Exam 1 Study Guide
Exam 1 Study Guide MKTG 360
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This 8 page Study Guide was uploaded by Chelsea Gavranich on Wednesday February 4, 2015. The Study Guide belongs to MKTG 360 at Washington State University taught by Dr. David Knuff in Spring2014. Since its upload, it has received 349 views. For similar materials see Principles of Marketing in Marketing at Washington State University.
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Date Created: 02/04/15
Marketing 360 Exam 1 Spring 2013 winter 1 Overview of Marketing 0 Marketing 0 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 Marketing is all about satisfying needs 0 Inertia to Passion 0 Level of passion a customer has for a product 0 8020 rule 0 20 of your purchasers account for 80 of a product s sales 0 Economies of scale Date Dash Shirts 0 If we make more of a product we can make it at a lower cost per item 0 Understand Marketing mix 4 P sMarketing mix from customer perspective 4 Cs 0 Product price promotion place 0 Customer solution customer cost customer communication customer convenience 0 Exchange 0 Involves obtaining a desired product from someone by offering something in return 0 Criteria for a market 0 Consists of all consumers who share a common need that can be satisfied by a specific product and who have the resources Willingness and authority to make the purchase Substantiality identifiably and measurability accessible responsive 0 Utility time place possession form info 0 Utility the usefulness or benefit consumers receive from a product 0 Form utility the benefit marketing provides by transforming raw materials into finished products 0 Place utility benefit marketing provides by making products available where customers want them 0 Time utility benefit marketing provides by storing products until they are needed 0 Possession utility benefit marketing provides by allowing the consumer to own use and enjoy the product 0 What is Value Components of value 0 Benefits Sacrifice Value 0 Image benefit 0 Personnel benefit TOtal 0 Services benefit Customer 0 Product benefit BCHCflt Monetary cost Cu t0mer delivered Time cost Total Energy cost Customer value Psychic cost Cost 0 Customer satisfaction model 0 Standard of comparisonl Discrepancy Evaluation I Consumer Satisfaction o Perceived Performance I 0 Customer Equity 0 The financial value of a customer relationship throughout the lifetime of the competitors 0 Sustainable Competitive Advantage O A longterm competitive advantage that is not easily duplicable or surpassable by the competitors 0 Distinctive Competencies A superior capability of a firm in comparison to its direct competitors 0 Differential benefit Properties of products that set them apart from competitors products by providing unique customer benefits o Philosophies Eras Societal marketing orientation New Era Triple bottom line Emphasis on satisfying broader needs of society employees stockholders etc Longterm relationships This is like market orientation but there is a little something more EX Toms Marketing customer orientation a company that practices the marketing concept Determining and then satisfying consumer needs and wants as a profit EX Costco Selling orientation Getting the product out the door Reducing inventories Product supply is greater than demand Competitor orientation Focus is on competitor intelligence Learning and reacting to what the competition is doing EX Tully s Production orientation emphasis on making the product better production efficiencies Best when demand surpasses supply EX Apple Chapter 2 Strategic Planning 0 Mission first step in strategic planning stage is to answer questions such as What business are we in What customers should we serve 0 Step 1 define the mission 0 Step 2 evaluate the internal amp external environment 0 Step 3 set organizational or SBU objectives 0 Step 4 establish the business portfolio 0 Step 5 develop growth strategies I being shortsighted SWOT Analysis 0 Assessment of organization s internal and external environments 0 An analysis of an organizations strengths weaknesses opportunities and threats in its external environment 0 Strengthsljproduction capabilities speed of production 0 Weaknessesljin technologies facilities and finances 0 Internal Environment identify strengths and weaknesses in employees technologies facilities finances etc 0 Opportunities 0 Threatscompetition consumers competitors economy 0 External Environments Identify opportunities and threats to firm from consumers competitors economy etc SWOT interactions 0 LeverageEIStrengths amp Opportunities 0 VulnerabilityEIStrengths amp Threat 0 Constraintleeakness amp Opportunities 0 Problemleeakness amp Threat Portfolio analysis 0 A management tool for evaluating a firm s business mix and assessing the potential of its SBU s 0 SBU individual units within a firm each having its own mission objectives resources managers and competitors Analyzes the potential of products to generate cash for a firm tells managers which products they should grow Spend more money on advertising for Star amp Question mark High Market Growth Rate Low High Low Relative Market Share STARDHigh industry growth high relative market shares Requires investments high revenues consider potential to stay star to build increase shares Build increase market share DOGS lLow industry growth high relative market share Requires investments high revenues consider potential to stay star to build increase shares Divest get rid of SBU QUESTION MARKDHigh industry growth low relative market share Potential to be a star Requires investment EX Pinterest Harvest focus on shortterm profits CASH COWEILow industry growth high relative market share Economies of scale and high profit margins Requires less investment and high revenues Supports other business hold shares EX iPod 0 ProductMarket Growth Matrix 0 Tells managers the growth strategies they should use 0 Strategic Alternatives 0 Market penetration growth strategies designed to increase sales of existing products to current customers nonusers and users of competitive brands in served markets 0 Market development growth strategies that introduce existing products to new markets 0 Product development growth strategies that focus on selling new products in existing markets 0 Diversification growth strategies that emphasize both new products and new markets Chapter 3 Marketing Environment 0 Environments 0 Economic Environment marketers must understand economy and business cycle 0 Level of economic development I LDC Least developed country a country at the lowest stage of economic development I Developing Country countries in which the economy is shifting its emphasis from agriculture to industry developed country I Developed Country a country that boasts sophisticated marketing systems strong