Study Guide Test 1
Study Guide Test 1 MARK 300 001
Popular in Marketing/Supply Chain Mgt
MARK 300 001
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This 43 page Study Guide was uploaded by Bree Reed on Thursday September 10, 2015. The Study Guide belongs to MARK 300 001 at University of Tennessee - Knoxville taught by Adam Mark Hepworth (P) in Summer 2015. Since its upload, it has received 402 views. For similar materials see Marketing/Supply Chain Mgt in Marketing at University of Tennessee - Knoxville.
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Date Created: 09/10/15
93 98 Thursday September 3 2015 1105 AM We had a quiz today in class onlinebut it didn39t work so everybody received an A Ch3 Analyzing the Marketing Environment actors and forces outside of marketing that affect marketing39s ability to connect with the customer actors close to the company that affect its ability to serve its customers 0 Considered to be somewhat under the control of the marketing environment Larger societal forces that affect the microenvironment o Considered to be beyond the control of the organization The Company39s Microenvironment Areas inside a company Defines the companies strengths and weaknesses capabilities and limitations Microenvironment Plinko Interaction we have a strategy and control our chip we may hit pegs but we still control the chip Actors in the Microenvironment W a a low if ego at X at 5quot l 39 1 u Provide resources needed to produce goods and services An important link in the quotvalue delivery systemquot Enlightened marketers consider key suppliers to be partners 0 Example Coors Light marketing advantage They talked to a supplier and they initiated the idea that the mountains on the label will turn blue to indicate that the beer is cold Help the company to promote sell and distribute its goods to final buyers 0 Resellers 0 Physical distribution firms help the company stock and move goods 0 Marketing services agencies 0 Financial intermediaries a financial institutions such as banks to help finance transactions Five types of markets that purchase a company39s goods and services Consumer Markets Business Markets Reseller Markets Government Markets International Markets U39IlgtUUNI are those who serve a target market with products and services that are viewed by consumers as being reasonable substitues Direct vs Indirect Competitors Competing brands under 1 roof 0 Example Abercrombie amp Fitch as the parent company and Hollister as the competing clothing company group that has an interest in or impact on an organization39s ability to achieve its objectives Citizenaction r a publics are Types of Pu bllCS Oftenlarger Citizen 7 than local Ann QCHOD l nllhlirc Tho VUUIIDJ I IIC teaher39s union wonbea citizenaction public Internal Publics Employees managers volunteers and the board of directors The Macroenvironment The company and all of the actors in the microenvironment operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company There are 6 forces in the microenvironments of a company The Company s Macroenvironment Demographic forces The study of human populations in terms ofsize density location age gender race occ and other statistics upa on Marketers track changing age and family structures geographic population shifts educa1 characteristics and population diversity 0 Marketers need to track the changes in demographics because it could create a tn market needs A great deal of domestic date stemsfrom the census We watched a Levi39s commercial that only had women in it and it didn39t seem like it would be a commercial They are tryingto capture the audience ofwomen who are of different shapes an Economic Environment Consists of factors that affect consumer purchasing power and spending patterns 0 Le subprime mortgage crisis of late 2007 I Changes in income III Led up to the major recession from 20082011 39 Income distribution III U pper class getting wealthier D Middle class shrinkingin size III Working class struggling III Underclass remain poor Natural Environment Involves the natural resources that are needed as inputs by marketers or that are affecte marketing activities Trends in the natural environment Shortages of Raw Materials Increased Pollution Increased Govt Intervention Environmental Sustainability Technological Environment Most dramatic force now shaping our destiny Political Environment gt r 3 Political Envnronmen f f ional endtothe ILeWB 3 sizes Cultural Environment The institutions and other forces that affecta society39s basic values perceptions prefere behaviors nceand Ch 4 Tuesday September 8 2015 1120 AM The Importance of Information Companies need information abouttheir 0 Customer needs 0 Competition 0 Marketing Environment Marketing managers do not need m information they need better information 0 Quality vs Quantity An MIS consists of people equipment and procedures to gather sort analyze evaluate and distribute needed timely and accurate information to marketing decision makers The MIS helps managers to 1 i A good MIS balances the information uses would Like against what they really need