BADM 320 EXAM 1 UIUC WOLTERS

BCG Matrix

analysis of how successful products or services in a company are (market share vs. market growth)

Star

(BCG Matrix) high market growth, high market share; best sellers

Cash Cow

(BCG Matrix) low market growth, high market share (old products that still make a large profit and fund the production of other products)

Question Mark

(BCG Matrix) high market growth, low market share (might turn into a star or just a dog)

Dog

(BCG Matrix) low market growth, low market share (not extremely profitable, usually gets cut)

Ansoff Matrix

Helps analyze the risk of growth; new or existing products vs. new or existing customers/markets

Market Penetration

(Ansoff Matrix) Selling existing products to existing customers; old products to current customers

Market Development

(Ansoff Matrix) Selling existing products to new customers; old products to new customers

Product Development

(Ansoff Matrix) Selling/developing new products for existing customers; new products for old customers

Diversification

(Ansoff Matrix) Selling new products to new customers

4P's of Marketing

Product, price, place, promotion

Product

create value

Price

captures value

Place

delivers that value to customers

Promotion

communicates that value to customer

Sustainable Competitive Advantages

attributes/advantages companies have that aren't easily imitated

4 Areas of SCAs

-customer excellence

-operational excellence

-locational excellence

-product excellence

SWOT Analysis

-Strengths (internal)

-Weaknesses (internal)

-Opportunities (external)

-Threats (external)

How to develop a social media plan

-make clear what you are and are not using SM for

-decide SM platform for your brand

-write out SM plan

-stick to your SM plan (consistency is key)

-spend time, money, and energy to do it right

What is social media for?

building relationships with the customer (NOT directly selling to the customer)

Criteria for deciding your social media platform

1. characteristics of your clients vs. characteristics of those that use that SM platform

2. how much you want to develop your brand in SM (can develop more on FB than Twitter because of character limits)

3. amount of customer communication (do you want to be able to reply)

4. directing people to website (ultimately, want people to go to your website to buy things)

4E Framework for Social Media

1. Excite: excite customers with relevant offers

2. Educate: inform customers of benefits

3. Experience: customers experience the product (directly or indirectly)

4. Engage: customers take action (buy the book, like on FB, order the DVD, etc.)

Things that affect the marketing environment

-immediate environmental factors

-macroenvironmental factors

Immediate Environmental Factors

Things firms can directly control, manage, or influence

1. competition (adjusting prices, developing new products, etc.)

2. company capabilities (develop things you're good at, avoid things you're bad at)

3. corporate sponsors (who your company chooses to work with)

Macro-Environmental Factors

Things that affect every firm, but to varying degrees

1. Culture

2. Demographics

3. Social Trends

4. Technological Change

5. Economic Effects

6. Political/Legal Environment

7. Natural

Porter's 5 Competitive Forces Model

Helps you to analyze your industry.

1. Threat of new entrants

2. Threat of substitute products

3. Bargaining power of suppliers

4. Bargaining power of buyers

5. Intensity of rivalry

GE McKinsey Matrix

Helps a company decide where to invest money.

Has 2 criteria: Industry attractiveness and strength of your business unit (SBU)

Has 3 options: grow, hold, divest

Grow

(GE McKinsey Matrix) a company will grow their investment if:

-industry attractiveness is high/SBU is high

-industry attractiveness is high/ SBU is med

-industry attractiveness is med/ SBU is high

Hold

(GE McKinsey Matrix) a company will hold their investment if:

-industry attractiveness is low/ SBU is high

-industry attractiveness is high/ SBU is low

-industry attractiveness is med/ SBU is med

Divest

(GE McKinsey Matrix) a company will divest their investment if:

-industry attractiveness is low/ SBU is med

-industry attractiveness is med/ SBU is low

-industry attractiveness is low/ SBU is low

Differentiation

do whatever to make the product special (so people will pay more for it)

Cost Leadership

do whatever to have lowest prices

Focus Strategy

focus on a single group (can be a focus cost leadership or a focus differentiation)

Industry Key Success Factors

attributes that make the difference between a great and an okay company (usually 5-6 in an industry)

What must you ask to find KSFs?

1. What do customers want?

2. How does the firm survive competition?

3. Are there any death bells in the industry?

Death Bells

things that are deal breakers; attributes that would kill off a product

Main reasons marketers fail:

1. don't do enough research and offer products people don't want

2. underestimating competition

3. don't keep up with social, political, or cultural change

4. don't keep up with competition

5. rose colored glasses

6. bad/wrong pricing

7. wrong use of channels/media

Butterflies

potential profitability is high

projected loyalty is low

True Friends

potential profitability is high

projected loyalty is high

Strangers

potential profitability is low

projected loyalty is low

Barnacles

potential profitable is low

projected loyalty is high

What is the most important part of making a marketing plan?

Executive Summary (covers main goals and recommendations of entire marketing plan)

What can social and traditional media both do?

reach large and niche audiences

Traditional media characteristics

-pricey and customers need to purchase the right medium

-need skilled labor to put together

-large time to delivery

-permanent

-has credibility

Social media characteristics

-cheap and available anywhere with internet

-limited training needed to put together

-instant content

-instant changes

-little credibility

What is marketing?

-combination of all the processes that buyers and sellers go through in order to exchange things of value to each other

-"the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return"

Marketing Myopia

when firms pay more attention to the actual product than to the benefits or values that their product creates for the customer (when the best made products can lose)

B2B Marketing

selling products from one business to another business

B2C Marketing

selling products from business to customer

C2C Marketing

consumers sell products to other consumers (selling shit on eBay)

Customers vs. Clients

Overall, clients have a more intimate relationship (know name, deal with them one on one, etc.) while customers are seen in masses and don't have a close relationship (no reason for loyalty)