MKT 3401 Module 1
market penetration
A firm using the ______________ alternative would try to increase market share among existing customers. Retailer JCPenney recently partnered with fashion magazine InStyle to offer their customers revamped, updated, and branded Salons by InStyle. The store remodeled their old salons, and expanded its selection of services and salon products. It is counting on the new salons to attract its customers to their stores more often
D
A managerial process of creating and maintaing a fit between the organizational objectives and resources with the evolving market opportunities is called: A. Objective Revison B. Managerial alignment C, behavioral Management D. Strategic Planning
It ensures that the firm keeps focusing on customers and avoids becoming preoccupied with goods, services, or the organization's internal needs. It encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants. It stimulates an awareness of changes in customer desires and preferences so that product offerings are more likely to remain relevant.
Answering the question "What is this firm's business?" in terms of the benefits customers seek, instead of goods and services, offers at least three important advantages:
market penetration, market development, product development, or diversification.
But as companies design their strategies, they must also be willing to make adjustments. There are several strategic opportunities companies might consider such as: (4)
current capabilities
Critics of Ansoff's matrix mention that the matrix does not reflect the reality of how businesses grow—that modern businesses plan growth in a more fluid manner based on ______________ rather than the clear-cut sectors outlined by the opportunity matrix. To reflect this, Bansi Nagji and Geoff Tuff, global innovation managers at Monitor Group, developed a system that enables a company to see exactly what types of assets need to be developed and what types of markets are possible to grow into (or create) based on the company's core capabilities,
the overall growth revenue of a company open new avenues for the competition to enter the marketplace and gain valuable customers
Failure to understand changes in the marketplace and the environment can prove harmful to: (3)
Divest
Getting rid of SBUs with low shares of low-growth markets is often appropriate. Problem children and dogs are most suitable for this strategy. Starbucks, for example, is in the process of closing the unprofitable Teavana Tea Bars it acquired in 2012
Hold
If an SBU is a successful cash cow, a key goal would typically be to hold or preserve market share so that the organization can take advantage of the very positive cash flow.
build
If an organization has an SBU that it believes has the potential to be a star (probably a problem child at present), building would be an appropriate goal. The organization may decide to give up short-term profits and use its financial resources to achieve this goal.
sales orientation
Personal selling is a critical and valuable part of many businesses that adopt what philosophy?
Salesforce 18 56
In 2018, ___________, a cloud-computing company in San Francisco, captured the number-one position in Fortune's "100 Best Companies to Work For." The company has fostered an unusual company culture based on trust, growth, innovation, and equality. It offers rich monetary and psychological rewards, and has developed software that looks for strong performers who have gone ____ months without a promotion to help them look for new challenges. Employees also get paid _____ hours a year to do volunteer work in their community.
seeks new products and services to supply
In a sales orientation, Once the sales force is established, the company _______________________ the sales force.
century
Investing in a societal orientation has been a part of businesses for almost a _________. and is included in the marketing strategy of many companies.
Strategic Business Unit (SBU)
Large companies may manage a number of very different businesses, called ____________
teamwork
Many organizations that are frequently noted for delivering superior customer value and providing high levels of customer satisfaction, such as Southwest Airlines and Walt Disney World, assign employees to teams and teach them team-building skills. ________ entails collaborative efforts of people to accomplish common objectives. Job performance, company performance, product value, and customer satisfaction all improve when people in the same department
selling goods, services, and/or ideas communication, distribution, and pricing strategies long-term, mutually rewarding relationships
Marketing entails processes that focus on delivering value and benefits to customers, not just _________________. It uses ______________________ to provide customers and other stakeholders with the goods, services, ideas, values, and benefits they desire when and where they want them. It involves building ____________________________ when these benefit all parties concerned. Marketing also entails an understanding that organizations have many connected stakeholder "partners," including employees, suppliers, stockholders, distributors, and others.
adjacent innovation
Represented by the orange arc in Exhibit 2.2, these decisions are designed to take company strengths into new markets. This space uses existing abilities in new ways. For example, Botox, the popular cosmetic drug, was originally developed to treat intestinal problems and to treat crossed eyes. Leveraging the drug into cosmetic medicine has dramatically increased the market for Botox.
transformational innovation
Represented by the red arc in Exhibit 2.2, these decisions result in brand-new markets, products, and often new businesses. The company must rely on new, unfamiliar assets to develop the type of breakthrough decisions that fall in this category. Some notable examples are Apple in technology (including the iPhone, iPad, and Apple Watch), Uber in transportation, and Airbnb in hospitality.
