MKT Midterm 1 Note Bundle + Study Guide
MKT Midterm 1 Note Bundle + Study Guide 301
Popular in Marketing
Popular in Business
verified elite notetaker
Test Prep (MCAT, SAT...)
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
This 21 page Study Guide was uploaded by Josh Manley on Sunday February 15, 2015. The Study Guide belongs to 301 at University of Miami taught by Fajardo in Spring2015. Since its upload, it has received 140 views. For similar materials see Marketing in Business at University of Miami.
Reviews for MKT Midterm 1 Note Bundle + Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/15/15
Marketing 301 Notes 1 0 Marketing 0 De nition the activity set of instructions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large 0 Value Re ects the relations of bene ts to costs what you get for what you give up Costbene t analysis 0 Value bene ts costs 0 Value based marketing orientation Suggests that successful marketing maximizes perceived bene ts 0 Eras Productionoriented marketing 0 Focus on product and cheap production 0 Ford automobiles o Outdated Salesoriented marketing Attracting customers bases on needs and wants of customer base Maximizes consumer39s perceived value Target market Targeting a market on one speci c type of consumer Components of Target Marketing 0 Select target market 0 Create value for customer 4 P39s Positioning Product 0 Can be goods services or ideas 0 Promotion 0 Communication by a marketer o Informs persuades and reminds potential buyers 0 Price 0 Everything a customer spends to get a product 0 Determined by conducting market research examining how much a consumer is willing to pay while still retaining pro t 0 Place 0 Supply chain management 0 Includes distribution of product to customer 4 P39s are Interrelated and dependent on target market 0 Creating value for seller 0 Competitive price 0 Consumer lifetime value Net pro t attributed to the entire future relationship with a customer Often cheapermore worthwhile to retain customers for longer 0 Marketing stakeholders Seller buyers corporate partners and society 0 Society can bene t through economic growth Prosocial marketing 0 Using marketing to have a positive impact on society 0 Got Milk campaign helped industry and general health 0 Companies form partnerships for societal bene ts 0 Toms donating shoes 0 Types of Marketing 0 B2B Business to Business Ex 0 Supply chain is composed of multiple businesses contracted to work together 0 B2C Business to Consumer o C2C Consumer to consumer 1 Two ways to improve value What are they 0 Increasing bene ts or decreasing costs 2 Prevailing marketing strategy of the era was to nd customers for inventories that were unsold Sales 3 Three types of marketingexample of each 0 B2B B2C C2C Chapter 2 Marketing Strategy 0 Marketing Plan Intro The Marketing Plan Step Business I m l ssl en 34 ehjecttues quot lPlen lmg Phase Step 2 Situatianl amaljeis 1 E i nmnmc mm39 u n m u a I v a m um39m anquot n m u a a um39 u m u n a a a m n a u v a m i39 I I I 7 i Step tdentifyappactunities r1 ii gt 391 Eeegmenteticn I l targeting PositIiJening t Implementatiw l 1 Marketing phi5e 39 strategy Step4 implement marketing mix E m v ll 3 l quotif Central Step5 Evaluate perfelrm amce phase using me riltetimg metrics 391 o 0 Steps to creating a marketing strategy 0 De ne business mission statement Core purpose of the rm Core values Visionary goals Used to Attract talent build culture increase productivity 0 SWOT analysis De nition review of immediate environment to determine strengths weaknesses opportunities and threats in relation to competition Analysis of internalexternal market SWOT Analysis P aeitiee Negative Strengths Wllmeeeee V Internal capabilities that Internal limitations that mayr internal p it may help a campany reach untertere Wl39l39h a company 5 its ab ectives abilirty to achieve its sabiectives Olppartuni39tiee Threats External External tactars that the Current and emering cenrilpriftIr may llae lblle ta externll tactere that nviia39yr expuleit ta tts cllvantage challenge the camany s lpertanrmance Used to determine what you can and cannot do nterna 0 Positive strengths 0 Internal capabilities that help a company reach objectives 0 Negative weaknesses 0 Internal limitations that may interfere with a company39s abilities to achieve objectives 0 know