Marketing

Explain how companies identify attractive market segments and choose a market-targeting strategy.

First evaluates each segment's size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources. Then can choose 1 of four market-targeting strategies. - can ignore segment differences and target broadly using undifferentiated (mass) marketing. - can adopt a differentiated approach, developing different offers for several segments. - concentrated (niche) marketing focuses on one or a few segments only. - micromarketing tailors products and programs to suit the tastes of specific individuals and locations (local and individual)

Define the role of PR in the promotion mix.

Public Relations - gaining favourable publicity company image. Promotes products, people places etc. Strong impact on public awareness at much lower cost than advertising, digital age up and coming!!

Explain how companies find a set of prices that maximises the profits from the total product mix.

When product is part of a mix, the firm searches for a set of prices that will maximise the profits from the total mix - product line pricing -> company determines price steps for entire product line additional costs: - optional products (accessories included) - captive products (products required for using main product) - by-products (waste or residual products produced when making the main product) - product bundles (combinations of products at a reduced price)

Explain the major types of wholesalers and their marketing decisions.

Wholesaling = all activities in selling goods/services to those who are buying for the purpose of resale or business use. Merchant wholesalers = take possessions of the goods. ^ includes full-service ones and limited-service ones Brokers and agents = do not take possession of the goods but are paid a commission for aiding buying and selling Manufacturers' sales branches and offices are wholesaling operations conducted by non-wholesalers to bypass the wholesalers

Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy.

Winning marketing strategy: company must decide who to serve! Divide market into segments of customers (market segmentation) and select which segments to target (target marketing). Next, decide how to serve targeted customers (how it will differentiate and position itself in the marketplace). Can adopt 1 of 5 orientations: 1. Production concept: management's task is to improve production efficiency and bring down prices. 2. Product concept: consumers favour products that offer most in quality, performance and innovative features (little promotional effort). 3. Selling concept: consumers will not buy enough of one's product unless it undertakes a large-scale selling and promotion concept. 4. Marketing concept: achieving organisational goals depends on determining the needs and wants of target markets and delivering desired satisfactions better than others. 5. Societal marketing concept: generation customer satisfaction and long-run well-being through sustainable marketing strategies is key to fulfil goal.

DAMP (evaluation of market segments)

Distinct -> is each segment clearly different? Accessible -> can buyers be reached through appropriate promotional programs and channels? Measurable -> is the segment easy to identify and measure? Profitable -> is the segment sufficiently large to provide a stream of constant future revenues and profits?

Describe the major decisions involved in developing an advertising program.

Advertising decision-making: advertising objectives, budget, message and media, evaluation of results Goal -> move consumers through the buyer-readiness stages Two major elements: creating message, and selecting advertising media. Message decision !!

Describe the stage of the product life cycle (PLC) and how marketing strategies change during a product's life cycle.

Sales of a typical product follow an S-Shaped curve composed of 5 stages. 1. product development (new idea) 2. introduction stage (slow growth and low profits) 3. growth stage (rapid sales growth and increasing profits) 4. maturity stage (sales growth slows down and profits stabilise) 5. decline stage (sales and profits dwindle) ^ recognise decline and decide to maintain, harvest or drop product!

Explain how sales promotion campaigns are developed and implemented.

Sales promotions should be consumer relationship building -> using consumer promotion tools (coupons, refunds, premiums, etc.), trade promotion tools (discounts, allowance to free goods) and business promotion tools (conferences, exhibitions etc.)

Define sustainable marketing and discuss its importance.

Sustainable marketing calls for meeting the present needs of consumers etc. while preserving the ability of future generations to meet their needs. Fulfilling day-to-day needs but calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers of the company.

PESTLE

The external marketing environment. Political Economic Socio-cultural Technological Legal Ecological

Explain how companies analyse and use marketing information.

To analyse individual customer data, special software - CRM (customer relationship management) Marketing info has no value until its used to make better decisions! CRM must provide regular reports and updates to managers who make decisions.

Identify and discuss the major forms of direct and digital marketing.