and what is feasible to offer ii Have to decide whether the benefits of more information are worth the costs iii Sometimes the company cannot provide the needed information because it is not available or due to MIS limitations 2 i Where will this information come from 1 Internal Databases Electronic collections of information obtained from data sources within the company 2 Marketing Intelligence Systematic collection and analysis of publicly available information about competitors and developments in the marketing research a Ex Procter amp Gamble admitted to quotdumpsterdivingquot at rival Unilever39s Helene Curtis headquarters to find out about their marketing develooments 3 Marketing Research Systematic design collection analysis and reporting ofdata relevant to a specific marketing situation facing an organization The Marketing Research Process Defining the problem and research 5 objectives 222ro Interpreting and 39 reporting conecung and the findin s analyzing the data 9 1 Defining the problem and objectives Defining the Problem and Objectives Gather preliminary information that will help define the problem and suggest hypotheses Describes things eg market Descr39ptlve potential for a product Research Demographics and attitudes Tests hypotheses about Causeandeffect relationships 2 Developing the research plan Includes 0 Determining the exact information needed 0 Developing a plan forgathering it efficiently o Presenting the written plan to management Gathering Secondary Data 0 Information that already exists somewhere 39 Internal databases 39 Commercial data services 39 Govt sources 0 Available more quickly and at a lower cost than primary data 0 Must be relevant accurate current and impartial 0 Reliability can be problematic Primary Data Collection 0 Consists of information collected for the specific purpose at hand 0 Must be relevant accurate current and unbiased 0 Primary Research III Qualitative Research 9 Observations 0 ndepth interviewing 0 Focus groups III Quantitative Research 0 Surveys 0 Survey Research C Survey Research 39p 0 c39 0 Methods Pros I O 0 Telephone mall face verse 0 to face electronic 395051 gather and 0 Relies heavily on 0 Accuracy of data scaledcategorized 0 responses closedend C ns 0 Survey construction and J Some open ended a quality highly variable questions may be included T requires expertise v 0 Implementation time can Examples 39ncn39de be lengthy esp mail demographic ata satisfactionj dgments fgig npt39i39f39i cg mustbe roduct use and Intentions attitudes 0 Jill Experiments Experimental Research 0 May yield a great deal of data but little knowledge f Used to understand casual 0 Pros relationships between marketing mix variables eg products ads lsda on 039 the test packaging promotions and independent variable consumer responses eg supports causeeffect purchase intentions preference judgments 0 Experimental groups are e cons compared to each other andor to control groups 39 Time cnnsmn39ng and expensnve Field experiments tested in natural environments eg in homes grocery stores townto town 0 Not always able to isolate all possible causal variables Laboratory experiments in a controlled environment eg RampD facilities mock stores mall 7 1 d x grocery store loyalty programs Data Mining Special topic in market research data mining 0 What is data mining 0 A process that accesses the com pany s internal data usually stored in a data warehouse and which then transforms the data into knowledge and hopefully wisdom 0 What happens 0 CRM reps discover patterns and relationships hidden in data by using advanced statistical analysis and modeling techniques J 3 Strategic Objectives of Data Mining 0 gustornner Pro ling ldentifyin the characteristics of a good customer wuth the oa of retaining those who are and predicting those w o WlllCOUId become one 0 Lost Customer Analysis Determining the characteristics of customers who have left for a competitor so that the company can act to retain customers who are at rIsk of leavmg 0 Market Basket Analysis Helps retailers understand Wthh products are purchased together 0 Razors and shaving cream 0 ntribution Analysis Examining the profitability of specu c groducts purchased by customers or cuso u segmen What s a data warehouse 0 An assembly of disparate data from all over the company which is then transformed into a consistent state for business decisions 0 Most companies have lots of data however transforming it is a major expense 0 Types of available data 0 Product sales 0 Transaction scanner data 0 Complaint data 1800 calls n ID JAI I Ch5 Thursday September 10 2015 1109 AM Understanding Consumer and Business Buyer Behavior Consumer Buying Behavior Refers to the buying behaviorof people who buy goods and services for personal use These people make up the consumer market The central question for marketers is o quotHow do consumers respond to various marketing efforts the company might usequot Ex GoPro Innovation Customer Understanding o What does GoPro offer its customers 39 They come with editing software 39 Resilient to water and being dropped 0 How has the company