ALL NOTES FOR EXAM ONE MARKETING
Steps in marketing plan
1- define the business mission 2- conduct a situation analysis / swot 3- STP 4- 4ps, implement marketing mix and allocate resources 5- evaluate performance using marketing metrics
Importance of Marketing
1. Can be entrepreneurial 2. Expands global presence 3. Enriches society 4. Pervasive across channel members
Core aspects of marketing
1. Helps create value 2. satisfys needs and wants 3. entails an exchange 4.can be performed by individuals or organizations 5. occurs in many settings
the marketing plan
1. define mission 2. conduct a swot 3. identifying and evaluating opportunities using STP 4. implement marketing mix and allocate resources 5. evaluate performance and make adjustments
strategic business unit (SBU)
A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
Market Segment
A group of consumers who respond similarly to a firm's marketing efforts.
Marketing Plan
A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.
B. retailers
Portfolio Analysis
DOG cash cow stars question mark
Consumers
Center, influence directly by immediate actions of the focal company, the company's competitors or corporate partners, because consumer is the center, value based marketing provide greater value to consumers than competitors offer
Market development
Current product, new customers
Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of
positioning *Segmentation and targeting decisions have already taken place at this point, with the decision to target men with the Coke Zero introduction. The can design is one element of the marketing mix, attempting to give men an understanding that this drink is designed for them.
When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to
evaluate performance and make adjustments
corporate partners
firms are part of alliances align with competitors, suppliers etc just in time deliery systems
economic situation
foreign currency fluctuations combined with inflation and interest rates affect a firms ability to market goods and services
When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent?
product development *new products to the same customers
social trends
health and wellness concerns greener consumers privacy concerns
stars
high growth markets and high market share product
question marks
high growth markets, low market shares
ethnicity
increase in diversity 2050 half the pop will be a minority biggest growth rate with hispanics
SWOT
internal- strengths and weaknesses external environment - opportunities and threats
cashcow
ipad
question mark
ipad
education
is related to income, which determines spending power
A competitive advantage based on location is often sustainable because
it is not easily duplicated.
competitors
know strengths and weakness. proactive instead of reactive
dogs
low growth market, low market shares
cash cow
low growth markets, high market share products
Which of the following is LEAST likely to provide a sustainable competitive advantage?
lowering prices (easiest thing)
Dog
mac
gender
male/female roles have changed marketing has changed to reflect these shifts 205-2015 largest gender role change
Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies.
market development
To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis.
market growth rate by relative market share
demographics
provides an easily understood snapshot of the typical consumer in a specific target market age, gender, education, income
income
purchasing power is tied to income many middle class familes feel the decline in purchasing power in recent years
The first objective in the evaluate performance phase of the marketing planning process is to
review implementation programs and results using metrics.
Diversification
risky New product new market 2 unknowns
Heather has been assessing a number of her firm's products using, the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine:
the product's relative market share *A company's relative share of a market is determined by comparing its market share to market shares of competitors.
Marketing
using the four ps to identify and satisfy the needs of the consumers in order to create long term relationships with consumers
Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy.
market penetration *Selling more existing services to existing customers is a market penetration growth strategy. If these were newly developed services, this would be a product development example.
4 growth strategies
market penetration product development market development diversification
Promotion: Communicating Value
Informs, persuades, and reminds potential buyers about a product or service to influence their opinions.
locational excellence
mcdonalds, cvs, walgreens
Product development
new product with same market and customers IE- apple watch
technological advances
new products, retail channels add new forms of communication
product excellence
nike swoosh, apple, tiffany blue
Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's
opportunities and threats
immediate enviroment
own company corporate partners competiton
operational excellence
walmart
When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
planning
LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________________ strategy.
Positioning is the creation of a clear, distinct understanding of what the product does or represents compared to competitors. Celebrity endorsers are often used to convey this message.
market penetration
Safe Getting customers to buy more of the current product ie- Colgate
STP
Segmentation, targeting positioning
Impact Stakeholders
Society Customers Employees Supply Chain
sustainable competitive advantage
Something the firm can persistently do better than its competitors.
Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent aNo __________ in a SWOT analysis.
weakness
sustainable competitive advantage
what you can do thats hard for someone to duplicate
customer excellence
USAA
market growth rate
annual rate of growth of the specific market in which the product competes
stars
apple
culture
country vs regional
CDSTEP
cultural, demographic, social, technological, economic, and political forces
macro enviroment
culture demographics political/legal technology economic social trends
4 macro strategies for developing customer value
customer excellence operational excellence locational excellence product excellence
A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing?
d. Marketing isn't essential now, but it will be in a year or two when the product takes off
People who initiate, organize, operate, and assume the risk of a business venture are:
d. entrepreneurs
________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. Select one: a. Target marketing b. Allocation c. Value capture d. Market positioning e. Market segmentation
d. market positioning Market positioning involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
Place: Delivering the value Proposition
All the activities necessary to get the product to the right customer when that customer wants it.
Values is
C what you get for what you give.
The 4 P's make up the marketing mix, which is the _____ set of activities that the firm uses to respond to the wants and needs of its target markets.
C. controllable
Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?
E. place
Price: Capturing Value
Everything a buyer gives up in exchange for the product
Product: Creating Value
Fundamental purpose of marketing is to create value by developing variety of offerings including goods, services and ideas to satisfy customer needs.
Supply Chain (Marketing Channel)
Group of firms that make and deliver a given set of goods and services.
Marketing Enriches Society
Product, Marketing practices, communities and environment.
For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary
Stacy was created to help Celestial's marketers to understand its major target market segment. The segment is more than just demographic. It includes elements of Stacy's behavior (reading instead of TV). Stacy isn't Celestial's positioning--rather, the company needs to position its products to help women like Stacy to understand the value Celestial products can offer them. The correct answer is: target market segment.
Swot Analysis
Strength weakness opportunity threat
Which of the following is a core aspect of marketing? =
b. making product, place, promotion, and price decisions
Imagine that you are in a convenience store choosing your favorite comfort food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's Select one: a. target market. b. positioning strategy. c. value-based promotions. d. customer excellence strategy. e. market segmentation.
b. positioning strategy Packaging, colors, labels, and fonts all contribute to the consumer's impressions of a product and to their understanding of what it offers. This is therefore part of the product's positioning.
Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes:
b. the value of their time and energy
Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals Select one: a. offers insights into value-based pricing. b. allows managers to demonstrate their effectiveness. c. enables firms to make appropriate adjustments. d. allows firms to better assess customer loyalty. e. should be followed by eliminating underperforming SBUs.
c. enables firms to make appropriate adjustments. Once the causes of above- or below-goal performance are understood, firms can decide how the marketing plan should be adjusted. Some of the other answers might be true in some cases, but not in every case.
why is marketing important
can be entreprenurial expands global presense enriches society persuasive across channel members
