Study guide MKT 3405
Popular in Marketing Policy
Popular in Marketing
This 8 page Study Guide was uploaded by Keva Edwards on Wednesday January 20, 2016. The Study Guide belongs to MKT 3405 at University of Central Missouri taught by Virginia Killian in Winter 2016. Since its upload, it has received 46 views. For similar materials see Marketing Policy in Marketing at University of Central Missouri.
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Date Created: 01/20/16
Marketing- an organizational function and a set of processes for creating, capturing, communicating, and delivering VALUE to customers and or managing customer relationships in ways that benefit the organization and its stakeholders Creates value All about satisfying customer needs and wants Entails an exchange (giving money for a product) Requires product, price, place and promotion details Can be performed by both individuals and organizations Occurs in many settings Products create value Fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. Service have a timing aspect, you can’t store it like you can store a product Price captures value Everything a buyer gives up (money, time, and energy) in exchange for the product. How much are customers willing to pay and can a profit be made at the point Place- delivering value Supply chain management describes all activities necessary to get the product to the right customer when the customer wants it. Where would you find this product in the store? Promotion- communicating value Communicating through a marketer that informs, persuades, and reminds potential buyers about a product or service Marketing can be performed by individuals and organizations B2B- Business to business B2C- Business to consumer C2C- Consumer to consumer Marketing impacts various stakeholders. You have a responsibility to society, customers, employees, and the supply chain 1920- Production era- more demand than product. Production- if you build it, it will sell. Concerned with product innovation, not satisfying needs 1920-50- Sales era- more production than what people needed. People planted gardens instead of buying produce 1950-90- Marketing era- deciding what products you wanted to buy based on price, etc. Now- value based on marketing era How do firms become value driven? Sharing information Balancing benefits with costs Building relationships with customers Social media Connecting with customers using social and mobile marketing 46% of internet users worldwide interact with social media on a daily basis 77% of the world’s population subscribes to mobile services Why is marketing importing? Can be entrepreneurial Expands global presence Developing marketing strategies and marketing plan 3 components (marketing strategy) 1. Target market 2. Marketing mix 3. Sustainable competitive advantage Sustainable competitive advantage- advantage over competition that is not easily copied, maintainable Customer value Customer excellence- good customer service and retaining loyal customers Operational excellence- working with supplier and getting product to customer Efficient operations Excellent supply chain management Product excellence- proving your product is the best efficiency High perceived value Product innovation- competitors can copy over time, but innovation sets a firm apart Locational excellence Physical location Internet presence “Most important thing in retailing is location, location and location” Three phases of a strategic plan 1. Planning (steps 1 and 2) 2. Implementing (steps 3 and 4) 3. Controlling (step 5) Marketing plan Step 1: business mission and objectives Step 2: Situation analysis SWOT (strengths, weaknesses, opportunities, threats) Step 3: Identifying opportunities STP (segmentation, targeting, positioning) Step 4: Implement marketing mix 4 P’s Step 5: Evaluate performance using marketing metrics (who is accountable? Performance, financial and portfolio analysis) Mission statement- broad description of a firm’s objectives and the scope of activities it plans to undertake Boston Consulting Group Matrix Star- high relative market share, high market growth rate Cash cow- high relative market share, low market growth rate Question mark- low relative market share, high market growth rate Dogs- low relative market share, low market growth rate Growth strategies Market penetration- current product/service, current target market Market development- current product/service, new target market Product development- new product/service, current target market Diversification (most risky, greatest reward) - new product/service, new target market The 4E Framework for social media 1. Excitement 2. Educate 3. Experience 4. Engage Excite the customer Offer must be relevant to its targeted customer Relevancy can be achieved by providing personalized offers Educate the customer Golden opportunity: product’s value proposition and offered benefits Experience the product/service Information about goods and services Simulating real experiences Engage the customer Action, loyalty and commitment Positive engaged customers lead to more profitability Can also backfire Categories of social media Social network: Facebook, LinkedIn, Google plus Media sharing: Instagram, YouTube, Flickr, Tumblr Thought sharing: blogs. Corporate blogs (my Starbucks- make suggestions), professional- promoting products/service, personal, microblogs- twitter Social network user types Creators- contribute new ideas, cutting edge of technology Bonders- enhance and expand relationships (social butterflies) Professionals- use for efficiency, demonstrate intelligence Sharers- desire to help others, well informed Going mobile and social Price checking apps- amazon and stylish girl Fashion apps- Pinterest Location based apps- foursquare/swarm, retailmenot How do firms engage their customers using social media? Listen, analyze, and do. Listening Sentiment