B
The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales lead to high profits is called: A. Financial orientation B. Sales orientation C. economic orientation D. production orientation
customer satisfaction Bank of America, Comcast, Dish Network, At&t are examples of companies for which executives lost track of the delicate balance between efficiency and service
The customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations is called
the organization's focus, the firm's business, those to whom the product is directed, the firm's primary goal, and the tools used to achieve the organization's goals.
The differences between sales and market orientations are substantial. The two orientations can be compared in terms of five characteristics:
C
The idea that social and economic justification for an organization's existence is the satisfication of the customer's wants and needs is called: A. managerial concept B. Economic concept C. Marketing Concept D. Financial Concept
relative market share
The measure of market share used in the portfolio approach is ___________________, the ratio between the company's share and the share of the largest competitor. For example, if a firm has a 50 percent share and the competitor has 5 percent, the ratio is 10 to 1. If a firm has a 10 percent market share and the largest competitor has 20 percent, the ratio is 0.5 to 1.
A
The moral principles or values that govern the conduct of an individual or group are called: A. ethics B. behavioral traits C. Standards D. Conventions
Harvest
This strategy is appropriate for all SBUs except those classified as stars. The basic goal is to increase the short-term cash return without too much concern for the long-run impact. It is especially worthwhile when more cash is needed from a cash cow with long-run prospects that are unfavorable because of a low market growth rate. For instance, Lever Brothers has been harvesting Lifebuoy soap for a number of years with little promotional backing.
portfolio matrix
To determine the future cash contributions and cash requirements expected for each SBU, managers can use the Boston Consulting Group's ___________________. it classifies each SBU by its present or forecast growth and market share. The underlying assumption is that market share and profitability are strongly linked.
(a) how to create products or services that appeal to certain target markets; (b) how to make strategic changes and adapt as times change; (c) how to respond to competition they never expected; and, finally (d) how to consistently take care of the customer.
What 4 concepts do marketing orientation companies understand? (Coca-Cola, The Wall Street Journal, LSU Football, Amazon)
financial services insurance companies, cosmetic home improvement companies, telecommunication companies.
What are examples of sales orientation (companies that rely heavily on skilled sales or customer service representatives) ? (5)
Coca-Cola - iconic brand The Wall street Journal - premier newspaper LSU football - successful program Amazon - one of most powerful companies because the marketing strategy focuses on the customer and satisfying the customer's needs and wants and giving them something they will continue to use
What companies are examples of marketing orientation and why?
module essays
module essays
sales orientation whatever an organization puts together a very skilled sales force and their job is simply to move products-- they sell.
which marketing management philosophy is this? This occurs when a company is not concerned about how the product is created; rather, its focus lies in assembling a skilled and highly trained sales force whose job it is to move these products.
sustainable competitive advantage
A _______________________ is one that cannot be copied by the competition. For example, Amazon is the undisputed leader of online retailing. The company has achieved sustainable competitive advantage through its ability to offer the lowest prices, the widest variety of products, and a well-developed, efficient delivery network. In addition, Amazon has a massive number of users with credit cards on file, making the purchase process quick and easy for customers
product/service differentiation competitive advantage
A _____________________________ exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition. Examples include brand names (Lexus), a strong dealer network (Caterpillar for construction work), product reliability (Maytag appliances), image (Neiman Marcus in retailing), or service (Zappos).
niche competitive advantage
A ______________________________ seeks to target and effectively serve a single segment of the market (see Chapter 8). For small companies with limited resources that potentially face giant competitors, niche targeting may be the only viable option. A market segment that has good growth potential but is not crucial to the success of major competitors is a good candidate
D
A marketing strategy that entails attrating new customers to existing products is: A. market management B. Market orientation C. market opportunity D. market Development
-A distinct mission and a specific target market -Control over its resources -Its own competitors -A single business or a collection of related businesses -Plans independent of the other SBUs in the total organization.
