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MSU - MKT 327 - Study Guide - Midterm

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MSU - MKT 327 - Study Guide - Midterm

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background image MKT 327 Market creation involves creating or linking to communities  o Co-produce shared consciousness and culture, link  community, and achieve successful 
commercialization
o A market: a place, location, physical or virtual,  selling products/ also a collection of individual with 
a common need and the ability/desire to satisfy 
o    Requirement of a market to exist: 2 or more people with needs ability to satisfy the needs  communication  exchange or transaction (universal marketing 
function)
Channels physical access/connection Discover needs and wants for customer  Establish relationships of communication  Community- individuals with a common purpose, linked 
experiences, proximity
Community centric: marketing strategy pursues an intimate 
relationship with its current community of customers and 
developing the market to tailor their needs.
o Benefits: Reduces need for marketing costs Increases customers brand loyalty Solidifies authenticity Helps drive innovation
background image Nature of community o Market space in virtual world: interact on same  website Community marketing: o Access 
o Insight 
o Authenticity 
Companies can build a community themselves or it can 
identify an existing community of potential customers 
       Factors of successful marketing and branding o Shared consciousness- common purpose of  members of the community  o Meaning and rituals 
o Moral responsibility 
Role of physical connections in distribution process 
channels
o Proficiency in functions 
o Accelerates specialization 
o Channels increase transaction efficiency
o Increase assortment efficiency
o Increase quality of buyers experience 
A product that delivers tangible and emotional value is in
essence delivering meaning
A community-centric marketing strategy is most 
effective when there is an economic or industry 
downturn
2
background image From a customer perspective, customer value is what 
the “get” (benefits) relative to what they have to give up
(costs/sacrifices) 
Customer value- fundamental basis for all marketing 
activity, purpose of organizations, key to successful via 
differential positioning, and a precursor to customer 
satisfaction 
Firms exist to create value for others where it is neither 
efficient nor effective for buyers to attempt to satisfy 
their needs
o Objective of marketing is to achieve personal,  organizational, and societal objectives by creating 
superior customer value
Customer value has 2 definitions  o Value for the customer- customer perceived value
o Value for the firm- value of the customer- customer 
lifetime value o An interactive relativistic preference and experience 3 basic consumer needs that reflect value dimensions o functional needs motivate the search for products that solve 
consumption problems
o symbolic needs desires for products that fulfill internally 
generated needs for self-enhancement, group 
membership, ego-identification 
o experimental needs desires for products that provide sensory 
please, variety or cognitive stimulation 
3
background image 5 types of value that drive consumer choice o functional value perceived utility of an alternative resulting 
from inherent and characteristic based ability 
to perform its functional purposes 
o social value perceived utility of an alternative resulting 
from its image and symbolism with 
demographic, socioeconomic groups
o emotional value perceived utility as a result of comfort, 
security, romance, fear
o conditional value specific situation or physical or social context 
faced by decision maker
o epistemic value  utility resulting from an alternative to arouse 
curiosity, provide novelty or satisfy knowledge 
types of value  functional/instrumental is the extent to which a product 
has desired characteristics, is useful, or preforms a 
desired function 
o 3M, Volvo, Nike- product innovation strategy experiential/hedonic is the extent to which a product 
creates experiences, feelings, emotions to a customer
4
background image o Disney, Nordstrom- customer responsiveness, good  customer service- emphasis on customer 
relationship 
symbolic/expressive is concerned with the extent to 
which customers attach or associate psychological 
meaning to a product
o The Body Shop, Gap, Lexus- brand image, excel at  advertising and PR, customer service and support Superior cost/sacrifice value  o Wal-Mart, Dell, Amazon- compete on price and  convenience typically focus on effectiveness goals, 
top down emphasis on SOP and excel at 
manufacturing 
Manufacturing companies create value by acquiring raw 
materials and using them to produce something useful 
Value that’s created and captured by a company is the 
profit margin
o Value created-cost of value=margin A value chain is a set of activities that an organization 
carries out to create value for its customers
Porter’s value chain o Focuses on systems and how inputs are changed  into the outputs purchased by consumers o    Primary activities relate directly to the physical  creation, sale, maintenance and support of a 
product or service
Inbound logistics- process of receiving, storing, 
distributing inputs internally- supplier 
relationships are key factor in creating value 
here
Operations- transformation activities that 
change inputs into outputs that are sold to 
customers
5

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School: Michigan State University
Department: Marketing
Course: Introduction to Marketing
Professor: Carter
Term: Fall 2016
Tags:
Name: MKT exam: modules 1-6
Description: note and important ideas 1-6
Uploaded: 09/19/2016
25 Pages 141 Views 112 Unlocks
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