MKTG 3310 Exam 2 Study Guide
MKTG 3310 Exam 2 Study Guide MKTG 3310-001
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This 5 page Study Guide was uploaded by Melissa Cooey on Saturday February 6, 2016. The Study Guide belongs to MKTG 3310-001 at Auburn University taught by Jeremy Wolter in Spring 2016. Since its upload, it has received 992 views. For similar materials see PRINCIPLES OF MARKETING in Business at Auburn University.
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Date Created: 02/06/16
Friday, May 20, y MKTG Exam 2 Study Guide From previous sections Marketing concept when an organization aims all its efforts at satisfying its customers for a profit. Chapter 2: Marketing Strategy Value creation the products that we make, and the value potential that the product has. Value appropriation how the firm tries to acquire some of that value that it created back into the company. 3 main appropriators: 1. firm 2. society 3. competitors Is value creation or appropriation more related to marketing? Both are equally important! Marketing strategy specifies a target market and a related marketing mix. Target market a fairly similar group of customers to whom a company wishes to appeal. Marketing mix the controllable variables the company puts together to satisfy this target group. The 4 P’s are: Product, Place, Promotion, and Price. Target marketing aims for a specific group of consumers (rifle approach). In contrast, mass marketing is aimed towards “everyone” with the same marketing mix (shotgun approach). 1 Friday, May 20, y Companies engage in target marketing because focusing on specific target customers is good for developing a marketing mix that satisfies those customers’ specific needs better than they are satisfied by some other firm. Marketing myopia When a company focuses solely on the needs of the company, instead of the needs and wants of the customers. Differentiation means that the marketing mix is distinct from what is available from a competitor. Diversification analysis is when a firm considers all of the broad kinds of opportunities they may find, and pursue one or more. The quadrants are: Market penetration means trying to increase sales of a firm’s present products in its present markets, probably through a more aggressive marketing mix. Market development means trying to increase sales by selling present products in new markets. Product development means offering new or improved products for present markets. Diversification means moving into totally different lines of business new products and a new market. The riskiest quadrant is diversification because a firm is producing a completely new product in a market they are unfamiliar with. Market penetration is the most overlooked quadrant because keeping the same products in the same markets seems “obvious.” SWOT analysis identifies and lists the firm’s strengths, weaknesses, opportunities, and threats. With this analysis, a marketing manager can begin to identify strategies that will take advantage of the company’s strengths and opportunities, while avoiding the company’s weakness and threats. 2 Friday, May 20, y Chapter 3: Competitive Advantage Competitive advantage when a firm builds profitable customer relationships by delivering more value and satisfaction to target customers than competitors do. Ways to identify a firm’s competitors: Is the firm making the same product or same class of products? Is the firm providing the same service? Is the firm competing for the same consumer dollars? Ways to assess a firm’s competitors: Determine the competitor’s objectives. Identify the competitor’s strategies. Find the competitor’s strengths and weaknesses. Estimate the consumers’ reaction to the competitor. Ways to select competitors to attack or avoid: Determine if you want to compete against a weak or strong competitor. Determine if you want to compete against companies that have similar products to yours, or different products. Determine if you would rather compete with a company that plays by the rules of the industry, or a company that breaks the rules. Decide it you would rather go somewhere where there are no competitors, so there is room to mess up. Customer value analysis determine’s the benefits that target customers value and how customers rate the relative value of various competitors’ offers. Michael Porter’s 4 basic competitive positioning strategies: 3 Friday, May 20, y Overall cost leadership The company works hard to achieve the lowest production and distribution costs so it can charge its customers less. Differentiation The company creates a highly differentiated product and marketing program so that it seems high in value. Focus The company focuses on serving few market segments wells, and not focus on the market as a whole. Middleoftheroaders Tries to be good at all strategies, and ends up being good at none. The only ‘losing’ strategy. Value disciplines: Operational excellence low cost leader, and high quality for a value price. Customer intimacy Provides a service and builds a relationship with customers so that customers are willing to go out of their way, or spend more money to buy it. Product leadership The most innovative. Continuously coming out with new and exciting products or services. Competitive positions: Market leader the firm with the largest market share. expand their total demand (new users, new uses of their products). protect market share (continuous innovation, must remain on top of the market). expand market share (quality products). Market challenger challenge the market leader and other competitors in an aggressive bid for more market share. challenge the leader. Market followers play along with competitors, but don't rock the boat. don’t rock the boat. copy and improve leader’s positions. 4 Friday, May 20, y keeps costs and prices low. Market nichers ends up knowing the target customer group so well, that it meets their needs better than other firms. specialization. Return on Marketing The return on marketing sequence is: What firms do (actions) What customers feel/think (perceptions) What customers do (behavior) What firms get (outcomes) Metric a system that quantifies a trend, dynamic, or characteristic. makes it possible to compare observations across regions and time periods, access whether goals are achieved, and facilitate understanding and collaboration. 5
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