MKTG 4081 W Exam Study Guide Overview

Market

Consists of individuals and organizations who are interested and willing to buy a particular product to obtain benefits that will satisfy a specific need or want and who have the resources to engage in such a transaction.

Marketplace

Can be traditional or electronic, the latter being unbound by time or space.

Marketing management

A systematic (not heuristic) process of identifying, analyzing, and responding to the market.

Customer

Any organization or individual who seeks goods and services through exchange transaction.

Ultimate customers

Buy goods/services for their own personal use within household (Consumer goods and services).

Organizational customers

Buy goods/services for resale, as input to the production of other goods/services or use in day-to-day activities.

Seller

Any organization or individual with a surplus of anything that provide value for customers to offer for an exchange.

Products

Provide benefits to satisfy consumers' needs and is a combination of goods and services.

Goods

Tangible physical objects that provide a benefit.

Services

Less tangible and may or may not need a physical object to provide benefit.

Needs

A gap between a person's actual and desired states on some physical or psychological dimension.

Wants

Reflects customer's desires or preferences for specific ways of satisfying a basic need.

Category captain

A leading manufacturer or supplier in a particular retail category with in-depth knowledge of the category who invests in consumer behavior research.

Strategy

A plan of action designed to achieve long-term or overall goals that involves setting objectives, analyzing competitive environments, and allocating resources to execute the plan effectively.

Corporate strategy

Reflects the company's mission and provides direction for decisions about what businesses it should pursue, how it should allocate its available resources, and its growth policies.

Business-level strategy

Addresses how the business intends to compete in its industry.

Marketing strategy

Reflect a firm's interrelated decisions about market segments, product line, advertising appeals and media, prices, and partnerships with suppliers, distributors, retailers, and other agencies.

Sustainable competitive advantage

At the corporate level, it is based on company resources that other firms do not have, that take a long time to develop, and that are hard to acquire.

Synergy

4+6>10.

Industry

A group of firms that offer a product or class of products that are similar and are close substitutes for one another.

Marketing

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Competitive Advantage

The ability to establish a difference and to deliver greater value to customers or to create comparable value at a lower cost, or both.

Sustainable Competitive Advantage

A competitive advantage which is easy to preserve (hard to mimic for competitors).

Segmentation

Identifying a homogenous segment that is different from others on those criteria.

Targeting

Evaluating the relative attractiveness of various segments and choosing the most attractive ones.

Positioning

Creating a unique brand image, or position.

Brand equity

Value created by establishing customer preference for one's brand.

Commodity

a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Depositioning

the practice of trying to erode a competitor's position relative to your own.

Marketing Myopia

Near-sighted focus on selling products & services rather than seeing the big picture of what consumers really want.

Competitive Advantage & Strategy

The ability to deliver greater value to customers or create comparable value at a lower cost, as well as the importance of a sustainable competitive advantage that is hard for competitors to mimic.

Marketing Strategy

A good marketing strategy should support an organization's core values, overall business goals, and aim to create long-term brand value.

Adapting to Market Changes

The need for companies to adapt to maintain their competitive edge in response to technology changes and competitor actions.

Segmentation, Targeting, and Positioning (STP)

Identifying a homogenous segment, evaluating the attractiveness of various segments, and creating a unique brand image.

AirPods

Apple's success with AirPods highlights effective STP by integrating them into the Apple ecosystem and offering various models at different price points.

Kodak's Failure

Kodak's failure to adapt to digital photography despite inventing the technology exemplifies marketing myopia.

LEGO's Challenges

LEGO's challenges in the early 2000s due to poor diversification and the rise of digital entertainment highlight the need for companies to adapt to changing market conditions.

Customer-Centric Model

LEGO's shift from a product-centric to a customer-centric model aligns with the emphasis on understanding and meeting customer needs.

Adult Fan Base (AFOL)

LEGO's engagement with its adult fan base and integration of customer feedback into product development showcase a strategic approach to building brand loyalty.

Innovation in LEGO

LEGO's focus on innovation and its ability to offer products that help children learn systematic problem-solving demonstrate how a company can establish a differentiated and sustainable competitive advantage.

Segmentation, Targeting, and Positioning (STP)

LEGO's recognition of its adult fan base and its efforts to cater to this segment illustrate the importance of identifying and targeting specific market segments.

Co-creation

By co-creating products with its customers, LEGO effectively positions itself as a brand that values and incorporates customer input.

Homogenous group of customers

Customizing the product for a homogenous group of customers is ideal according to the lecture slides.

Role of Technology

LEGO's use of online communities and digital platforms to engage customers and gather insights aligns with the technological environment's impact on marketing.

Augmented Reality (AR)

The company's integration of augmented reality (AR) into its products showcases how technology can enhance user experience and create new opportunities for engagement.

Understanding consumer behavior

Understanding consumer behavior, adapting to market trends, and leveraging customer relationships are essential for long-term success.

Pillsbury Cookie Challenge

The Pillsbury Cookie Challenge case illustrates the importance of understanding consumer behavior, adapting marketing strategies to specific market conditions, and utilizing consumer insights.