Traditional -> face-to-face personal selling, direct-mail marketing, catalogue marketing, telemarketing, and kiosk Newer -> online marketing, social media, and mobile

Porter's Five Forces model

analyses performance environment Competitors, Buyers, Substitutes, Suppliers, New Entrants (government policy, capital requirements)

SWOT analysis

internal Strengths and Weaknesses external Opportunities and Threats

Sleeper effect

persuasiveness increases over time

Identify the 3 major pricing strategies and discuss the importance of understanding customer value perceptions, company cost and competitor strategies when setting prices.

- Customer value-based pricing: uses buyers; perceptions of value as basis for setting price - Good-value pricing: just the right combo of quality and good service at a fair price - Cost-based pricing: setting prices based on the costs of producing, distributing, selling products plus fair rate of return for effort and risk -> includes break-even pricing - Competition-based pricing: setting prices based on competitors' strategies, costs, prices and market offerings (better value -> higher price)

Benefits of STP

- Enhances company's competitive position, providing direction and focus for marketing strategies - Examines and identifies market growth opportunities through identification of new customers etc. - Effective and efficient matching of company resources to targeted marketing segments, promising greater return on marketing investment.

BCG Matrix

- dogs: products with low growth or market share - question marks/problem child: products in high growth markets with low market share - stars: products in high growth markets with high market share - cash cows: products in low growth markets with high market share

Overview the social and legal issues that affect pricing decisions.

- treating customers fairly - state and local laws govern rules of fair pricing - damaging pricing practises -> price-fixing and predatory pricing

Outline the steps in the marketing research process.

1. Defining problem and setting research objectives. Can be exploratory, descriptive or causal. 2. Developing a research plan for collecting data from sources. 3. Implementing marketing research plan by gathering and analysing info. 4. Interpreting and reporting findings. Internal/external secondary sources provide lower cost info -> has to be relevant and impartial! Primary data -> observational, survey and experimental (mail, telephone, personal interview and online)

List and define the steps in the new product development process and the major considerations in managing this process.

1. Idea generation 2. Idea screening, which reduces the number of ideas based on company's own criteria. 3. Product concept development, detailed version of new product idea is stated. 4. Concept testing, new concepts tested within group of target customers. 5. Marketing strategy development for new product. 6. Business-analysis stage: review of sales, costs and profit projections for new product. 7. Product development 8. Test marketing Launched during commercialisation...

Define the role of advertising in the promotion mix.

Advertising = the use of paid media by a seller to inform, persuade and remind buyers about its products or its organisation (communicates the value) PR- gaining favourable publicity and creating a favourable company image, is the least used but has great potential for building company awareness and preference

Discuss branding strategy, the decisions companies make in building and managing their brands.

Brands embody everything that a product or service means to consumers. Brand equity = positive differential effect that knowing brand name has on customer response to a product or service. - brand positioning: builds around strong consumer beliefs and values. - brand name selection: findings the best brand name based on careful review of product benefits, the target market and proposed marketing strategies. - brand sponsorships: national, private, licensed, co-brand - line extensions, brand extensions, multi-brands or new brands Brands are maintained by customers' brand experiences, not advertising

Define the business market and explain how business markets differ from consumer markets.

Business market = all organisations that buy goods and services for use in the production of other products and services, or for the purpose of reselling or renting them to others as a profit. Involves more professional buyers, derived demand (inelastic).

Discuss how companies can react to the marketing environment.

Can passively accept the environment as an uncontrollable element in which they must adapt to, avoiding threats and taking advantage of opportunities. Or can take proactive stance, working to change environment rather than simply reacting to it.

Discuss how companies adjust their prices to take into account different types of customers and situations.

Companies apply variety of price adjustment strategies to account for differences in consumer segments and situations - discount and allowance pricing (cash, quantity, functional and seasonal discounts) - segmented pricing (sells product at 2 or more prices to accommodate different customers, product forms, locations or times) - sometimes they use psychological pricing to better communicate a product's intended position - promotional pricing offers discounts or temporarily sells product below list price at a special event - geographical pricing whereby company decides how to price to distant customers - dynamic pricing: company can adjust prices continually - international pricing different world market adjustments to price

Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts.

