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USC / Marketing / MKT 350 / What are the core aspects of marketing?

What are the core aspects of marketing?

What are the core aspects of marketing?

Description

School: University of South Carolina
Department: Marketing
Course: Principles of Marketing
Professor: Courtney worsham
Term: Fall 2016
Tags: Marketing
Cost: 50
Name: MKTG 350 Exam 1 study guide
Description: marketing 350 worsham exam 1 study guide
Uploaded: 09/17/2016
7 Pages 33 Views 6 Unlocks
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MKTG 350


What are the core aspects of marketing?



Test 1 Study Guide

Chapter 1

Marketing: the activity, set of instructions, and processes for creating, capturing,  communication, delivering, and exchanging offerings that have value for customers,  clients, partners, and society at large.

Core aspects of marketing

1) Satisfying needs and wants

2) Entails an exchange

3) 4 Ps (product, price, place, promotion)

4) Can be B2B, B2C, and C2C

5) Many settings: society, consumers, supply chain, employees

6) Help creates value

Components of marketing mix: Product, Price, Place, Promotion Product: creates value with good/service We also discuss several other topics like Who is golgi?

Price: captures value, what a buyer gives up for good (time, money) Place: delivering value (supply chain, distribution)


What are the components of marketing mix?



Promotion: communicating value (persuade buyers)

Components of market: group of customers with common needs to satisfy and  problems to solve who have the ability AND authority to buy products Supply chain management: group of firms that make and deliver a given set of goods  and services

Value: reflects the relationship of benefits to cost

Value co-creation: customers act as collaborators to create the product/service  (customized Nike shoes, smartphone accessories, monograms)

Production oriented: Henry Ford; firms focused on production and believed a good  product would sell itself

Sales oriented Great Depression/WWII; consumers buying less so firms focused on  selling and advertising


Supply chain management refers to what?



Marketing oriented: After WWII, firms focused on what consumers wanted before  designing product

Value-based: today; transcended production/selling orientation; customers seek a fair  return of value on the goods/services purchased; all types of price levels (luxury v store  brand) If you want to learn more check out What is the meaning of prediction in science?
If you want to learn more check out What is the genetic consequences of the cell cycle?

Value driven companies: most companies today are value driven and focus on giving  consumers “the bang for their buck” consumers recognize what they are paying for and  are willing to either pay the premium or not

How to improve value: sharing information, balancing costs and benefits, build  relationships with customers, connect with consumers using social media Customer relationship management (CRM): identifying and building loyalty among  most valued customers  We also discuss several other topics like A fault of the mouth where the upper jaw extends over the lower jaw, what?

Chapter 2

3 components of marketing strategy:

1) Identify a target market  

2) Develop a marketing mix that satisfies needs

3) Determine a basis upon which firm plans to build sustainable, competitive  advantage

Sustainable competitive advantage: advantage over the competition that isn't easily copied and can be maintained over a long period of time

Target market: a particular group of consumers that the product/service is aimed at

4 macro strategies (for sustainable competitive adv)

Customer excellence: retaining loyal customers and provide customer service Operational excellence: efficient operations and supply chain management

Product excellence: products with high perceived value and effective branding and  positioning

Location excellence: good physical location and social media presence Growth strategies We also discuss several other topics like What is the use of archaeological record?

Market Penetration -uses existing marketing mix and existing customers Market Development-existing marketing mix and new customers

Product Development-new product or service and current target market Diversification-new product or service and new market segment

3 phases of strategic marketing process  

Planning: (1) define vision of business and (2) evaluate situation with SWOT Implementing: (3) evaluate opportunities with STP, (4) implement marketing mix  (4Ps)

Controlling: (5) evaluate market performance of strategy  

SWOT: assess internal and external environment for positives and negatives  Strength  

Weakness

Opportunity  

Threat  

Segmentation, Targeting and Positioning  

Segmentation: divide market into segments/subgroups (small, homogeneous) Targeting: evaluate segments and pursue them with strategy

Positioning: define marketing mix so consumers understand what product does in  comparison to competition

BCG portfolio

analysis  

Chapter 4

Stars: high market share/growth rate; need heavy resource  investment (iPhone) If you want to learn more check out What are the types of symbols in interactions?