examples of weaknesses for exams Corporate Partners Market intermediaries that help company promote sell and distribute product Marketing Services Agencies 0 Researchers and create promotional material Retailers 0 Financial intermediaries Be able to list corporate partners based on four P39s Competitive Intelligence Proactive rather than reactive strategy Public info 0 Websites annual reports patents job postings Trends Quantcast Immediate Environment Factors Company competition corporate partners and consumers Macroenvironmental Factors external environment Culture 0 Shared beliefs morals and values of a group of people 0 Country vs regional 0 Advertising should be regional Demographics 0 What a typical consumer looks like in a target market 0 Age Baby boomers Focus on diversity idealism jobs TV tasktechnology Generation X Cynical individualistic focus on life uses technology Generation Y Celebrates diversity focus on lifestyle assume technology nurtured 0 Income Determines purchasing power Middle class squeeze disparity between rich and poor 0 Education 0 Gender 0 Ethnicity Minorities are important TechnologicalAdvancements New distribution channels Place through ecommerce quotcompleteinformationquot o More consumer inputhelp 0 RFID for supply management Used to track products through supply chain 0 Consumer bene ts 0 Convenience 0 Access to increased variety Positives 0 Convenience cheaper 0 Access to more consumers NegaUves 0 Increased competition Economic Situation 0 In ation foreign currency uctuations interest rates In uences real purchasing power of consumer Middle class squeeze 0 Middle class believes they have less purchasing power PoliticalRegulatory Environment 0 Legislation for o Misleading advertising 0 Harmful materials 0 Fair business practices 0 Industry speci c Sherman Antitrust Act 0 Clayton Act Social Trends Thriftprice sensitivity 0 Walmart Health and wellness concerns 0 Shapeups Greener consumers 0 Tesla Privacy concerns 0 Norton Antivirus Software 0 Time poor society 0 Fast food 0 Changes in workforce demographics 0 Fashion brands Target Marketing 0 Identifying a target market 0 Segmenting and targeting Looks for attractive audience Positioning Focuses on needs and wants Maximize perceived value through positioning 0 Involves de ning the marketing mix variables so that consumers have a clear and desirable understanding of what the product does or represents 0 How is this attempted positioning being supported or deterred by the marketing mix 4 P39s Product promotion price place Ex 4 P39s for Baby Bell 0 Cheese product PrintTV advert focusing on ease of use transport and portability 45 50 mark up Sold in grocery stores Segment busy professional women Social changes women in the workplace 0 Marketing Strategy 0 SWOT analysis determines target markets 0 Positioning uses the 4 P39s for target markets 0 Identify a substantive competitive advantages An advantage over the competition that is not easily copied and thus can be maintained Operational exceence Ef cient operations 0 What they want at the price wanted 0 Efficient operations dependent on supply chain management 0 Walmart Locational exceence Starbucks o Positioning new stores next to existing stores Product exceence Having a product high in perceived value 0 Values beneits cost 0 Most companies focus on increasing bene ts Increase objective bene ts Increase brand associations Cost is not a competitive advantage Easily limited Nonsustainable Could lead to price wars Customer exceence Customer service 0 product exceence Retaining loyal customers How to maintain loyal customers Maximizing value 0 Creating a substantive competitive advantage Maximizes perceived value 0 Most successful have multiple sources of advantage 0 Evaluating performance Financial performance 0 Revenue sale pro ts Performance objectives 0 Loss leaders 0 Well performing products dependent on other products 0 Kindle Low initial cost Revenue more dependent on books Corporate social responsibility matrix Quanti able amount of good Portfolio analysis BCG analysis 0 Can be down at multiple levels product or brand 0 Relative market share vs market growth rate 0 Rated as star question cash cow and dog BCG Matrix Evaluating Performance PortfolioAnalysis BCG Matrix 0 Can be oi one at multiple levels prerdllu ct o r brand HIGH Relative market