Companies go to great lengths to learn and understand customers' needs, wants and demands. Understanding helps them design want-satisfying market offerings and build value-laden customer relationships by which they can capture customer lifetime value and greater share of customer. Result = increased long-term equity for the firm. Core marketplace concepts: needs, wants, demands market offerings (products, services, experiences) value and satisfaction, exchange and relationship markets. Wants are form taken by human needs when shaped by culture and personality -> when backed by buying power they become demands. Companies address needs by putting forth a value proposition = set of benefits that they promise to consumers to satisfy their needs <- fulfilled through market offering

Explain the importance of information in gaining insights about the marketplace and customers.

Company needs to turn consumer info into meaningful customer insights by which it can produce superior value. Requires info on competitors, resellers and other forces. It is an important strategic asset!

List and define the major types of buying decision behaviour and the stages in the buyer decision process.

Complex buying behaviour -> when consumers are highly involved in a purchase and perceive significant difference among brands. Dissonance reducing behaviour -> when consumers are highly involved but see little difference among brands. Habitual buying behaviour -> conditions of low involvement and little significant brand differences Variety-seeking behaviour -> low involvement but significant perceived brand differences. When making a purchase, decision process: need recognition, info search, evaluation of alternatives, purchase decision and behaviour.

Define the five promotion mix tools for communicating customer value.

Consists of the specific blend of advertising, personal selling, sales promotion, public relations and direct/digital marketing tools to engage!

Define the consumer market and construct a simple model of consumer buyer behaviour.

Consumer market = all individuals and households that buy or acquire goods and services for personal consumption. Simplest model = stimulus-response. Marketing stimuli (four Ps) and other forces (economic, technological, political, cultural) enter the consumer's black box and produce certain responses. Once in the box, these inputs produce observable buyer responses, such as brand choice, purchase location and timing and brand engagement/relationship behaviour.

Define consumerism and environmentalism and explain how they affect marketing strategies.

Consumerism = organised social movement intended to strengthen the rights and power of consumers relative to sellers. Alert marketers view it as an opportunity to serve consumers better by providing more consumer information etc. Environmentalism = organised social movement seeking to minimise the harm done to the environment and quality of life by marketing practices. ^ first wave: groups and concerned consumers, second wave: federal government, laws regulating industrial practices - adopting policies of environmental sustainability = developing strategies that sustain and produce profits :)

Name the four major factors that influence consumer buyer behaviour.

Culture = basic determinant of person's wants and behaviours -> Subcultures: cultures within cultures that have distinct values and lifestyles Social = reference groups (family/friends etc.) Personal = life-cycle stage, occupation, personality Psychological = motivation, perception, learning and beliefs/attitudes

Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.

Customer relationship management = process of building and maintaining profitable relationships by delivering superior value and satisfaction. Customer-engagement marketing = aims to make a brand a meaningful part of customer's lives and conversations through continuous involvement in shaping brand experiences. Aim of both ^ = to produce higher customer equity, total combined customer lifetime values of all customers. Companies want to keep as well as acquire customers (grow share of customer). Different customers require different relationships, marketers aim is to build the right ones! Can't do it alone, need marketing partners -> partner relationship management.

Explain how changes in the demographic and economic environments affect marketing decisions.

Demography = study of characteristics of human populations. Todays' demographic environment shows changing age structure, shifting family profiles, geographic population shifts and increasing diversity. Economic environment consists of facts affecting buying power and patterns, more frugal consumers seeking greater value (at a fair price). Distribution of income is also shifting leading to tiered markets.

Discuss the key issues related to initiating and respond to price changes.

Different implications to initiating price cuts and price increases. - Buyer reactions to price changes are influenced by meaning customers see in price change - understand competitors' intent if thats why -> may sit tight, reduce own price and raise perceived quality

Describe the major trends and forces that are changing the marketing landscape in this age of relationships.

Digital age -> online/mobile/social media marketing offer exciting new opportunities to target customers more selectively and engage more deeply. Still learning, key is to blend new digital approaches with traditional marketing = integrated marketing strategy and mix. After great recession, sensible consumption is big now, marketers must emphasise their value in their value propositions. Marketing has also become a major part of the strategies for non-profit organisations (colleges/hospitals/museums) Also, many marketers are now connected globally with their customers and partners. Ethical responsibilities, impacts of their actions on the environment.