been successful Buyer Characteristics Culture is the most basic cause of a person39s wants and behavior 0 Culture is learned from family church school peers colleagues etc 0 Culture includes basic values perceptions wants and behaviors 39 groups of people with shared value systems based on common life experiences III Ex Different ethnic groups within a society can be a subculture The LGBT consumer III Ex Subculture of Irish Language Preservationists of Gaelic the government uses Irish and English signage I III Society39s relatively permanent and ordered divisions whose members share similar values interests and behaviors III Measured bya combination of occupation income education wealth and other variables Cnrlal Earlnrc V JULIGI I GILLUID Social Factors Membership Groups Reference opinion leaders Aspirational Most important consumer Famlly buying organization Role Expected activities Status esteem given to role Status by society 9 Personal Factors Personal Factors 0 There is a difference in gender psyche differences b We watched a video quotIt39s not about the nailquot The Buyer Decision Process 5 steps 0 Marketers aim to influence each step of the process 1 Need recognition i An imbalance that exists between a consumer39s current state and his her desired state ii Individual may be unaware of the problem or need iii Marketers may used sales personnel advertising and packaging to trigger recognition of needs or problems 2 Information search i This stage begins after the consumer becomes aware ofthe problem or need ii The search forthe information about products will help resolve the problem or satisfy the need 1 Internet 2 Friends and Family 3 Reading nutrition labels 4 Product reviews etc Sources of Information Personal Commercial pubic Experiential 3 Evaluation ofalternatives i Ex Kitchen Aid Mixer vs Sunbeam Mixmaster one is more expensive than the other 4 Purchase decision binary variable either yes or no 5 Postpurchasebehavior i Consumer satisfaction is a function of 1 Performance lt Expectations gt Disappointment 2 Performance Expectations gt Satisfaction 3 Performance gt Expectations gt Delight Family friends neighbors Effect of social media Advertising salespeople Receives the most info from these sources Mass Media Consumerrating groups Handling the product Examining the product Using the product A buyer39s doubtshort39vaiter a purchase about whether it was the right decision 0 Marketers combat cognitive dissonance via 1800 numbers FAQs and web feedback forms refers to the buying behavior ofthe organizations that buy goods and services for use in the production of other products and services that are sold rented or supplied to others 0 Just as is the case w consumer buyer behavior marketers want to know how business buyers behave Business Markets Differ from Consumer Markets 0 Market Structure and Demand 39 Containsfarfewer but larger buyers 39 Customers are more geographically concentrated 39 Business demand is derived from consumer demand 0 Nature ofthe Buying Unit 39 Business purchases involve more decision participants Business buying involves a more professional purchasing effort Major Types of Buying Situations The buyer buyer routinely reorders Straight Rebuy something without considering alternative suppliers The buyer wants to modify Modlfled product specifications RebU prices terms or suppliers The buyer purchases a New Task product or service for the first time 0 Whether the customers are end consumers or business to business customers marketers want to know 39 What are the factors that influence their choices 39 How do they make decisions 0 Marketers want to know how customers are likely to respond to their marketing actions 93 Notes Thursday September 3 2015 1105 AM We had a quiz today in class onlinebut it didn39t work so everybody received an A Ch3 Analyzing the Marketing Environment actors and forces outside of marketing that affect marketing39s ability to connect with the customer actors close to the company that affect its ability to serve its customers o Considered to be somewhat under the control of the marketing environment Larger societal forces that affect the microenvironment o Considered to be beyond the control of the organization The Company39s Microenvironment Areas inside a company Defines the companies strengths and weaknesses capabilities and limitations Microenvironment Plinko Interaction we have a strategy and control our chip we may hit pegs but we still control the chip Actors in the Microenvironment M w a low if ego at X at I i 1 u Provide resources needed to produce goods and services An important link in the quotvalue delivery systemquot Enlightened marketers consider key suppliers to be partners 0 Example Coors Light marketing advantage They talked to a supplier and they initiated the idea that the mountains on the label will turn blue to indicate that the beer is cold Help the company to promote sell and distribute its goods to final buyers 0 Resellers 0 Physical distribution firms help the company stock and move goods 0 Marketing services agencies 0 Financial intermediaries a financial