Marketing Applications - Exam 1 Study Guide
Marketing Applications - Exam 1 Study Guide MKTG-35030-001
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This 8 page Study Guide was uploaded by Jerrod Douglas on Thursday September 22, 2016. The Study Guide belongs to MKTG-35030-001 at Kent State University taught by William P. Howell in Fall 2016. Since its upload, it has received 28 views. For similar materials see Marketing Applications in Marketing at Kent State University.
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Date Created: 09/22/16
Marketing Applications [MKTG-35030] Exam 1 Study Guide Kent State University Fall 2016 Core Concepts I. Definitions and Background a. Marketing is meeting needs of consumers profitably b. Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value c. Market – A group of customers or organizations that is interested in a product, has the resources to buy it, and is allowed to buy it by law and other regulations d. Market Segment – Marketing strategy that divides groups into subsets based on common needs, interests, and priorities i. Followed by designing and implementing strategies to target them e. Target Market – A group of customers a business decides to aim its product and marketing efforts toward f. Customer Base – The group of customers who repeatedly purchase the goods and services of a business g. Needs – A driver of human action which marketers try to identify, emphasize, and satisfy h. Wants – A desire for products that are not necessary, but customers wish for i. Brand – The marketing practice of creating a name, symbol, or design that identifies and differentiates a product from other products j. Brand Image – The consumers’ impression of a brand i. Developed over time by a consistent advertising program and consistent products k. Marketing Channel – A set of practices and activities necessary to transfer products from manufacturing to purchasing location l. Channel Power – A company that works with a manufacturer/producer to market and sell products and services m. Supplier – A company who provides goods and services for another company to create finished products n. Retailer – A business that sells finished products to the consumer o. Break-Even Analysis – A technique to analyze sales revenue, expenses, and profit, and how those elements vary in sales volume p. Customer Relationship Management (CRM) – Practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle i. Goal is to improve business relations with customers, retain customer, etc. q. Marketing Plan – Comprehensive document that outlines a company’s marketing efforts for the coming year II. Mission Statement a. Company’s purpose b. Three Components i. Who is the company ii. What does the company do iii. How does the company do it c. Most visible and public part of the strategic planning process III. Value a. Summary of a company’s purpose is the value that they provide to their customers b. Value = Benefits/$ or Value = Benefits - $ i. What get for what you spend ii. Get the most benefit for the money you spend iii. If the benefits of all brands are equal, you should buy according to value 1. All benefits are not the same to every consumer c. Levitt: Differentiation of Anything i. All products can be differentiated only in meaningful ways IV. Satisfaction a. 10:1 Rule i. For every $1 you spend to make something right, it will cost you $10 to fix a mistake later on b. Take care of the customers that come to you because it is hard to get them in the first place c. Customers who are satisfied or dissatisfied will tell other people that they know about their experience d. Delight = [Performance > Expectation] i. Results in positive word of mouth e. Satisfaction = [Performance = Expectation] i. Disconfirmation f. Dissatisfaction = [Performance < Expectation] i. Negative disconfirmation V. Strategic Planning a. Determining what business you are in b. Stressed a long-term c. Must constantly plan ahead or become uncompetitive d. Planning takes time and effort e. Written records are essential to effective planning f. Increases initiative and planning g. Top-down planning is most effective h. Takes about 5 planning cycles for most organizations to feel comfortable Marketing Strategy I. Marketing Strategy (in order) a. Situation Analysis i. Current situation with our company ii. Company, consumers, competitors, channel partners b. Strategy i. SWOT analysis 1. Strategic planning tool that helps compare internal strengths and weaknesses with external opportunities and threats 2. Strengths a. Cost advantages b. Financial resources c. Customer loyalty d. Image 3. Weaknesses a. Too narrow a product line b. Lack of management depth c. Weak market image 4. Opportunities a. Add to product line b. Enter new markets c. Acquire firms with needed technology 5. Threats a. Change in buyer tastes b. Likely entry of new competitors