private enterprise and bountiful market potential for many goods and services 0 Competitive Environment marketers must know what competitors are doing Competitive intelligence I Competitive market structures I Macro Competition understand the overall structure of their industry I Monopoly one seller controls market IOligopoly small number of sellers each with large share of market car I Monopolistic competition many number of sellers each offering different benefits and each have small share soap 0 Perfect Competition many small firms all offer similar products no in uence I Micro Competition product alternatives that people from target choose 0 Discretionarv income total market how people spend disposable income 0 Product competition different products meeting same need travel 0 Brand direct competition different products meeting same need cruise Technological environment how does this change industry 0 Understanding the impact of technology on all aspects of business I Distribution I Inventory control I Communication 0 reader activated When a person passes it EX Grocery store commercial 0 QR Codes PoliticalLegal environment local state national and global laws and regulations that in uence business people compete fairly Federal Legislation 0 Sherman Antitrust Act 1890intended to eliminate monopolies by prohibiting price fixing or predatory pricing verticaloverturned by supreme court 0 Clayton Act 1914Hprohibits tying contracts take one product you must take another 0 Federal Trade Commission Act 1914established the FTC to monitor unfair practices Chapter 4 Market InformationResearch Steps in conducting market research Define research problem Determine research design Choose the method to collect primary data Design the sample Collect the data Analyze and interpret the data Prepare the research report Different research study designs Determine Whether secondary data are available Determine Whether primary data are required exploratory descriptive causal Types of data Primary data form research conducted to help make a specific decision mail phone facetoface online 0 Exploratory trying to find out why the product isn t selling problem identificationIQualitative 0 Descriptive Frequencies the numbers over all average problem solving IQuantitative Secondary Data that have been collected for some purpose other than the problem at hand Validity the extent to which research actually measures what it was intended to measure Construct did we measure what we intended to measure Internal can identify true casual relationship most important External generalizability Internal validity is necessary not sufficient for establishing external validity 0 Threats to intemall history testing effect Reliability The extent to which research measurement techniques are free of error Sampling 0 The process of selecting respondents for a study 0 Probability random everyone from pop Has equal chance to be selected 0 Nonprobability convenience or quota samplingl better of two IndependentDependent variables 0 Variable that is varied or manipulated 0 Response that is measured 0 both used to understand cause and effect relationship in casual primary data Advantagesdisadvantages of primary data collection techniques Advantages Disadvantages Mail Low cost good ongoing Long return time low research response rate unclear who is responding Phone Fast low cost exible Decrease cooperation no questions house phone no survey FacetoFace Flexible questions visuals or other materials High cost interview bias problem Insta data collection low cost no restrictions Online Unclear who s responding selfselected sample Data Mining 0 Analysis shift through data to identify unique patterns or behaviors among different customer groups 0 4 Key Applications 0 Customer acquisition demographics and other info about customers in their database 0 Customer retention identify bigspending customers and target special offers 0 Customer abandonment taking service elsewhere costing them too much 0 Market basket analysis develops focused promotional strategies based on the records of which customers have bought certain products 0 Data collection in other countries and cultures 0 Research in other countries is difficult Additional Topics 0 Stealth Marketing 0 A way of advertising your products so that people do not realize that you are trying to make them buy something I Guerilla Marketing 0 Is an advertising strategy that focuses on lowcost unconventional marketing tactic that yield maximum results marketing wherewhen you don t expect to be marketed to 0 Buzz vs Hype 0 Word of mouth communication that customers view as authentic 0 Created by business exaggerated or extravagant claims made especially in advertising or promotional material 0 Hull s drive theory 0 The environment provides us with the stimuli and the organism responds 0 Body drives and tells us what we need 0 Body says were hungry we eat 0 Body says were cold we clothe ourselves 0 Darwin s biological determinism O Cowbird a cowbird chick is raised by another species of bird but still knows the cowbird mating song I Nature vs nature 0 Cannibalization O The loss of sales of an existing brand when a new item in a product line or product family is introduced 0 Traditional vs nontraditional media types 0 Television newspaper magazines radio 0 Mobile social media intemet 0 All of the Knuff s Knuggets 0 Consumers see 30005000 messages per day 3500 average 0 Cash cow a product a manager should grow 0 Porter s Strategies I Differentiation differentiate the products in some way in order to compete successfully I Cost leadership involves a firm winning market share by appealing to costconscious or pricesensitive customers I FocusStrategic Scope not a separate strategy per se describes the scope over which the company should compete based on cost leadership or differentiation 0 Consumer Bill of Rights I Right to choose right to safety right to be informed right to be heard O O 0 Relationship marketing a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and satisfaction rather than a dominant focus on sales transactions CRM Customer Relationship management a business strategy to optimize profitability revenue and customer satisfaction A company that is meeting latent needs is practicing what type of orientationlproductproduction orientation Tuskegee Syphilis Study infected people with syphilis Cocktail Party Phenomena If we are targeting a specific group of people use something that is specific to that group as marketers you want to make it something that is personally relevant to the group Metrics a measure customer satisfaction sales clicks on productsite EX McDonalds Big Data velocity of how much is happening right now Vertical amp Horizontal pricing Subliminal messaging 393 SBU individual units
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