Shane LOW awijllll irate Market 0 mm Growth strategies in order of risk 0 Market penetrations 0 Increase volume sold 0 Methods to increase sales 0 Market development 0 Existing products or services in a new market 0 Product development Diversi cation 0 New product and new market segment 0 Related and unrelated o Threat of cannibalization o Threat of brand confusion 1 Why is it important to know about cultural differences among Hispanics Growing portion of the market can make up different target markets 2 New slogan which of the four growth strategies was the brand promoting Market penetration 3 Firms achieve through supply chain management 0 Operational excellence Segmentation Targeting and Positioning Segmentation 0 Who39s out there 0 Consumers who respond similarily Methodology 0 Overview Eegmemtatinn Mat I l dl Sample Segments Se g FEIlIJI lEJC libr rtilnent North An39ieri ca sia Eu rope Mrica Withn L15 Flarifts nmlii39ltaun tantra I uth mid tlanitlc rm lms at Demogra ph ii rage gs drier inctime Psychographic Lifestyle selftn nrreth selfvalues eodem ag r3 phi ic Llrha n Exufb establiisherll sophisticated tow r1 hmllses buhemians a 39FFIluelnt FEtilFrEES ELEV Efut s ilrorwel it or E econ only pare stage Eleh avi oral ctasion loyalty 0 Geographic segmentation Where they are No snow gear in Miami 0 Demographic Age gender income education Marital status Most common method of segmentation Can be stereotypical Geodemographic Combination of geographic and demographic o Psychographic segmentation Accounts for psychological aspects of consumers Based on how they want to be seen 0 Self concept 0 Ideal image of themselves 0 Self values 0 Life goals Lifestyles 0 Ways to achieve goals Harley Davidson VALS framework Classi es people based on their resources and their mindset Expensive relies heavily on science 0 Bene t segmentation Organizes consumers on the base of how they derive bene ts from products or services Loyalty cheaper to keep customers Lifetime value 8020 Occasion 0 Can combine anyall of the segmentation methods 0 Evaluating Segment Attractiveness o Identi able Must be able to identify who is in the market segment 0 Substantial Must be large enough to be segmented Too big and it might need own brand 0 Reachable Able to market to consumer and provide information Consumers need to know that the product exists what it can do and recognize how to buy it o Responsive Customers must React positively to rm39s offering Move towards rms products Accept rms value proposition Cadmac 0 Example of when a customer didn39t respond 0 Pro table Segment pro tability segment size x segment adoption x purchase behavior x pro t margin xed costs STP analysis 0 HW analyze Target39s failure in Canada 0 Due Feb 2ml 7 AM 0 Do own research 0 Segment pro tability will be on test 0 Segment size x segment adoption x purchase behavior x pro t margin xed costs 0 Market Research 0 Perceptual map Illustrates the position of a rm39s products or brands in consumers39 minds 0 Successful Proposition Customer needs Firm bene ts Competitive bene ts 0 When all are met bene ts consumer and company 0 Worst position 0 Combination of competitor bene ts and customer needs 0 Competitor39s value proposition 0 Product can39t compete with other competition 0 Positioning Steps lP o siti o n i n Ste ps i i o Repositioning Baking soda has a lot of different uses can be repositioned o Targeting Strategy Undifferentiatedmass marketing 0 Multiple segments with one promotional material approach Differentiated Multiple segments with different promotional material aimed at different segments Concentrated Concentrating marketing on one consumer market Target Micromarketing or onetoone Tailoring Small businesses Concentrated targeting for one person 0 STP Process Market Research a Step 1 quot39 STI39EITEQ er Dbiectiees E Segmentetien Step 3 quot39 Segmentation Methods 39 Step 3 quot Evaluate Segment At39 rrmci 39eeness 39 r Turtgeting l Segmentation What strategies are being used Targeting Which segments are being targeted What strategy is being employed Step 1 quot Eelect Tutget Step 5 quot Identify and Develop MamieHing Stmtemr Positioning What positioning is being attempted 4 P39s 1 Which segmentation method is being used when MampMs uses special weddingthemed packaging A Occasion strategy wedding 2 involves de ning the firm39s