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MKT 403 Exam 1 Study Guide

by: taylor Notetaker

MKT 403 Exam 1 Study Guide MKT 403

Marketplace > University of Miami > Marketing > MKT 403 > MKT 403 Exam 1 Study Guide
taylor Notetaker
GPA 3.4
Marketing Management

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MKT 403 Exam 1 Study Guide
Marketing Management
Study Guide
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Popular in Marketing Management

Popular in Marketing

This 8 page Study Guide was uploaded by taylor Notetaker on Wednesday September 23, 2015. The Study Guide belongs to MKT 403 at University of Miami taught by Kanuri in Fall 2015. Since its upload, it has received 111 views. For similar materials see Marketing Management in Marketing at University of Miami.


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Date Created: 09/23/15
activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large strategic concept that captures the bene ts that exchange participants receive from market exchanges Marketing Frameworks facilitate a systematic approach to market analysis planning and management 0 help identify alternative approaches to thinking about a task 0 provide shared vocabulary to enhance decision making 0 not intended to answer speci c questions instead offer an abstraction build on already existing knowledge to facilitate future companyspeci c decisions 0 help in increasing the certainty of marketing outcomes How to use Marketing Frameworks Step 1 Generalize speci c problem at hand to a more abstract problem Step 2 Identify a framework that will help answer the speci c problem and use it to derive a general solution Step 3 Apply general solution prescribed by the framework to a speci c problem outlines the architecture of value creation by de ning the entities factors and processes involved in delivering and capturing value in the market place Types of Business Models strategy where the base version of the product is given away for free distribution strategy that integrates its of ine bricks and online clicks channels strategy of adopting leasing an already existing business model strategy where an offering generates revenues from two groups of customers with distinct needs Three Key Aspects of Business Models 1 Value Focused business models strive to create value monetary and nonmonetary value to stakeholders 2 Intangible business models involve an idea a subjective representation of reality and do not physically exist in the market place 3 Universal a viable business model is essential for the success of every organization Key Components of a Business Model 1 identi es the market in which the company operates de nes the value exchanges among key entities and outlines the ways in which an offering will create value for all relevant participants in the market exchange What Comprises the Target Market 5 C s Customers potential buyers of a rm s offerings Company a strategic business unit SBU managing the offering Collaborators entities that work with the company Competitors entities with offerings that target similar customers Context aspects of the environment that company operates in six are key economic business technological sociocultural regulatory physical 2 set of activities commonly referred to as the marketing mix employed to execute a given strategy by designing communicating and delivering speci c market offerings Seven Tactics De ning the Marketing Mix Product Brand Service Price lncenUves Distribution Communication Generating a Business Model 0 Marketing Strategy value analysis Marketing Tactics offering design 0 Key Questions to Ask What are the key problems confronting customers Which of these problems can we solve better than competition What are our unique resources strategic assets and core competencies that we can deploy to create market value What unresolved customer needs can we address with these resources 0 Marketing Tactics offering design Marketing Strategy value analysis 0 Key Questions to Ask How can the current offerings be improved How can the current productservice bene t from new technological advancements How can new technology be used to develop new offerings How can we leverage existing offerings to develop a new offering P P 39gtPU39 MARKET SEGMENTATION the process of identifying customers for whom the company will optimize its offerings Why Target Market composition Targeting Strategies standardization Cust0mization Which Strategy is Better 0 General Rule of Thumb Value vs Cost of Customization should guide your strategy Two Important Aspects of Customers 0 Needs and Preferences o Unobservable thus dif cult to gather data and hard to target and deliver offerings in a cost effective manner 0 Represent CUSTOMER VALUE identifying them can help your rm create offerings that deliver value Provides impetus for strategic targeting 0 Demographic and Behavioral Characteristics 0 Observable thus easy to gather data and easy to target and deliver offerings in a cost effective manner 0 Do NOT represent customer value Provides impetus for tactical targeting Ideal Targeting Strategy Strategic Tactical How to quotStrategically Targetquot Customer Segments 1 ability of customer segment to deliver superior value to the rm 0 customers ability to create monetary value to the rm 0 Customer Revenues 0 Cost of Serving Target Cutomers customers ability to create strategic value to the rm 0 complementarity among products like freemium o economies of scale target lowmargin customers 0 same side networkquot effects or installedbase effects customers potential to in uence other buyers 0 information provided by lead usersquot early adopters re ects worth of information provided by customers 2 rm s ability to ful ll the needs of the customer segment involves several types of assets manufacturing production facilities equipment service call centers customer relationship management solutions supplychain infrastructure procurement processes management infrastructure culture two types collaborators located along supply company s supply chain suppliers and distributors collaborators