MKT 300 MIDTERM

Marketing

The process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Customer Value

The difference between the benefits a customer perceives from a product and the costs of obtaining it.

Importance of Marketing

Internally, it helps firms align with customer needs and drive revenue; externally, it builds brand awareness, loyalty, and competitive advantage.

Needs vs. Wants

Needs are basic requirements (food, shelter); wants are shaped by culture and personality (preference for sushi vs. pizza).

4Ps of the Marketing Mix

Product: Goods/services that satisfy needs; Price: What the customer gives up (money, time, effort); Place: Distribution channels making products available; Promotion: Communication to inform, persuade, and remind customers.

Creating Value

Through quality, design, features, and solving customer problems.

Communicating Value

Advertising, PR, digital content, personal selling.

Delivering Value

Efficient distribution, customer service, supply chain.

Capturing Value

Profits, customer loyalty, market share.

Marketing Strategy

The firm's plan for reaching target markets, positioning itself, and achieving a sustainable advantage.

Strategic Planning

Setting goals, analyzing environment, creating and implementing marketing actions.

Marketing Environments

Internal (resources, culture, structure) and external (economic, social, technological, competitive, political/legal, environmental).

Six External Forces

Social, Demographic, Economic, Technological, Political/Legal, Competitive.

Direct vs. Indirect Competition

Direct = similar products (Coke vs. Pepsi); Indirect = different products meeting same need (water vs. soda).

Effective Objectives

Specific, measurable, time-bound.

Sustainable Competitive Advantage

Unique strength (brand loyalty, patents, cost structure) that competitors cannot easily copy.

SWOT

Strengths, Weaknesses (internal); Opportunities, Threats (external).

Marketing Ethics

Principles and standards defining acceptable conduct in marketing.

Categories of Ethical Dilemmas

Product issues, pricing issues, promotion issues, distribution issues.

Social Responsibility

A firm's obligation to improve society while pursuing profit.

Benefits of Social Responsibility

Stronger brand image, customer trust, employee satisfaction.

Ethical Decision-Making Process

Recognize issue → Gather information → Evaluate alternatives → Choose best option → Monitor.

Corporate Social Responsibility (CSR)

Voluntary activities that benefit society and environment.

Sustainable Marketing

Meeting customer needs while preserving future resources.

Social Criticisms

High prices, deceptive practices, unsafe products, planned obsolescence.

Consumer Behavior

Study of how people buy, use, and dispose of products.

Cognitive Dissonance

Buyer's remorse after purchase.

Influences on Consumer Behavior

Psychological (perception, learning), Social (family, groups), Cultural, Personal (age, lifestyle).

Maslow's Hierarchy

Physiological → Safety → Love/Belonging → Esteem → Self-Actualization.

Attitudes

Strongly held attitudes are resistant to change.

Decision Types

Routine: Low involvement (toothpaste). Limited: Moderate involvement (clothes). Extended: High involvement (car, house).

Low vs. High Involvement

Low = habitual purchases; High = require research.

Market Segmentation

Dividing market into groups with similar needs.

Importance of Market Segmentation

Identifies opportunities, focuses resources, improves customer satisfaction.

Four Methods of Segmentation

Geographic: Location-based. Demographic: Age, gender, income. Psychographic: Lifestyle, values. Behavioral: Usage rate, benefits sought.

Criteria for Success

Measurable, Accessible, Substantial, Differentiable, Actionable.

Target Marketing

Selecting specific segments to serve.

Targeting Strategies

Undifferentiated (mass marketing), Differentiated (different strategies for segments), Concentrated (focus on niche).

Market Positioning

Designing marketing mix to occupy a clear, desirable place in consumer's mind.

Three Steps of Positioning

Identify competitive advantages → Choose right advantages → Communicate position.

Repositioning

Changing perception of a product to adapt to competition or market shifts.

Product Components

Core product, actual product, augmented product.

Product Classifications

Convenience, Shopping, Specialty, Unsought.

Product Item

Specific version (Diet Coke).

Product Line

Group of related items (Coca-Cola beverages).

Product Mix

All product lines.

Depth of Product Line

Number of versions within a line.

Breadth of Product Mix

Number of product lines.

Innovation Reasons

Growth, competition, consumer demand.

Types of New Products

New-to-world, new category, additions, improvements.

Diffusion of Innovation

Innovators → Early adopters → Early majority → Late majority → Laggards.

Product Characteristics

Relative advantage, compatibility, complexity, trialability, observability.

Drivers of Innovation

Market needs, competition, technology, regulation, consumer behavior.

Branding

Identifying a product through name, term, symbol.

Co-branding

Two brands marketed together.

Brand Equity

Value of brand (awareness, loyalty, perceived quality, associations).

Packaging

Protects product, communicates brand, adds convenience.

Supply Chain

Network of companies involved in making and delivering products.

Supply Chain Management

Coordinating flow of goods, information, and finances.

Value in Supply Chain

Efficiency, cost savings, customer satisfaction.

Supply Chain Flows

Products, information, finances.

Integration Benefits

Reduced costs, better service, improved forecasting.

Marketing Channels

Direct (manufacturer → consumer), Indirect (retailers, wholesalers).

Supply Chain Strategies

Push, Pull, Hybrid.

Logistics

Managing movement, storage, and flow.

Intermediaries

Retailers, wholesalers, distributors, agents, brokers, logistics providers.

Distribution Intensity

Intensive (everywhere), Selective (some outlets), Exclusive (one/few retailers).

Price

What is given in exchange for a product.

Costs

Fixed costs (don't change with output) + Variable costs (change with output).

Price-Setting Process

Define objectives → Evaluate demand → Estimate costs → Analyze competitors → Choose strategy → Set final price.

Pricing Strategies

Skimming, penetration, value-based, competition-based, psychological.

Price Sensitivity Factors

Substitutes available, importance of purchase, income level, switching costs.