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UNT / Engineering / MKTG 3650 / What is meant by strategic marketing process?

What is meant by strategic marketing process?

What is meant by strategic marketing process?

Description

School: University of North Texas
Department: Engineering
Course: Foundations of Marketing
Professor: Professor
Term: Spring 2020
Tags: business, Marketing, and Studyguide
Cost: 50
Name: Foundations of Marketing Practice Exam 1 Study Guide
Description: This is a study guide for exam 1 that covers chapter 1-5
Uploaded: 02/07/2020
14 Pages 36 Views 11 Unlocks
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MKTG 3650- Foundations of Marketing study guide (Exam 1)


What is marketing?



Chapter 1: Core Marketing Principle and Concepts 

● What is Marketing?

○ Marketing is the process of planning and executing the concept, pricing, promotion, and distribution of products, services, and ideas to create exchanges that satisfy individual and organizational objectives

■ Individual= wants & needs

● Customer Needs

○ A customer’s state or condition of feeling deprived

○ Examples:

■ Water

■ Sleep

■ Food

■ Sense of belonging

● Customer Wants

○ The shape (or form) that needs take as the need is influenced by individual personalities and the environment 


What can marketers be?



If you want to learn more check out Which cells produce surfactant in the alveoli?

○ Examples:

■ New iphone

■ New clothes

■ Concert tickets

● Marketers can be

○ Organizations 

■ Businesses selling goods & services

■ Non-profit organizations selling services

■ Government agencies

○ Individuals 

■ You, marketing yourself

■ Politician marketing their own ideas If you want to learn more check out Who are the people of roanoke?
Don't forget about the age old question of What is intelligence quotient/iq?

● Define the Marketing Mix

○ The specific combination of interdependent marketing activities employed by organizations to meet objectives


How to define the marketing mix?



■ Place (Distribution)

■ Promotion

■ Pricing

■ Product

● The Marketing Concept

○ A business philosophy

■ Successful business operations through satisfied customers ● Achieve organizational objectives Don't forget about the age old question of How pr helps marketing?

● Customer is central

● Total company effort

○ To be customer oriented

○ To stress long-run profitability

○ To integrate marketing with other corporate functions

● How and Why Marketing Works (So Well)

○ Marketing Involves Exchange

Marketers (Sellers) ⇨ Goods, Services, Ideas ⇨ Markets (Buyers) Markets (Buyers) ⇨ Dollars (sales) ⇨ Marketers (Sellers)

● Form Utility 

○ Satisfaction generated by

■ How well it works If you want to learn more check out Who is theodor adorno?

■ How the product functions

○ Buy many products for this type of utility

■ Table saw, screw driver

■ Vacuum, dishwasher

■ Computer

● Time utility 

○ Satisfaction by having products when we want them

■ Examples

● Drive-thru windows

● Fast lanes

● ATM’s

■ Often willing to pay more If you want to learn more check out What is dyadic communication?

● Place utility 

○ Having products where we want them

■ Examples

● Convenience stores

● Home delivery

● Home shopping

● Possession utility 

○ Ownership

■ Legally obtain benefits of products

■ Usually results in

● Renting

● Leasing

● Borrowing

● Image utility 

○ Ego, social communication

○ Closely tied to “self concept”

○ Examples

■ Designer clothes, cars

■ Jewelry

■ Homes

Chapter 2: The Strategic Marketing Management Process 

● Marketing Strategy 

○ The idea of using the marketing mix to reach a target market 

● Strategic Marketing Process 

■ Develop plans 

● Strategic Plans

● Tactical Plans

■ Implement plans 

● Staffing

● Supervising

■ Control Plans 

● Establish Control Standards

● Monitor, Evaluate, Correct

● SWOT Analysis

○ Strengths: Develop strategies to permit them to exploit the firm's strengths ○ Weaknesses: Impose constraints on what planners can do as they develop and execute the market strategies 

○ Opportunities: Marketing opportunity analysis (MOA) 

○ Threats 

● Marketing Opportunity Analysis (MOA)

○ A search for products/markets in which the firm can profitably compete, that are consistent with distinctive competencies and organizational objectives, and for which it possesses sufficient resources

● Mission

○ A statement of company purpose, identifying the business the firm wishes to be in, a statement of the firm’s primary areas of product and market focus

● Mission Statement

○ Guides the firm towards opportunities that are consistent with what it currently surges or could pursue in the future.

○ Good examples:

■ Focus on satisfying customers' needs

■ Indicate a distinctive competency "owned" by the firm

■ Are neither overly broad nor too narrow

■ Are realistic, specific, suitable for the environment in which the firm

operates, and motivating

● Marketing Myopia

○ A type of mission statement that excessively restricts the range of market 

opportunities that they can examine 

○ Causes firms to ignore highly profitable opportunities. 