Each SBU has its own rate of return on investment, growth potential, and associated risks and requires its own strategies and funding. When properly created, an SBU has the following characteristics:
extent of ethical problems within the organization top management actions on ethics porential magnitude of the consequences social consensus probability of a harmful outcome length of time between the decion and the onset of consequences number of people to be affected
Ethical questions rarely have cut-and-dried answers. Studies show that the following factors tend to influence ethical decision making and judgments: (7)
Comprehensive (covers all major issues) Systematic (takes place in orderly sequence) Independent (conducted by inside/outside independent party) Periodic (carried on regular schedule)
Four characteristics of a marketing audit:
social control
Have you ever stopped to think about the social glue that binds society together? That is, what factors keep people and organizations from running amok and doing harm, and what factors create order in a society like ours? The answer lies in __________, defined as any means used to maintain behavioral norms and regulate conflict
production orientation sales orientation marketing orientation societal orientation
what are the 4 marketing management philosophies?
there will be devastating effects on: financial overall brand of a company overall reputation of a company, overall success of a company.
what are the results of failing to include ethics in a company?(4)
ethical decision making
what is at the heart of all of business, and for sure, in the heart of marketing?
-is being able to satisfy the customers' needs and wants -and give them something better than the competition -and achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly
what is the concept of marketing? (3)
Sales Orientation
what philosophy orientation is in this scenario? Automobile Industry While the vehicle itself is often built according to market orientation, vehicle parts and mechanical services are sales oriented. Consumers require sales people to provide information and to understand their needs. Ultimately, the knowledge on the parts and mechanical side primarily drives the sales of parts and services.
sales orientation
what philosophy orientation is in this scenario? Business-to-business sales. Companies develop products that may benefit a business and then rely heavily upon aggressive marketing tactics to sell them. Examples of products sold in this type of market can include advertising sales or technologies such as point-of-sale software and machinery that will allow the business to run more efficiently and profitably. Chances are the business owner was not initially looking for the product, but bought it because the salesperson showed him some benefit to buying it.
Ansoff's strategic opportunity matrix (matches products with markets) the Boston Consulting Group model, and the General Electric model
Several tools are available that a company, or SBU, can use to manage the strategic direction of its portfolio of businesses. Three of the most commonly used tools are ______________________________________________. Selecting which strategic alternative to pursue depends on which of two philosophies a company maintains about when to expect profits—right away or after increasing market share. In the long run, market share and profitability are compatible goals.
34 29
Some _____ percent of consumers tell others when they perceive a brand to be making ethical actions or actions that are honest, fair, and responsible, and another ____ percent take to social media to share their support for ethical companies
"everybody" or "the average customer."
Who is a sales oriented organization targeting its products to?
because sales orientation reminds the company that personal selling is ongoing and critical to the overall brand of a company.
Why are sales representative's personal brand critical to the brand of sales orientation companies?
allows you to examine the marketing environment in conjunction with the inner workings of the business. Once the marketing plan is written, it serves as a reference point for the success of future activities. Finally, the marketing plan allows the marketing manager to enter the marketplace with an awareness of possibilities and problems. Recent research with entrepreneurs over a six-year period has shown that those who had written marketing plans were 16% more likely to achieve visibility those who had no written plan
Why write a marketing Plan?
