion: Communicating ValuePromotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response - Walmart - Dior * Marketing Can be Performed by Individuals and Organizations1) B2C (business to consumers) marketing = the process in which business sell to consumers. 2) B2B (business to business) marketing = the process of selling merchandise or servicesfrom one business to another.3) C2C marketing = the process in which sell to other consumers. 4) Employment marketing = marketing programs to attract applicants to the hiring firm. Marketing impacts various stakeholders. society. costumers. employees. supply chain (partners, whether they are manufacturers wholesalers, retailers, or otherintermediaries are involved in marketing to one another.)Marketing helps create value1) Value = reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives. 2) Value cocreation = customer act as collaborators with a manufacturer or retailer to create the product or services. What is value-based marketing?1) Value driven companies Share information across their organization Balance customer’s benefits and costs Build relationships with customers - Transactional orientation= regards the buyer-seller relationship as a series of individual transactions, so anything that happened before or after the transaction is of little importance. - Relational orientation= a method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term 2relationship.- Customer relationship management (CRM)= a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customers. - Supply chain= the group of firms that make and deliver a given set of goods and services. - Entrepreneurs= a person who organizers, operates, and assumers the risk of a new business venture.Chapter two (Developing marketing strategies and a marketing plan)What is a marketing strategy?1) Marketing strategy= a firm’s target market, marketing mix, method of obtaining a sustainable competitive advantage.2) Sustainable competitive advantage= something the firm can persistently do better than its competitors.Allows a firm to be in a superior position in relation to its customers •This advantage is sustainable (can be maintained over time) if it is difficult for the competition to copy or surpass •The book describes it as the firm “building a wall around its customers” so that other companies cannot reach them 1) customer excellence 2) operational excellence3) product excellence4) locational excellence33) The marketing plan A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marking objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income statement.1) Planning phase = the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers. (1) Define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm’s potential for success. 2) Implementation phase = the part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and (2) implement the marketing mix using the four Ps. 3) Control phase = the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective action. 4) Step 1: define the business mission = a broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: what type of business is it? What does it need to do to accomplish its goals and objectives? 5) Step 2: conduct a situation analysis = second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats.6) Step 3: identifying and evaluating opportunities using STP (Segmentation, Targeting, and Positioning) = the processes of segmentation, targeting and positioning that firms use to identify and evaluate opportunities for increasing sales and