● Distinctive Competencies 

○ In relation to a firm's mission statement, this should highlight and be grounded in things that the firm does well, particularly in comparison to its closest 

competitors 

○ Direct the firm into new markets 

● Ansoff’s Product-Market Expansion Grid 

○ The grid shows 4 different categories of opportunity 

■ Market Penetration 

■ Market Development 

■ Product Development 

■ Diversification 

○ Divided into 2 criteria 

■ Market 

■ Products 

● Boston Consulting Group’s Growth-Share Matrix 

○ Matrix based on two key strategic dimensions: 

■ Relative market share 

■ Market growth rate 

○ With four categories: 

■ Stars 

● Top selling products 

■ Dogs 

● Products that should be discontinued 

■ Cash cows 

● Milk to finance Question marks and Stars 

■ Question marks 

● New ventures; risky. Some become Stars and some become Dogs 

Chapter 3: The Marketing Environment 

● Marketing Opportunities

○ Using past information is valuable for the firm to find new opportunities for the firm to go 

● Marketing Threats 

○ Using past information to point out directions that the firm should avoid ● Micro-environment 

○ Forces within the Firm’s immediate operational environment that affect its ability to effectively serve target customers. 

○ Environments internal to the firm 

● Macro-environments 

○ The broader environmental forces that affect Firms. Consist of the cultural, demographic, natural, technological, economic, and legal-political environments. ○ Environments external to the firm (consists of cultural needs) 

● Environmental Factors 

○ Cultural 

■ All institutions, individuals, and forces that shape society’s basic ideas, values, norms, preferences, and behaviors. 

○ Demographic 

■ Different market segments are typically impacted by common

demographic forces, including country/region; age; ethnicity; education level; household lifestyle; cultural characteristics and movements.

○ Economic 

■ The economic environment can impact both the organisation's

production and the consumer's decision making process.

○ Technological 

■ The skills and knowledge applied to the production, and the technology and materials needed for production of products and services can also impact how smoothly a business runs and must be considered 

○ Government and Regulatory 

■ Sound marketing decisions should always take into account political and/or legal developments relating to the organization and its markets ● Major Laws affecting firms marketing activities 

○ Sherman Antitrust act 

■ Prohibits the formation of monopolies and other actions that effectively restrain trade and interfere with competition in markets 

○ Food and Drug act 

■ Regulate the sale of adulterated food products and poisonous patent medicines. Set requirements for accurately labeling such products. 

○ Clayton act 

■ Set more stringent prohibitions against price discrimination, exclusive dealing, and the use of tying contracts. 

○ Federal Trade Commission act

■ Oversees interactions between businesses to ensure fairness. Authorized to issue “cease and desist” orders to curb unfair trade practices related to advertising and pricing. 

○ Robinson-Patman act 

■ Supplements the Clayton Act and strengthens prohibitions against price discrimination. Allows FTC to restrict the use of certain discounts and 

allowances unless they are offered on a proportionate basis to buyers 

○ Wheeler-Lea act 

■ Regulate the advertising of food and drugs. Declared all misleading, 

unfair, or deceptive practices to be illegal, regardless of injury to 

competition 

● Competitive Environment 

○ A dynamic external system in which a business competes and functions. The more sellers of a similar product or service, the more competitive the 

environment in which you compete 

● Types of Competition 

○ Monopoly 

■ When a single competitor virtually owns the entire market 

○ Oligopoly 

■ Where a handful of large competitors each with substantial market share. These large firms dominate sales and market share for the industry 

○ Monopolistic Competition 

■ Exists in industries characterized by a large number of competitors all vying with each other for market share. No single competitor dominates 

○ Perfect Competition 

■ Exists in industries characterized by many small companies each 

producing and selling essentially the same product or service 

● 5 forces that shape the direction of intensity of competition in the industry ○ Threat of new entry 

○ Threat of substitute products 

○ Bargaining power of buyers 

○ Bargaining power of suppliers 

○ Rivalry among existing competitors 

● Natural Environment 

○ The totality of natural resources that are required by Firms or affected by Firms’ operations 

Chapter 4: Managing Marketing Information 

● Marketing Research

○ Systematic process used to generate reliable and valid information and transform it into a format that marketing decision makers can use

Define the Research Problem

Conduct a Situational Analysis

Design and Conduct Investigation

Sources of data

Collection of methods

The Sample

Collection data

Analyze Data & Report

Follow Up

● Primary Marketing Data

○ New information not previously collected by another entity and not available via other sources 

○ Surveys, Observations, Experiments

● Secondary Marketing Data

○ Data already compiled by others that are available via physical and online sources 

○ Data Services, Library, Computer database, Internet

● Observation Research

○ Entails employing trained observers and/or technology to directly observe subject behaviors. 

