BA 370 MARKETING SDSU

marketing applies to

EVERYTHING!!!

products, services, people, places, concepts/ideas

the marketing mix (4Ps)

product, place/placement, price, promotion

what are the driving forces when creating the marketing mix?

consumers WANTS and NEEDS

(start with wants and needs and move backwards for 4Ps)

marketing provides consumer utility (4):

form utility, time utility, place utility, possession utility

what is the exchange?

the primary economical element of marketing

steps of the exchange:

1. 2 or more parties with unsatisfied needs (direct exchange ex. garage sale or craigslist)

2. each one can satisfy each other's needs

3. able to find each other (PLACE, indirect exchange

4. both can value what the other has (can they agree on price?)

5. communicate and present (PROMOTION)

what are the intermediaries in an indirect exchange?

wholesaler, distributed, retailer

the exchange should focus on maximizing the buyer and seller's value because...

they are about to find each other, communicate, and agree on price

pricing an item includes:

everything a buyer gives up (money, time, energy, shipping)

place delivers the:

value proposition including internet site and physical store (Brick & Morter)

promotion:

-communication by a marketer that informs, persuades and reminds potential buyers about a product

-enhance a products PERCEIVED VALUE (not actually more valuable)

"Got Milk" campaign repositioned milk against sodas by targeting _____ as a whole not _______

-industry, a specific brand

-created 4 good groups

-industry vs. soda

successful products fulfill:

unsatisfied needs

macro-strategies for developing a sustainable competitive advantage (4):

operational excellence, product excellence, customer excellence, location excellence

operational excellence:

-efficient operations

-excellent supply chain

-human resources

ex. Costco

product excellence:

-products with high perceived value

-effective branding & positioning

customer excellence:

-retaining loyal customers

-excellent customer service

locational excellence:

-good physical location

-internal presence

-hard to copy (others can't get what you have)

what is the least effective way to develop a competitive advantage?

having the lowest price

what is the best way to creat a sustainable competitive advantage?

position the brand clearly and distinctively

in the SWOT analysis which are internal?

strengths & weaknesses (sole supplier)

in the SWOT analysis which are external?

opportunities (expand) & threats

marketing plan: planning phase

step 1: mission (measurable core goals)

step 2: situational analysis (SWOT)

marking plan: implementation phase

step 3: identify opportunities = segmenting, targeting, positioning (STP)

step 4: implement marketing mix (4Ps)

step 4.5: resource allocation (how much money goes where)

marketing plan: control phase

step 5: evaluate performance using marketing metrics

walmart benefit consumers through _____ prices and ______ assortments

low, large

1. henry for creates Model T only available in black

2. a good product will sell itself

3. neglects consumer needs

production concept (oriented)

1. began because of excess capacity from WW2

2. hard-sell/personal selling approach

3. introduction of marketing tactics and gimmicks (when marketing started)

4. tv ads and product placement

selling concept (sales oriented era)

1. begin with the needs of the customer and then work backwards

2. led to studying consumer behavior

3. customer is KING

marketing concept (marketing oriented era)

1. develop an ongoing relationship with customers (value based)

2. ex. starbucks, apple, in n out

3. CRM (customer retention management)

authentic marketing (marketing orientation)

-MOST SIGNIFICANT measurement (sales) of market power

-high market share = more leverage within the channel

goals of marketing campaigns: increase market share

-assumed MOST COMMON by outsiders

-two types: immediately (only works with scarce supply) and long-term (quality product and service at a fair price and profit margin)

goals of marketing campaigns: maximize profits

two types: revenues (money, most important in a cash strapped) and unit sales (measured by volume)

goals of marketing campaigns: increase sales

goals of marketing campaigns: brand awareness

top-of-the-mind

goals of marketing campaigns: high quality/performance

want to be known as best

goals of marketing campaigns: innovation

rarely the number one goal

goals of marketing campaigns: high satisfaction levels

1. employee satisfaction

2. customer satisfaction

goals of marketing campaigns: loyalty levels

elaboration (customer markets for you) is the most desirable result

goals of marketing: social responsibility

go green!

