GB 350 FINAL EXAM-- OLE MISS CASICO FALL 2022

adoption

"onboarding" new customers by educating them about how to use the product/service; offering an easy return process for dissatisfied customers example: bought a 2021 Lincoln used to having a 2007 car-- had to figure out how to use seat warmers

WHEN PROPERLY CREATED, AN SBU HAS THE FOLLOWING CHARACTERISTICS

- a distinct mission and a specific target market - control over its resources - its own competitor - A single business or a collection of related business example: cocoa cola spain/ cocoa cola US

production-oriented firms survive if

- competition is week - demand exceeds supply

self-regulation

- foster consumer trust and confidence( we go beyond what's required because its in society best interest) example: reddit--- alcohol advertising policy prohibits - avoid future legal intervention( just because you're not legally troubled today doesn't mean you won't be in the future) example: FTC orders credit karma to pay 3 million in penalties and stop reapproved credit card claims after finding that 1/3 of applicants were denied prior to April 2021 - doesn't edit reviews - misleading endorsers

Government Regulation

- give businesses framework to grow and prosper - can produce fairer outcomes - can overburden businesses, making it difficult to operate example : July 2022 _ Russia urkraine grain agreement - reportedly to allow Black Sea exports resuming - blockade since Feb 22

exchange example

- hard to cancel a subscription - Sephora fined 1.2 m for not disclosing sale of customer data - capable of making decision- age -value -- going to class-- what to gain

implementing actions to provide value to customers

- internal marketing and effective employee training - happy employees = happy customers example:Dyrt founder--sent employees too see what they wanted to add to the campsite for the customers

market orientation

- obtaining information about customers(micro) , competitors(micro) , and markets (macro what really matters? AB inbev( beer maker) invest in dating app --- serve intentional daters

demographics

- population growth -population density - age trends - house hold income( gin-- japananese middle class in India) - house hold status - gender

Cash Cows (BCG Matrix)

-(lower left quadrant) are in low-growth markets but are high market share products -these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it. EX: the firm may decided to use the excess resources generated by the cash cow Brand to fund products in the question mark quadrant. - example jeep wrangler

those to whom the product is directed

-A sales-oriented organization targets its products at "everybody" or "the average customer." example; Walmart -A market-oriented organization aims at specific groups of people. -Customer relationship management

CRM is accomplished by

-Organizing the company around customer segments -Establishing and tracking customer interactions with the company. -Fostering customer-satisfying behaviors -Linking all processes of the company from its customers through its suppliers

culture

-common values - roles and status positions( age = authority in Japanese business) - societal structure -preferences -language( holiday(BR) vs vacation ( US) customer and traditions - do not promote alcohol on Buddhist holidays

why study marketing

1. Important to society 2. Important to business 3. Good career opportunities

the marketing plan-- components

1. business mission statement 2. situation, swot analysis 3. objectives 4. marketing strategy-- target market strategy-- marketing mix: product place, promotion, price 5. implementation evaluation control

marketing plan components

1. mission statement 2. SWOT analysis-- strengths, weaknesses, opportunities, and threats

sales and market orientation can be compared in terms of five characteristics

1. the organization's focus 2. the firm's business 3. those to whom the product is directed 4. the firm's primary focus 5. the tools used to achieve the organization goals

An exchange can take place only if the following five conditions exist:

1. there must be at least parties 2. each party has something that might be of value to the other party 3. terms of the exchange are appropriately communicated and received by each party 4. each party is free to accept or reject the exchange offer 5. each party believes it is appropriated or desirable to deal with the other party

5-3 EXTERNAL ENVIRONMENT FACED BY GLOBAL MARKETERS

A GLOBAL MARKETER OR A FORM CONSIDERING GLOBAL MARKETING MUST CONSIDER KEY FACTORS - CULTURE - ECONOMIC DEVLEOPMENT - THE GLOBAL - THE GLOBAL ECONOMY - POLITICAL STRUCTURE AND ACTIONS - DEMOGRAPHIC MAKEUP NATURAL RESOURCES

the firm's primary goal

A sales-oriented organization seeks to achieve profitability through sales volume and tries to convince potential customers to buy, even if the seller knows that the customer and product are mismatched. the ultimate goal of most market-oriented organizations is to be "profitable" - creating customer value - providing customer satisfaction - building long-term relations with customers

FORMULA

C( CONSUMER SPENDING) + G ( GOVERNMENT SPENDING) + I (BUISNESS INVESTMENT) + E (EXPORTS $) - IM(IMPORTS$)

