Marketing Strategy ch1-5 review exam

• What are market-oriented organizations? What is the role of the CEO in a market-oriented organization?

They generate, disseminate, and respond to market information. These firms focus on customer analysis, competitor analysis, and integrating the firm's resources to provide customer value and satisfaction, as well as long-term profits.Footnote To be successful, the firm must be able to focus its efforts and resources toward understanding their customers in ways that enhance the firm's ability to generate sustainable competitive advantages.Footnote By creating organizational cultures that put customers first, market-oriented firms tend to perform at higher levels and reap the benefits of more highly satisfied customers. The role of the CEO is to ensure that his or her employees have everything they need to perform their jobs well It's a bottom top & not top to bottom management

What are the challenges and opportunities of marketing in today's economy? What kinds of implications are we seeing as a result of these challenges and opportunities?

* a shift in power to customers - caused by increased access to information. - marketers have little choice but to ensure that their products are unique and of high quality, thereby giving customers a reason to purchase their products and remain loyal to them. - they're setting the price.... *a massive increase in product selection - due to line extensions and global sourcing.- allows customers to fulfill their needs more easily and conveniently than ever before. *greater audience and media fragmentation - as customers spend more time with interactive media and less time with traditional media.- difficult for marketers to reach a true mass audience. - It is easier to reach small, highly targeted audiences who are more receptive to specific marketing messages. *changing customer perceptions of value and frugality. - In situations where customers see goods and services as commodities, they will turn to the most convenient, least-expensive alternative. *shifting demand patterns for certain product categories, - especially those delivered digitally.- some industries are growing and some are succeeding depending on customer demand *increasing concerns over privacy, security, and ethics. - privacy & security for children, online and in store ex: target card robbery, children info by Disney used, fb etc *unclear legal jurisdictions, especially in global markets. - laws in other countries, piracy, infringements of intellectual property rights , collection of sales tax for online transactions, businesses to move ahead by adjusting their marketing activities at both the strategic and tactical level

• What are the 5 basic questions that a good mission statement should answer?

1. Who are we? 2. Who are our customers? 3. What is our operating philosophy (basic beliefs, values, ethics, etc.)? 4. What are our core competencies or competitive advantages? 5. What are our responsibilities with respect to being a good steward of our human, financial, and environmental resources?

Ch 3 • What 4 important issues should you keep in mind regarding situation analysis?

1.) Analysis Alone Is Not a Solution 2.) Data Are Not the Same as Information 3.) The Benefits of Analysis Must Outweigh the Costs 4.) Conducting a Situation Analysis Is a Challenging Exercise

• What issues are considered in a situation analysis? What questions are asked in the framework for each issue/component of a situation analysis?

1.) Analysis Alone Is Not a Solution - encourages both analysis and synthesis of information.... it lets the manager break the situation into parts and then comprehend what's going on & make decisions 2.) Data Are Not the Same as Information - "How much data and information do I need?" ... Data, however, do not become informative until a person or process transforms or combines them with other data in a manner that makes them useful to decision makers. For example, the fact that your firm's sales are up 20 percent is not informative until you compare it with the industry's growth rate of 40 percent ..... "garbage in garbage out" 3. ) The Benefits of Analysis Must Outweigh the Costs... "Where do I have knowledge gaps?", "How can these gaps be filled?", "What are the costs of filling these gaps?", and "How much improvement in decision making will be gained by acquiring this information?" .... balance between jumping to conclusions and "paralysis by analysis," or constantly postponing a decision due to a perceived lack of information. 4.) Conducting a Situation Analysis Is a Challenging Exercise .... ssessing the quality, adequacy, and timeliness of the data and information used for analysis and synthesis ... internal and external environments often creates breakdowns in the effort to develop effective information flows ... difficulty in collecting data internationally ... it should be an ongoing effort**

• As a basic marketing concept, how has the conceptualization and definition of "marketing" changed over the past several decades?

1.) focuses on the four Ps, or the marketing mix : Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives 2.) focuses on the value creation for customers.: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. 3.) offering that have value for society : 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

• What is a marketing plan? What is its structure (i.e., what are the components)? What does each component entail?

1.) situational analysis or SWOT- 2.) mission statement, goals, objectives - type and level of performance, might involve #'s 3.) functional unit strategy - (1)fit the needs and purposes of the functional area with respect to meeting its goals and objectives, (2)be realistic given the organization's available resources and environment, and (3)be consistent with the organization's mission, goals, and objectives. 4.) implementation (dept.) - activities that actually execute the functional area strategy. ... internal & external markets 5.) evaluation and control (dept.) - keep planned activities on target with goals and objectives... keeping everything organized, timed, functioning etc.

What industries have been impacted by commoditization and how?

Airlines: Southwest, Jet Blue, - they compete in pricing cause all airlines are looked at the same by most travelers firms break free from commodity status by developing a distinctive brand position that separates them and their products from the competition. Firms that come to mind are Apple, Coca-Cola, and Chick-fil-A. By offering compelling reasons for consumers to buy products, brand building allows firms to increase margins. Apple, in particular, enjoys the highest profit margins of any firm in the technology sector. Starbucks - also brand building Google, Bloomberg Philanthropies, Xiaomi, Dropbox, Netflix, Airbnb, Nike, and ZipDial.

• What are the 4 basic types of competitors? What are examples of each?

Brand competitors, which market products with similar features and benefits to the same customers at similar prices. Product competitors, which compete in the same product class, but with products that are different in features, benefits, and price. Generic competitors, which market very different products that solve the same problem or satisfy the same basic customer need. Total budget competitors, which compete for the limited financial resources of the same customers.

What is commoditization?