Discuss the role of a company's salespeople in creating value for customers and building customer relationships.

For companies selling business products, the firm's sales force works directly with customers. Often, sales force is the customer's only direct contact with the company -> represents the company itself. For consumer-product companies that sell through intermediaries, no salespeople. -> wholesalers and retailers Communicating, selling and servicing

Explain the role of ethics in marketing.

Free market and legal system should decide such issues. Puts responsibility not on the system but in the hands of individual companies and managers. Develop standards based on personal integrity, corporate conscience, and long-term consumer welfare.

List and discuss the major bases for segmenting consumer markets.

Geographic -> divided into different geographical units (countries/cities/neighbourhoods) Demographic -> age, life-cycle stage, gender, income, occupation, religion Psychographic -> social class, lifestyle, personality characteristics Behavioural -> consumers' knowledge, attitudes, uses or responses to a product Business similar BUT can segment into business demographics -> industry, company size, operating characteristics, purchasing approaches etc.

Discuss how to design business portfolios and develop growth strategies.

Guided by mission and objectives, firm wants to produce a business portfolio that best fits its strengths and weaknesses to opportunities in the environment. Must analyse and adjust its current portfolio and develop growth and downsizing strategies for adjusting the future portfolio. Should use a formal portfolio-planning method but a lot use their own unique method now.

Identify and explain the six major sales force management steps.

High sales force costs necessitate an effective sales management process. - designing sales force strategy and structure (who will be involved in selling, how the team will work together, territorial structure?) - recruiting and selecting (look at experienced people with traits similar to their best salespeople) - training (familiarise with the company's history, policies etc.) - compensating (continuous encouragement) - supervising and evaluating salespeople and sales force performance (customer letters and complaints etc.) Fastest-growing sales trend = social selling online -> sales forces more efficient, cost effective and productive

Discuss the changing communications landscape and the need for integrated marketing communications.

Huge impact on marketing! Advertisers now adding a broad selection of more specialised and highly targeted media and content (online/mobile/social) to read smaller customer segments with more personalised, interactive messages. They risk a communications hotchpotch for consumers with all this fragmented messaging. To prevent -> integrated marketing communications (IMC) -> carefully coordinates promotional activities and timing of when major campaigns take place.

Describe the decisions companies make regarding their individual products and services, product lines and product mixes.

Individual product decisions: - attributes (quality, features, style, design) - branding (brand name/brand strategy) - packaging (protection, economy, convenience, promotion) - labelling (identify, describe and promote) - product support services (enhance service and safeguard against competitors) Most companies produce a product line = group of products that is related in function, needs, or distribution channels. -> part of product mix (width, length, depth and consistency)

Identify and define the other important external and internal factors affecting a firm's pricing decisions.

Internal: - company's overall marketing strategy, objectives and mix - common pricing objectives: customer retention, building profitable customer relationships, preventing competition, gaining support - management decides who is responsible for setting price External: - nature of the market and demand - environmental factors such as economy, reseller needs and government actions - customer decides ultimately - price-demand curve, consumer sensitivity to prices - economic conditions can have major impact

Explain how companies have responded to the Internet and the digital age with various online marketing strategies.

Internet and digital age has changed customers' fundamental notions of convenience, speed, price, product info, service and brand interactions. Internet influences 50% of total sales, online transactions and ones made in store but encouraged by online research. Online marketing = company websites, online advertising and promotions, email marketing, online video and blogs First step: create website, enough value and engagement for customers to stick around! Display ads and search-related ads, digital content on brand websites or social media, blogs etc.

Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies.

Involve engaging directly with individuals and customer communities to obtain immediate response and longer-lasting relationships. Use direct marketing to tailor offers to needs of narrowly defined segments Convenient, easy to use and private, immediate and interactive. Digital marketing provides sense of brand engagement and community. For sellers, its a powerful tool for building relationships and offer greater flexibility with announcements prices etc.

Outline the communication process and the steps in developing effective marketing communications.

