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UM / Marketing / MKT 201 / How do we make a marketing plan?

How do we make a marketing plan?

How do we make a marketing plan?

Description

School: University of Miami
Department: Marketing
Course: Foundations of Marketing
Professor: Smita kulkarni
Term: Fall 2015
Tags:
Cost: 50
Name: MARKETING 201 TEST ONE STUDY GUIDE
Description: These notes cover what will be on our first exam.
Uploaded: 02/10/2017
9 Pages 43 Views 4 Unlocks
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MARKETING EXAM 1 STUDY GUIDE


How do we make a marketing plan?



CHAPTER 1

 Marketing: activity, set of institutions and processes for creating,  capturing, communicating, delivering and exchanging offerings that  have value for customers, clients, partners and society at large o Requires thoughtful planning with emphasis on ethical  

implications on society

o Success= understanding marketplace, especially consumer’s  wants and needs

o Target market are people who not only want, but can afford your  product

 Marketing is all about an exchange

o Trade of things of value between buyer and seller so that both  benefit

o Sellers communicate and facilitate delivery to their buyers;  buyers in exchange give money and information to sellers


What is current market with current products and services; existing customers?



We also discuss several other topics like What is an integrated supply chain?

 Four P’s

o Product: Creating Value

 developing a variety of offerings (not just coffee, but lattes, refreshers, teas)

 Goods: tangible;  

 Services: can’t touch; more of an experience (airline ticket, hotel)

 Ideas: thoughts, opinions; bike helmet poster contests

o Price: Capturing Value

 Price=everything the buyer gives up in exchange for the  product

 How much are people willing to pay? Don't forget about the age old question of What is the slope of the tangent?

o Place: Delivering the Value Proposition

 All activities necessary to get product to right customer at  right time

 Deals with supply chain management (integrate  


What is syndicated data?



suppliers and manufacturers into seamless chain where  

merchandize is produced and distributed in right  

quantities, to right location at right time)

o Promotion: Communicating the Value Proposition

 Informs, persuades and reminds potential buyers about a  product/service to influence their opinion and elicit a  

response

 Marketing aimed at entire industry/society at large

o “Got Milk?” aimed at different target segments

o High levels of awareness of benefits of milk and increased milk  consumption; benefit entire dairy industry and promote health  benefits to society as a whole

 Marketing Evolution

o Production-Oriented Era

 Believed a good product would sell itself; Ford

 Concerned with innovation, not satisfying customer’s  needs

o Sales-Oriented Era

 Great Depression, WW2 made people buy less, so  

manufacturers were able to produce what customers really  wanted and were able to buy

 Depended on a lot of personal selling and advertising o Market-Oriented Era Don't forget about the age old question of What is a reese river survey?

 Post WW2, became buyers market; bought stuff with  quality, convenience and price in mind

 Focused on what consumers wanted BEFORE designing a  product

 During this that marketing was discovered

o Value-Based Marketing Era

 **most successful firms today**

 Value= relationship of costs to benefits; what you get for  what you give

 Value cocreation

∙ Ex: Nike allows customers to design their sneakers

 Become more value driven

o SHARING INFO.

 Collect purchase info and trends to determine what  

customers will want to wear in a few weeks, forecast sales,  etc.  We also discuss several other topics like Who controls north america?

o BALANCE BENEFITS WITH COSTS

 Satisfy needs better, keep down costs and create long-term loyalties

o RELATIONSHIPS

 Relational orientation: customers are relationships, not  transactions

 CRM (customer relationship management): focuses on  identifying and building loyalty among firm’s most valued  customers

 Supply chain/marketing channel

o Raw material  manufacturer  retailer  consumer

 Entrepreneurs

o Example: Oprah Winfrey and OWN

 STARBUCKS CASE STUDY

CHAPTER 2

 Marketing Strategy

o Identifies a firm’s target market, its 4 P’s, and the bases on which the firm plans to build a sustainable competitive advantage  Advantage over competition that isn’t easily copied and  can be maintained for a long time

 Four P’s Strategies/Customer Value If you want to learn more check out Why do nations still go to war?
Don't forget about the age old question of How do scientists from seti hope to find and communicate with aliens?

o Customer Excellence

 Focuses on retaining loyal customers and excellent  

customer service

 Disney; magic bands and extremely friendly staff

o Operation Excellence

 Achieved through efficient operations and excellent supply  chain and human resource management

 Amazon Prime; EBay Now

o Product Excellence

 Having products with high perceived value and effective  branding and positioning

o Locational Excellence

 Having a good physical location and Internet presence

o Singapore Airlines

 Good service, willing to pay to earn rewards/loyal  

customers

 Marketing Plan

o Provides reference point for evaluating whether or not the firm  has met its objectives

o STEP 1: BUSINESS MISSION AND OBJECTIVES

 Mission statement: type of business, what needs to be  

done to accomplish goals and objectives, who are we  

targeting, what sets us apart

o STEP 2: SWOT ANALYSIS

 Strengths and Weaknesses of internal environment

 Opportunities and Threats of external environment

 Should also assess opportunities and uncertainties of  

marketplace due to changes in Cultural, Demographic,  

Social, Technological, Economic, and Political forces  

(CDSTEP)