1. there needs to be at least two parties 2. each party has something of value that the other party might want. 3. each party needs to be capable of communicating what they want and delivering the product or service. 4. The persuasive nature of marketing comes into play, where each party is able to accept or reject the exchange offer. 5. to show the importance of relationships, each party desires to deal with the other person.
a key goal of marketing is offering an exchange. what are the several conditions for an exchange to occur? (5) Note: exchange will not necissarly take place if these conditions exist, but they must exist for exchange to be possible
D
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customers decision to purchase a product; it is synonymous with the marketing concept. This strategy focuses on the customer and satifying the customers needs and wants. A. sales orientation B. societal marketing orientation C. production orientation D. market orientation
problem children
also called a question mark, shows rapid growth but poor profit margins. It has a low market share in a high-growth industry. Problem children need a great deal of cash. Without cash support, they eventually become dogs. The strategy options are to invest heavily to gain better market share, acquire competitors to get the necessary market share, or drop the SBU. Sometimes a firm can reposition the products of the SBU to move them into the star category.
behavioral norms
are standards of proper or acceptable behavior. Social control is part of your life at every level, from your family to your local community, to the nation, to the global civilization.
morals
are the rules people develop as a result of cultural values and norms. Culture is a socializing force that dictates what is right and wrong. Moral standards may also reflect the laws and regulations that affect social and economic behavior. Thus, morals can be considered a foundation of ethical behavior.
their failure to understand the critical importance of business ethics and their ethical responsibilities as a company
companies work to develop valuable and meaningful products and services, why can their brand be easily destroyed?
casuist ethical theory
compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. This allows one to determine the severity of the situation and to create the best possible solution according to others' experiences.
Corporate Social Responsibility (CSR)
has an over-arching impact on each of these philosophies. Corporate leadership must be aware of the impact CSR has on its company, its, brand, its reputation, its customers, and society overall.
ethics laws formal and informal groups self regulation the media an active civil society
6 modes of social control important to marketing:
B
A strategy of increasing sales by introducing new products into new markets is called: A. Market Penetration B. Diversification C. Market Share expansion D. Escalation
evaluation
After a marketing plan is implemented _______________ entails gauging the extent to which marketing objectives have been achieved during the specified time period. Four common reasons for failing to achieve a marketing objective are unrealistic marketing objectives, inappropriate marketing strategies in the plan, poor implementation, and changes in the environment after the objective was specified and the strategy was implemented.
Build Hold Harvest Divest
After classifying the company's SBUs in the matrix, the next step is to allocate future resources for each. The four basic strategies are to:
the role of training
Atlantic Health System is a company that was voted one of America's Best Companies to Work For in 2017. Employees are offered free courses—many for college credit. There are classes in clinical and nonclinical care, technology, management, leadership, and customer experience, among others. These classes help spark innovation and engagement within the company
marketing myopia
Business mission statements that are stated too narrowly suffer from _____________________—defining a business in terms of goods and services rather than in terms of the benefits customers seek
cost competitive advantage govt. subsidies product design product innovations new methods of service delivery
Having a ________________________ means being the low-cost competitor in an industry while maintaining satisfactory profit margins. Costs can be reduced in a variety of ways: (4)
empowerment
In addition to training, many market-oriented firms are giving employees more authority to solve customer problems on the spot. The term used to describe this delegation of authority is
Yes 1. at least two parties are involved 2. each party has something of value to offer (car and people took up offer to pay the price) 3. each party is capable of communication & delivery (call you) 4. party is free to accept/reject exchange offer (test drive & since there is more than one offer the seller will have to reject one) 5. each party believes its desirable to deal with the other party (placing the advertisement & people taking up offer)
In this scenario, are the 5 conditions met for an exchange to occur? suppose you place an advertisement in your local newspaper stating that your used automobile is for sale at a certain price. Several people may call you to ask about the car; some may test-drive it; and one or more may even make you an offer.
No they never sold the car
In this scenario, are the 5 conditions met for an exchange to occur? suppose you place an advertisement in your local newspaper stating that your used automobile is for sale at a certain price. Several people may call you to ask about the car; some may test-drive it; and one or more may even make you an offer. However, the seller never reached an agreement with any of the buyers and never sold the car.