○ Examples 

■ PDR=Pupil Dilation Reflex 

● Genuine interest buyer has in a product during a commercial

■ Eye movement recorder 

● Records what people look at

● Doesn’t tell us why they do it

■ Kimberley Clark’s Virtual Store 

● New EMR Technology improves on the intrusive devices employed in earlier research

● Scans how long someone looks at a part of the product with

retinal scans

○ Advantages

■ People cannot lie

■ Permits recording of what actually occurred

■ Mechanical observation to record detailed data

■ Emphasizes actual behavior in a particular situation

○ Disadvantages

■ Attitudes and reasons why something occurred cannot be determined

■ Some behavior cannot be observed

■ May be illegal and unethical to observe

● Survey Methods

○ Personal (face to face) interviews 

■ Advantages

● Empathy and personal interaction

● Capturing Non-Verbal cues

● Experiencing products in real life

■ Disadvantages

● Relatively higher cost

● Data Processing

● Making Analysis Actionable

○ Telephone surveys 

■ Advantages

● Fast

● Timely

● Inexpensive

■ Disadvantages

● Interviewer bias

● Response rates and cooperation

● Unlisted numbers--random digit dialing

● Cell phones

○ Mail surveys 

■ Advantages

● No interviewer bias

● Inexpensive

● Interviewee remains anonymous

● May get more honest answers

■ Disadvantages

● Response rates often low

● Respondent misunderstanding

● Finding mailing lists

● Lack of control over sample

○ Internet-based surveys 

■ Advantages

● Increased response rate

● Low cost

● Real-time access

● Convenience

● Design Flexibility

● No Interviewer

■ Disadvantages

● Survey Fraud

● Limited Sampling and Respondent Availability

● Possible Cooperation Problems

● No Interviewer

● Laboratory Experiments

○ Advantages

■ Allows researchers to investigate cause and effect relationships

■ Can measure what actually occurs

○ Disadvantages

■ Can be time-consuming and expensive

■ Not always possible to isolate all possible control variables

■ Lacks realism

■ Lab experiments rare in marketing

● Types of Test Market

○ Standard Test Markets 

■ A type of test market normally used to forecast sales of new products. ■ Example

● Eli cutter

○ Controlled Test Market 

■ Test market that focuses investigating marketing effects that are generated when one or more elements of the marketing mix are 

strategically changed. 

■ Example

● Miss America 1775 billboard. Shirley Cothran. 

○ Simulated Test Markets 

■ Test markets that are generally accomplished in laboratories rather than field settings 

■ Example

● Asked to view series of concept boards or ads

● Probability Sample

○ A sample in which every member of the population has a known, non-zero probability of selection

○ Examples

■ Stratified Random Samples 

● Population divided in “strata” or groups

● Simple random samples drawn from each

● Examples

○ Divide population into “occupation categories”

■ Cluster or Area Sample 

● Population divided into groups

■ Simple Random Sample 

● Drawing a person’s name from a complete list of people in the

same population is determined by chance selection procedures

○ Marbles in a hat

● Non-probability Sample:

○ A sample in which the probability of selection for every member is not known ○ Examples

■ Convenience 

● Selected based on accessibility

■ Quota 

● Designated categories of respondent types

● Major Questions in Sampling

○ How should the sample be selected?

○ Who will be sampled?

○ How many will be sampled?

● Questionnaire Design Considerations

○ Construct validity of items 

■ Does item measure what is intended?

■ Measuring your parent’s annual income by asking you

○ Other considerations 

■ Types of questions

● Open-ended questions

● Close-ended questions

■ Order of questions

■ Instructions

■ Length

■ Word of Questions

● Bias

○ Researchers having influence over an outcome in an experiment: 

■ Explanations 

■ Verbal and visual cues 

■ Non-response 

■ Refuse to cooperate 

■ Lying 

Chapter 5: Understanding Consumer Decision Making and Behavior 

● Consumer decision making fundamental steps:

○ Problem recognition 

○ Information search 

○ Evaluation of alternatives 

○ Choice 

● Extensive problem-solving 

○ High- involvement decisions usually feature higher risk, greater costs, and more personal relevance 

○ Factors

■ Time consuming, complicated, high risk, great cost, personal relevance (car, home, major appliance, computer, wedding dress, expensive jewelry) ● Routine problem-solving 

○ Low- risk decisions would generally include grocery products, gasoline, or Thursday workday underwear 

○ Factors 

■ Simple, low risk, inexpensive, and socially inconspicuous (milk, gas, groceries) 

