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This 14 page Study Guide was uploaded by Alexis Winer on Sunday February 8, 2015. The Study Guide belongs to MAR2023 at University of Florida taught by Lutz in Fall. Since its upload, it has received 89 views. For similar materials see Final Study Guide in Business at University of Florida.
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Date Created: 02/08/15
Chapter 2 Corporate Leveltop management directs overall strategy Strategic Business Unit Leveldivision where managers set the direction for products amp markets to exploit valuecreating opportunities Functional Levelspecialists create value for the org more speci c Organizational Foundation 0 Core Values collective heart and soul set by founders Mission organization s scope customers markets products tech values 0 Organizational Culture values shared by members of an organization Organizational Direction 0 Organization must decide which business it is in 0 Goals Organizational Strategies 0 Bylevel o By offering Dollar Market Share Company Sales Total Industry Sales Marketing Plan road map for marketing for a speci ed future period of time Business Portfolio Analysis evaluates business units as separate investments using market share and growth for analysis Market Growth Rate industry rate of growth Relative Market Share strategic business unit s sales sales of largest rm in the industry BCG Matrix below Relative Market Share High Gash Generation LEW Stars Question Marks J 5539 1 m E r I E S39s f a Ill E 31 E E E 1 ED r El E11 H g u E Cash Cows Do 5 E 39 uickMEMmm Cash Cow can pay for overhead or other SBUs Stars need extra cash to nance rapid growth Question Mark must decide whether to phase out SBU or invest in them to make them stars Dogno promise should be dropped Diversi cation Analysis search for growth opportunities in current and new markets a well as current and new products Market Penetration increasing sales of existing products by selling more or selling at a higher price Market Developmentselling existing product in a new market Product Development new products in existing markets Diversi cation new products in new markets Strategic Marketing Process org allocates marketing mix to reach target markets Planning Situation Analysis where the rm has been where it is now where it is headed SWOT Analysis appraising internal strengths weaknesses opportunities threats Market Segmentation putting buyers into groups with common needs and similar responses to marketing action Points of difference how product is better than others Develop marketing mix and budget Implementation Obtain Resources Design Marketing Org Developing Schedules Executing Marketing Program Marketing Strategy means by which a marketing goal is reached Marketing Tactics day to day decisions Share of Voice rms marketing expense industry marketing expense Change in share of voice 15 x change in market share PERT Chart longest path from prototype to launch cant go backwards Chapter 7 Countertrade using barter not money for making global sales Trade Feedback Effect increased demand for imported goods results in higher exports for a country GDP monetary value of all goods and services produced in a country in 1 year Balance of trade difference between imports and exports Surplus exportsgtimports De cit importsgtexports National Competitive Advantage Factor Conditions Demand Conditions Related and supported industries Company strategy structure and rivalry Economic Espionage clandestine gathering of competitors trade secrets or proprietary info Economic Espionage Act 1996 theft of trade secrets by foreign entities federal crime in US Protectionism shielding industries from foreign competition with tariffs or quotas there is a decline of this World Trade Organization org that sets rules and decides trade disputes among nations 159 nations Economic Integration regions going into free trade rising Eurobean Union 27 countries 16 with euro North American Free Trade Agreement Canada Mexico USA CAFTADR US Dominican Republic some central American nanns Asian Free Trade Agreements east Asian countries less formal Global Competition Strategic Alliances Global Companies International extend domestic marketing globally Multinational dif products brand names advertising for each country Transnational world is one market Global Marketing Strategy standardizing marketing strategies with cultural similarities and adopting them when cultures differ Global Brands brands with same name in dif countdes Global Consumers consumer groups worldwide with similar needs teens Cross Cultural Analysis Values preferable modes of conduct that persist over time Customs normal and expected practices of a speci c country Foreign Corrupt Practices Act 1977 crime for US corp to bribe a gov official to get business in that country Symbols concrete representations