SWOT analysis
Marketers must understand the current and potential environment in which the product or service will be marketed. A situation analysis is sometimes referred to as a __________________—that is, the firm should identify its internal strengths (S) and weaknesses (W) and also examine external opportunities (O) and threats (T).
Realistic (objectives should have a chance to be met) Measurable (able to quantitativley measure if the objective is met) Time Specific (what time the objective is met) Compared to a benchmark (the baseline against which the objective will be measured)
Marketing objectives should be: (4)
Control
Once a plan is chosen and implemented, its effectiveness must be monitored. ___________ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines. Firms need to establish formal and informal control programs to make the entire operation more efficient.
A
People giving up something in order to receive something else they would rather have is called: A. exchange B. strategic plan C. market transaction D. business objective
competitive advantage cost, product/service differentiation, and niche
Performing a SWOT analysis allows firms to identify their ___________________ - is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition. It is the factor or factors that cause customers to patronize a firm and not the competition. There are three types: __________________________
marketing audit
Perhaps the broadest control device available to marketing managers is the ______________—a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization. A marketing audit helps management allocate marketing resources efficiently.
pricing strategy
Price is what a buyer must give up in order to obtain a product. It is often the most flexible of the four Ps—the element quickest to change. Marketers can raise or lower prices more frequently and easily than they can change other marketing mix variables.
core innovations
Represented by the yellow circle in Exhibit 2.2, these decisions implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands. Blue Apron, the meal kit company, is starting to sell its kits in physical stores, in addition to its subscription online model. This strategy should help the company reach more customers as its growth slows.
(1) What is the organization's main activity at a particular time? (2) How will it reach its goals?
Strategic marketing management addresses two questions:
firm's long-run resource allocation, profitability, and survival.
The foundation of any marketing plan is the firm's mission statement, which answers the question "What business are we in?" The way a firm defines its business mission profoundly affects the _________________________________________ (3)
product strategy
The heart of the marketing mix, the starting point, is the product offering and product strategy. It is hard to design a place strategy, decide on a promotion campaign, or set a price without knowing the product to be marketed. Products can be tangible goods such as computers, ideas like those offered by a consultant, or services such as medical care.
market opportunity analysis (MOA)
The target market strategy identifies the market segment or segments on which to focus. This process begins with a _______________________—the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
marketing mix
The term ____________________ refers to a unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market.
2.8, 3.8
U.S. companies chosen as the top places to work by employees outperformed the stock market by _____ to _____ points per year, no matter what the broader economic conditions.*
D
What is the goal of strategic planning? A. financial success B. Environmental friendly community work C. consumer and company relationships D. Long run profitability and growth
marketing by advertising Notice that marketing can occur even if an exchange does not occur. In the example just discussed, you would have engaged in marketing by advertising in the local newspaper, even if no one bought your used automobile.
What kind of marketing occurs in this scenario? suppose you place an advertisement in your local newspaper stating that your used automobile is for sale at a certain price. Several people may call you to ask about the car; some may test-drive it; and one or more may even make you an offer. However, the seller never reached an agreement with any of the buyers and never sold the car.
marketing A market-oriented organization carefully analyzes the market and divides it into groups of people who are fairly similar in terms of selected characteristics. Then the organization develops marketing programs that will bring about mutually satisfying exchanges with one or more of those groups.
What kind of orientation (sales or marketing) is this scenario describing? the 116-year-old department store chain Nordstrom has introduced initiatives to attract millennial shoppers, who typically avoid department stores. These include themed pop-up shops, shop-in-shops featuring new fashion designers, and Nike concept shops
marketing management philosophy
When analyzing how a company might operate, it is important to consider what type of ____________ It helps the company to understand more clearly their focus and how to accomplish its goals.
A
Which of the following factors tends to influence ethical decion making and judgement? A. top-managment actions on ethics B. inability to use celebrity endorsements C. loss of corporate sponsorships D. potential for lost revenue
aims at specific groups of people.
