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This 7 page Study Guide was uploaded by amanda rodgers on Sunday October 4, 2015. The Study Guide belongs to MKT 3013 at University of Oklahoma taught by Jeffrey Shmidt in Summer 2015. Since its upload, it has received 22 views. For similar materials see Intro to Marketing in Marketing at University of Oklahoma.
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Date Created: 10/04/15
INTROFOUNDATION O O O O 0 Marketing was developed from economics Been around for about 100 years Possible careers include sales sales mgmt advertising retailing productbrand manager marketing research competitive intelligence new product developmentproduct planning logistics physical distribution PR Making a sale quottelling and sellingquot D satisfying customer needs Marketing a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products services with others 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 Marketing entails an exchange Products persons places ideas anything that can be offered to a market to satisfy a need or want Services activity or bene t that can be offered for sale that is essentially intangible and does not result in the ownership of anything Consumer experiences quotdazzle their senses touch their hearts and stimulate their mindsquot Four P39s product creating value price capturing promotion communicating place delivering Product creating value fundamental purpose is to create value by developing a variety of offerings including goods services and ideas to satisfy customer needs The Marketing Process Understand the marketplace and customer needswants D design a customer driven market strategy construct a marketing program that delivers superior value D build pro table relationships and create customer delight D capture value from customers to create pro ts and customer equity Exchange act of obtaining a desired object from someone by offering something in return Transaction a trade of values between two parties Needs state of felt deprivation 1 Physical food clothing safety shelter 2 Social belonging affection 3 Individual learning knowledge selfexpression Wants form that a human need takes as shaped by culture and individual personality Requirements for Marketing Exchang 1 two or more parties 2 each party must possess something of value that the other desires 3 each party must be willing to give up something of value to receive something of value from the other 4 the parties to the exchange must be able to communicate with eachother 5 each party must be willing to deal with the other 6 an exchange will not necessarily take place just bc these conditions exist but marketing activities have still occurred cistomer relationship management process of building and maintaining pro table customer relationships by delivering superior customer value and satisfaction wtomer lifetime value entire stream of purchases that the customer would make over a lifetime of patronage 0 share of a customer share a company gets of the customers purchasing in their product categories CHAPTER 5 0 Marketing Environment consists of actors and forces outside of the organization that affect managements ability to build and maintain relationships with target customers Microenvironment immediate actors close to the company that affect its liability to serve its customers 1 Company areasdepartments inside affects the marketing dpt39s planning strategies all dpts must quotthink consumerquot and work together to provide superior customer value and satisfaction 2 Suppliers provide resources needed to produce goods and services 3 Marketing intermediaries help the company to promote sell and distribute its goods to nal buyers resellers physical distribution rms marketing services agencies nancial intermediaries 4 Customers consumer business reseller govt international 5 Competitors those who serve a target market with products and services that are viewed by consumers as being reasonable subs for the rms productsservices company must seek to gain strategic advantage against these companies 6 Publics any group that has an interest in or impact on an organization39s ability to achieve its objectives nancial media govt citizenaction local general internal Macroenvironment company and all of the other actors operate in a larger macroenvironment of forces that shape opportunities and pose threats to the company 1 Demographics size pop density gender sex etc the changing age structure of the US is the most important demographic trend enhanced education level has lead to an increase in demand for quality goods books travel mags computers increasing white collar population increasing diversity 2 Other factors economic natural tech politicallegal cultural Culture institutions and other forces that affect a society s basic values perceptions preference and behavior Cultural environment core beliefs and values are passed on from parents to children and are reinforced by schools churches businesses and govt secondary beliefs and values are more open to change CHAPTER 2 O O 0 De ning a mission statement of an org39s purpose should be market oriented Setting companv obiectives supporting goals and objectives to guide the entire company Designing a business portfolio collection of businesses and products that make up the company Planning functional strategies detailed planning for each dpt designed to accomplish strategic objectives Mission statement statement of the org39s purpose what it wants to accomplish overall what value it wants to deliver to customers what the org wants to be in the future Customer excellence retaining loyal customers and customer service 0 Operational excellence ef cient ops and excellent SCM go hand in hand 0 Three phases of a strategic plan plan implement control 1 de ne business mission 2 situation analysis 3 identify and evaluate opportunities using STP segmentation ljtargetingljpositioning 4 implement market mix and allocate resources 5 evaluate performance and make adjustments 0 product and value creation successful products and services are those that customers perceive as valuable enough to buy 0 price and value capture price must allow for customers to perceive good value for the product they receive 0 place and value delivery product must be readily accessible 0 promotion and value communication tv radio mags sales force new media 0 growth strategies New current Current market penetration product development New market development diversi cation 0 market penetration strategy employs the existing marketing mix and focuses the rm39s efforts on existing customers achieved by attracting new consumers to the rm39s current target market or encouraging current customers to patronize the rm more often or buy more merchandise on each visit generally requires greater marketing efforts such as increased advertising and additional sales and