Semiotics understanding symbols Back Translation translated words are retranslated back into original language by different translator to identify errors Cultural Enthrocentricity your vulture is better than any other Consumer Enthrocentricity believe that you shouldn t buy foreign made products Micro nance offering small collateral free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses Currency Exchange Rate price of one country s currency expressed in terms of another country s Global Market Entry Strategies LOW Pro t Potential HIGH D Exporting Licensing joint Venture Direct Investment D LOW Financial Commitment Risk and Marketing Control HIGH Indirect Exporting exporting through an intermediary Direct Exporting exporting without an intermediary more risk more pro t Licensing Contract Manufacturing contract with a foreign rm to make products along some speci cations Contract Assembly assemble parts manufactured domestically in a foreign country Franchising operate a business under their name in a foreign country joint Venture foreign company and local rm invest together to create a local business sharing ownership control and pro ts Direct Investmentdomestic rm investing in and owning foreign division Product and Promotion Strategies Product extension selling product in same form as home market Product adaptation selling product with some adaptations Product lnvention totally new product Communication Adaptation advertising same product in dif countries in dif ways Dual Adaptation Strategy products and promotions changed country 2 country Dumping rm sells a product in a foreign country below its domestic price or below its actual cost to build the company s share of the market Gray Market products are sold through unauthorized channels of distribution Chapter 1314 Price List Price Incentives and Allowances Extra Fees Value Perceived Bene tsPrice Value Pricing increasing product and service bene ts while maintaining or decreasing price making value greater Pro t Total Revenue Total Cost Unit Price x Quantity Sold Total Cost Setting Prices 1 Identify pricing objectives and constraints 0 Pricing Objectives pro t sales market share unit volume survival social responsibility 0 Managing for long run pro ts maximize long term by giving up intermediate pro t to develop products and penetrate market 0 Maximizing current pro t maximizing in 3 months 0 Target Return pro t goal ex 20 ROI 0 Pricing Constraints demand cost of production newness of product single prod v prod line cost of changing prices type of competitive market competitors prices 0 Pure Competition many rms price set by market 0 Monopolistic Comp many producers make differentia product price competition 0 Oligopoly few rms heavy advertising 0 Monopoly one rm sets price 2 Estimate Demand and Revenue 0 Total Revenue Price x Quantity 0 Average Revenue Total Revenue Quantity Price 0 Marginal Revenue Change in Total Rev change in quantity Elasticity of Demand change in QD change in price Elasticgt1 lnelasticlt1 Unitary1 Affected by more subs more elas necessities are inelastic and larger share of budget larger elas 3 Determine Cost Volume Pro t Relationships 0 TC FC VC 0 Unit Variable Cost Variable CostQuantity Marginal Cost Change in total cost change in quantity 0 MRgtMC good MRMC pro t max point 0 Break Even Point FC PVC 0000 4 Select an Appropriate Price Level 0 Demand Oriented focus on customer tastes o Skimming Pricing high initial price rst than lowers o Penetration Pricing start low get higher or lower 0 Prestige Pricing high price to show quality 0 Price Lining setting price of product line products at dif prices Odd Even Pricing few dollars or cents under whole 0 number 0 Target Pricing estimate pric and work back to wholesalers Bundle Pricing two product I 0 Yield Management Pricing H for a set capacity at a time 0 Cost Oriented 0 Standard Markupadding xed percentage to cost of all items 0 Cost Plus Pricing adding a speci c amount to the total unit cost 0 Experience Curve Pricing as output grows prices fall Pro t Oriented 0 Target pro t speci c dollar amount annually 0 Target Revenue on Sales Target Pro tTarget Revenue 0 Target Return on Investment Competition Oriented o Customary Pricing setting price based on tradition 0 Above at below market pricingbased on competition Price Premium Sales Market Share Unit Volume Market Share 1 above beow Oat 0 Loss leader pricing selling a product below its customary price to attract customers to buy other items 5 Set the List or Quoted Price One Price policy one price for all buyers Flexible Price Policy dif prices depending on buyers and s ches Product Line pricing setting prices for all items in a product line price differentials between highest and lowest price Price War price cutting by competitors to increase market share 6 Make Special Adjustments to the List or Quoted Price Discounts