Who is a market oriented organization targeting its products to?
dog
has low growth potential and a small market share. Most dogs eventually leave the marketplace. In the computer manufacturer example, the mainframe computer has become a dog. Another example is BlackBerry's smartphone line, which started out as a star for its manufacturer in the United States. Over time, the BlackBerry moved into the cash cow category, and then more recently, to a question mark, as the iPhone and Android-based phones captured market share.
J.D. Power and Associates
in 2018, _________________ ranked Infiniti highest in customer satisfaction with dealer service among luxury automotive brands, while Buick ranked highest among mass-market brands.* Rankings such as these, as well as word-of-mouth from satisfied customers, drive additional sales for these automotive companies.
promotion strategy
includes advertising, public relations, sales promotion, and personal selling. Promotion's role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product.
Marketing planning
involves designing activities relating to marketing objectives and the changing marketing environment. Marketing planning is the basis for all marketing strategies and decisions. Issues such as product lines, distribution channels, marketing communications, and pricing are all delineated in the marketing plan.
marketing strategy
involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
moral relativism of ethical theory
is a belief in time-and-place ethics, that is, the truth of a moral judgment is relative to the judging person or group. According to a moral relativist, for example, arson is not always wrong—if you live in a neighborhood where drug dealers are operating a crystal meth lab or crack house, committing arson by burning down the meth lab may be ethically justified
Customer Relationship Management (CRM) companies that adopt this are always market oriented
is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is accomplished by organizing the company around customer segments, establishing and tracking customer interactions with the company, fostering customer-satisfying behaviors, and linking all processes of the company from its customers through its suppliers.
star
is a fast-growing market leader. For example, the iPad is one of Apple's stars. Star SBUs usually have large profits but need lots of cash to finance rapid growth. The best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion, and production efficiency. Management must capture new users as they enter the market.
strategic planning
is a managerial process whose main objective is the long term success and profitability of a company.
marketing objective
is a statement of what is to be accomplished through marketing activities. Ex: for Purina might be "to increase sales of Purina brand cat food between January 1, 2020, and December 31, 2020, by 15 percent, compared to 2019 sales of $300 million." objectives flow from the business mission statement to the rest of the marketing plan.
diversification strategy
is a strategy of increasing sales by introducing new products into new markets. For example, Lego is teaming up with one of China's biggest technology firms, Tencent, to create online games for Chinese children to take advantage of the technology shifts that are changing how children play. There has been increasing competition in the traditional toy market from growing digital options for children, including mobile games, online videos, and children-targeted social media
relationship marketing
is a strategy that focuses on keeping and improving relationships with current customers. It assumes that many consumers and business customers prefer to have an ongoing relationship with one organization rather than switch continually among providers in their search for value. Ex: Activision, a leading publisher of the U.S. video game market, engages in relationship marketing by providing continued service to its gamers. For example, Activision monitors social media conversations that are relevant to its products and follows up on those conversations.*
Marketing Plan
is a written document that acts as a guidebook of marketing activities for the marketing manager.
cash cow For example, Apple's iPhone and Google's search engine are cash cows for their companies.
is an SBU that generates more cash than it needs to maintain its market share. It is in a low-growth market, but the product has a dominant market share. Personal computers and laptops are categorized as cash cows in Exhibit 2.3. The basic strategy for a cash cow is to maintain market dominance by being the price leader and making technological improvements in the product.
utilitarian ethical theory
is founded on the ability to predict the consequences of an action. To a utilitarian, the choice that yields the greatest benefit to the most people is the choice that is ethically correct.
on demand marketing
is taking CRM to a new level. As technology evolves and becomes more sophisticated, consumer expectations of their decision- and buying-related experiences have risen. Consumers (1) want to interact anywhere, anytime; (2) want to do new things with varied kinds of information in ways that create value; (3) expect data stored about them to be targeted specifically to their needs or to personalize their experiences; and (4) expect all interactions with a company to be easy.
marketing
is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.*
big data
is the discovery, interpretation, and communication of meaningful patterns in data. For example, Sweetgreen Inc. is a California-based salad chain that uses a mobile app to gather data on their guests' allergies and tastes. When guests place mobile orders, they are asked to select from a list of dietary restrictions that includes soy, nuts, and gluten. Selections cause menu items containing those ingredients to be flagged with a red asterisk so the guests know to avoid them. These selections are saved for future orders and give the company detailed data on what their guests' like and why. These insights can then be used to shape future menus.