marketing mix variables so that target customers have a clear distinctive and desirable understanding of firm39s offerings A positioning 3 The perceptions of are being measured in a perceptual map 0 Consumers De nition The systematic and objective process of generating information for the aid in making marketing decisions Purposes 0 Identify and evaluate opportunities OOOOOO Budgets Analyze market segments Select markets Analyze performance Determine market characteristics Test products Product forecasting Performed by 90 of companies Mostly manufacturing and politicians o 12 of company sales 5080 inhouse 2050 externally Steps 0 De ne research needs What type of information is needed Primary data 0 Data conducted by the organization 0 Usually for a speci c problem or project in hand Secondary data internal source know esp differences between internal and external 0 Internal 0 Company held info sales 0 External 0 Published material Gov or business sources Inform of summary reports Often provides raw data 0 Syndicated sources Research companies collect and sell common pools of data designed to serve information needs shared by multiple clients Compared to published materials Relatively expensive 0 More direct focus 0 Panel data Track consumption of a particular household 0 Scanner data Track week consumption of a particular product Can39t get data on other stores this way 0 Measurements 0 Can be collected from different sources including government 0 Sometimes not reliable Advantages 0 Cost and time Disadvantages know for an essay question 0 Relevance May not match data you need Time period 0 Reliability Differences in categorical de nitions 0 Accuracy Methodology and data may not be credible Hard to extract information 0 Secondary data available to competition 0 Hard to extract 0 Advantages 0 Less and time than primary data 0 Managing secondary data 0 Data mining 0 Designing the Research Project By objectives Exploratory Dexcriptive Causal By methodology Qualitative quantitative Qualitative Engaged when you need exploratory or descriptive data 0 Exploratory data is used to develop an idea further 0 Outline concepts gather insights formulate hypotheses Observational research 0 Examines purchase or consumption behavior 0 Useful when customers don39t articulate experiencespreferences 0 Used to determine how customers might use product 0 Baking soda I got baking soda Expanding purposes 0 Mcdonalds redesign Changing for customer needs Social media Individual indepth interviews 0 Trained researcher asks questions 0 Advantages Flexible Fuller explanations 0 Main disadvantages Relatively expensive Not anonymous 0 Focus groups 0 Small group of consumers 812 has an intensive discussion about a particular topic 0 May be done onine or of ine Of ine is more expensive but better body language Quantitative Need causa data Surveys 0 Collect data 0 Analyze data 0 Implement data Target Corporation 0 Discount retailer Systematic means of collecting data with a questionnaire Know types of questions Structured Answers on a scale Unstructured Write response Used for focal groups Issues to consider in questionnaire design Sensitivity of question 0 People don39t like stating income Bias in information 0 Leading questions Comprehensiveness Vocabulary Complexity of question Doublebarreled questions Ease of completion RepeUUon Respondent motivation know what is wrong with different questions Mail surveys Advantages Inexpensive No interview bias Anonymity Consisten Disadvantages Low response rate Impersonal Telephone surveys More exible More obtrusive Online surveys Advantages Inexpensive Anonymity Consistent Speed Disadvantages Tech skills and time required 0 Common strategies Specialize Lowprice provider Differentiate Target39s strategy 0 Combine cheap price with highend experience 0 Positioning Expect more pay less Focused on customer experience 0 Service Clean stores Open isles Appealed to suburban populations Target is not only upscale it is trendy fun hip edgy Provider of affordable chic goods Spent more on advertising Targeting o Concentrated targeting strategy Research 0 Mail surveys 0 Advantages Cheap No interview bias 0 Disadvantages Unresponsive Telephone Surveys 0 Advantages More exible Response rate is higher 0 Disadvantages People dislike it lntrusive Online surveys 0 Advantages