analysis- reading comments (positive or negative) to help understand attitudes and preferences. Understand what consumers are thinking and sharing Analyzing Hits- total requests for a page Page views- number of times any pages gets views by any visitor Bounce rate- percentage of times a visitor leave the site almost immediately Click paths- shows how users proceed through the information Conversion rates- percentage of potential customers by clicking, donating or buying Keyword analysis- keywords people use to search for products How to do a social media marketing campaign Identify strategy goals Target audience Campaign: experiment and engage Budget Monitor and change Why do businesses act in unethical and immoral ways? Greed and short-term profit seeking. This can lead to serious long-term consequences The scope of marketing ethics Business ethics- moral and ethical dilemmas that might arise in a business setting Marketing ethics- ethical problems extensive to marketing (advertising claims Creating an ethical climate (values that guide decision making and behavior) in the workplace 1. Values- establish, share and understand 2. Rules- management commitment and employee dedication 3. Controls- reward and punishment AMA code of ethics 1. Generally accepted code of ethics 2. Flows from general conduct to specific value 3. Subareas within marketing have their own code of ethics to deal with specific issues Influence of personal ethics- genetics, family, religion, values, community Why do people act unethically? What makes people take actions that create so much harm? To help, promote gain, for job, security, may be scared or obligated. Are all the individuals who engage in questionable behavior immoral or unethical? Decisions have conflicting outcomes, where both have positive and negative consequences. Link between ethics and social responsibility Socially responsible and unethical- questionable firm practice, yet does a lot for community Socially irresponsible and ethical- ethical but not involved in community Framework for ethical decision making Step 1: identify the issue. Marketing research firm issues- hiding the real purpose of the study, data collection methods, using results to mislead/harm Step 2: gather information and identify stakeholders- identify all ethical issues and relevant legal info, identify stakeholders and get their input on issues Step 3: brainstorm and evaluate alternatives- halt research project, mark responses anonymous, train ethics Step 4: Choose a course of action- weighing the alternatives Publicity test- front page of the paper Moral mentor test- WWJD Admired observer test- do I want Jesus to see me doing this? Transparency test- could I give a clear an honest explanation Person in the mirror test- how do I feel about myself? Golden rule test- would I like it done to me? Integrating ethics into marketing strategy 1. Planning- mission and vision statements 2. Implementation- identify potential markets and ways to deliver the 4 P’s 3. Control- check successful info and react to change Corporate social responsibility Employees- employees and family Customers- current and potential Society- community and environment Marketplace- partners and competitors The immediate environment Company capabilities: core competency- existing knowledge, facilities and patents applied to new markets and new products Competitors- know strengths and weaknesses, proactive rather than reactive Corporate partners- from factory to retailer, firms are part of alliance, just in time delivery (JIT) Macro environmental factors- external Culture- shared meanings, beliefs, morals, values, and custom. Country vs. regional, family, business Demographics- provides an easily understandable snapshot of the typical consumer in a specific target market Age Gender Race Income Education level Generational cohorts Gen Z: digital natives Grew up with technology Appreciate diverse culture Heavily influenced by parents Always lived in a world of terrorism Gen Y: Millennial Strong emphasis in work/life balance Marriage is secondary to being a good parent Technological savvy Similar across countries Gen X: Latchkey kids Absent parents (both working) Unlikely to enjoy greater prosperity than their parents Greater spending power, marry later More cynical, more demand convenience Shopping savvy Baby Boomers Individualistic Believe they will always be able to take care of themselves Obsessed with maintaining youth Quality over price Income Many middle class families feel the decline of purchasing power in recent years Income has grown barely more than inflation though health care, taxes etc. have continue to increase Education- related to income. Less than high school- 23k. High school grad- 32.5 k. Bachelor’s- 54k Ethnicity- minorities represent 25% of the population. 2050- 50%. More affluent and skeptical about adversity. Social trends Thrift- attempting to save more, spend less on luxuries, not dipping into savings Health and wellness concerns- worldwide pandemics or epidemics. Child/teenage obesity Greener consumers- customers who appreciate firms’ efforts to supply them with environmentally friendly merchandise. Green washing- marketing products as green to win sales, not actually to improve the environment Privacy concerns- loss of privacy, identity theft, do no call, do not email Time poor society- majority of families, both parents work. Consumers have many more choices regarding leisure time. Multitask Technology- impacted every aspect of marketing. New products, firms of communication, ne retail channels Economic situation- foreign currency fluctuations combined with inflation and interest rates affect firms’ ability to market goods/services Political/regulatory environment- laws against buying at competitors/have monopoly laws against agree with competitors about a price
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