institutions such as banks to help finance transactions Five types of markets that purchase a company39s goods and services Consumer Markets Business Markets Reseller Markets Government Markets International Markets U39IlgtUUNI are those who serve a target market with products and services that are viewed by consumers as being reasonable substitues Direct vs Indirect Competitors Competing brands under 1 roof 0 Example Abercrombie amp Fitch as the parent company and Hollister as the competing clothing company group that has an interest in or impact on an organization39s ability to achieve its objectives Citizenaction r a publics are Types of Pu bllCS Oftenlarger Citizen 7 than local Ann QCHOD l nllhlirc Tho VUUIIDJ I IIC teaher39s union wonbea citizenaction public Internal Publics Employees managers volunteers and the board of directors The Macroenvironment The company and all of the actors in the microenvironment operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company There are 6 forces in the microenvironments of a company The Company s Macroenvironment Demographic forces The study of human populations in terms ofsize density location age gender race occ and other statistics upa on Marketers track changing age and family structures geographic population shifts educa1 characteristics and population diversity 0 Marketers need to track the changes in demographics because it could create a tn market needs A great deal of domestic date stemsfrom the census We watched a Levi39s commercial that only had women in it and it didn39t seem like it would be a commercial They are tryingto capture the audience ofwomen who are of different shapes ant ional endtothe ILeWB 3 sizes 91 Notes Tuesday September 1 2015 1103 AM Real class examples that might be seen on the test How do we measure ourcustomers39 perception ofvalue Customer satisfaction Surveys Cole39s Mission Statement for Harley Davidson was fantastic Critical Questions that Managers ask 1 What is important to our customers 2 How do we know if we are delivering value to our customers 3 How do we judge whether we are offering superior value relative to competitors is the customer s perception of what they want to have happen in a specific usesituation with the help of a product or service in order to accomplish a desired purpose or 000 CustomerValue CustomerSatisfaction Satisfaction is aboutfalling short or exceeding expectations 0 Customer Delight REMEMBER THIS gt D CustomerValue Importance D CustomerSatisfaction Performance 5 Key Aspects of Customer Value 1 Tradeoff of benefits and sacrifices a IKEA Sideboard Cabinet less expensive does not come assembled 2 what I get 2 what I give up X Benefits Sacrifices Z sum 2 3 You want to see that benefits outweigh the sacrifices Interaction of both customer and product Customer Value is Interactive Buyer39s values and goals Use situation Product and and occasion Relative to competitors individuals and situations Customer s Goals Value Hierarchy Positive benefits US omer S ustomer s Example ofhis friend Jake who has a company with the slogan quotCompete Everydayquot and he boughta Ford F150 and put a wrap on it as a form of advertisement Des39LLedEndState peace Of munc and Negative sacri ces L World J effects ON the customer v3 Customer39s Desued Consequences what I wart to happen PRODUCT ATTRIBUTES mysical product39serwce auraczenstics Suppners ANYTHING World irm Controls 4 Goal Driven by customer39s desired attributes desired outcomes and end goals a Examples wine coolers They have less alcohol 5 Dynamic in that it changes over time What Makes Customer39s Perceptions of Value Change have a job and start making more money gtTo 3 0 When you are broke in college ur purchases are different than whel o Expanded innovationcompetitors can change customer value Things happening inside the company Customer Learning Methods Getting the Data Customer Interaction eg sales call reports presentations Customer ResearchOntenlcws panels surveys observation 3393 Party Customer research consultants Secondary reoons journals industry reoons etc nyou AMIYZJHQ market trends 39 Analyzingcustomer complaints Customer Value Strategy Process 1 2 3 4 5 Identify the Value Choosethe Value Provide the Value Competitive Advantage Communicatethe Value Assess the Delivered Value By understanding customervalue we can develop better strategies to Satisfy amp Retain Customers Acquire New Customers Differentiate the firm from competitors in the marketplace Sustainable Competitive Advantage Chapter 2 Thursday August 27 2015 1110 AM The process ofdeveloping and maintaining a strategic fit between the organization39s goals and capabilities and its changing marketing opportunities a statement of the organization39s purpose What it wants to accomplish in the larger environment 0 They should be meaningful and specific yet motivating Business unit product and market levels Corporate level Questions the mission statement should answer 1 What is our business 2 Who is our customer 3 What do our customer39svalue 4 What should our business be The mission should be translated into