are not part of company s supplydistribution chain but collaborate with the company in developin the offering research and development manufacturing and promotion collaborators involves technological operational business and customer expertise of the company s employees often a key value creating asset 0 Intellectual Property covers the legal entitlement attached to intangible assets involves two types of assets industrial property inventions industrial designs trademarks service marks commercial names and designations and indications of sourceappellations of origin and copyrights literaryartistic works 0 strong brands create value by identifying the offering and generating meaningful associations that create value above and beyond the value created by the product and service aspects of the offering 0 can facilitate the acceptance of a company s current and new offerings because loyal customers are more likely to buy other offerings from the same company loyal customers can also create awareness and favorable word of mouth are a strategic asset to the degree that they facilitate customer acceptance of related company offerings ex windows is a strategic asset to Microsoft 0 provides company with a distinct competitive advantage by restricting the strategic options of its competitors ex company can bene t from access to unique natural resources from securing prime manufacturing andor retail locations and from acquiring a memorable web domain 0 provides company with resources to carry out different aspects of its strategy and tactics including sustaining a price war developing new products or implementing a communication campaign 3 Competition Intensity of Competition 0 Competitor Resources Barriers to Entry identifying ways to reach target customers who have been chosen based on the value they are seeking from and bringing to the company Solving the Problem 0 Tactical Targeting 0 Demographic Factors LOOK UP IN TEXTBOOK o Behavioral Factors LOOK UP IN TEXTBOOK ldeal Targeting Strategy Strategic Tactical Measuring Targeting Effectiveness Sniper Targeting Shotgun Targeting Over Segmentation ShotintheDark Targeting the process of grouping customers by focusing on those differences that are relevant for targeting and ignoring those differences that are irrelevant Market Composition Segmentation must Ensure ensuring homogeneity within a group 0 ensuring heterogeneity across groups 0 ensuring segmentation is relevant to the firm s targeting strategy o ensuring that all customers fall into one unique segment and no one is left out Segmentation Facilities Targeting 3 V ff Decide whom u Strategic targeting Cha ng to forget valuebased Decide how to reach forget 39 a a customers to communicate y and deliver the offering 7 offering value to CUSTOMER COMPANY anol collaborator don t learn collaborator Creating Customer Value 0 Cash is King and Customer is Boss communication value to the customer 0 Targeting and Segmentation l Come up with Value Proposition Customers Communicating Value 0 Functional Value relates to bene t and costs related to an offering s performance 0 Example why curved TVs are bene cial Psychological Value relates to psychological bene ts related to an offering 0 Example why a convertible is more fun 0 Monetary Value relates to monetary bene ts related to an offering 0 Example cash back buy one get one Integrated View 0 Functional l Psychological l Monetary back to functional How Rational Customers Compute Value V fw 3 Ir rn pvnrtance effriirihute i Performance nf39httritiute i V Ti WIr 31 W 32 W 33 W 34 Reference Point Heuristic 9 Gain nttriibimee Reference Point l l Loss Loss Aversion among Consumers Same pic as above but 1 unit Gain lt 1 unit Loss Diminishing Marginal Value Value 7 7 7 a a 7 391 until Attribute Score Creating Superior Value 0 Improving offering s performance on a given attribute Add a new attribute on which the offering has an advantage 0 Increased the perceived importance of an attribute on which the offering has an advantage Positioning the Offering Positioning builds on the offering s value proposition to de ne the key reasons for customers to choose the offering Concept of Framing Helps provide customers with a benchmark that will underscore the value of offerings Directly links the bene ts of the offering to a particular customer need De nes offerings by associating it to a particular type of buyer De nes offerings by relating it to an already established product category De nes offerings by contrasting it to competitor s offerings De nes offerings by comparing it to offerings in the rm s product line Identifying the Primary Bene t Positioning on functional bene ts Positioning on psychological bene ts Positioning on Monetary bene ts Positioning Strategies SingleBene t Positioning MultiBene t Positioning Holistic Positioning Creating Company Value are we appropriating value from our offerings Monetary Value are the offerings enhancing the pro tability of the rm Psychological Value are the offerings enhancing psychological value 0 Functional Value are the offerings enhancing functional value eg facilitating sales of other rm offerings J l r l l i e 3quot J l LJHE VH39EerE i39ul V Hawanw 55 xquot l Mquot it Mr S g P P 9s 1quot l l is qua 1 lll l a H r IF F Elquot 1quot ll if Lilo litquot a J quot r quot39 39 t r ax 99 lj lll gtir n M iIIFIEr l q i mFE Ifquot L Ent39illril f 3 NM LEWE lquotrl I g r grill I l V quot 39i ll E ILL IE L39iustun39lera l ELIE395 r r Hg 339 423 5 i lWEquotl tE39lquot L1quot er Leela Important Financial Concepts Revenue Price x Volume Gross Margin Gross Pro t Gross Revenue Gross Revenue COGS Gross Revenue Net Margin Net Income Gross Revenue Gross Revenue All Costs Gross Revenue Operating Margin Operating Income Gross Revenue Gross Pro ts Operating Expenses Gross Revenue Customer Lifetime Value CLV GC r 1 d r o GC yearly gross customer contribution r retention rate probability that a customer will be retained by the rm d yearly discount rate 0 CLV varies by customer or customer segment depending on the unit of analysis


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