review for the first exam
review for the first exam MKG 300
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Katherine Ann Turnbull
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This 8 page Study Guide was uploaded by Katherine Ann Turnbull on Monday September 21, 2015. The Study Guide belongs to MKG 300 at Ball State University taught by Dr. Rodney Davis in Fall 2015. Since its upload, it has received 55 views. For similar materials see Principles of Marketing in Business at Ball State University.
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Date Created: 09/21/15
MKG 300 exam 1 study guide Marketing provides needed direction for production and helps make sure that the right goods and services are produced and find their way to customers The performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a ow of need satisfying goodsservices o Affects almost every aspect of your daily life Plays a big part in economic growth and development Encourages research innovation and competition Should begin with potential customer needs not wproduction process Involves exchange Builds relationships 0 Profit and nonprofit OOOOO Macro marketing a social process that directs an economy s ow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of a society 0 Emphasis on how the whole marketing system how it affects society and vice versa Micro View of marketing set of activities performed by individual organizations Customer Satisfaction the extent to which a firm fulfills a customer s needs desires and expectations Universal functions of marketing buying selling transporting storing standardization ampgrading involve sorting products according to size and quality financing risk taking and market information collection analysis and distribution The marketing concept three elements customer satisfaction total company effort and profit as an objective Intermediary someone who specializes in trade rather than production Retailers and wholesalers Collaborators firms that facilitate or provide one or more of the marketing functions other than buying and selling Include advertising agencies marketing research firms independent product testing lab Etc Ecommerce Refers to exchanges between individuals or organizations via online transactions Customer Value the difference between the benefit a customer sees from a market offering and the cost of obtaining those benefits Micro macro dilemma producers and consumers making free choices that can cause con icts and difficulties See page 23 for examplel Social responsibility a firms obligation to improve its positive effects on society and reduce its negative effects Marketing ethics the moral standards that guide marketing decisions and actions Marketing management process planning marketing activities directing the implementation of the plans and controlling these plans See page 33 ow diagram I Strategic management planning the managerial process of developing and maintaining a match between an organizations resources and its market opportunities Marketing strategy specifies a target market and related marketing mix Big picture Target market a fairly homogeneous similar group of customers to whom a company wished to appeal 0 Target marketing focuses on target group with a marketing mix that is tailored to fit target customers Marketing mix the controllable variables the company puts together to satisfy this target group The customer is NOT part of the marketing mix The four Ps make up this mix Product place promotion and price page 36 Mass marketing vaguely aims at everyone with the same marketing mix Channel of distribution any series of firms that participate in the ow of products from the producer to the consumer Personal selling involves direct spoken communication between sellers and potential customer Customer service personal communication between a seller and a customer who wants the seller to resolve a problem with the purchase Mass selling communicating with large numbers of customers at the same time Main form of this is ADVERTISING paid form of nonpersonal presentation of goodservices Publicity any unpaid form of nonpersonal presentation of goodservices Sales promotion refers to those promotion activities other than advertising publicity and personal selling Usually involves coupons contests events etc Marketing plan a written statement of a marketing strategy and the time related details for carrying out the strategy States what marketing mix will be offered the target market company resources that will be needed costs time frame and expected results Implementation putting marketing plans into operation See flow diagram at the top of page 42 in the textbookl Marketing program blends all of the firm s marketing plans into one big plan Customer equity the expected earnings stream of a firms current and prospective customers over some period of time Breakthrough opportunities opportunities that help innovators develop hard to copy marketing strategies that will be profitable for a long time Competitive advantage a firm has a marketing mix that the target market sees as better than a competitors mix See exhibit 29 on page 46 in textbook I SWOT analysis identifies and lists the firm s strengths weaknesses opportunities and threats SWOT is the abbreviation for this Differentiation marketing mix is distinct from what is available from a competitor Four basic types of opportunities 1quot Market penetration trying to increase sales of a firm s present products in its present markets Market development trying to increase sales by selling present products in a new markets Product development offering new or improved products for present markets Diversification moving into totally different lines of business International opportunities should be considered Ch 3 Direct market environment includes customers the company and the competitors External market environment composed of the economic environment technological environment political and legal environment and culturalsocial environment Mission statement sets out the organizations basic purpose for being Should focus on a few key goals Company objectives provide specific guidance in screening opportunities guide managers and the marketing manager should be involved in setting objectives See diagram 32 on page 61 Patent