Cash cows: low growth/high market share; have excess resources  to spin off (iPod)

As growth slows, stars can migrate to cash cows

? marks: high growth rate, low market share; managerially  intensive, requires significant resources to maintain (iPad) Dogs: low growth/low market share: should be phased out unless  complements other things or for competition (iMac)

Scope of marketing ethics

Business ethics: moral or ethical dilemmas in a business setting

Marketing ethics: examines ethical problems specific to marketing

Deceptive advertising: representation, omission, act, or practice that can mislead  consumers

Corporate social responsibility: actions taken by company to address ethical,  environmental, and social impacts of its business operations and concerns of  stakeholders (charities, nonprofits, support or minority groups, responsible practices) Employees: safe working environment  

Marketplace: following footsteps of other firms’ CSR efforts

Sustainability: benefit environment  

Customers: respect privacy, etc

Society: improve community and physical environment

Integrating ethics into marketing strategy – know all 3 areas and recognize ethics  examples from each area

Planning: include ethical statements in mission statement  

Implementation: consider how implementing marketing mix is affected by ethics  Control: evaluate actions based on ethical perspective, react to change

Ethical decision metric (6 tests)

The Publicity Test: would you want action displayed on front page of newspaper The Moral Mentor Test: Would the person I admire engage in this activity? The Admired Observer Test: Would I want the person I admire seeing me do this? The Transparency Test: Could I give a clear explanation for my doings and motives  that would satisfy a moral judge?

The Person in the Mirror Test: Will I able to look myself in the eye and respect  myself?

The Golden Rule Test: Would I like to be on the receiving end of this action and its  consequences?

Chapter 5

Customer is at center of mktg. environment: the consumer is always at the center  of all marketing efforts. Therefore all business processes should be conducted from the  consumer’s point of view. Consumers can be influenced by immediate actions of  company, competitors, partners, etc.  

3 components of immediate environment

Company capabilities: satisfying consumer needs that match core competencies Competition: need to be cognizant of competitors’ strengths and weakness, be  proactive Corporate Partners: few firms operate in isolation so partners need to be  aware of consumer interactions as well

6 macro-environmental factors

Culture: shared meanings, beliefs, morals, values, and customs of a group of  people

Country culture: aspects of culture shared by a whole country

Regional culture: aspects shared by a specific region

Demographics: Characteristics of human populations and segments, used to  identify markets

Age, gender, income, generational cohorts, education

Social: Health and wellness, greener consumers, privacy concerns

Technology: has led to new products, forms of communication, retail channels Economics: Foreign currency fluctuations, interest rates, inflation affect ability to  market

Political/Legal: Legislation affecting practices of firms

Generational cohorts: group of people in same age generation with similar purchase  behaviors

Gen Z (2001-current) digital natives

Gen Y (1977-2000) millennials, children of baby boomers

Gen X (1965-1976)

Baby Boomers (1946-1964) after WWII

Gender and gender roles: a shift in gender roles needs to be accounted for by  marketing strategies

Ethnicity – African American, Hispanic, Asian  

By 2050, minorities will represent 50% of the population

Greener consumers: consumers wishing to purchase environmentally friendly,  sustainable products

Time poverty: high disposable income but low amount of leisure time

Currency exchange rate, interest rates, inflation

Inflation: persistent increase in price of goods (reduces purchasing power of  income)

Interest rate: the cost of borrowing money (save more when rates are higher) Exchange rate: price of foreign currency in relation to dollar, affects  tourism/imports/exports

Political legal environment: FDA, FTC, NAFTA, Sherman Anti-trust Act,  Robinson-Patman Act

Political legal environment is comprised of political parties, gov’t organization,  legislation, and laws

FDA: Food and Drug Administration: no fraudulently manufactured/labeled  food/drug products

FTC: Federal Trade Commission: regulates competitive practices, makes sure  firms are fair to consumers  

