BADM 320 Exam 1: UIUC, Wolters FA '2025

What is Marketing?

The process by which companies create value and strong customer relations to capture value in return. Includes all steps to get a product from idea to customers.

Core Aspects of Marketting

Marketers are problem solvers, they satisfy customers’ needs and wants. Can be performed by individuals or orgs. Occurs anywhere to help create value.

The Marketing Mix (4P’s)

Product, Price, Place, Promotion

2 Steps to marketting…

Determine WHO the client should be (wants and needs). Determine how to SATISFY their wants and needs/follow through.

Can a product be worldwide?

Rarely, if that’s the case, the product doesn’t make customers feel special. Porche (exclusivity) and Mercedes (A-Class vs S-Class Vehicles)

Need

A state of deprivation, lacking. (Hunger,Tired)

Want

How needs are interpeted by people via influence factors in culture and personality. (I want chipotle because society says it’s cool)

Demand

Wants that are reinforced by your ability to buy. (I am hungry before class and have $20, CHIPOTLE)

B2B Marketing

Selling products from a business to another business

B2C Marketing

Selling products from a business to a customer.

C2C Marketing

Customers selling their products to other consumers.

Employment Marketing

Recruitment tactic. Employers host parties and free fancy dinners to convince you work for them.

Industry Marketing

“Avocados from Mexico” is not just one company, but an industry-wide campaign to support imported avocados

Retailer Marketing

Black Friday sales are set up with multiple companies.

Misconception: Marketing is common sense, lowest price wins

People don’t buy the cheapest car or meat

Misconception: Good customer service always leads to higher sales.

Good service is only more valuable if people are WILLING to pay more for it.

What is Value Proposition?

The opportunities your product/service provides. Product’s capabilities, impact, supporting evidence, cost saving/cost of value. Must be an understandable reason why a client will buy a product or service.

Product Marketting

Marketing set up to move products.

Service Marketing

Marketing set up to move services

Place Marketing

Marketing set up to get people to visiti a certain location (Illinois is the center of everything!)

Cause Marketing

Marketing set up to get people to support a specific cause (pink ribbon for breast cancer awareness)

Organization Marketing

Marketing set up to get people to support a non-profit or other type of organization. (Red Cross)

Two reasons people buy

They have a problem (Bleeding money, they need to be kept happy, they do not know what is cool, They have a need) OR They see the product as a growth opportunity (using weightwatchers will help me love myself and be hot)

Marketing Mix Decision: Product

CREATES VALUE through variety, quality, design, brand, packaging, size, features

Marketing Mix Decision: Price

CAPUTURES PRODUCT VALUE through list price, discounts, terms and conditions

Marketing Mix Decision: Place

DELIVERS VALUE to customers through marketing channels, locations, retail, online.

Marketing Mix Decision: Promotion

Market Segmentation

Division of your customer market into segments, each with a different strategy. (Mcdonald’s has breakfast people, lunch people, snackers, kids, coffee drinkers, etc)

Market Targeting

Deciding who you are going to sell to. Evaluating segments to decide which ones are best, considering attractiveness, willingness to pay, growth

Market Positioning

Determination of how value proposition is shown and what it is known for. (Development of the 4P’s of Marketing)

Marketing Exchange Theory

Buyers & Sellers build relationships via exchanges in order to get customers to return often.

Product Offerings

The mix of products, services, information, and experiences that are available to customers that are available in order to customers in order to satisfy wants and needs.

Marketing Myopia

Where the best made products can lose. When firms pay more attention to the products than the benefits, Not taking consumers into consideration, Making changes that consumers may not agree with.

Value

Changes constantly, is relative to each customer (price, quality, other factors)

Value Based Marketing

Sharing info with customers, Balancing benefits with cost, Building relationships with customers

Why Marketing Is Important

Expands business worldwide, Found throughout the supply chain, Helps us understand customers, Helps create new products, Inspires entrepreneurs.

Ways to create Value

Understanding and delivering customer wants and needs, customer driven marketing strategy, better value to customers, developing customer management tools, marketing things customers value with our profits.

Why Marketers Fail

Not enough research, underestimating competition, not keeping up with socioculturalpolitical change, rosy retrospection, messing up pricing, incorrect channel usage.

What is a Marketing Strategy

marketing mix for a specific product. Helps identify areas to focus on developing a sustainable competitive advantage over competitors.

Sustainable Competitive Advantage (SCA)

An advantage that a firm has over their competition that is not easy to imitate. derived from Customer, Operational, Product, and locational Excellence. Can weaken over time due to innovation or scandal.

Customer Excellence

Treating customers in a way that creates consistent returns and long term value

Operational Excellence

Running a company better than the competition would. Having strong relationships with supplier and HR (Human resources) SCA, equivalent to having the best sports scout for a team.

Product Excellence

Developing a product that is superior to competitors or is perceived to have greater value. Achieved through good branding, positioning, and constant innovation.

Locational Excellence

Real estate. Location, location, location. The right place makes so much difference.

Customer Service

Consistent attention to customers that add value. Requires entirety of the team (janitors included).

How to create Customer Loyalty

Loyalty Programs, focusing on ‘Lifetime Customers’ over one-timers, clear and precise positioning (the product was designed for THEM)

Customer Lifetime Value

How much money a company can make from a given customer in their lifetime.