c. Adverse government policies ii. Segmentation and targeting iii. Positioning and branding c. Tactics i. Product, place, price, and promotion ii. If you change one of the four P’s, it may be necessary to change one or more of the others as well d. Implementation and success II. Evaluate a Market Strategy a. Good if: i. Meets the needs of the consumers ii. Enables the company to be competitive iii. Profitable for the company III. Price Lining a. Best vs. Better vs. Good b. Where a product is priced in comparison to the three traits above can affect the way the benefits are perceived c. More benefits for a lower price is very attractive d. Choosing a price point is dependent on what tactic you want to use IV. Shaping a. A company can change (or shape) your behavior by tactics b. Offering lesser and lesser coupon amounts over time can change the way people behave and eventually have them pay full price for products Market Environment I. Core System (most controllable) a. Suppliers i. Give companies raw materials and finished products to sell or manufacture b. Intermediaries i. How suppliers get their products to manufacturers or merchandisers ii. Transportation/distribution companies iii. Also needed to get finished product from manufacturers to customers c. Retailers and wholesalers II. Micro System (still controllable but difficult) a. Competition i. Basic concept of competition between businesses ii. Can influence other businesses by using tactics iii. Typically influence Cultural and Social Environment and Economic Environment b. Publics i. People (from the public) who have a common interest can band together and influence companies to do or not do something ii. Typically influence Political and Legal Environment, Physical Environment, and Technological Environment III. Macro System (hardly controllable) a. These are the things discussed in situation analysis b. Competition Influence i. Cultural and Social Environment 1. People 2. Shifts in demographics occur all the time 3. Cannot influence demographics no what 4. Market changes constantly in social preferences ii. Economic Environment 1. Wages 2. Interest rates 3. Etc. c. Publics Influence i. Political and Legal Environment 1. Laws 2. Zoning ii. Physical Environment 1. Physical aspects of the land – water, mountains, etc. iii. Technological Environment 1. Technology constantly evolves 2. Must stay in the loop or left behind Segmentation I. Bases for Segmentation a. Demographic Segmentation i. Simplest form because it is easily visible to marketers ii. Least effective form because demographics are not very descriptive of individuals iii. Can be used effectively for the right products iv. Not the same: 1. Race ≠ Ethnicity 2. Age ≠ Generation 3. Income ≠ Social Class b. Geographic Segmentation i. Can be based on country, region, etc. ii. Local, domestic, foreign, etc. c. Psychographic Segmentation i. More accurate than demographic segmentation ii. Segments are narrower and more focused iii. Linked more to consumption behavior iv. Reachable through media that are specifically targeted d. Buyer Behaviors e. Needs, Wants, and Preferences Miscellaneous Information I. Six P’s of Retail a. Price b. Place c. Product d. Promotion e. Personnel f. Presentation II. Brand Sets a. Evoked Set i. A group of brands which customers consider buying b. Inert Set i. Brands that the customer doesn’t have positive or negative opinions of c. Inept set i. Brands that are rejected by customers ii. Usually because of an unpleasant experience or negative feedback III. BCG Growth-Share Matrix IV. Break-Even Equation a. BEP = Fixed Costs / Contribution Margin i. Contribution Margin = Sales – Variable Costs ii. BEP = Fixed Costs / (Sales – Variable Costs) V. Marketing Plan a. Executive Summary i. Reviews plans and objectives ii. Links marketing effort to higher-level strategies and goals b. Current Market Situation i. Internal, external, and marketing situations ii. SWOT analysis c. Target Segments and Service Requirements i. Explains segmentation, targeting, and positioning d. Objectives and Issues i. Financial, marketing, and societal objectives e. Marketing Strategy i. Summarizes the overall strategy to be used in achieving marketing plan objectives f. Marketing Programs i. Product ii. Pricing iii. Place iv. Promotion v. Service vi. Internal marketing g. Financial and Operational Plans i. Expected revenues and profits ii. Projected budgets iii. Schedules and responsibilities iv. Additional information and resources for planning and implementation h. Channel Strategy i. Financial Forecasts i. How the plan will be implemented and evaluated ii. How and when adjustments will be made to keep the plan on track VI. NAICS Code a. North American Industry Classification System b. Defines establishments based on the activities in which they are primarily engaged
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