mktg 409 exam 1

marketing

• the process of exploring, developing, and delivering value to satisfy the needs of a target market

  • Facilitating relationships 

  • Does not require a sale or transaction 

what is marketing

• There must be trust that the other must deliver 

• Monetary exchange does not need to be included for a transaction to be valid 

marketing mix variables

product, price, distribution, promotion

product

• what companies do to satisfy customers

  • researching customers’ needs and wants and designing a product that satisfies them

  • Involves creating or modifying brand names & packaging and it may include decisions regarding warranty & repair services 

good

physical entity

service

• application of human & mechanical efforts

  • Someone does something for you

  • Hospitality services

  • Flight ticket

  • Education

  • Experience or activity

idea

• concept, philosophy, and image, or an issue

  • Someone is trying to change what you think or do

  • Kardashians

  • Political parties

price

• helps establish a value of a product

  • Easiest to change

  • Higher price = premium image

  • Price x quantity sold = revenue

  • making a new product would take a while

distribution

• products must be available at the right time and in the appropriate locations 

promotion

• activities used to inform, persuade, and initiate a desired response

  • Increase public awareness

  • Educate customers about product features

  • Sales promotions/coupons

  • Marketing + communication

value

value = customer benefits - customer cost

• subjective to me

• customers decide value differently

benefits/costs

• benefits = what you gain

• costs = what you give up

• benefit feels greater than costs = high value

orientation

• marketing = customer first —> product

• sales = start with product & tries to push it

• production = focus on producing efficiently and cheaply, assuming customers will buy because it's available and affordable

customer relationship management

• building long-term relationships with customers by using data & personalized communication

  • Customer retention/loyalty

  • customer management

4 types of competitors

brand, product, generic, total budget

• look for key words (for thirst)

brand

• same product, same target, similar price

  • Coke vs Pepsi

  • Iphone vs samsung

  • Liquid IV vs Gatorade

product

• different product type satisfying the same immediate need

  • Juice vs water (for thirst)

generic

very different product satisfying the same general desire

total budget

competing for the same consumer dollars overall, regardless of need category.

mission statement

foundation that a business should align its decisions with 

strategic planning

1. mission statement

2. Corporate strategy

3. Business unit strategy

4. Marketing strategy

5. Marketing mix

four growth strategies

market penetration, market development, product development, diversification

market penetration

• measure of how much a product or service is being used by consumers compared to its total estimated target market

  • same product, same market, sell more

market development

same product, new market

product development

new product, same market

diversification

new product, new market

environmental scanning

ongoing collection of information about external forces through observation, trade publications, government reports, social media monitoring, and research.

environmental analysis

• process of assessing and interpreting the collected information

  • Evaluates for accuracy

sales analysis

process of reviewing your sales and customer data to figure out what is selling, who is buying, and where you can improve 

supply chain management (SCM)

• maintaining a flow of products through logistics activities

  • Netflix

4 conditions needed for an exchange

1. Two parties 

2. Each party must have smth the other wants 

3. Each party must have confidence in the promise of the “something of value”

4. Both parties must meet expectations 

stakeholder

Constituents who have a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes

marketing environment

The competitive, economic, political/legal/regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix 

sociocultural

changes in society, culture, attitudes, and lifestyles 

environmental

never purely good or bad — they create threats for some and opportunities for others simultaneously.

first mover advantage

• first to market build brand loyalty

  • High R & D cost

  • Market uncertainty

late-mover advantage

• enter after pioneer

  • Learn from mistakes

  • Lower initial cost

federal trade commission (FTC)

• U.S govt agency preventing deceptive, unfair, or anticompetitive

  • Regulates advertising claims

cause-related marketing

tying a specific product purchase to a social cause

green marketing

• developing and promoting products with environmental responsibility.

  • Shapes the actual product

strategic philanthropy

giving is separate from individual transactions 

consumerism

the movement protecting buyer rights

BCG matrix

tool that helps companies decide which products or services to invest in, keep, or discontinue

• Market share = popularity (leader in market)

• Market growth = industry not product 

cash cow

low growth + high share (generates reliable cash) 

dogs

low growth + low share (candidates for divestment)

question mark

high growth + low share (uncertain, needs cash)

stars

high growth + high share (need investment to maintain)

gross income

total earning before deductions 

disposable income

income after taxes; actual take home pay 

Discretionary income

• income remaining after taxes AND necessities

  • most relevant for marketers of nonessential, luxury, or entertainment products — it's the money available for wants, not needs.