Inexpensive No interview bias Anonymity Speed Large and growing audience 0 Disadvantages Technical skills required to develop questionnaires 0 Software Surveymonkey Qualtrics 0 Participants Mturk 0 Experimental research 0 Systematically manipulates one or more variables to determine which variables have a causal effect on other variables 0 Often used to determine ideal price point 0 Physiological research neuromarketing Focus is on the physical response Eye tracking and pupilometer test Focus is on the physical response 0 Eye tracking Neuromarketing will lead to better predictions Biometric data Qualitative vs Quantitative Type of Question Sample Size Information per respondent Questioner s shill Analyst39s sltill Type of analysis Ability to replicate Areas probed Research 0 Potential bene ts of research should exceed its estimated costs 0 Should at least be considered 0 Summary 0 0 Sampling not in book infonna on Boole llournall EI39HGE Synd oated data E39Ec l ld l f Emaarsed mama Primrgr Eaaeersh behalf DI Foous group intemietss DI Surveys DI Experimerds 0 Sample the group of people who take part in an investigation 0 Sampling Process of selecting participants for populations 0 Target population Qualitative Quantitative Probing Siirnple Small Large High Lovulish High Lowrlish High Hitllt Su hjECitJltl39En bjeotiare Interpretative Statistical Low High Attitudes Choioes Feelings Freguentnr Motivations Demographics DI Ibseweel oonsurner Census dana Sales irnroio l3 Saves tirne in oolleotingidam lbeoause 1hey39 are readily aua iable Cl Free or inexpensilae enrept foo syndioated data Cl Epeo39r o39toz line immediate lZl data needs and tape at hand lIl ISifters behavioral insights Cl generally not available lIl seoandaryr researofh El hills not be poeoiaelyr relevant to irrforr39na1ion needs El Information may not be timely El Souroes I39I39ltilja39 not be ostginal and therefore usefulness is an rssue El hille hodeo for odteoijng data may not be appropriate El Data souIees may be biased El Costly El Tlrne oansuming El Hiequires moire sophistioatedl El tra39ni39ng anzll emerienoe to deagn El s1ud1 and tolleet data Total group of population from which sample is to be drawn 0 Generalizability Extent to which we can apply the ndings of our research to the target population we re interested in 0 Methods Random sampling 0 Equal chance of everyone getting picked Have to identify every member of a population every target market 0 Sample sizes need to be large 0 Can be expensive Strati ed or segment random sampling 0 Samples on the basis of representative strata or segment 0 Still random but focused May give more relevant information o More cost effective more time consuming Convenience sampling Cluster sampling 0 Based on geographic areas Opportunity sampling Snowball sampling 0 Samples developed from contacts of existing customers 0 39word of mouth39 type approach Analyzing Data and Developing Insights Action Plan and Implementation 0 Basic components 0 Executive summary Body Conclusions Limitations Supplements OOOO Caqun 0 New coke Remember marketing research is a tool 0 Never a replacement for good judgment 0 Calculating consumer lifetime value appendix after chapter 10 How much it costs to acquire and maintain a customer Retention rate Annual pro t rate Discount rate Pro ts x retention ratequotn11 Discountquotn1 acquisition cost 0 Separate calculation for each year 0 Add to get total 1000 x 9quot111quot1 Each year you increase the exponent by n1 Nonlinear path 0 U curve gt upside down u curve Know how to do a word problem 0 Given of years retention rate etc 1 Martin has hired a market research company to bring together a small group of soft drink consumers and get feedback on the three new advertising slogans Would use a focus group 2 Social media monitoring indepth interviews focus groups Qualitative 3 Do you like Wendy39s hamburgers and fries Bad because it39s a double barrel question Chapter 11 0 Brand exposure 0 3500 incidences of brand exposures daily 0 Brand 0 Any name term symbol or design which allows one product to be differentiated from others 0 Brand name literature 0 Phonetic RepeUUon Rhyming Sharp names for knives dull names for hammers 0 Semantic characteristics Puns Qualities about the products 0 Orthographic s in brands 7 up 0 Brand equity 0 Set of assets and liabilities