Marketing unit 1 test, Marketing Fundamentals: 4Ps, SWOT, Environmental Scanning, and Target Market Steps

Marketing defined

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

Marketing mix

Product, distribution, pricing, and promotion- marketing variables that a firm can control to meet the needs of its customers within the target market.

Customers

The purchasers of organizations products and services

Target market

A specific group of customers whom an organization focuses its marketing efforts.

Forms a product can take

good, idea, service, and place

Exchange relationships

when two or more parties give something of value to each other to satisfy their needs or wants.

Define value and the value equation

value is a customers subjective assessment of benefits relative to costs which determine worth of a product.

Stakeholders

Constituents who have a claim or stake in some of a company's products, operations, markets, industry, and outcomes

Market objective

A statement of what is to be accomplished through marketing activities

Market opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market.

Competitive advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

Define market

a group of individuals or organizations that have wants and needs for products in a product class and have the willingness, ability, and authority to purchase those products.

Boston Consulting Group matrix

Star

Dominant share, good prospects for growth, increase market share, uses more cash

Cash cow

Dominant share, low prospects for growth, and generate more cash than is required

Dog

Subordinate share of the market, low prospects for growth

Question marks

small share of growing market, require a large sum of cash to build market share

Business and marketing strategies

A plan of action for identifying and analyzing a target market and developing a marketing to meet the needs of said market

Marketing plan

A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies.

Market objective

A statement of what is to be accomplished through marketing activities

Market opportunity

A combination of circumstances and timing that permits an organization to take action to reach a particular target market.

Competitive advantage

The result of a company matching a core competency to opportunities it has discovered in the marketplace

Define market

a group of individuals or organizations that have wants and needs for products in a product class and have the willingness, ability, and authority to purchase those products.

Boston Consulting Group matrix

star, cash cow, dog, question marks

Star

Dominant share, good prospects for growth, increase market share, uses more cash

Cash cow

Dominant share, low prospects for growth, and generate more cash than is required

Dog

Subordinate share of the market, low prospects for growth

Question marks

small share of growing market, require a large sum of cash to build market share

Business and marketing strategies

A plan of action for identifying and analyzing a target market and developing a marketing to meet the needs of said market

Marketing plan

A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies.

Proactive

Attempting to influence and shape environmental forces

Reactive

Accepting environmental forces as uncontrollable

Brand

a name, symbol, design, or other feature that identifies a company or product and distinguishes it from competitors.

Types of competitors

Brand, product, generic, and total budget

Brand competitor

Firms that market products with similar features and benefits to the same customers at similar prices

Product competitor

Firms that compete in the same product class but market products with different features, benefits, and prices

Generic competitor

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

Total budget competitor

Firms that compete for the limited financial resources of the same customers

BBB

(Better business bureau) -A system of nongovernmental, independent, local regulatory agencies supported by local businesses that help settle problems between customers and specific business firms.

Source of cultural values

religion, family, and culture

Four major competitive structures:

Monopoly

One company controls the entire market. Example: A local water company may be the only provider in an area.

Oligopoly

A few large companies control most of the market. Example: The automobile or airline industry.

Monopolistic Competition

Many companies compete, but they make their products different through branding, quality, price, or features. Example: Fast-food restaurants such as McDonald's, Burger King, and Wendy's.

Pure Competition

Many companies sell very similar or identical products, so no single company has much control over the price. Example: Farmers selling common agricultural products.

Buying power

Income, wealth, and credit: Buying power is the amount of goods and services a person can afford to purchase.

Income

The money a person regularly earns from a job or other sources. Example: Someone earning $4,000 a month has more money available for purchases than someone earning $2,000.

Wealth

The money and valuable assets a person already owns, such as savings, investments, or property. Example: A person with $50,000 in savings has greater financial resources.

Credit

The ability to borrow money and pay for purchases later. Example: Using a credit card allows someone to buy a $1,000 laptop and pay it off over time.

FCC / FTC

U.S. government agencies that regulate different areas of business and marketing.

FCC

controls communication

FTC

protects consumers and fair business practices.

Marketing ethics

A set of moral principles that guide a company's marketing activities

Philanthropy

The synergistic use of organizational core competencies and resources to address key stakeholders interests and achieve both organizational and social benefits

Cause related marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis

Corporate culture

The shared beliefs, values, traditions, and behaviors of an organization

Stakeholder orientation

the aim to benefit all parties affected by the future success or failure of an organization, including employees, customers, suppliers, communities, the environment, and shareholders

Quantitative

empirical information that is communicated through numbers

Qualitative

Descriptive non-numerical information

Exploratory

Unstructured/informal research that is taken for general background information

Conclusive

Research designed to verify insights through objective procedures and to help marketers making decisions

Primary research

Information that is developed or collected by the researcher specifically for the project at hand

Secondary research

Data that has been previously collected by someone other than the researcher for some purpose other than the current study.

Steps in the marketing research process

Locating and defining issues or problems, Designing the research project, Collecting data, Interpreting research findings, Reporting research findings

Targeting strategies

undiffrenuated, diffrenuated, concentrated

Undiffrenuated

A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product

Differentiated

A strategy in which an organization targets two or more segments by developing a marketing mix for each segment (Increased sales, excess production capacity, but production costs are higher)

Concentrated

A market segmentation strategy in which an organization targets a particular market segment using a single marketing mix (Allows specialization, a small firm can compete, but difficult to diversify and profits fall with demand)

Market segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into subgroups (segments) based on common characteristics.

Segmentation variables

The criteria or characteristics marketers use to categorize their audience into different groups. (Demographic, geographic, psychographic, and behavioristic)

What is the marketing mix?

The marketing mix is a set of marketing activities a business uses to promote and sell its products or services. (Product, price, distribution, and promotion)

Product

What the business sells to satisfy customer needs. Example: Apple sells iPhones with different features, sizes, and storage options.

Price

The amount customers pay for the product or service. Example: A clothing store offers a T-shirt for $25 and may give a 20% discount during a sale.

Place

Where and how the product is made available to customers. Example: Nike sells products through its website, retail stores, and other sporting-goods stores.

Promotion

How the business communicates with customers and encourages them to buy. Example: Coca-Cola advertises its drinks through television commercials, social media, and sponsorships.

What is a SWOT analysis?

A SWOT analysis is an assessment of an organization's strength, weaknesses, opportunities and threats.

Complete a SWOT analysis for McDonald's.

Strength- Globally recognized, Affordable food, convenient locality of restaurants

Weakness- Unhealthy foods and rising prices

Opportunity- Growth in international markets and technological mobile-app advances

Threat- Increase in health trends and other fast-food competitors

What is environmental scanning and analysis?

Environmental scanning and analysis is the process of collecting and examining information about factors outside and inside a business that could affect its marketing activities.

What are the different environmental forces?

Environmental forces are legal, economic, social, technological, and competitive forces.

Why is the process important in developing a marketing plan?

Environmental scanning is important because it helps a business identify threats, opportunities, and understand customer needs.

Define target market

Target market is a specific group of customers whom an organization focuses its marketing efforts on.

Name and define the steps in the target market selection process.

Identify the appropriate targeting strategy- deciding how to choose and serve customers

Determine which segmentation variables to use- Deciding how to divide customers into groups

Develop market segment profiles- detailed description of each customer group

Evaluate relevant market segments- Comparing customer groups and choosing the one that is worth targeting

Select specific target markets- Choosing specific customer groups to focus marketing efforts on

Order the steps in the marketing research process

Locating and defining issues or problems

Designing the research project

Collecting data

Interpreting research findings

Reporting research findings