Commoditization is a consequence of mature industries where slowing innovation, extensive product assortment, excess supply, and frugal consumers force margins to the floor. Since firms have few competitive differences, they are unable to increase margins. They must also spend a great deal on promotion to attract new customers. This situation makes firms more vulnerable to the entry of new competitors.

Where is commoditization? What happens with commoditization?

Commoditization is everywhere and is the result of mature markets where goods and services lack any real means of differentiation. Unfortunately for companies, when customers begin to see all competing products as offering roughly the same benefits, price is the only thing that matters.

• What is a competitive advantage? When does a competitive advantage become fully realized?

Competitive advantage is When a firm possesses capabilities that allow it to serve customers' needs better than the competition. Competitive advantage becomes fully realized when targeted customers see them as valuable. The key issue is the organization's ability to convince customers that its advantages are superior to those of the competition.

• What are the 4 major types of primary data collection?

Direct observation: where the researcher records the overt behaviors of customers, competitors, or suppliers in natural settings. Focus groups Survey experiments

What is commodity hell?

Everywhere you look, most companies offer the same basic products to the same customer groups at roughly the same prices. This situation is referred to as "commodity hell" and it's a tough situation for most companies.

One of the challenges of marketing strategy today is a general decline in customer satisfaction. Why has this occurred?

For one, customers have become much less brand loyal than in previous generations. Today's customers are very price sensitive, especially in commoditized markets where products lack any real means of differentiation (such as airlines). Consequently, customers constantly seek the best value and thrive on their ability to compare prices among competing alternatives. Customers are also quite cynical about business in general and are not that trusting of marketers. In short, today's customers not only have more power; they also have more attitude.

• What are the 5 types of utility and examples of each?

Form Utility: Products high in form utility have attributes or features that set them apart from the competition. High qualities ex: luxury items Time Utility. Products high in time utility are available when customers want them. Typically, this means that products are available now rather than later. Ex: stores open 24/7 Place Utility. Products high in place utility are available where customers want them, which is typically wherever the customer happens to be at that moment Ex: Home delivery of any product, convenience stores, vending machines, and e-commerce Possession Utility. Possession utility deals with the transfer of ownership or title from marketer to customer. Ex: home delivery and different forms of payment Psychological Utility. Products high in psychological utility deliver positive experiential or psychological attributes that customers find satisfying. Ex: sports, vacation spots,

• What 5 purposes will a good marketing plan fulfill?

It explains both the present and future situations of the organization. This includes the situation and SWOT analyses and the firm's past performance. It specifies the expected outcomes (goals and objectives) so that the organization can anticipate its situation at the end of the planning period. It describes the specific actions that are to take place so that the responsibility for each action can be assigned and implemented. It identifies the resources that will be needed to carry out the planned actions. It permits the monitoring of each action and its results so that controls may be implemented. Feedback from monitoring and control provides information to start the planning cycle again in the next time frame.

• What is mission width? Mission stability? Why are they important? What are examples of each?

Width: management should be concerned about the statement's width. If the mission is too broad, it will be meaningless to those who read and build upon it. Help keep the firm from moving too far from its core competencies or not far enough. Ex: trains stayed behind because they only focused on trains and\ not the future of transportation in general and tech. Stability - frequency of modifications in an organization's mission statement. Should be the one thing from the plan that can remain constant. The mission should change only when it is no longer in sync with the firm's capabilities, when competitors drive the firm from certain markets, when new technology changes the delivery of customer benefits, or when the firm identifies a new opportunity that matches its strengths and expertise.

What are the antidotes for commodity hell?

innovation and good marketing strategy are the antidotes for commodity hell. innovative products, processes, or experiences

• What are the 5 basic types of secondary data and information? What are the strengths and weaknesses of each?

internal, -a good source of data on customer needs, attitudes, and buying behavior -relevant & believable - readily accessible form for planning purposes. .... sometimes the data isn't use government, -FTC , Fed world, Edgar database, US small business administration -advantages of easy accessibility and low cost—most are even free. -The major drawback to government data is timeliness. ..... they are out of date periodicals/books -free & timeless - issue: too much information and could be difficult to find what you are exactly looking for Types: -subscription services - major trade association -Academic journals, - General business publications commercial data sources Relevant because they deal with the actual behaviors of customers in the marketplace -charge a fee -data and information are invaluable to many companies. ..... that's good Types: Nielsen Company and NPD group

A metamarket

is a cluster of closely related goods and services that center around a specific consumption activity.

Market

market is a collection of buyers and sellers.

metamediary

provides a single access point where buyers can locate and contact many different sellers in the metamarket.

• What is a mission statement? What general question does it seek to answer?

seeks to answer the question "What business are we in?" It is a clear and concise statement (a paragraph or two at most) that explains the organization's reason for existence.

Ch 2 • What does the strategic planning process begin with?

the planning process begins with an in-depth analysis of the organization's internal and external environments—sometimes referred to as a ***situation analysis or SWOT

• Today's 21st century marketing organizations move one step beyond the marketing concept. What does this mean?

to focus on long-term, value-added relationships with customers, employees, suppliers, and other partners. The focus has shifted from customer transactions to customer relationships, from customers to all stakeholders, and from competition to collaboration ex: Amazon

What are the major characteristics of transactional and relationship marketing?

transactional marketing is to complete a large number of discrete exchanges with individual customers. The focus is on acquiring customers and making the sale, not necessarily on attending to customers' needs and wants relationship marketing, the goal is to develop and maintain long-term, mutually satisfying arrangements where both buyer and seller focus on the value obtained from the relationship. Relationship marketing promotes customer trust and confidence in the marketer, who can then develop a deeper understanding of customers' needs and wants.