linked to the brand that add up or subtract from the value provided by the product Can be negative Characteristics can personify brand Consistency is key Objective quality Aggregate performance of all vector product attributes Perceived quality is ultimately objective 0 Brand awareness o Familiarity If a customer is not aware of the brand it will not be in the consideration set 0 Best marketers sell brands not just products 0 Brand Value 0 Brand associations affect perceptions of brand quality 00 O O O Creates brand loyalty Strong brand preference leads customers to not want to switch Loyal customers are less sensitive to price Insulate rm from competition Associated with lower marketing costs Bene ts for customers Facilitates purchasing Increases perceived value Naming strategies 0 O 0 Corporate or family brand Corporate and product line brands cereal Individual lines Brand development strategies 0 0 Brand name vs product category Category Existing existing brand 0 Line extension New existing brand 0 Brand extension existing new brand multibrands scion new new brands new brands brand dilution refrain from extending the brand name too many times don39t expand brand too far into different market cobranding practice of marketing two or more brands together fedexkinkos American express and delta Betty crocker and hershey39s Larger companies will bene t more from cobranding Brand licensing Contractual agreement between rms whereby one rm allows the other to use its brand Lacoste Prada sunglasses Brand repositioning Changing a brand39s focus to target new markets or realign the brand39s core emphasis with changing market preferences Old spice Packaging Secondary vs primary packaging Secondary Product comes inside Primary 0 Product that is actually being used quotwrapragequot Too much packaging Hard to get through Frustration free wrapping lets people feel good when they39re opening package Decreasing volume 0 Consumers are less sensitive to volume decreases than price increases Can be used to provide informations Ingredients calories etc General and industry speci c laws and regulations do exist 0 FDA Sample exam questions 0 When proctor and gamble added teeth whitening products under the crest brand the rm was engaged in Complementary goods Name two reasons marketers with successful brands hesitate to expand their brands Fit Too expensive Enron professionals who had nothing to do with the corporate scandal had trouble nding work postscandal even if they weren39t involved because of Negative brand equity Exa m 1 Review Chapters 125911 Structure of test 0 35 multiple choice 2pts 0 5 short answer Range from 28 points 0 Bring calculator Things to cover 0 Marketing eras with distinctions Production gt sales gt marketing gt value based marketing Value based retains marketing approach but factors in competition 0 Value Re ects the relation of bene ts to costs Value bene ts cost 0 Marketing mix 4 P39s lnterrelated Dependent on target market 0 Types of Marketing BZb BZC C2C Know how to categorize examples 0 Substantive competitive advantages Operational product location Know how each is achieved 0 Evaluating performance Know BCG matrix Can be done at multiple levels product or brand Classify product based on description Cash cows 0 Low investment high payoff Stars lnvestin Dogs 0 Sometimes should be phased out 0 Should not if they are a loss leader 0 Product which in uences the sale of other products 0 Growth strategies Know 4 strategies and how to implement each Know relative order of riskiness Diversi cation is the most rislq Know types of risks involved with each growth strategy 0 Evaluate segment analysis Know segment pro tability equation Memorize for calculations on test 0 Marketing research process Know 5 steps Not a sequential process 0 Types of data Primary vs secondary How to gather secondary data Know relative advantages and disadvantages 0 Types of research Qualitative vs quantitative Be able to classify primary research methods Know issues to consider when making a survey 0 Consumer lifetime value Know how to calculate 0 Brand development strategies Know when to pursueavoid brand extension De nitions of cobranding and repositioning o STP Analysis On exam Segment targeting and positioning Know targeting strategies
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'