Involves: - two parties (sender, receiver) - two communication tools (message, media) - four communication functions (encoding, decoding, response, feedback) - noise Steps: identify target audience and its characteristics, determine the communication objectives and define response sought (awareness, knowledge, liking, preference, purchase), message constructed. Media -> highly credible sources to delay message Feedback -> watching the market

Identify the major social criticisms of marketing.

Its impact on individual consumer welfare -> high prices, deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence and poor service to disadvantaged customers. Impact on society -> creating false wants and too much materialism, too few social goods and cultural pollution. Impact on other businesses -> harming competitors and reducing competition through acquisitions, practices that create barriers to entry and unfair competitive marketing practices.

Pricing tactics

List pricing = unsophisticated approach where a single price is set for product or service Loss-leader pricing = price is set a level lower than actual cost, attract sales in other categories Promotional Pricing = temporarily reduction to raise awareness Segmentation pricing = different groups

Define the marketing information system and discuss its parts.

MIS assess info needs. Develops info from internal databases, marketing intelligence activities and research (provide info on the company's own operations and departments). Marketing intelligence supplies everyday info about developments in the external marketing environment. -> Market research collecting info relevant to specific marketing problem faced by company.

List the marketing management functions, including elements of marketing plan, and discuss the importance of measuring and managing marketing return on investments.

Main components of marketing plan: executive summary, current marketing situation, threats and opportunities, objectives and issues, marketing strategies, action programs, budgets and controls. Companies must be good at implementing the plans too! Marketing departments can be organised in different ways: functional marketing organisation, geographic organisation, product management organisation or market management organisation. Marketing accountability is top concern, adding value in line with their costs. Marketers are developing better measures of marketing return on investment. Also using customer-centred measures of marketing impact as a key input into their strategic decision making.

Identify and discuss the traditional direct marketing forms and overview the public policy and ethical issues presented by direct marketing.

Major forms are face-to-face or personal selling, direct-mail marketing, catalogue, telemarketing, direct-response television (DRTV), and kiosk marketing Darker side -> aggressive and sometimes shady tactics of a few direct marketers can bother or harm consumers, giving the entire industry a black eye. - simple excesses that irritate consumers to instances of unfair practices or even deception/fraud - invasion of privacy and internet security issues !!

Explain how companies find and develop new product ideas.

Many new ideas stem from internal sources. Others from external sources, track competitors offerings and obtain new ideas from distributors and suppliers. Customers themselves (crowd-sourcing or open-innovation)

Identify the four characteristics that affect the marketing of services and additional marketing considerations that services require.

Marketers work to find ways to make service more tangible, increase productivity of providers who are inseparable from their products, standardise quality in the face of variability and improve demand movements and supply capacities in the face of service perishability. Services marketing strategy calls on internal marketing to motivate employees and interactive marketing to create service delivery skills among services providers. Must create competitive differentiation, offer high service quality and find ways to increase service productivity.

Explain why companies use marketing channels and discuss the functions these channels perform.

Marketing channel = set of interdependent organisations involved in the process of making a product or service available for use or consumption by the consumer or business user ^ usually offer a firm more than it can achieve on its own Key functions performed: - help complete transactions by gathering and distributing info needed for planning and aiding exchange - developing and spreading persuasive communication about offer - performing contact work - matching (shaping and fitting offer to buyer's needs) - entering the negotiation to reach an agreement on price and other terms of other - offer physical distribution, financing and risk taking

Identify the major channel alternatives open to a company.

Marketing channels face continuous and dramatic change. Vertical, horizontal and multichannel marketing systems. Channel design begins with assessing customer channel service needs and objectives. Each channel alternative must be evaluated according to economic, control and adaptive criteria. Channel management calls for selecting qualified intermediaries and motivating them.

Discuss the nature and importance of marketing logistics and integrated supply chain management.

Marketing logistics (physical distribution) = area of high cost savings and improved customer satisfaction. - addresses out and inbound and reverse logistics - involves entire supply chain management (value-added flows between suppliers, company, resellers etc.) - goal = provide a targeted level of service at the least cost - main functions: warehousing, stock management, transportation and logistics info management - can achieve harmony through teamwork etc.

