Marketing Exam

Product/ Market expansion grid

a tool for identifying company growth opportunities through marketing penetration, market development, product development, or diversification.

Market positioning

is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer. exs: m&ms, american airlines, mercedes-benz.

strategic planning

is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Marketing 4Ps

is the set of controllable tactical marketing tools- product, price, place, and promotion-that the firm blends to produce the response it wants in the target market. 1) product: the goods and services in combination offering to the target market. 2) price: the amount of money customers have to paid to obtain the product. 3) Place: the company activities that make the product available to target customers. 4) promotion: the activities that communicate the merits of the products and persuade target customers to buy it.

market targeting

it is the step 4 of customer driven marketing strategy. Target marketing is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. EX: tampaz, ciggrettes, and ferrari.

business portfolio

the collection of businesses and producs that make up the company. Ex. calvin klein, disney

Marketing Planning

the development of strategic and marketing plan to achieve company objectives. Sections of a marketing plann include: 1) executive summary, 2)current marketing situation 3) threats and opportunities 4) objective and issues. 5) action programs 6) budgets 7) controls.

Market Segmentation

the division of a market into distinct group of buyers who have disti needs, characteristics, or behaviors and who might require separate products or marketing mixes. For ex. Diving a market into small homogeneous groups.

Marketing analysis

1st step of marketing management. it is the complete analysis of the company's situation iin a SWOT analysis that evaluates the company's: Strengths, Weaknesses, Opportunities, Threats.

6 publics (micro)

any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. 1) financial publics: banks, financial firms and etc. 2) media publics: newspaper, tv, radio,etc. 3) govt's publics: cpsc-product safety, 4) citizen-action publics: i.e. M.A.D.D 5) local publics: neighborhood groups 6) general public-consumers 7) internal public-employees etc.

1 company (micro)

comps internal environment includes: 1) top management 2) Finance 3) R&D 4) Purchasing 5) operation 6) accounting

Macroenvironment

consist of larger societal forces that affect the microenvironment. Micro has to adapt to change. 6 elements in macro are: demographic, natural, political, economic, technological and cultural.

2 economic environment

consists of factors that affect consumer purchasing power and spending patterns.

4 customer market (micro)

consists of individuals and households that buy goods and services for personal consumption. Ex: all of us. Business markets: buy goods and services of further processing or for use in their production services.

6 cultural environment

consists of institutions and other forces that affect a society's basic values, perceptions and behaviors.

5 political environment

consists of laws, gove't agency, and pressure groups that influence or limit various organizations and individuals in a given society.

Microenvironment

consists of the actors close to the company that affect its ability to serve its customers, the comp, suppliers, marketing intermediaries, customer markets, competitors and publics.

core and secondary belief of cultural environment

core beliefs and values: have a high degree of persistence, are passed on from parents to children and are reinforced by schools, churches, buss and govt's. EX: very diffi to change racial, sexual, political beliefs. -secondary: more open to change. Ex: much easier to change-marketers try to find and capitalized on changing them. For Ex: Marriage-core when to marry-secondary

5 competitors (micro)

firms must gain strategic advantages by positioning their offerings against competitios' offerings. Ex: baby abuelita.

3 marketing intermediaries (micro)

help the company to promote, sell and destribute its products to final buyers. Inculdes: resellers, physical distribution firm, marketing services agencies and financial intermediaries.

Marketing Environment

includes the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships w/ customers. Ex. Green movement and organic food.

Marketing implementation

is the process that turns marketing plans into marketing actions to accomplishe stratefic marketing objectives. It deals with Who, Where, When, and How.

Marketing control

measuring and evaluating results and takeing corrective action as needed. like operating and stratefic control. -measure results->evaluate results->take corrective actions.

4 technological environment

most dramatic force. Positive and negative effects. with rapid change and it provides new market and new opportunities.

2 supplier ( micro)

provide the resources to produce goods and services. treated as partners to provide customer value. Ex: gas

3 natural environment

the natural sources that are needed as inputs by marketers or that are affected by marketing activities.

Mission Statement

the organization's purpose, what it wants to accomplish in the larger environment.

1 Demographic (macro)

the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics. -demo environment: important because it involves people and people make up the market. -demo trends: inculde age, fam structure, geographic population shifts, educational characteristics and population diversity. -General marketing: important in segmenting people by lifestyle of life state instead of age. -baby boomer; 1946-1964 -generation x: 1965-1976 -generation Y: 1977-2000

Problems with matrixs approach

1) Hard to define SBUs(strategic business unit) and measuring market share and growth. 2) time consuming 3) expensive 4) focus on current business, not future planning.

BCG matrix strategies

1) build: invest more money to build share. 2) hold: invest just enough to hold share. 3) harvest: take out cash no matter what effect it has. 4) Direst: sell off or close down.

strategic planning process (4 steps)

1) defining a clear company mission. 2) setting supporting company objectives and goals. 3) designing a sound business portfolio. 4) planning and coordinating marketing and other financial strategics.

Boston consulting group ( BCG matrix)

BCG is a global management consulting firm and world's leading advisor on business strategy. BCG matrix is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. Growth share matrix is a portfolio planning method that evaluates a company's strategic business units in terms of their market growth rate and relative share. units are classified as star, cash cow, question mark and dog. 1) star: high growth, high share, requiring heavy invest to finance rapid growth, eventually turn into cash cows. 2) cash cows: low-growth, high-share, are established and successful. SBUs requiring less invest to maintain market share. 3) question mark: low-share business units in high-growth markets requiring a lot of cash to hold their share. 4) Dogs: low growth, low-share business and products that generate enough cash to maintain themselves but do not promise to be large sources of cash.