Planning
is the process of anticipating future events and determining strategies to achieve organizational objectives in the future.
implementation
is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives. activities may involve detailed job assignments, activity descriptions, time lines, budgets, and lots of communication. requires delegating authority and responsibility, determining a time frame for completing tasks, and allocating resources.
market development
means attracting new customers to existing products. Ideally, new uses for old products stimulate additional sales among existing customers while also bringing in new buyers. McDonald's, for example, has opened restaurants in Russia, China, and Italy and is eagerly expanding into Eastern European countries. In the nonprofit arena, the growing emphasis on continuing education and executive development by colleges and universities is a market development strategy.
A code of ethics helps employees identify what their firm recognizes as acceptable business practices. A code of ethics can be an effective internal control of behavior, which is more desirable than external controls such as government regulation. A written code helps employees avoid confusion when determining whether their decisions are ethical. The process of formulating the code of ethics facilitates discussion among employees about what is right and wrong and ultimately leads to better decisions.
ompanies of various sizes have developed a code of ethics as a guideline to help marketing managers and other employees make better decisions. Creating ethics guidelines has several advantages: (4)
exchange
people giving up something in order to receive something else they would rather have. normally the medium is money, however money is not required. mediums can be items such as baseball cards or oil paintings.
quiz
quiz
deontological theory of ethics
states that people should adhere to their obligations and duties when analyzing an ethical dilemma. This means that a person will follow his or her obligations to another individual or society because upholding one's duty is what is considered ethically correct. For instance, a deontologist will always keep his promises to a friend and will follow the law.
Place (Distribution) Strategy
strategies are concerned with making products available when and where customers want them. Would you rather buy a kiwi fruit at the 24-hour grocery store within walking distance or fly to Australia to pick your own? A part of this P—place—is physical distribution, which involves all the business activities concerned with storing and transporting raw materials or finished products. The goal is to make sure products arrive in usable condition at designated places when needed.
product development strategy
strategy entails the creation of new products for present markets. Yogurt maker Danone (formerly, Dannon) is adding milk-free products to its yogurt line, as well as boosting vegan brands such as Silk. The company has acquired the world's biggest plant-based "milk" producer, WhiteWave Foods, which positions it to better serve the rising interest in vegan products by consumers, especially millennials.*
textbook ch 1
textbook ch 1
1. The first, and most basic, need is functional. Consumers look for products that save time, reduce risk, reduce effort, or help them organize. The Container Store and TurboTax are examples of retailers that help consumers organize their things/assets. 2. Emotional. This includes attributes such as meeting needs, including reducing anxiety, good product design and aesthetics, fun and entertainment, and wellness. Apple is an example of good product design that is satisfying to consumers. Television service providers offer fun and entertainment. 3. Life-Changing. Providing hope, motivation, and a feeling of belonging and self-actualization. Fitbit's exercise-tracking programs address the motivation to get healthier. A $10,000 Leica camera offers not only the high quality of the brand, but also self-actualization that arises from the pride of owning a camera that famous photographers have used for a century. 4. Social Impact. Meeting the need for giving back and helping others, which translates into self-transcendence. Giving to nonprofit organizations like United Way or cancer research foundations are examples of social impact.
the 4 elements of value:
enviromental scanning
the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. helps identify market opportunities and threats and provides guidelines for the design of marketing strategy.