allowances geographical asjustments Free on Board Origin Pricing price includes cost of loading the product onto vehicle Uniform delivered pricing price includes all trans costs 0 Single zone pricing all buyers pay same 0 Multiple zone pricing dif prices for geographical zones 0 FOB with freight allowed pricing buyer pays trans costs 0 Basing Point pricing select one or more geo locations from which the list price is charged Price Fixing conspiracy among rms to set prices on a product Horizontal between 2 competitors Vertical between buyers and sellers that prohibit sellers from selling below a retail price Price Discrimination charging dif prices to dif buyers Deceptive Pricing false impression of a product Bait and Switch low price to attract later persuaded to buy more expensive Predatory Pricing charging very low price to drive competitors out then raising them Markup Price COGS 100Markup1OO Target Pro t Price FCVCPro t Target number of units Target ROI FCVCTota investment x ROI standard units Wholesale Price Retail Price x 100 Markup100 Manufacturers Price Retailers Price x 100 Retailer Mrkup100x 100 Distributors markup100 Chapter 15 Marketing Channel indivs and rms involved in making a product available for use Direct Channel ProducerDConsumer Indirect Channel intermediaries perform functions between producers and consumers Agent sales force Industrial Distributor selling stocking delivering nancing Direct Marketing Channels consumer can buy products by interacting with media no face to face Multichannel Marketing using dif channels to sell online and in person Dual Distribution rm reaches dif buyers by using 2 channels for the same product Strategic Channel Alliances use one rm s marketing channel to sell another rm s product Vertical Marketing Systems Corporate stages of production and distribution under one ownership Contractual integrate ind production and distribution rms franchising Intensive Distribution place products in most outlets possible cocacola Exclusive Distribution only one outlet in a region carries the product Gucci Selective Distribution few outlets in one area to carry products dell Channel Con ict one channel believes another is engaged in behavior preventing its goals Disintermediation channel member bypasses another and buyssells directly Logistics getting the right amount of the prod to the right place at the right time Reverse Logistics reclaiming recyclable and reusable materials returns reworks from point of consumption for repair manufacture or disposal Cross Docking loads trucks on one side for manu and one side for stores Chapter 16 Retailing selling renting providing goods and services to ultimate customers Depth of Product Line many of each item Breadth of Product Line variety of different items Retail Positioning Matrix breadth vs value added chart Off Price Retailing selling brand name merchandise at lower than regular prices Shopper Marketing use of brand communications such as coupons to in uence customers Sales per square foot total sales selling area Same store sales growth store sales year 2 store sales year 1store sales year 1 Or sales yr 2 sales from new year 2 sales year 1 saes year 1 Stockturn Rate COGSAverage Inventory Wheel of Retailing how new outlets enter market Enter as low status low pro t raise prices and cause more to enter Merchant Wholesalers rms that retain title of merchandise they handle RackJobbers bi suppliers for what is sold Cash and carrysell only to those who pay cash and transport themselves Drop shippers never touch merch receive orders and have them delivered Truck jobbers have trucks to ship out with goods Chapter 21 Marketspace digital environment Interactive Marketing 2 way buyer seller electronic communication Choiceboard design your own product Collaborative Filtering groups people with similar prefs to predict future purchases Average Time Per Unique Visitor ave visits per unique monthly visitor x average time spent per visit Dynamic Pricing changing prices for products in real time in response to sampd Cross channel shopper online consumer who researches online and buys in store Chapter 22 Sales Response Function relates expense of marketing effort to results S shaped Share Points points of market share to see if you should spend more on marke Planning Control Implementation Porter39s Generic Business Strategies dua rage THEE EWPE ELQQEQEJEI39EIMIF gt i II Synergy Analysis seeks growth by nding optimum balance between marketing efficiencies and RampD manufacturing synergy Program Champion people who moves the program forward Action Item List tool for scheduling which includes task person responsible and date Represented by a Gantt Chart Line positions issue orders to people Staff positions cannot give direct orders Marketing Return on Investment evalutate marketing progress
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