ASU MKT 300 Online
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This 23 page Study Guide was uploaded by Nicholas Voorhees on Wednesday September 7, 2016. The Study Guide belongs to MKT 300 at Arizona State University taught by John Eaton in Fall 2016. Since its upload, it has received 304 views.
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Date Created: 09/07/16
Marketing Exam 1 (Week 1-3) Marketing – is organizational function and a collection of processes designed to plan for, create, communicate and deliver value to customers and to build effective customer relationships in ways that benefit the organization and its stakeholders o Creating exchanges 4P’S: Product – Problems they solve Place – Suggests quality Price – Suggest value Promotion – Persuade product work for customer o Identity o Connections o Relationships o Solving customer problems Marketing Concept – a consumer-oriented philosophy that suggest that satisfaction of consumer needs provides the focus for product development and marketing strategy to enable the frim to meet its own goals. o Value o Customer relationships o Customer loyalty Marketing Management Philosophies o Production – focus on efficacy of internal operations o Sales – Focus on aggressive techniques for overcoming customer resistance o Market – Focus on satisfying customer needs and wants o Societal – focus on satisfying customer needs and wants while enhancing individual and societal well being Market Orientation – organizational perspective that puts the philosophy of the marketing concept into practice *CHANGE IS CONSTANT o Gather market intelligence Obtain information about customers, competitors and markets o Disseminating knowledge Deliver superior customer value o Coordinated response Implement actions to provide value o Organizational Focus Create customer value Build long-term relationships Maintain customer satisfaction o Importance of Marketing Peter Drucker - “Business enterprise has two and only two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.” o Don’t be bland 2 Marketing environment – is a set of forces, controllable and uncontrollable, that influence the ability of a business to create value and attract and serve customers o Porters five environmental forces Bargaining power of customers Bargaining power of suppliers Threats of new entrants Threat of substitute product Competitive rivalry within industry o Macro-environment – External environment Economy Political Technology Social Values Achievement and Success Efficiency/Convenience Material Comfort Etc. Changing trends in households Delayed Marriage Dual Career Families Etc. Component lifestyles 3 Practice of choosing goods and services that meet one’s divers need and interests rather than conforming to a traditional lifestyle. Changing roles of women Purchasing power of dual career families rising o Micro-environment – External environment Consumers Age trends - (Millennials/Generation Y/Generation X/Baby Boomers Growing ethnic markets Competitors Generic – anything that competes for same disposable dollar Form – serves the same purpose Industry – same products or class of products but at very different price points Brand – Competitors who offer similar products and service to the same customer and similar prices Suppliers o Organization – Internal environment Market – people or organizations with needs or wants and with the ability and willingness to buy. STP Marketing o Segmenting – Divide market based on needs/benefits, demographics, psychographics, behavioral measures 4 Needs – the process of grouping customers into market segments according to the benefits they seek from a product Demographics – Gender/age/income/ethnicity/etc. Psychographics – Values/lifestyle/personality/interests Behavioral – dividing a market by the amount of product bout or consumed Typically, best 20 percent of your customers generate 80 percent of the demand. Markets have a variety of product need and preferences Marketers can better define customer needs Define objectives and allocate resources more accurately Creates a competitive advantage Segmenting Criteria – homogenous/heterogeneous/substantial/identifi able/responsive o Targeting – selecting most appropriate markets Group of people or organization for which an organization designs, implements and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges. Undifferentiated – Views market as one big market with no individual segments (One size fits all) 5 Differentiated – Choses two or more well defined market segments, develops distinct marketing mix for each Niche – Selecting one segment of a market for targeting Micro – one to one marketing is individualized, information-intensive and long term perspective with the goal of increasing customer loyalty o Positioning – The placement of a product or service offering in the minds of selected target market What does the brand stand for? Why should they buy from me? From who am I trying to serve? Select a position Be affordable Value benefit Distinct/Difficult to copy Easily communicated Profitable Perceptual mapping – Location of products, brands, or groups of products in the minds of customers Repositioning – changing consumer’s perception of brand in relation to competing brands Weber’s Law – the stronger the initial stimulus the greater the added intensity needed to perceive a difference. 