way of protecting a new idea or process that gives the owner a 20 year monopoly to develop and use its new product process or material Competitive environment Affects the number and types of competitors the marketing manager faces and how they behave Four basic kinds of competitive market situations 0 Pure competition competitors offer very similar marketing mixes and customers see the alternatives as close substitutes also known as an OLIGOPOLY O Monopolistic competition one firm completely controls a broad product market otherwise known as MONOPOLY Sustainable competitive advantage a marketing mix that customers see as better than a competitors mix and cannot be quickly or easily copied Competitor analysis an organized approach for evaluating the strengths and weaknesses of current or potential competitors marketing strategies Used to avoid head on competition and to find new or better ways to satisfy customer needs and provide value Helps a firm gain a competitive advantage and or breakthrough opportunity Competitive rivals firms that will be the closets competitors Competitor matrix an organized table that compares the strengths and weaknesses of a company with those of its competitive rivals Helps the marketing manager identify potential opportunities for differentiating the marketing mix A marketing manager should actively seek information about current and potential competitors 0 The search for information about competitors can raise ethical issues Economic environment national income economic growth and in ation that affects patterns of consumer and business spending Changes rapidly so it is important to constantly monitor Economies of the world are connected GLOABALIZATION and changes in one economy quickly affects others Technology technology changes open up many new opportunities but it can also pose challenges Political environment can affect opportunities at a local or international level NAFTA North American Free Trade Agreement lays out a plan to reshape the rules of trade among the US Canada and Mexico Cultural and social environment affects how and why people live and behave as they do which affects customer buying behavior and eventually the economic political and legal environments Quantitative components summarize the firms objectives sales profit and return on investment targets Qualitative components summarize what kinds of businesses the firm wants to be in what businesses the firm wants to exclude and what weakness it should avoid and what resources it should build on Sustainability the idea that it s important to meet present needs without compromising the ability of future generations to meet their own needs Evaluating opportunities in international markets is important since globalization is breaking down boarders See diagrams on power pointl Ch 4 Market a group of potential customers with similar needs who are willing to exchange something of value with sellers who offer various goods or services Generic market a marketing with broadly similar needs and sellers offering various often diverse ways of satisfying those needs 1 Looks at markets broadly and from a customer s viewpoint 2 Doesn t include any product type terms 3 Made up of customer needs customer types and geographic area Product market is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs Includes a four part description 1 What product type type of good and or service 2 To meet what customer needs 3 For whom Customer types 4 Where geographic area Three basic ways to develop market oriented strategies in a broad product market 1 Single target market approach segmenting the market and picking one of the homogeneous segments as the firms target market 2 Multiple target market approach segmenting the market and choosing two or more segments and then treating each as a separate target market needing different marketing mixes 3 Combined target market approach combining two or more submarket into one larger target market as a basis for one strategy Note all 3 approaches involve target marketing they all aim at specific clearly defined target markets See exhibit 42 on page 92 in textbook Market segmentation twostep process 1 Naming broad product markets 2 Segmenting these broad product markets in order to select target markets and develop suitable marketing mixes See exhibit 43 on page 93 Segmenting clustering people with similar needs into a market segment Market segment relatively homogeneous group of customers who will respond to a marketing mix in a similar way Ideally market segments meet 4 criteria 1 Homogeneous within customers are as similar as possible 2 Heterogeneous between customers in different segments should be as different as possible 3 Substantial the segment should be big enough to be profitable 4 Operational the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables Combiners try to increase the size of their target markets by combining two or more segments they look at various submarkets for similarities rather than differences Segmenters aim at one or more homogeneous segments and try to develop a different marketing mix for each segment Segmenting dimensions guide marketing mix planning Segmenting dimensions 1 Behavioral needs attitudes and how present and potential goodsservices t into customer consumption patterns 2 Urgency to get need satis ed desire and willingness to seek information compare and shot 3 Geographic location 4 Demographic characteristics Qualifying dimensions those relevant to including a customer type in a product market Help identify the core benefits that must be offered to everyone in a product market Determining dimensions those that actually affect the customers purchase of a specific product or brand in a product market See exhibit 411 on page 103D Positioning refers to how customers thing about proposed or present brands in a market Positioning statement concisely identifies the firm s desired target market product type primary benefitpoint of differentiation and the main reasons a buyer should believe the firms claims Marketing managers use positioning statements to provide focus for a marketing mix The one or two benefits highlighted in the statement should be the most important to the target market and unique to the brand
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