regarding lifetime value of a customer: even if a relationship with a customer is __________ at first, overtime building that relationship will be worthwhile because as it continues it becomes ______________

unprofitable, profitable

reduces short term profits to capture long term profitability

lifetime value of a customer

___ are based on the idea of lifetime values of customers

CRM (customer retention program)

the best and most effective marketing strategies require

careful planning

if marketers don't ________________ they will never be able to communicate value to their target segments

understand their customers

a firm's market share is determined by the firms ________ divided by the ________

sales, overall industry sales

when a firm's market share is compared to the market shares of competitors this is the calculation of

relative market share

market penetration is the easiest growth option model because

it requires the least amount of learning about consumer behavior and production technology

which growth option model is current market with current product

market penetration

market penetration

1. increase consumption (sell more frequently, larger size, multi-packs)

2. new uses for your product

3. old and related users

once a growth model is _____________ the company should move on

saturated

which growth option model is selling a current product in a new market

market development

market development

-enter with essentially same marketing mix

-look at domestic market before foreign

-expanding internationally is considered more RISKY than expanding domestically

-slightly easier than product development

which growth option model is new product in current market

product development

product development

-use customer input for product expansion

-learn new industry and how to produce new product

-ex. when Gerber started making baby products other than food

what growth option model is a new product in a new market

diversification (don't even try)

according to the potential growth rate: less than ____% is low growth and more than ____% is high growth

5, 12

which portfolio analysis has a high relative market share and a low growth market

cash cow

cash cow

-typically generate excess cash

-support other product lines

-don't forget about them even though they are easy to take care of

which portfolio analysis has a high relative market share and a high growth market

stars

stars

-often first to move into a new industry

-to continue to grow companies must continue to invest

-expensive (lots of time and attention)

-hope to become cash cows not problem children

which portfolio analysis has a low relative market share and a high growth market

question marks (problem children)

question marks (problem children)

-hope to become stars

-require a significant amount of resources

-most managerially intensive (take most care of)

-new products in an existing industry start as problem child

-possible to rehabilitate fallen stars

which portfolio analysis has a low relative market share and a low growth market

dogs

dogs

-should be phased out unless it helps with the sales of another successful product

-sometimes kept alive for sentimental reasons

-fulfill a particular purpose

what is environmental scanning

says you CANNOT create a marketing plan without looking at the big picture

before developing the 4Ps management must...

asses the market environment

target market is affected by (2):

1. macro-environment (outside)

2. micro-environment/immediate marketing environment (inside)

3 immediate environmental factors:

1. the company

2. corporate partners

3. competition

the micro-environment looks at the

INDUSTRY

parts of the micro-environment: the firm itself

the founder and/or current leader, core competencies, company imagine, and corporate culture

the macro:environment is the

market place at large

marketers look at the macro/micro environment as well as the needs of the consumers in order to find

potential opportunities

marketers have a _________ not _________ strategy when scanning the environment

proactive, reactive

when times change, your industry could become....

obsolete (constantly scanning the environment for new opportunities)

correlation of the macro-economy on industries: neutral

things you won't buy less of in a bad economy or more of in a better economy

correlation of the macro-economy on industries: positive

better economy = higher sales

bad economy = lower sales

(most common)

correlation of the macro-economy on industries: negatively correlated

better economy = lower sales

bad economy = higher sales

little luxuries

2 micro-economic factors:

1. interest rates

3. income (disposable & discretionary

-not popular

the theory that when facing an economic crisis consumers will be more willing to buy less costly luxury goods

lipstick effects

ex. instead of buying fur coats people will by expensive lipstick

__________ is the most ethically diverse

america

____________ cultural differences between different areas of a country

regional

culture affects ______,______,______,_______ potential customers make purchases

when, what, how, where

approximately 80% if all population growth in the next 20 years is expected to come from

minority group

____________ are the fastest growing minority population

asian americans

one traits that best describes you is called a

cardinal value

america's cardinal value is ________ which leads to _________

freedom, individualism

america loves

choices

______________________ allows marketers to determine which TV time slots would be ideal to run ads during

demographic data

groups of people of the same generation are called

generational cohorts

generational cohorts are said to have similar buying habits because

they are in the same stage of life and have lived during the same points in history

generation Y (60+ million americans)

-born between _____ and _____

-puts a strong emphasis on __________ and are experts at _________ with media

-1977, 2000

-work/life balance, multitasking

________ have never lived without easy access to the internet and cell phones

tweens

today there are _____ wealthy grandparents with ______ grandchildren

more, fewer

replacement rates state

average women is having less kids than in 1960

in china the age of parents is ____ ___________ where as in america it _______

very consistent, varies

2 industries that benefit from single/divorced/blended families

1. appliance

2. hotel & travel