NAFTA: North American Free Trade Agreement: Canada, Mexico, USA Sherman Antitrust: trusts to eliminate competition are not allowed

Robinson Patman: prohibits price discrimination (different prices to different  customers)

Chapter 6

5 steps in consumer decision making process

1) Need recognition: functional vs psychological  

2) Information search: internal and external search

3) Alternative evaluation:  

4) Purchase

5) Post purchase

Psychological and functional needs

Psychological: pertain to personal gratification

Functional: pertain to performance of product

Internal and external search

Internal: buyer examines own memory for product knowledge, gained from  experience

External: seeks info outside personal knowledge  

Factors affecting search: perceived benefit vs cost of search, locus of control,  perceived/actual risk

Locus of control

Internal: believe that they have control over decision, more search activities External: believe outside factors control outcome, less searching

Perceived or actual risk

Performance risk-failure of product performance

Financial risk-cost of purchase and upkeep

Social risk-how others will view the purchase

Physiological/safety risk-fear of harm occurring due to improper product  performance

Psychological risk-how people feel about the purchase  

Universal/retrieval/evoked set

Universal: all possible choices for product

Retrieval: brands readily thought of from own memory

Evoked: set of brands we would consider purchasing  

Compensatory and non-compensatory decision rules

Compensatory: when making decision, good outweighs bad of the product to buy it Non-compensatory: choose based on 1 attribute and disregard others

Heuristics: practical method for problem solving, using experience to learn and improve

Family/reference group/cultural influence

Family: what will the family use daily? What types of purchasing patterns are  influenced by other family members?  

Reference group: one or more persons that an individual uses as a basis for  comparison of beliefs, feelings, and behaviors that the consumer would like to emulate  (family, friends, coworkers, celebs)

Culture: shared meanings and beliefs can affect what you buy  

Attitude: a person’s enduring evaluation of his feelings about and behavioral  tendencies towards an object or idea

Has behavioral (actions), affective (feelings), and cognitive (beliefs) components  Can be influenced by communication, advertisements, free samples,  demonstrations  

Maslow’s Hierarchy of Needs

5 levels of needs: physiological, safety, love, esteem, self-actualization

Conversion rate: how often intention to buy is converted to a purchase  Reduce abandoned carts, keep merchandise in stock, reduce wait time

Cognitive dissonance: buyer’s remorse after purchasing, question oneself after buying Satisfaction and dissatisfaction: when customer is either happy or unhappy with  product functions

Evaluative criteria and determinant attributes

Evaluative: important attributes about a product are evaluated by consumer Determinant: features important to a buyer that competing brands differ upon  (what makes this brand different or special)

Social factors influencing decision process

Family, reference groups, culture

6 shopping situational factors influencing decision process

Store atmosphere: music, lighting, scent

Crowding: long lines, too many people

Demonstrations: in store demos can convince people to buy

Salespeople: well trained, friendly  

Promotions: BOGO, clearance, sales, free gift

Packaging: need item to stand out on the shelf

Types of risk

Performance risk-failure of product performance

Financial risk-cost of purchase and upkeep

Social risk-how others will view the purchase

Physiological/safety risk-fear of harm occurring due to improper product  performance

Psychological risk-how people feel about the purchase

Involvement: consumer’s degree of interest in product or service  High involvement: direct route, greater attention, deeper processing, develops  strong attitudes and purchase intentions

Low involvement: peripheral route, less attention, peripheral processing, weak  attitudes and increased use of cues  

Extended, limited, and habitual problem solving

Extended: buying process begins when consumer recognizes need, spends time  and analyzes alternatives

Limited: purchase decision calls for moderate amount of time, have had previous  experience with buying this product

Habitual: little conscious effort when buying, have bought it many times before

6 principles of persuasion – from lecture only

Reciprocity: offer something first, offer something exclusive

Commitment and consistency: earn customer loyalty

Social proof: celebrity endorsements  

Liking: friendly salespeople more likely to make sales

Authority: give off the sense that you are the expert in the product Scarcity: trigger customers with “limited edition” or “exclusive” items

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