Customer Value
the relationship between benefits and the sacrifice necessary to obtain those benefits
strategic decisions these decisions have affected or will affect each organization's long-run course, its allocation of resources, and ultimately its financial success.
this is an example of? Furniture retailer West Elm wanted to sustain growth without opening too many new stores. Thinking outside the box, the company decided to launch a chain of boutique hotels that it would design, furnish, and market. Partner DDK, a management and development company, would operate the hotels, but the interiors would be all West Elm. Guests, of course, could purchase the room furniture and decor online.
mission statement Patagonia's mission statement combines both the values that bring them market success (building safe, high-quality products) and the values that contribute to a better world (philanthropic efforts to help the environment).
this is an example of? Patagonia: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis."
failure of strategic planning
this is an example of? cereal companies were slow to adapt using less sugar in their products and this subsequently led to a loss in market share and a shift in purchase behavior of families and their children.
Investing in societal orientation it has reached such an important level that companies might be harming their brand and their relationship with customers if they are not involved in some form of a societal orientation.
this is an example of? companies that are using plastic bottles or straws are now reconsidering how this might be harmful to the environment and how they might have to adjust their strategy for using these products.
production orientation there is, however, a possible mistake often made in the production orientation. In an effort to maximize production and efficiency, the company may not have considered the market for its product(s).
this is an example of? fast-food restaurants focus on making large quantities every day at a low cost. If involved in this type of restaurant business, the company is more concerned with quantity and how it can save money while selling high volumes of products. It strives to have a good product but not a premium product.
market orinetion
what philosophy orientation is in this scenario? Harley-Davidson's current and prospective riders told the company's Customer Insights and Analytics division that they wanted the bikes to be lighter and more powerful and to handle and corner better. The company responded by creating the Softail line of bikes, which offer bigger engines and new frames that are stronger, stiffer, and lighter than on the 2017 models. Some bikes are as much as 35 pounds lighter than previous models. Many of the new bikes also have improved lean angles, which allow for better cornering.*
Sales Orientation
what philosophy orientation is in this scenario? In the insurance industry, companies create the products and then sell them through representatives, advertising, and other sales techniques. Insurance policies are not influenced by consumer input or demand. Insurance is a product that most consumers feel is necessary, and it requires a sales orientation to educate and drive purchases from consumers. While consumers do shop rates, the business of auto, home, health, and other policies are driven by a sales orientation.
production orientation philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
what philosophy orientation is in this scenario? most traditional furniture stores (think Ashley or Haverty's) carry the same styles and varieties of furniture that they have carried for many years. They always produce and stock sofas, coffee tables, arm chairs, and end tables for the living room. Master bedroom suites always include at least a queen- or king-sized bed, two dressers, and two side tables. Regardless of what customers may actually be looking for, this is what they will find at these stores—and they have been so long-lived because what they produce has matched up with customer expectations
social orientation is basically the marketing orientation, satisfying the customers' needs and wants and giving them something they want, but doing it while keeping our society safe by being good to the environment, and while being good to others.
which marketing management philosophy is this? This occurs when a company adopts a marketing orientation and they also want to be seen as genuinely good public citizens who protect the environment. By embracing and supporting this philosophy, companies can build goodwill with communities and society while also achieving their business goals.
production orientation what a company does best without considering whether there is a market
which marketing management philosophy is this? This occurs when a company looks inward at what it does best and then produces that product. The company is very good at what it is able to produce, the quality of the production, and the efficiency of the production. The company is usually focused on large volume and efficiency of production.
marketing orientation
which marketing management philosophy is this? This occurs when the company gives customers what they want and does it better than the competition. This strategy focuses on the customer and satisfying the customer's needs and wants.
manufacturers and retailers consumers and business
who is in charge? The Internet and the widespread use of social media have accelerated the shift in power from _____________ to _______________ users. This shift began when customers started using books, electronics, and the Internet to access information, goods, and services. Customers use their widespread knowledge to shop smarter; leading executives such as former Procter & Gamble CEO A. G. Laffey to conclude that "the customer is boss."*
bc of failure to strategically plan they were sensational during their day, but yet didn't change their strategy, didn't adapt to the changing environment
why did Blackberry and Kodak fail?
because it is a managerial process whose main objective is the long term success and profitability of a company.
why is there a need to continually strategic plan and decision make?