● Factors that Trigger Needs or Problem Recognition in the Decision-Making Process ○ Stimulus you experience 

○ Internal state: suddenly realizing you are hungry, thirsty or cold so you get something to satisfy that need 

○ Exposure to external stimulus: Feeling FOMO when you see your friends having a great weekend on social media 

○ Exposure to planned marketing activities- advertisements, billboards, personal selling 

● Low-Involvement 

○ Consumer may skip information search and immediately proceed to checkout product or service 

● High Involvement 

○ High-risk or unfamiliar products are products that consumers are most likely to do more research on 

● External Constraints 

○ Typically beyond the control of the consumer and can effectively halt the purchase process or cause the consumer to revisit earlier stages in the decision making process 

● Behavior

Purchase

Post-Purchase

Evaluation

Satisfaction

Cognitive

Dissonance

● Customer Needs

○ A customer’s state or condition of feeling deprived

○ Examples:

■ Water

■ Sleep

■ Food

■ Sense of belonging

● Customer Wants

○ The shape (or form) that needs take as the need is influenced by individual personalities and the environment 

○ Examples:

■ New iphone

■ New clothes

■ Concert tickets

● Maslow’s Hierarchy of Needs 

1. Self Actualization (Self-fulfillment needs) 

a. Achieving one’s full potential, including creative activities 

2. Esteem Needs (Physiological needs) 

a. Prestige and feeling of accomplishment 

3. Belongingness and Love Needs (Physiological needs) 

a. Intimate relationships, friends 

4. Safety Needs (Basic needs) 

a. Security and Safety Needs 

5. Physiological Needs (Basic needs) 

a. Food, water, warmth, rest 

● Perception Receptors

○ See

○ Hear

○ Smell

○ Touch

○ Taste

● Types of Perception

○ Selective Exposure 

■ Occurs when stimuli come into close proximity to senses

■ Conscious or unconscious exposure of stimuli

■ Watch certain tv shows, read certain magazines

■ Marketers must determine proper media to reach target market ○ Selective Attention 

■ Occurs when senses are activated and information is processed by the brain

■ Will people pay attention to the stimulus?

■ Marketer’s must get customer’s attention

● Appeals

● Entertainment value

● Changes in physical stimuli

○ Selective Interpretation 

■ Comprehension or understanding of stimulus

● Based on past beliefs, attitudes, experiences

● Culturally based differences

■ “Perceptual Defense”

● Tendency is to distort information to fit our own attitudes, protect the “psyche”

● Fear appeals less effective

● Sex, humor appeals offensive, backfire

● How Marketers Try to Overcome Selective Perception

○ Fear Appeals

○ Sex Appeals

○ Manipulating the physical stimulus

■ Loud ads on tv

■ Positioning and size of ads in print media

● Marketing Implications

○ Research!!

○ Be very careful with all marketing communications

■ Pretest ads

■ Look for ways communications can be misinterpreted

● Consumer Beliefs 

○ Formed as consumers accumulate knowledge about products characteristics and their performance 

● Consumer Attitudes 

○ Capture consumers' relatively enduring, consistent, deeply-held evaluations, feelings, and tendencies held toward a person, idea, place, or an experience ○ Capture emotion, compared to consumer beliefs 

● Self Concept 

○ The totality of the individual’s thoughts and feelings about the self ○ Marketers may market by using relatable questions or thoughts that an individual might have concerns about 

● Lifestyle 

○ The individual’s pattern of living as defined by his or her activities, interests, and opinions. 

○ Individuals build their self-concept through the lifestyle they live 

● Culture 

○ The totality of enduring values, perceptions, norms, preferences, and behaviors that define a society and that are passed on by individuals and institutions. 

● Subculture 

○ A group of people within a given culture that share commonly held beliefs, values, and norms that distinguish them from other groups in that culture. ● Social Class 

○ Relatively permanent hierarchical strata within a society whose members possess common values, interests, and behaviors. 

● Family Unit

○ The basic social unit consisting of parents and their children, considered as a group, whether dwelling together or not. 

○ Various roles in family units 

■ Influencer: input the decision in matter 

■ Decision makers: person or people making the decisions 

■ Purchasers: The person or people who purchases the product, doesn’t mean they are decision makers 

■ Users: Person or people who use the product 

● Household 

○ One or more people who live in the same dwelling sharing meals or living accommodation, and may consist of a single family or some other grouping of people. 

● Reference Group 

○ A group of two or more individuals whose beliefs, attitudes, values, norms of behavior, or symbols are used by another person or persons as guides to behavior. 

○ Primary membership 

■ Family, friends, colleagues. Tend to be strong and interaction is frequent 

○ Secondary membership 

■ Professional associations, churches, local organizations. Ties are weaker and less

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