supporting objectives for each level of management Creates a that are consistent with one another Tl n kllt nft t In ll1quotan 0 l n nF kiln n n n n nnl nvnnlllnIn l malln Inn 391 39 IIIC UUDIIICDD JUI LIUIIU ID LIIC LUIICLLIUII UI UUDIIICDD CIIIU JIUUULLD LIICIL IIICC up CI company The company must 39 Analyze its current business portfolio orr III A unit ofa company that has a separate mission and objectives and that can be planned independentlyfrom other company business 0 Can be a company division a product line within a division or sometimes a single product or brand 39 Decide which SBU39s should receive more less or no investment 39 Develop strategies for growth or downsizing Portfolio Analysis management evaluates the products and businesses that make up the company Resources are directed to business units that help the company as a whole to be more successful Business units that don39t contribute to the portfolio might be less successful Growth Share Matrix by using the BCG approach a company classifies all its SBUs Analyzing Current SBU39s The BCG Growth Share Matrix Relative Market Share High Low High t Growth Rate make more sales to current customers without changing products How Add new stores in current market areas improve advertising prices and service identify and develop new markets for current products How Pursue different demographic customer group expand to different geographic regions offer modified or new products to current markets How Add food offerings se coffee in supermarkets start up or buy business outside current products and markets How Making and selling CD39s testing restaurant concepts coffee makers Chapter 1 Creating and Capturing Customer Value Monday August 24 2015 639 PM managing profitable customer relationships A The goal of marketing a attract new customers by promising superior value b keep and grow current customers by delivering satisfaction Understand the marketplace and customer needs and wants Design a customerdriven marketing strategy Construct an integrated marketing program that delivers superior value Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity a total combined customer lifetime values Maslow39s Hierarchy of Needs 1943 1 Selfactualization Selfesteem Belongingness and love Safety Physiological U39IbUUNH U39lbUUN 1 Needs wants and demands a states of felt deprivation b the form human needs take as they are shaped by culture and individual personality c wants backed by buying power people demand products and services w benefits that add up to the most value and satisfaction 2 a A combinations of products services information or experiences offered to a market to satisfy a need or a want i the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products Value and satisfaction 4 Exchanges and relationships a the act of obtaininga desired object from someone by offering somethingin return b Companies want to build strong relationships by consistently delivering superior customer value 5 Markets a The set ofactual and potential buyers of a product or service the buyers have a specific need or want that can be satisfied through exchange relationships U Historical vs Modern Marketing Historical Organization gt consumer Modern Day Organization ltgt consumer The art of science of choosing target markets and building profitable relationships with them Market segmentation dividing the market into segments of customers selecting which segments it will go after How will it differentiate and position itself in the marketplace the set of benefits or values it promises to deliver to consumers to satisfy their needs 39 How a product is differentiated and positioned consumers will favor products that are available and highly affordable Management should focus on improving production and distribution efficiency consumers will favor products that offerthe most in quality performance and innovative features Marketing strategy focuses on making continuous product improvements consumers will not buy enough of the firm39s products unless it undertakesa largescale selling and promotion effort achieving organizational goals depends on knowing the needs and f wants of target markets and delivering the desired satisfactions better than competitors do questions whether the pure marketing concept overlooks possible conflicts between consumer shortrun wants and consumer longrun welfare the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction the customer39s evaluation ofthe difference between all the benefits and all the costs of a market offering relative to those of competing offers depends on the product39s perceived performance relative to a buyer39s expectations New Marketing fostering direct and continuous customer involvement in shaping brand conversations brand experiences and brand community consumers themselves are playing a bigger role in shaping their own brand experiences and those of others means working closely with others inside and outside the company to jointly bring more value to customers Mobile Digital and social media marketing
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