Adapting to Market Changes

The Pillsbury case highlights the challenge of addressing flat growth and declining household penetration in the refrigerated cookie product line.

Marketing Strategy

Ivan Guillen's need to gain a better understanding of cookie consumers aligns with the emphasis on assessing the needs and wants of customers.

Consumer Preferences

The Pillsbury case exemplifies segmenting the market based on consumer preferences (scratch baking vs. refrigerated dough).

Positioning

Positioning Pillsbury cookies as a convenient alternative to scratch baking in Canada.

Consumer Behavior

The case emphasizes the significance of understanding consumer behavior and how it can shape brands and firms.

Usage and attitude studies

Conducting usage and attitude studies, in-home immersion visits, and discovery workshops helps gain deeper insights into consumer perceptions.

Consumer Insights

The Pillsbury case highlights the benefits of consumer insights in addressing business challenges.

Marketing Plan

Guillen and his team focus on a targeted marketing strategy that emphasizes family bonding, convenience, and emotional connections to baking.

High-quality ingredients

Emphasizing the importance of high-quality ingredients and optimizing in-store displays to enhance brand appeal.

Strategy

A plan of action designed to achieve long-term or overall goals.

Components of a strategy

Scope, goals and objectives, resource deployments, sustainable competitive advantage, synergy.

Objectives

Setting objectives is a key part of strategy.

Competitive environments

Analyzing competitive environments is essential for effective strategy.

Resource allocation

Allocating resources effectively is a critical component of strategy.

Sustainable competitive advantage

A sustainable competitive advantage is a long-term edge over competitors.

Synergy

Synergy refers to the interaction of elements that produces a total effect greater than the sum of the individual elements.

strategos

Greek for 'a general'

stratego

Greek for 'to plan the destruction of one's enemies through effective use of resources'

Scope

Defines who the organization is and, just as importantly, who it is not. It is closely tied to the mission statement.

Goals and objectives

Measurable targets such as volume growth, profit contribution, and return on investment (ROI) that the organization aims to achieve.

Resource deployments

Decisions about how financial and human resources are allocated across businesses, product markets, and functional departments.

Sustainable competitive advantage

A distinct edge that is difficult for competitors to replicate, often stemming from unique resources or capabilities.

Examples of sustainable competitive advantage

Extensive market research, long-term relationships with loyal customers, brand name recognition, and cooperative alliances with suppliers or distributors.

Synergy

The concept where the combined effect of two or more elements is greater than the sum of their individual effects (4+6>10).

Knowledge-based synergies

Performance enhancement through the transfer of competencies, knowledge, or customer-related intangibles from other units within the firm.

Marketing myopia

When companies incorrectly take a shortsighted approach to marketing, viewing it as merely a tool for selling products.

Overcoming marketing myopia

High-quality data can be used to personalize consumer experiences.

Netflix example

A brand that effectively uses its data to offer more personalized experiences to users.

Oil companies' misconception

Thought they were in the oil and gas business but they were in the energy business.

Railroad companies' misconception

Thought they were in the railroad business but they were in the consumer transportation business.

Hollywood's misconception

Thought they were in the movies business but they were in the entertainment business.

Kodak example of marketing myopia

Chose to use digital technology to improve film instead of recognizing that digital photography would eventually replace film.

Competition

Can come from companies that produce the same kind of product, make substitutes, offer goods that vie for consumer's attention and budget, or startup companies that introduce disruptive technologies.

Category captain

Have in-depth knowledge of the category and invest in consumer behavior research.

Category Captain

A leading manufacturer or supplier in a particular retail category who possesses in-depth knowledge of the category and invests in consumer behavior research.

Category Manager

Forms an alliance with the retailer which can increase profit.

Customer

Any organization or individual who seeks goods and services through an exchange transaction.

Organizational Customers

Buy goods/services for resale, as input to the production of other goods/services, or use in day-to-day activities.

Customer Needs

Constantly changing requirements that organizations need to gather data on to understand.

Customer Wants

Reflect a customer's desires or preferences for specific ways of satisfying a basic need, shaped by social influences, past history, and consumption experience.

Heterogeneous Customers

Customers whose behavior varies by product category, context, and parties involved.

Gaps in Needs

Represent the basic forces that drive customers to consider buying products, indicating a difference between a person's actual and desired states.

Product Placement Layout

Created by category captains to send to category partners for feedback.

Customer Insights

Gaining understanding about the actual, rather than assumed, needs of customers.

Sales Consideration

Taking sales into account when allocating space to products without bias toward a particular product.

Retailer's Inventory Management

A responsibility of category captains to manage the relationship between retailer and category partners.

Product Shelf Decision

A responsibility of category captains to decide which product should be on the shelf of their category.

Space Allocation

Determining how much space each product deserves on the shelf.

Market Research

The process of gathering data to understand customer needs and wants, which some successful products were developed without.

Customer Behavior Variability

The variation in individual consumer's behavior by product category, context, and parties involved.

Product Development

A major part of a marketer's job to develop a new product or service and stimulate customer wants for it.

Consumer Behavior Research

Invested in by category captains to enhance their core performance while achieving sales goals.

Competition

A situation where there are many substitutable, similar products in the market.