mkt exam #1

mkt302

What is marketing?

How we feel about the products and services we believe in

Strategic Planning

Top management. The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

Strategic Marketing

Choose the Value

Tactical Marketing

Provide the Value

Communicate the Value

Tactical Planning

Functional Units. More specific, shorter-term planning that applies strategic plans to specific functional areas

What is Branding?

Endowing products and services with the power of an idea or image that customers connect with

What is a brand NOT?

Verb

Objective

Name or Logo

When does a brand "exist"?

When what the thing means to you is greater than what the thing does for you

Marketing Orientation

Satisfy customer needs via strong relationships

Evolution of the Marketing Concept: Seller's Market

Sales Orientation --> Product Orientation

Evolution of the Marketing Concept: Buyer's Market

Customer Orientation --> Marketing Orientation

Value Driven Marketing

Customer Value = Customer Benefits - Customer Costs

Corporate Culture

The shared experiences, stories, beliefs, and norms that characterize an organization

Core Copentencies

Things a firm does extremely well

Market Opportunities

Circumstances + timing that allow a firm to reach a target market

Strategic Windows

Temporary periods of optimal fit between the requirements of the market and the capabilities of the firm

Competitive Advantage

core competencies + (market opportunities) / (strategic windows)

Marketing Objective

Statement of what is to be accomplished through marketing activities

Market Growth/Share Matrix: Star

High Market Share, High Market Growth

Market Growth/Share Matrix: Cash Cow

High Market Share, Low Market Growth

Market Growth/Share Matrix: Question Mark

Low Market Share, High Market Growth

Market Growth/Share Matrix: Dog

Low Market Share, Low Market Growth

Environmental Scanning

Collecting information about marketing environment forces through observation, secondary sources, and market research

Environmental Analysis

Assessing and interpreting information from scanning.

Reactive Approach

Cautiously adjusting strategy to environmental changes.

Proactive Approach

Actively overcoming market challenges and taking advantage of opportunities

What are the types of competitors?

Brand

Industry

Form

Total Budget

Brand Competitors

Similar products targeting the same customers.

Industry Competitors

Differentiated products (features, benefits, price) in the same product class

Form Competitors

Different products satisfying the same customer need (uber vs subway, streaming vs theatre)

Total Budget Competitors

Compete for the limited financial resources of same customers (car repair vs vacation)

What are the four competitive structures?

Monopoly

Oligopoly

Pure Competition

Monopolistic Competition

Monopoly

Sole supplier with no close substitutes (NFL)

Oligopoly

Few sellers control a large product supply (airlines, cell phone service providers)

Pure Competition

Many sellers with similar products, no price influence (safeway, cirlce k)

Monopolistic Competition

Many competitors differentiate similar products (fast food chains)

Economic Forces

Factors affecting demand: employment, inflation, interest rates.

What are the marketing environment elements?

Economic

Political

Legal

Technological

Demographic

Sociocultural

Natural

Buying Power

Income + Credit + Wealth

Political Forces

Influences from parties and pressure groups on laws.

Legal Forces

Issues related to laws and regulations enforcement.

Technological Forces

Issues relating to the application of knowledge and tools to solve problems and tasks more efficiently

Demographic Forces

Measurable characteristics like age and income.

Sociocultural Forces

Consumers' lifestyles, buying habits, education, religion, beliefs, values, demographics, social classes, sexuality, and attitudes (cancel culture, polarizing topics)

Natural Forces

Environmental issues affecting marketing operations.

Porter's Five Forces

Competitive rivalry within an industry, bargaining power of customers, threat of substitute products, threat of new entrants, bargaining power of suppliers

Defining a Market

Group seeking products in a specific category.

Market Requirements

Need/Desire

Able

Willing

Authority

Consumer Markets (B2C)

Markets focused on individual consumer purchases.

Business Markets (B2B)

Markets focused on business-to-business transactions.

Segmentation

Identifying a group of customers in your market who share a similar set of needs and wants

Targeting

Choosing a group of customers in your market who share a similar set of needs and wants

Positioning

Act of designing the company's offering and image to occupy a distinctive place in the mind of the target market

What are the targeting strategies?

Undifferentiated

Concentrated

Differentiated

Niche

Undifferentiated Targeting Strategy

One marketing mix for an unsegmented market (no specific demographic/geographic/behavioristic/psychographic) (ex. toothpaste)

Concentrated Targeting Strategy

One marketing mix for a specific market segment (gluten-free consumers)

Differentiated Targeting Strategy

Different mixes for various market segments (business travelers vs leisure travelers)

Niche Targeting Strategy

Targeting a very small, specialized market

Segmentation Variables

Criteria for dividing markets into segments.

What are the segmentation variables?

Demographic

Psychographic

Geographic

Behavioristic

What are the target market selection variables?

Identify the appropriate targeting strategy

Determine which segmentation variables to use

Develop market segment profiles

Evaluate Relevant Market Segments

Select specific target markets

Segment Profiles

Characteristics of market segments for comparison (Saints, Sinners, Undecideds) ("Avid Alan, "Family Phil", "Casual Cubbie", "Event Emily", "Millenial")

What are the 4 P's?

Price

Promotion

Place

Product