Discuss the special issues some marketing researchers face, including public policy and ethics issues.

Marketing research can be conducted effectively but small by small non-profit organisations with limited budgets. Consumer privacy, misuse of findings, intrusion etc.

Celebrity Risk

May overshadow product. Celebrity may be overexposed, reducing credibility. Target audience may not be receptive to celebrity endorsers, and behaviour may pose risk to company.

Describe the environmental forces that affect the company's ability to serve its customers.

Microenvironment = actors close to company that combine to form its value delivery network of affect its ability to serve its customers. Includes: - internal environment - marketing channel firms (suppliers, resellers, physical distribution firms, marketing services agencies and financial intermediaries) - competitors - publics - customer markets -> consumer, business, reseller, government and international Macroenvironment = larger societal forces that affect entire microenvironment - demographic, economic, technological, political/social, and cultural forces ^ shape opportunities and pose threats.

Discuss how companies use social media and mobile marketing to engage consumers and create brand community.

Most brands have set up shop on social media sites -> places to congregate, socialise and exchange views and info + Social media are targeted and personal, interactive, immediate and timely and cost effective. Social sharing capacities ideal for making a community. - Consumers' control over social media content makes it difficult to control Mobile marketing = marketing messages etc. delivered to on-the-go consumers, own mobile online sites, mobile apps etc. to help them shop and engage in the brand

Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix.

Most popular approach: spend what the company can afford, use a percentage of sales, base promotion on competitors' spending Push or Pull promotional strategy

Identify the major trends in the firm's natural and technological environments.

Natural environment = shortages of certain raw materials, higher pollution levels and more government intervention in natural resource management. Environmental concerns -> marketing opportunities for alert companies. Technological environment = creates both opportunities and challenges, have to keep up!

Discuss how companies differentiate and position their products for maximum competitive advantage.

Once segments are decided, company has to decide on its differentiation and positioning strategy. - identify set of possible differentiations that create competitive advantage - choose advantages on which to build position - select positioning strategy ^ called its value proposition = the full mix of benefits on which a brand is positioned. - more for more - more for the same - same for less - less for much less - more for less

Explain the key changes in the political and cultural environments.

Political environment = laws, agencies, groups influencing/limiting marketing actions. Changes have affected worldwide: increasing legislation regulating business, strong government enforcement, and greater emphasis on ethics and socially responsible actions. Cultural environment = institutions that affect society's values <- lessening trust, trend towards new technology-enabled communication, greater appreciation for nature, changing spiritualism.

Answer "What is a price?" and discuss the importance of pricing in today's fast changing environment.

Price = amount of money charged for a product or service OR the sum of values that consumer exchange for the benefits of having/using product/service - challenge -> find price that will let the company make a fair profit by getting paid for the customer value created - the only marketing mix element that produces revenue!

Describe the major strategies for pricing new products.

Pricing strategies usually change as product passes through its life cycle. Introductory stage: setting prices for the first time - market-skimming pricing (initially setting high prices to skim the max amount of revenue from various segments of the market) - market-penetrating pricing (low initial price to penetrate market deeply and win a large market share)

Define marketing and outline the steps in the marketing process.

Process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. 5 steps 1. Need to understand the marketplace and customer needs and wants. 2. Design a customer-driven marketing strategy with the goal of getting, keeping, and growing target customers. 3. Construct a marketing programme that actually delivers superior value. 4. Build profitable customer relationships and create customer delight. 5. Reaps the rewards of strong customer relationships by capturing value from the customers.

Define the product and the major classifications of products and services.

Product = anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy need/want Services = products that consist of activities, benefits, satisfactions offered intangible ^ fall into two broad classes based on the type of consumers that use them.. - Consumer products = bought by final consumers according to shopper habits - Industrial products = purchased for further processing or for use in conducting a business.

Describe the adoption and diffusion process for new products.

Product adoption process: 1.awareness 2. interest 3. evaluation 4. trial 5. adoption Diffusion process -> consumers respond at different rates, depending on consumer and product characteristics, may be innovators, early adopters, late mainstream etc. Several characteristics influence the rate of adoption: relative advantage, compatibility, complexity, divisibility, and communicability.