Customers

Nameless people, mass marketing the same spiel to everyone, first person at a retail store to talk to is the associate. Not much reason for loyalty or relationship building.

Clients

Have actual names, dealt with one on one, individual information on each one is kept, personal care from specific sales reps, strong relationship building is crucial.

Share of Customer

The amount of consumer’s purchasing that a firm gets in all of their product and service categories.

Share of Wallet

Banks want to be checking, savings, financers all in one place.

Share of Travel

Airlines sell tickets, travel insurance, hotels, car rentals

Share of Education/College

UIUC makes us pay beyond tuition. Printing, housing, dining, UIUC merch, games, etc.

Customer Equity

The value of all of your customer’s lifetime values.

Customers: Butterflies

Highly involved short-term customers with high potential profitability

Customers: True Friends

Highly Involved long-term customers with high potential profitability

Customers: Strangers

Lowly involved short term customers with low potential profitability.

Customers: Barnacles

Lowly involved long-term customers that have low potential profitability.

Common Sustainable Competitive Advantages

Speed/Time, Superior data management, strong R&D, brand popularity, high volume production, low pricing, barriers to entry, exclusive distribution, capital equipment ownership, manufacturing flexibility,

What is a Marketing Plan?

Shows people a marketing direction, important to better assess progress, used by sales, management, logistics, etc. What is the logic and thinking behind this campaign?

Executive Summary

Arguably most important part of marketing plan, gives information on market, company targets, describes product, examines competitors, an overview.

SWOT Analysis

Strengths, Weaknesses, Opportunities, Threats

SWOT: Strengths

What the company does well, why products are good and how to improve upon them.

SWOT: Weaknesses

What the company does poorly and recommendations on how to improve.

SWOT: Opportunities

External opportunities available to the firm and how to take advantage of them.

SWOT: Threats

External threats (such as worldwide change or competition) that pose a threat to the company or its products.

Different type of objective & goals of a merketing plan.

Company growth/expansion (higher profits, buy other companies/product lines), Stability/pause strategy (Little if any growth happy where we are), Retrenchment (get smaller, sell stock and services while going out of business to pay off or reduce debts. Liquidation, Divesture, Downsizing)

Marketing Plan: Action Plan

What will be done? Who will do it? When will it be done? How will they do it? How much will it cost?

Budgeting

Used to determine how much will be spent on the entire marketing process and what kind of revenues the firm will see from it.

WATCH VIDEOS FROM pages 36 to 41. TS MAKES NO SENSE. LEARN IT.

WATCH A VIDEO ON THIS I DONT UNDERSTAND IT FROM THE SLIDES

Immediate Environment

Factors in the firm’s environments that the company directly interacts with and can directly influence. 

Company Capabilities

Developing products and services that fit into our company’s core competencies that satisfy customers’ wants and needs. 

Competition

Other firms that have a direct effect on your business. Their product offerings, price, promotions will affect what your firm will do. 

Corporate Partners

Firms that your company chooses to work with, contains positive and negative impacts

Macro-Environmental Factors

Out of the firm’s control, affects every firm differently. Firms need be both reactive and/or proactive. (ex: smoking ban in bars)

Macroenvironmental Factor: Culture

Groups that define who consumers are. Consists of country culture (language, dress, behavior, setting, food) and regional culture (a smaller, more defined location)

Macroenvironmental Factor: Natural Environment

Sustainability environmental factors. Governmental regulations, pollution, weather conditions (wind in champaign)

Macroenvironmental Factor: Demographics

Typical demographic divisions in marketing (age, religion, education)

Macroenvironmental Factor: Social Trends

Influence and shape consumer vales, choices, and perception. People are ‘time poor’, uncertain about jobs, concerned about privacy

Generational Cohorts

age demographics (seniors, baby boomers, Gen X/Z/Alpha, Millennials)

Generational Marketing

Marketing geared towards Generational Cohorts. May leave out certain groups.

Demographics: Income

Top earners make more, middle class is shrinking, low income is growing. Income insecurity lead to a larger emphasis on value.

Demographics: Education/Gender

College grads earn more, marketers know that.

Macroenvironmental Factor: Technological Factors

Constantly changing, firms must keep up.

Macroenvironmental Factor: Economic Factors

Inflation, interest rates, housing market, etc

Macroenvironmental Factor: Political/Legal/Regulatory Environment

Regulations influence business (fair trade laws, bans, minimum wage)

Porter’s 5 Competitive Forces

Threat of New Entrants, Bargaining Supplier Power, Threat of Substitutes, Intensity of Rivalry

Key Success Factors

The product attributes, competencies, competitive capabilities, and market achievements that make the greatest impact on the firms future success. 

Competitive Strategy: Differentiation

Making your product/service unique. Can be niche or broad. 

Competitive Strategy: Cost Leadership

Making your product cheaper than your competitors. Can be niche or broad.

Death Bells

Attributes that are linked to a product or service that would kill off a product (bad batteries in phones, restaurants with bad food) 

GE McKinsey Matrix for evaluating Strategic Business Units (SBU’s)

Used to cross reference industry attractiveness with SBU to determine if a firm show divest, hold, or grow funding in a specific sector. 

Social Media

Websites and apps that enable people to create and share content for the social networking.