Marketing 300

What is the Marketing Environment?

The Marketing Environment is a set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers.

What does the SWOT analysis stand for?

Strengths, weaknesses, opportunities, and Threats.

What is Environmental Scanning?

The process of collecting information about forces in the marketing environment.

What are the 3 methods for studying the market environment?

Observation, secondary sources, market research.

What is the process for Marketing Environment?

Environmental Scanning → Environmental Analysis → Responding to Environmental Forces

(Marketing Environment) What is the Reactive Approach?

-Passive View of environment as uncontrollable.

-Current Strategy is Cautiously adjusted to accommodate environmental changes

(Marketing Environment) What is the Proactive Approach?

-Actively Attempts to shape and influence Environment

-Strategies are constructed to overcome market challenges and take advantage of opportunities.

In a SWOT analysis, which of the following would be considered a strength?

-Internal Limitations

-Trends in the Market

-Factors that challenge the companies performance

-Internal Resources

Internal Resources

What are the 6 forces in the Marketing Environment?

Legal, Competitive, Economic, Technological, Political, Sociocultural forces.

What are porters 5 forces?

What are the 4 types of Competitors?

Brand Competitors, Industry competitors, form competitors, and generic competitors.

(Types of Competitors) What are brand Competitors?

Market Products with similar features and benefits to the same customers at similar prices

(Types of Competitors) What are industry Competitors?

Compete in the same product class, but their products have different features, benefits, and prices.

(Types of Competitors) What are Form Competitors?

They provide very different products that solve the same problem or satisfy the same basic customer need.

(Types of Competitors) What are Generic Competitors?

They compete for the limited financial resources of the same customers.

What are the benefits of monitoring competition?

-Guides development of competitive advantage and adjusting firm’s strategy

-Provides ongoing information about competitors

-Assists in maintaining a market orientation

I am considering buying a new sports car like a Mustang. Another sports car that would not likely compete head-to-head like the R8, which costs a lot more. Which represents this type of competition?

Industry Competition.

Just repeat

Marketing is all about segmenting, targeting, and positioning.

(The STP process) What is Segmenting?

Segmenting-Divide market based on needs/benefits, demographics, lifestyles, behavioral measures.

(The STP process) What is targeting?

Selecting the most appropriate market.

(The STP process) What is positioning?

Target marketing messages through 4P’s

What are the 4P’s of marketing?

Product, Price, Place, Promotion.

What is a market?

A group of people seeking products in a specific product category.

Which of the following is the process of dividing a market into meaningful and district customer groups?

-Targeting

-Segmenting

-Positioning

-Competitive Advantage

Segmenting. This is the first step of the process in which we determine how to best to divide (segment) the market.

What is the STP process.

Establish strategic Objectives → Determine which segmentation variables to use → evaluate relevant market segments → select specific target markets → develop positioning strategy

The importance of segmenting markets

-Markets have a variety of product needs and preferences

-A market segment has specific needs and wants as well as the ability and willingness to buy

-Marketers can better define customer needs

-2 words: Competitive and advantage

What do you gain out of understanding segment markets?

-Develop offerings that are higher value to each segment than an undifferentiated offer

-Charge more for providing higher value products and services

-Achieve higher sales volume overall by better meeting the needs of each segment

What are the segmentation variables?

Demographics, psychographics, behavioral, needs

Values and Lifestyles model (VALS)

Behavioral Segmentation

-Dividing a market by the amount of product bought or consumed

-usage rate

-80/20 principal

-20% of all customers generate 80% of the demand

What is the 80/20 principal?

20% Of all customers generate 80% of the demand

The needs segmentation

The process of grouping customers into market segments according to the benefits they seek from the product.

A drug company that makes pain relief medication with an advertising slogan, “Targeted Relief for Pain”, is using which type of segmentation strategy that directly focuses on a specific consumer problem?

-demographics

-psychographics

-behavioral

-needs

Needs. This ad campaign is focusing directly on solving the customer’s problem. If you did not have a need for pain relief, you would not purchase this product.