MKT305 Exam 1 StudyGuide
MKT305 Exam 1 StudyGuide MKT 305
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This 5 page Study Guide was uploaded by Taylor Devereux on Tuesday February 9, 2016. The Study Guide belongs to MKT 305 at Colorado State University taught by James Cook in Summer 2015. Since its upload, it has received 126 views. For similar materials see Fundamentals of Marketing in Business at Colorado State University.
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Date Created: 02/09/16
Marketing 305 Exam #1 Study Guide Chapter 1 Selling 1 way Marketing 2 ways The evolution of marketing (the whole process: awareness thru selling thru marketing) o Industrial revolution/Civil War= awareness ear o Post Civil WarWWII= selling era Upward curve of the government and economy This is when we tried to convince people that you NEED the product o Post WWII1990s= marketing WWII brought the US out of the depression From the great depression to the WORST of the great depression to WWII We saw the LARGEST leap of economic growth and money Producers started having competition Companies could meet demand by finding what there was the largest market for Who was the most successful? The person who did the best job at giving the consumer what they want 1990sPresent= relationship marketing Small businesses can compete in this type of marketing best BRAND LOYALTY!!! o It is cheaper to keep customers than to get new ones 2000sPresent= social media marketing In 2000 Facebook came along 2010sPresent= guerrilla marketing 3D Not going to see it on flyers, billboards, TV, etc. You “walk” into and experience the ad Very popular in Europe right now! Slowly coming to USA Marketing – the activity for creating and delivering offerings that benefit the organization, its stakeholders, and society Exchange – the trade of things of value between a buyer and a seller so that each is better off Diversity factors influencing marketing activities o Society (suppliers, customers, shareholders (owners), and other organization o Environmental (social, economic, technological, competitive, regulatory) Environmental forces influencing marketing activities o Internal and external environmental scanning is critical External Every business needs to scan the environment for trends If you wait for the competition to sell something before you sell what is the popular trend then it’s too late Culture shock o Used to one thing in a culture then placed into a different culture Change could accelerate so much, we could have future shock! ALWAYS have to be adapting Internal Customers= tell them that they are the most important (they are not) Employees= MOST important!!! Their happiness is most important What is needed for marketing to occur (four factors) o 2 or more parties with unsatisfied needs When someone develops a need for a good that they don’t know there is a product out there that satisfies the need. Two parties have unfulfilled needs ex: you want a poweraid, your local grocery store sells them, and needs you to buy it o Desire and ability to satisfy those needs You and the grocery store owner want to satisfy the unfulfilled need. You also have the money to buy the poweraid and the time to go to the store. The storeowner of the grocery store also wants to sell the poweraid and is able to because it’s stocked on the shelf. o A way for parties to communicate The marketing transaction of buying the poweraid won’t happen unless it is known that that product exists and where it is available for purchase. Also, the storeowner isn’t going to stock the poweraid unless he is certain that there is a market for them and people will buy them. If you were to receive a free sample in the mail or see a poweraid in the store the communication barrier is broken down between you (buyer) and the grocery store (seller). o Something to exchange Marketing occurs when the transaction takes place and the buyer and the seller exchange something that holds value. Ex: like you exchanging money for a poweraid. You and the grocery store gained something and gave up something. But you are both better off because you have both satisfied the unfulfilled needs. You get a poweraid but you gave up money. Store gave up the poweraid but gained money. Ethical and legal exchange process occurred. FOUNDATIONS OF EXCHANGE are CENTRAL to marketing. The four P’s of marketing form foundation for DIFFERENTIATION o Differentiation process that you make yourself different enough so competition is not competition Needs to be hard to replicate Closely linked to the target market Target market one or more specific groups of potential consumers toward which an organization directs its marketing program o Customer value proposition a cluster of benefits that an organization promises customers to satisfy their needs 4 P’s 1) Product good, service, or idea to satisfy the customer’s needs 2) Place a means of getting the product to the consumer 3) Price what is exchanged for the product. 4) Promotion means of communication between seller and buyer Price=the easiest to replicate if you use the low price strategy you have to have a strong enough foundation to be able to suffer a loss Product (service) and Place= hardest to replicate Place= if you offer delivery, interior of your selling space, etc. Promotion= easy to replicate marketing, promotions (coupons), if you do promotions too often customers will start to think the sale price is the normal price and they will never want to pay the regular price Marketing mix the controllable factors (product, price, place, and promotion) that the marketing manager can use to solve a marketing problem. o Called controllable factors because they are under control of marketing department in an organization Customer value/Value Proposition Customer value buyers benefits, including quality, convenience, ontime delivery, and before and after sale service at a specific price o Benefit vs. Price More benefit, Lower price = MORE value Less benefit, Higher price = LESS value Relationship marketing linking the organization to its individual customers, employees, suppliers, and other partners for their mutual longterm benefit o Building relationships/high knowledge comfort to customers and awareness o Build customers for a lifetime Create a database for every customer (include picture if possible) so you can remember things about them and make them feel at home Best for small town businesses Ex: if high school colors of the town are blue and green then your company should incorporate these colors Marketing program – a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers o Prospects react favorably (by buying) or negatively (not buying) process is then repeated o 3 Ms Strategy and Marketing Program to Help Students Study Moving from ideas to a marketable highlighter product Added post it flags to the top on the highlighter because the big post its don’t fit in a highlighter Users wanted a convenient, reliable cover to protect the Postit flags, so they created a rotating cover Adding the postit flag pen Students are potential market for this product smaller market than office workers though. People in offices need immediate access to Postits A marketing program for the postit flag highlighter and pen Several years of research, development, and production engineering new product gets developed 1. Product strategy a. Offer new calculator to help college students study 2. Price strategy a. Retail price of $25.99 to $29.99 for one calculator b. $45.99 to $49.99 for a two pack 3. Promotion strategy a. Run short term promotion using a college newspaper ad and/or TV ad then hope that college word of mouth message will work 4. Place strategy a. Distribution calculators in the college bookstore, office supply store, and any mass merchandiser Social responsibility – if a manufacturer dumps chemicals into a river this has an effect of the environment and society Societal marketing concept the view that organizations should satisfy the needs of consumers in a way that also provides for society’s wellbeing o Individuals and organization’s are accountable to a larger society o Well being of the society on a large scale should be recognized in an organizations marketing decision Marketing concept – the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organizations goals Ultimate consumers people who use the product and services purchased for a household Organizational buyers manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale Product – good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers needs and is received in exchange for money or something else of value Utility benefits or customer value received by users of the product Types of unethical practices in advertising o Exploitation of… (women, kids, animals) o Promotes bad/unethical behavior o “Bait and switch” Customer liked the advertisement of a low priced product then is encouraged to buy a higher priced one o Unproven/Improvable results o Atypical results Fake or changing results from what you thought it was like when you bought it o False authorizes o Mocks other products o Lying/exaggerating o “Caveat emptor” let the buyers beware, sold as is Product could fail on you and not meet expectations or have defects
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