6 Strategic Market Plan – Managerial process of creating and maintaining a fit between the organizations objective and resources and evolving marketing opportunities. o Corporate Strategy Provides basic direction Determines the general product and market scope to be pursued Typically, long range and broad in scope Corporate Strategy 5 Elements: Business mission statement - what’s the purpose of the organization (defined in terms of customer needs) Objective – a statement of what is to be accomplished through marketing activities SWOT analysis – Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization o Strengths/Weaknesses/Opportunities/ Threats o Strategic business units (SBUs) – distinct mission and specific target market/control over their resources/their own competitors/plans independent of SBUs Business portfolio – collection of businesses (SBUs) and products that make up a company 7 Stars – high growth rate/high market share Cash cows – low growth rate/high market share Question marks– high growth rate/low market share Dogs – low growth rate/low market share Marketing strategy (marketing mix) – the activities of selecting and describing one or more target markets and developing mix that will produce mutually satisfying exchanges with target markets o Aggressive – Many internal strengths/many external opportunities o Diversification – Many internal strengths/many external threats o Turnaround – Many internal weaknesses/many external opportunities o Defensive– Many internal weaknesses/many external threats Implementation evaluation control – the marketing audits role is to make sure that the marketing plan emphasizes the country’s strengths that are compatible with the shifting market environment Competitive advantage – set of unique features of a company and its products that are perceives by the target market as significant and superior to the competition that leads to 8 customer satisfaction, loyalty which lead to market share and profitability. Product leadership o Excellence in technology and product development o Most advanced highest quality product offering Customer intimacy o Long term relationships o Understand customers better than competition Operational excellence o Focus on efficiency of operations and processes o Lower cost operations lead to lower prices Cost o Experience/efficient labor/no frills/subsidies/reengineering/product design/new methods of delivery/Innovation Product/Service differentiation o Brand names o Strong dealer network o Product reliability o Image service Niche – advantage achieved when a firm seeks to target and effectively serve a small segment of the market 9 o Used by small companies with limited resources o May be used in limited geographic market Position Strategies – Market leader/challenger/follower/nicher Strategic opportunity matrix Market penetration – existing market/existing product Market development – new market/existing products Product development – existing market/new products Diversification – new product/new market Consolidation strategies Retrenchment – reduce advertising budget and distribution Pruning – discontinue Divesting – sell off Balance scorecard Financial – solid balance sheet, strong core business Customer – Strong brand portfolio, convenient access to products Internal Business – streamlined processes, varying quality across portfolio Innovation and learning – business structured for continuous improvement 10 Customer-focused strategic planning Puts customer needs and wants first Focus on long term, value added relationships Focuses on understanding customers in ways that enhance sustainable competitive advantages Instills a corporate culture that places customers at the top of the organizational hierarchy Finds way to cooperate with suppliers and competitors to serve customers more effectively and efficiently Business Plan – Written document that defines the operational and financial objects of a business over a particular time, and defines how the business plans to accomplish those objectives o Title Page/Executive summary/Business overview/ Product overview/Market overview/Competitive summary/Operations overview/Management overview/Financial overview o Marketing Plan – Document that includes an assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initiatives Action oriented Communicate value Generate interest Persuade customers Market knowledge 11 Consumer insight Market research Market intelligence Strategic thinking Sections Executive summary – goals/recommendations Company descriptions – company’s core competencies and products Marketing situation – customers/competitors/product portfolio/distribution channels/marketing environment Forecasting – anticipated outcome if marketing objectives are met Marketing strategy – target market/positioning/marketing mix Measurements and control – how to monitor progress financial and non- financial Marketing plan objectives – Realistic/achievable/measureable/committed resources/clear requirements o Consumer culture – sum total of learned beliefs, values, and customers that serve to direct the consumer behavior of members of a particular society Enculturation – taking on new role 12 Acculturation – complete immersion into foreign culture Reverse acculturation foreign cultures immersion into current culture o Consumerism – basic rights of consumers Safety/be informed/choose/be heard/satisfaction of basic need/redress/consumer education/healthy environment o Environmental Consumers Conventional/Unconcerned/Lohas/naturalites/dr ifters Corporate social responsibility – is the concern for how a company actions might affect the interests of others o Decisions should be based on – Economic/legal/ethical/philanthropic o Sustainability – idea that socially responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits and help the world at the same time Ethical development Pre-conventional – more childlike Convectional Post-conventional – more mature Business to Business Marketing o Products used to manufacture other products o Products that become part of another product 13 o Products that aid the normal operations of an organization o Products that are acquired for resale without change in form o Major equipment/accessory equipment/ raw materials/ component parts/processed materials/supplies/business services o Criteria for business buyers #1 Quality #2 Service #3 Price o Demand Types Derived – buy products to produce consumer products Inelastic – without regard to price Joint – multiple items required Fluctuating – unstable (multiplier effect) o Buying Situations Straight rebuy – Original product is reordered less involvement Modified rebuy – changes are desired in the original product New task – products is purchased for the first time more Involvement o Characteristics Demand – organizational Volume - Large 14 # of Customers – Few Location – Concentrated Promotion – Personal selling Busing Influence – Multiple Negotiations – Complex Global Marketing o Access to new markets o Foreign investment o Lower costs o Enhanced Brand Image o Offset Domestic cycles o Overcome trade barriers o Gain scale economies o Types of ways to enter global marketplace Export Licensing Contract