TRADE SURPLUS

EXPORTS> IMPORTS( SELLING MORE $ THAN YOURE SPENDING)

TRADE DEFICIT

IMPORTS > EXPORTS( SPENDING MORE $ THAN YOURE SELLING)

CSR

IS GOOD FOR BUSINESS

US GOVERNMENT'S BIGGEST LENDERS

JAPAN CHINA UK

entering the global marketplace

LOW RISK/ LOW RETURN: 1. exporting-- example: regulator(makes boats) 2. licensing/franchising -- example: Taco Bell 3. contract manufacturing-- example: fox and robin 4. joint venture-- example : Mercedes Benz and Vivian directed investment--- example: Walmart

B Corps (benefit corporations)

MAKE IT LEGAL TO BALANCE ECONOMICAL, SOCIETAL , AND ECONOMIC GOAL EXAMPLE; PATAGONA

STRATEGIC BUSINESS EXAMPLE

PARSONS

marketing mix

Product, Price, Place, Promotion

marketing management philosophies

Production, Sales, Market, Societal marketing

Marketing Myopia Example

Railroad companies saw themselves as in the railroad business not the transportation business and were blindsided by other competitors

Problem child (question mark) (BCG Matrix)

Show rapid growth but poor profit margins - example : dollar menu

sustainability theory

Socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time

government structure

Spectrum from no private ownership and minimal individual freedom to little central government and maximum personal freedom

Why write a marketing plan?

Writing a marketing plan allows you to examine the marketing environment in conjunction with the inner workings of the business. seeking investors

Corporate Social Responsibility

a business's concern for society's welfare

Customer Relationship Management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

code of ethics

a guideline to help marketing managers and other employees make better decisions example: EMERALD PACKAGING CEO-- "Stay home" if youre sick example:manager leaves computer unlocked against rules

Foreign Corrupt Practices Act (FCPA)

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

production orientation

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

competitive advantage

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

STRATEGIC BUSINESS UNITS

a subgroup of a single business or collection of related businesses within the larger organization

the marketing plan

a written document that acts as a guidebook of marketing activities for the marketing manager

marketing 4 points

adoption, retention, expansion, advocacy

SALES

aggressive sales techniques and belief that high sales result in high profits example: unkept promises and misleading information make these the worst TIMESHARE COMPANIES, according to this article EXAMPLE; WELLSFARGO

Marketing balance

balances 2 equally important goals through long term, mutually rewarding relationships with customers: between exchange value and meet organizational objectives

product orientation example

cable tv - over 60 m consumers no longer use cable

Conscious consumerism:

contributing to socially responsible causes through purchases from socially responsible organizations ( toms, amazon smile--percentage from my purchases go to charity)

strategic alternatives: innovation matrix

core innovation, adjacent innovation, and transformational innovation

Three types of competitive advantage

cost, product/service differentiation, niche

retention

delivering such a great experience that the customer comes back when the need arises again; making it easy to come back example Kothari :diaper company gives a certain percentage off - reach out to customers

Bracketing

e commerce customers order different sizes /colors of fashion items with the intention of returning at least one alternative

what does good marketing do?

entails processes that focus on delivering value and benefits to customers, not just selling products and services

tradeblock

example of marketing: - sneaker-trading app - they launched in 2020 balancing the marketing goals

understanding "exchange" from a marketing standpoint

exchange- people giving up something in order to receive something else they would rather have

market orientation

focusing on customer wants and needs ( benefits instead of product features) so that the organization can distinguish its product(s) from competitors offerings

example of strategic planning

glossier: tried new things like bags - received bad backlash bc they tried new things - PROBLEMS: - LACK OF WHO WE ARE AND WHO WE SERVE - TRYING TO BE TECH AND BEAUTY AND NOT JUST BEAUTY

present market- product development

goal - develop new offerings to create values for existing customers example - instacart :big and bulky: expand with other businesses -- go beyond just groceries

present market- market penetration

goal - increase wallet share of existing offerings among existing customers example: über one-- give discounts to customers

new market- market developement

goal : attract new customers to existing offerings example: lens crafters the summit-- opening a new one up in a new location

new market- diversification

goal- develop new offerings to create value for new markets example: Lowe's and petco developing a new service

political structure

government structure and government regulations

advocacy

having a mechanism in place that allows happy customers to sing your praises example : product review-- earn points toward purchases

ESG MARKETING

integrating egg(environmental, social, and governance) values into the organization and marketing strategy example: sustainable diapers vs pampers diapers

production

internal capabilities of the firm example: bed bath and beyond faces uncertain future after former CEO pushed rapid launch of private labels LIKE TARGET ( financial issues) with selling NOT GIVING THEIR CUSTOMERS TO COME TO THE STORE