Explain marketing's role in strategic planning and how marketing works with its partners to create and deliver customer value.

Provides a marketing concept philosophy and inputs regarding attractive market opportunities. Within individual business units, marketing designs strategies for reaching objectives. Have to work with partners to form an effective value chain that serves the customer. Must also partner with other companies in marketing system to form a competitively superior value delivery network.

Push Vs. Pull strategy

Push = uses manufacturer's sales force, trade promotion etc. to carry promote and sell product. Pull = uses advertising, promotion etc to persuade customers to demand the product from intermediaries, inducing the intermediaries to order it

Describe the major retailer marketing decisions.

Retailers must segment and target their markets to decide. Those that try to offer something for everyone, satisfy no one. Successful retailers define targets well and position themselves strongly. Decide on marketing mix. Retailers use any of the promotion tools - advertising, personal selling, sales promotion, public relations, direct marketing - Have to select locations that are accessible to the target market in areas that are consistent with a retailer's positioning!

Discuss the major trends and developments in retailing.

Retailers operate in harsh fast-changing environments. Good economic times in past years. Now adjusted to the new economic realities and more thrift-minded customers. Different types of retailers are increasingly serving similar customers with the same products and prices (retail convergence) making differentiation more difficult. Other trends: rise of mega-retailers, rapid growth of direct/online and social media marketing, growing importance of retail technology, surge in green retailing etc.

Explain the role of retailers in the distribution channel and describe the major types of retailers.

Retailing = all the activities involved in selling goods or services directly to final customers Shopper marketing = focusing the entire marketing process on turning shoppers into buyers as they approach point of sale - Amount of service from store retailers (self-service, limited service/full service) - Product line sold (speciality stores, department stores, supermarkets etc.) - relative prices (discount stores and off-price retailers) - retail organisations (corporate chains, franchise etc.)

Describe the elements of a customer value-driven marketing strategy and mix and the forces that influence it.

Segmentation, targeting, differentiation and positioning -> bring value to target customers in selected segments. Then designs an integrated marketing mix to produce the response it wants in the target market. Marketing mix = Product, Price, Place and Promotion Decisions

Define the major steps in designing a customer-driven marketing strategy: market segmentation, targeting, differentiation and positioning.

Selecting which customers to serve and determining a value proposition that best serves the targeted customers. 1. Market segmentation: dividing market into distinct groups of buyers with different needs etc. 2. Market targeting: evaluates each segment's attractiveness and selects one to serve. 3. Differentiation: differentiating the market offering to create superior customer value. 4. Positioning: positioning the market offering in the minds of target customers.

Discuss the personal selling process, distinguishing transaction-oriented marketing and relationship marketing.

Selling: 1. prospecting and qualifying. 2. pre-approach 3. presentation and demonstration 4. handling objections 5. closing and follow up

Explain how companies use PR to communicate with their publics.

Setting objectives, choosing messages and implementing plan and evaluating results. Tools: news, speeches, special events, internet etc.

Discuss how channel members interact and how they organise to perform the work of the channel.

Should understand and accept roles, coordinate goals and activities and cooperate to attain overall channel goals - large company -> formal organisation structure assigns roles and provides leadership - distribution channel composed of independent firms -> not formally set, lacked leadership

Discuss two additional product issues: socially responsible product decisions and international product and service marketing.

Social responsibility -> public policy and regulations, warranties etc. International -> standardise to world markets.

Explain company-wide planning and its four steps.

Strategic planning sets the stage for the rest of companies planning, marketing contributes and the overall plan defines marketings' role in the company. Involves developing strategy for long-run survival and growth. 1. defines the company's mission (realistic, specific, motivating and consistent with market environment) 2. setting goals and objectives which guides.. 3. designing a business portfolio 4. developing functional plans.

Describe the principles of sustainable marketing.

Under the sustainable marketing concept, a company's marketing should support the best long-run performance of the marketing system. Guided by these 5 principles: - consumer-oriented marketing - customer-value marketing - innovative marketing - sense-of-mission marketing - societal marketing