 Nike:

∙ Strength: great brand recognition, celebrity  

endorsements

∙ Weakness: rely too heavy on athletic shoe line

∙ Opportunities: “Play Russian” campaign for Olympics; global market also

∙ Threat: widespread market dominance makes it  

primary target for all competitors  

o STEP 3: SEGMENTATION, TARGET, POSITIONING

 Segmentation

∙ Process of dividing market into groups of customers  with different wants and needs who might react  

differently to different products

∙ Hertz car rental uses variety of demographics to  identify customers for each of its car collections  

(prestige, green, adrenaline)

 Target  

∙ Evaluates each segments’ attractiveness and decides which one to pursue with their product

 Positioning  

∙ Deciding how to market your product to that specific  group

∙ Give customers a clear, distinctive understanding of  what product does and in comparison with competing products

∙ Pizza Hut’s attempt at putting mobile order in xbox  360; not just college aged men buying pizza online

o STEP 4: 4 P’S

 Product and value creation: firms attempt to develop  products that will be of value to a customer

 Price and value capture: base price on value customer  perceives; too high, won’t get volume; too low, lower profit  margin

 Place and value delivery: must be able to make product  readily accessible

 Promotion and value communication/integrated marketing  communication (IMC): marketers communicate value  proposition or unique value that a product or service  provides to its customers and how it differs from  

competitor’s

o STEP 5: EVALUATE PERFORMANCE USING MARKETING METRICS  Metric: measuring system that quantifies a trend, dynamic, or characteristic; used to explain why things happened and project for the future

 Performance evaluations are used to pinpoint who/what the problem area is

∙ Can compare your performance over time to that of a competitor’s, or view firm’s products or services as a  

portfolio

 Google says with a combination of metrics it can predict  performance of a movie up to a month in advance

 Portfolio analysis: evaluates firm’s products and businesses (portfolio) and allocates resources according to which  

products are expected to be the most profitable for the  

firm in the future

∙ Performed at strategic business unit (SBU) or  

product line level of firm

o SBU: division of firm itself that can be managed

and operated independent from other divisions  

and may have a different mission or objective  

o Product Line: group of products that consumers

may use together or perceive as similar in  

some way

∙ Boston Consulting Group Matrix

o Relative market share on horizontal axis

o Market growth rate on vertical axis

o Market share= % of a market accounted for by  

a specific entity and is used to est. the  

product’s strength in a particular market (in  

units, revenue, or sales)

o STARS: upper left; high-growth markets and  

high market share products; IPHONE

o CASH COWS: lower left; low-growth and high  

market share products; IPOD

o QUESTION MARKS: upper right; high-growth,  

low market shares; most managerially  

intensive; maybe iPAD

o DOGS: lower right quadrant; low-growth and  

have relatively low market; maybe IMAC

 MARKET PENETRATION

o Current market with current products and services; existing  customers

o Increased advertising/sales in geographic areas where it is  already sold

 MARKET DEVELOPMENT

o New markets; current products and services; to reach new  market segments

 PRODUCT DEVELOPMENT

o Current market, new products and services

o MTV wants to attract and retain already existing viewers

 DIVERSIFICATION

o New market, new product

o Related: current target shares something in common with new  opportunity (ex: existing vendors, or advertise in same  

newspaper)

o Unrelated: new business lacks any common elements with  present business; risky

 THE GREAT YOGURT BATTLE CASE STUDY

CHAPTER 5

 Components of the consumer’s immediate environment

o The company itself; firm must focus on satisfying customers needs  that match their core competencies

o Competitors: must see what their competition is and highlight their  own benefits

o Corporate partners: work closely with partners to innovate   Macroenvironmental Factors that operate in the external environment o Culture, demographics, social trends, technological advances,  economic situation, and political/regulatory environment (CDSTEP) o Culture: shared meanings, beliefs, morals, values and customs of a  group of people

 Marketers must take into account culture of the country and  culture of the region within a country they’re targeting

 Country culture: visible nuances are easy to spot, but subtle  ones aren’t; best answer may be to take universal appeal within  specific identities of country culture

 Regional culture: includes way they might refer to particular  product category such as soft drinks (soda vs. pop)

o Demographics: characteristics of human populations and segments  used to identify consumer markets (age, race, income, gender)

 Generational cohort: people born in same generation; have  similar purchase behaviors

∙ Generation Z/Digital Natives: born into world full of  

electronic gadgets (2001-2014)

∙ Generation Y/Millenials: children of baby boomers;  

varies most in age ranging from teens to adults with  

families (1977-2000)

∙ Generation X: 1965-1976; latchkey children with  

divorced parents

∙ Baby Boomers: 1946-1964; largest pop. Of 50-plus  

consumers

o Social Trends: greater emphasis on health concerns, greener  consumers and privacy