Stars

is a fast-growing market leader. example: the cyber security training market is currently worth around $1b and experts expect that number to reach around $10b annually by 2027 example:cengage

absolute quota

limits the amount of a good allowed into the country to some specific quantity US 2022 beef import quota

Dog (BCG Matrix)

low growth, low market share example: reebok

the organization focus

market orientation- focusing on building long term relationships through - customer - oriented personel -effective training programs - empowered employees with the authority to make decisions and solve problems( phone call example) - teamwork sales orientation: focus on short term transactions form immediate sales volume

GLOBAL MARKETING

marketing that targets markets throughout the world

Tariff Rate Quota

maximum number of products that can be imported at a reduced tariff example: Us 2021- tuna in airtight container imports

expansion

offering other products/services that existing customers might need example: transition from regular diaper to pull up diaper

gray/grey markets

practice of selling and distributing products outside of normal distribution channels example Nikon

Strategic alternative: Ansoff Matrix

present market and new market

greenwashing

promoting your brand as greener than it is example: gerber--nonGMO LABELING IS MISLEADING

primary tool for exchanging value

promotion

GLOBAL VISION

recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets

Dumping

sale of an exported product at a lower price than that charged for a similar product in the home market of the exporter example: company in Brazil --- molding/woodwork-- change the price for different countries-- the need for what I have

the firm's business

sales oriented - defines its business ( or mission) in terms of good and services - market oriented- defines its business in terms of the benefits its customer seek - wants and needs can change over time ADVANTAGES: 1. ensures that the firm focuses on providing solutions to customer needs instead of getting people to buy 2. reinforces the idea that different customer segments may desire different benefits from the same general product 3. stimulates an awareness of changes in customer desires and preferences so that product offerings are more likely to remain revelevant

the primary tools used

sales oriented-promotion market-oriented- an effective combination of product, price , distribution(place), and promotion

societal marketing

satisfying customer wants and need while enhancing individual and societal well - being example: better place brands-- donates 20% of all coffee/ apparel sales to namesake breed rescues

MARKET

satisfying customer wants and needs while meeting organizational objectives EXAMPLE: BAMA BEER LINES- educates on how to clean beer lines to satisfy customers

so the environment is

stakeholder

strategic alternatives: BCG matrix

stars cash cows problem children dog

the goal of the swot analysis is to determine a _____ competent advantage , which cannot be copier by competition

sustainable

political structures part 2`

tariff( a tax levied on the good entering a country--- US and EU--- US exports to EU dropped 37%) embargo/boycott, market grouping

marketing

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

market orientation and the total business perspective

the baldridge performant excellence framework - focuses on a total business perspective - comes from the business core values MID AMERICA TRANSPLANT: 2021 nonprofit baldric winner profile

sales orientation

the belief that aggressive promotion techniques result in high sales, which result in high profits, short term exchanges will be sufficient for long term success - signed contract that she regret

BALANCE OF TRADE

the difference between a country's total exports and total imports

embargo/boycott,

the exclusion of all products from certain countries/companies -example - Japan extends embargo on all imports and exports to North Korea through 2023

company culture

the invisible set of rules which guides behavior inside a company and therefore its the foundation which business results rest on

why is strategic planning so important

the ongoing managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunties GOALS: long term profitability and growth

marketing myopia

the perspective of marketing as selling products and services;

GROSS domestic product

the total market value of final economic output for a country for a given period

adjacent innovation

these decisions are designed to take company strengths into new markets example: snoop's dog broader foods partnership with master p launches snoop loopz another example: botox-- prevent wrinkles (at first)--now treats migraine-- can paralyze teeth to stop grinding on teeth -all bay example: seasoning to hot sauce

core innovation

these decisions implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands example: impossible foods-- reformulates to have less fat than beef

transformational innovation

these decisions result in brand-new markets, products, and often new businesses example: WOW CUBE: integrated technology gaming device aimed at gamers of all ages example: Apple products

SOCIETAL MARKETING ORIENTATION

two obstacles may face: - meeting customer performance expectation example: eco friendly-- blue land's cleaners -justifying priemium prices - kothara diaper example - buying oil from one place may be more expensive because of how healthy it is to the world

Ethnocentrism

viewing outside others and their cultural traditional through the lens of our own culture example:chef jamie hires cultural appropriation specialist team to vet recipe names and descriptions