Manufacturing Joint Venture Direct Investment Multinational corporation – a company that is heavily engaged in international trade beyond exporting and importing Global Marketing Standardization - Production of uniform products that can sold the same way all over the world o One product one message o Message adaptation o Product adaptation 15 o Product invention Consumer Behavior - Describes how consumers make purchase decisions and how they use and dispose of the purchased goods and services o Thinking/Feeling/Doing Consumer decision making process o Need recognition Present state = Actual state Preferred state = Ideal state o Information search All brands – known brands and unknown brands – unacceptable/acceptable/overlooked – purchased/rejected brands o Evaluation of alternatives Careful and logical/impulse/seek advice Compensatory models – Cost benefit analysis Multi attribute – list outcomes rate each outcome on importance, weighted total derived by multiplying importance rating by evaluation Non Compensatory – immediate rejection based on some factor Conjunctive rule – set of minimum standards for one or more attributes, reject any brands that do not meet all minimum thresholds Lexicographic – rank the attribute in order of importance, find the brand that is best on the most important attribute 16 o Purchase Brand to be purchased selected but not bought yet Choice can still be altered by other opinions or unexpected circumstances o Post-purchase behavior May experience cognitive dissonance or buyers regret Important to resolve customer cognitive dissonance Marking Perspective – must find out what problems people have and then solve them o Ted Levitt – people don’t buy products they buy solutions to problems Factors influencing purchase o Social – Family/culture/subculture/global/group/social class/gender roles Social Classes – Diamond Shaped in United States Determinants – Income/occupation/education/language/loc ation/family/possessions Reference groups Direct o Primary – family/friends/coworkers o Secondary – clubs professional and religious groups Indirect 17 o Aspirational – “I want to be like mike” o Non-aspirational – “what will people think if I buy one of those cars” o Personal – Family/Self- identity/personality/lifestyle/age and life stage/vocation/affluence Lifestyle – Activities/interests/opinions (external characteristics) Personality – refers to internal characteristics Image congruence hypothesis states that consumers select products and stores that correspond to their self-concept Dogmatism – scale of open and closed mindedness Self-monitoring Need for cognition Innovativeness Materialism Compulsive consumption Novelty seeking o Psychological – motivation/attitudes and beliefs/learning/perception Perception – is critical: price and brand names/quality and reliability/foreign consumer perception Selective exposure – choose what to view Selective distortion – distorts information that conflicts with feelings or beliefs 18 Selective retention – Remember information that supports beliefs and not what contradicts o Situational – Context/purchase environment/time/digital environment Theory of reason action – internal and external components o Internal – Bi x EI = Aact Belief about consequences/Evaluation of the consequences Attitude toward act o Behavioral intention – Sn + Aact Behavior o External – Nbj x Mcj = Sn Normative belief – what does significant person think about act/Motivation to comply with significant person How much the consumer is actually influence by this person o Behavioral intention – Sn + Aact Behavior o Consumer beliefs – represent the knowledge a consumer has about objects, their attributes and benefits they provide o Attitude – consistent response toward an object, amount of affect for or against a stimulus Motivation High – central route processing 19 Low – peripheral route processing Cognitive – thoughts Affective – feelings Conative – actions o Attitude Change – using TORA companies can focus on changing existing beliefs or add new beliefs o Attitudes predict behavior Involvement is high Knowledge is high Confidence is high Peer pressure is high Consumer Insight – is perceived meaning of data collected from study of consumer behavior o Data Insight attract and retain o What do customers think about my brand and competitors? o Why do customers buy my brand? o What are consumer’s expectations, opportunities and threats? Marketing Research – is the acquisition and analysis of information used to identify and define marketing opportunities that connect consumers to marketers o Predictive – If x than y o Diagnostic – explaining data o Descriptive – factual statements o Answers questions like where, why and how to make better decisions, identify opportunities and monitor performance 20 o Companies explore Buying habits/colors/uses/wants/needs/politics/new concepts o Affects every aspect of a company Products/advertising/prices/packages/names and logos/services o The process Define the problem – shape data collection, what do we want to learn Design the research Secondary data – previously collected Primary data – information collected first hand Exploratory – observations Descriptive – interviews and surveys Explanatory – experiments Opened questions Closed ended questions o Dichotomous o Multiple choice o Scaled response Likert Scale Semantic differential scale Conduct the research Probability – random/stratified/cluster/systematic 21 Non probability – convenience/purposive/snowball/quota Data needs to be o Reliable o Valid o Representative Analyze the data Statistical/Descriptive o Group Differences Address the problem Write reports of finding Conclusive findings Recommendations o Marketing information system – is a series of steps that include collection, analysis and presentation of information for use in making marketing decisions Internal company data Decision support data Marketing research systems Market intelligence systems Brand Development Index BDI = percentage of brand to total U.S. sales in market/ Percentage of total U.S. population in market X 100 Category development index 22 CDI = percentage of product category total U.S. sales in market/ Percentage of total U.S. population in market X 100 23
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