 New guidelines for marketers to produce food in reasonably  portioned sizes

 Greenwashing: are they falsely marketing without spending  actual cost to make things green?

o Technological Advances: consumers are increasingly dependent on  help they receive from providers of this technology

o Economic Situation: things that affect state of an economy are  Inflation: persistent increase in prices of goods and services;  increased prices causes value of dollar to decline

 Foreign Currency Fluctuations: when Euro is more expensive  than US dollar, things made in Europe are more costly to us, but  our things are cheaper to them

 Interest Rates: cost of borrowing money; if interest rate goes up, consumers have incentive to save more money because they’ll  earn more

o Political/Regulatory Environment: government has enacted laws the  promote fair trade and competition by prohibiting monopolies that  would damage competitive market

 Sherman Antitrust Act: prohibits monopolies

 Clayton Act: supports Sherman Act prohibiting combo of 2 or  more competing corps through pooling ownership of stock and  

restricting price discrimination

 Robison-Patman Act: outlaws price discrimination; all buyers  have equal terms

CHAPTER 9

 STP PROCESS

 Step 1: establish strategy or objectives (segmentation) o Must be in line with firm’s mission as well its SWOT analysis

 Step 2: use segmentation methods (segmentation)

o Geographic, demographic (most common because easy to identify and  these markets are easy to reach), psychographic (lifestyle, self-values,  self-concept), benefits, behavioral

o Behavioral: how they use the product/service

 Occasion: when they purchase or consume it (individual chips  vs. party size)

 Loyalty: buy 10 sandwiches, get 11th free punch card; keep loyal  consumers

o Geodemographic: popular combo; uses PRIZM and ESRI’s Tapestry  Step 3: evaluate segment attractiveness (targeting)

o Is segment identifiable, substantial, reachable, responsive, and  profitable?

o Identifiable: can’t have too much overlap between segments; identify  who in their market is able to design products to meet their needs o Segment profitability: (segment size * segment adoption percentage *  purchase behavior * profit margin %) – fixed costs

o Analyze market growth, market competitiveness, and market access to see profit

 Step 4: select a target market (targeting)

o Undifferentiated: focuses on similarities in needs of customers (salt,  sugar, gas)

o Differentiated: target several segments with different offering for each; helps firms obtain bigger share of market and increase overall market  products

o Concentrated: select a single primary target market and focus all  energy on it (triathlete)

o Micromarketing/1-to-1: customize your own products (Dell, M and Ms,  build a bear)

 Cookies  

 Step 5: identify and develop positioning strategy (positioning) o Give target customers a clear understanding of what product  does/compares to

o Value proposition: communicates customer benefits to be received  from a product or service; provides reasons for wanting to purchase it  Target market

 Offering name or brand

 Product/service category or concept

 Unique point of difference/benefits

o Perceptual map: displays positon of products or brands in consumer’s  mind (sweet vs light taste and less natural vs healthy)

o Consumer’s ideal points: where a certain market segment’s ideal  product would lie on map; larger the circle; larger the market size  Determine consumers’ perceptions and evaluations of product in relation to competitors

 Identify markets ideal points and size

 Identify competitor’s positions

 Determine consumer preferences

 Select position

 Monitor positioning strategy  

CHAPTER 10

 Marketing Research: set of techniques and principles for systematically  collecting, recording, analyzing, and interpreting data can that aid decision  makers involved in marketing goods, services or ideas

 STEP 1: DEFINING THE OBJECTIVES AND RESEARCH NEEDS o Determine what info they need to address a particular issue, then  design research project to meet that objective

 STEP 2: DESIGNING THE RESEARCH

o Identify data needed and determine the research necessary to collect  them

 STEP 3: COLLECTING THE DATA

o Secondary data: have been collected prior to start of focal research  project; external and internal data sources

o Primary data: collected to address specific research needs (surveys,  interviews)

 STEP 4: ANALYZING THE DATA AND DEVELOPING INSIGHTS

o Data: raw numbers or facts that on their own have limited value to  marketers

o Info: result of organizing and analyzing data and putting them in useful form

 STEP 5: DEVELOPING AND IMPLEMENTING AN ACTION PLAN o Typical marketing research presentation= executive summary, body of  report (objectives, methodology, findings), conclusions, limitations and  graphics

 Marketing research usually begins with review of all relevant secondary data o Inexpensive but may not be specific or timely enough

o External secondary data: syndicated data are available for a fee from commercial research firms

o Scanner data: used in quantitative research obtained from scanner  reading of UPC labels at checkout counters; use this info to help  leading consumer packaged-goods firms asses what’s happening in the marketplace  

 Focuses on weekly consumption of particular product at certain  store

o Panel Data: info collected from a group of consumers, organized into  panels, over time.

 Usually include record of what they’ve purchased (secondary) as well as responses to surveys (primary)

 Focuses on total weekly consumption by particular  

person/household

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