QUIZ #1

different stages of the Marketing Process.

-Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return MARKETING PROCESS 1. Understand the marketplace and customer needs and wants -> A. Research customers and the market place. B. Manage marketing information and customer data | 2. Design a customer-driven marketing strategy -> A. Select customers to serve: market segmentation and targeting B. Decided on a value proposition: differentiation and positioning 3. Construct an integrated marketing program that delivers superior value -> A. Product and service design: build strong brands B. pricing: create real value C. distribution: manage demand and supply chains D. Promotion: communicate the value proposition 4. Build profitable relationships and create customer delight -> A. Customer relationship management: build strong relationships with chosen customers B. Partner relationship management: build strong relationships with marketing partners 5. Capture value from customers to create profits and customer equity -> A. Create satisfied loyal customers B. Capture customer lifetime value C. Increase share of market an share of customer term-

the different types of market research data and studies are

-Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Companies use marketing research in a wide variety of situations. For example, marketing research gives marketers insights into customer motivations, purchase behavior, and satisfaction. It can help them to assess market potential and market share or measure the effectiveness of pricing, product, distribution, and promotion activities. -big data -data analytics -exploratory research: is to gather preliminary information that will help define the problem and suggest hypotheses. -descriptive research: is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. -casual research: to test hypotheses about cause-and-effect relationships.

Product/market expansion grid

-a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification -companies can grow by developing new markets for existing products. for example, starbucks is expanding rapidly in China opening a new store there every 15 hours -through diversification, companies can grow by starting or buying business outside their current product/markets. For example, starbucks is entering the ultra premium market with Starbucks Reserve Roasteries and Princi Bakery and Cafe Shops -market penetration: making more sales to current customers without changing its original products. -market development: identifying and developing new markets for its current products. -product development: offering modified or new products to current markets -diversification: starting up or buying businesses beyond its current products and markets

Growth-share matrix

1. Stars. Stars are high-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows. 2. Cash cows. Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment. 3. Question marks. Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out. 4. Dogs. Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash. PROBLEMS They can be difficult, time-consuming, and costly to implement. Management may find it difficult to define SBUs and measure market share and growth. In addition, these approaches focus on classifying current businesses but provide little advice for future planning.

what the Marketing Information System is about

-consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights -gives managers the right information to create customer value, engagement, and stronger customer relationships -MIS begins and ends with information users—marketing managers, internal and external partners, and others who need marketing information and insights. First, it interacts with these information users to assess information needs. Next, it interacts with the marketing environment to develop needed information through internal company databases, marketing intelligence activities, and marketing research. Finally, the MIS helps users to analyze and use the information to develop customer insights, make marketing decisions, and manage customer engagement and relationships. -The marketing information system primarily serves the company's marketing and other managers. However, it may also provide information to external partners, such as suppliers, resellers, or marketing services agencies. -A good marketing information system balances the information users would like to have against what they really need and what is feasible to offer. Some managers will ask for whatever information they can get without thinking carefully about what they really need. -The MIS must monitor the marketing environment to provide decision makers with information and insights they should have to make key marketing decisions.

Macroenvironment

-consists of the larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces. -major forces are demographic -changing demographics mean changes in markets and marketing strategies -economic, technological, political -natural: concern for the natural environment has spawned a so-called green movement -cultural: marketers also want to be socially responsible citizens in their markets and communities

Be familiar with the various demographic segments discussed in chapter 3

-diving the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation - demography is the study of human po -generation X. the baby boom was followed by a "birth dearth" creating another generation of 55 million people -millennials: 75 million children of the baby boomers born between 1981 and 1996. -baby boomers people born during the post world war 2 baby boom from 1946 and 1964. wealthiest and control 42 percent of spending power -Generation Z young people born between 1997 and 2012. tweens to young twenty-somethings group is largest generation alive 80 million -generation alpha kids born after 2012 will be the most formally educated generation ever, the most technology-supplied generation ever and globally the wealthiest generation ever

Understand what a Mission Statement is.

-is a statement of the organization's purpose—what it wants to accomplish in the larger environment. A clear mission statement acts as an "invisible hand" that guides people in the organization. -should be market oriented and defined in terms of satisfying basic customer needs. Products and technologies eventually become outdated but basic market needs may last forever.

Know what customer insights are used for

-marketers must effectively manage marketing information from a wide range of sources. -The value is in the customer insights gained from the information and how marketers use these insights to make better decisions. -Such customer insights come from good marketing information. -Companies use these customer insights to develop a competitive advantage. -important for building customer value and engagement these insights can be very difficult to obtain. -to gain good customer insights, marketers must effectively manage marketing information from a wide range of sources.

Know the Microenvironment and the Macroenvironment

-microenvironment: includes all the actors close to the company that affect, positively or negatively, its ability to engage with and create value for customers. consists of the actors close to the company that affect its ability to engage and serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. -the company: marketers must work in harmony with other company departments to create customer value and relationships -suppliers: in creating value for customers, marketers must partner with other firms in the company's value delivery network -customers: are the most important actors in the company's microenvironment. The aim of the entire value delivery system is to serve target customers and create strong relationships with them. -marketing intermediaries: firms that help the company to promote, sell, and distribute its products to final buyers. -competitors: The marketing concept states that, to be successful, a company must provide greater customer value and satisfaction than its competitors do. Thus, marketers must do more than simply adapt to the needs of target consumers. They also must gain strategic advantage by positioning their offerings strongly against competitors' offerings in the minds of consumers. -publics is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. financial publics, media, government, citizen-action, internal, general, local

Understand the various models or tools for marketing and company strategy the text and I discussed. A couple examples include the BCG Matrix and the Product/Market Expansion Grid

1. Boston Consulting Group Approach 2. Product/Market Expansion Grid

Understand the various Marketing Management Orientations

1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept

Product Concept

holds that consumers will favor products that offer the most in quality, performance, and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements.

Marketing Concept

holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Under the marketing concept, customer focus and value are the paths to sales and profits. Instead of a product-centered make-and-sell philosophy, the marketing concept is a customer-centered sense-and-respond philosophy. The job is not to find the right customers for your product but to find the right products for your customers.

Production Concept

holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest orientations that guide sellers

Selling Concept

holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. The selling concept is typically practiced with unsought goods—those that buyers do not normally think of buying, such as life insurance or blood donations. These industries must be good at tracking down prospects and selling them on a product's benefits.

customer value proposition

is the set of benefits or values it promises to deliver to customers to satisfy their needs

Understand what the "Marketing Environment" is

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers. More than any other group in the company, marketers must be environmental trend trackers and opportunity seekers. Although every manager in an organization should watch the outside environment, marketers have two special aptitudes. They have disciplined methods—marketing research, marketing intelligence, and marketing analytics—for collecting information and developing insights about the marketing environment. They also spend more time in customer and competitor environments. By carefully studying the environment, marketers can adapt their strategies to meet new marketplace challenges and opportunities.

societal marketing concept

the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests. holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being. It calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.