promotions or intensi ed distribution efforts in geographic areas in which the product or service already is sold 0 Market develonment strategy employs the existing marketing offering to reach new market segments whether domestic or international 0 Product develonment offers a new product or service to a firm39s current target market 0 Diversi cation introduces a new product or service to a market segment that currently is not served Diversification opportunities may be either related or unrelated 1 related diversi cation the current target market andor marketing mix shares something in common with the new opportunity58 In other words the firm might be able to purchase from existing vendors use the same distribution andor management information system or advertise in the same newspapers to target markets that are similar to their current consumers 2 unrelated diversification new business lacks any common elements with the present business Unrelated diversifications do not capitalize on either core strengths associated with markets or with products Thus they would be viewed as very risky COMPETITIVE AND MARKETING INTELLIGENCE 0 market orientation obtaining and using info faster than competitors can be a competitive advantage organization wide generation of market intelligence dissemination of that intelligence among dpts and organization wide responsiveness to it companies need info about their customers needs marketing environment competition marketing mgrs do not need more info but BE1TER info that provides insights which are useful for decision making marketing intelligence systematic collection and analysis of publicly available info about competitors and developments in the marketing environment that helps mgrs prepare and adjust their plans and strategies collected on a regular basis 1 Methods published materials and public documents competitors employees competitors products trade shows yellow pages info inside company suppliers internet freedom of information act buy it Product scan online leverages the power of the internet to provide subscribers with access to a huge database featuring intelligence related to NEW consumer packaged goods MARKETING RESEARCH 0 Marketing research info used to solve marketing and other business problems and to ID and to de ne marketing opportunities re ne problems and evaluate marketing actions generate for a speci c purpose Process question design collect data data analysis and interpretation l present results use results for making decisions Exploratory research concerned with the discovery of ideas and insights ex literature reviews case analysis interviews focus groups Descriptive research concerned with determining the frequency with which something occurs or the relationship between two variables ex cross section surveys panel studies product movement studies store audts Causal research establish cause and effect relationships ex lab and eld studies market tests Primary data collection methods gathered for a speci c purpose or project 1 mail survey large amounts of info for cheap more truthful responses no bias BUT not exible low response rate little control over sample 2 phone survey quick exible good response rates strong sample control BUT costs more than mail bias limited quantity collected 3 interviews very exible lots of data good sample control quick good response rate BUT expensive high bias effect 4 online includes aspects of 13 but online cheapest quickest excellent sample control exible good response rate good amount of info 0 Sources of Secondary Info were collected for some problem other than the one at hand 1 Internal sales records accounting records previous research Market research rms Trade associations National research bureaus foundations associations Govt data Limits unavailable outdated wrong format inaccurate incomplete unreliable establishing causation time order sequence of events association elimination of all other causes explanation sampling plan who is to be surveyed How many people How should said people be chosen Syndicated service rms collect and distribute for many rms rms share cost Full service research rmg collect and distribute for one client client assumes total cost of project research rm takes over marketing research function on behalf of client Agood proposal what data How From who Who will analyze Quality control standards Length Cost Evaluation how good is the sample Reliable and valid Are statistical procedures appropriate and properly interpreted big problem area P P FP N CHAPTER 6 0 Consumer behavior buying behavior of nal consumers who buy goods and services for personal consumption reduces uncertainty when creating marketing mix Types of buying decisions 1 Routine response behavior less involvement frequently purchased or low cost goods may stay with one brand quick decision buy rst and evaluate later 2 Limited decision making low level of involvement low to moderate cost of goods evaluate a few brands short to moderate time to decide 3 Extensive decision making high involvement high cost many brands long time to decide may experience cognitive dissonance Level of consumer involvement previous experience interest perceived risk of negative consequences situation social visibility Perceptions process by which people select organize and interpret info 1 Selective attentionexposure people screen out most of the info to which they ve been exposed 2 Selective distortion tendency to interpret info in a way that supports what they already believe 3 Selective retention consumers are likely to remember good points made about a brand they favor and to forget points made about competing brands Factors in uencing consumer decision process 1 Marketing mix product place price promotion 2 3 4 Psychological motives altitudes perceptions learning lifestyle Social family reference groups culture Situational purchase situation shopping situation temporal state 0 Buying roles 1 2 mes Initiator initiates the desire and info gathering In uencer opinion is sought about purchases provides info and evaluations Decider makes purchase decisions Buyer actually makes the purchase User actually uses product 0 Produc adopters o Determi 1 1 2 3 4 5 2 Innovators try new ideas at some risk venturesome Early adopters opinion leaders who adopt new ideas early but carefully Early majority deliberate adopters adopt before average person Late majority skeptical adopts only after majority of people have tried a product Laggards last to adopt traditional and skeptical of change nants of rate of adoption Relative adv degree to which innovation appears superior to old ideas directly related to the rate Compatibility degree to which innovation is consistent with the values and experiences of potential adopters the higher this is the faster the rate Complexity relative difficulty understanding innovation the more difficult the longer itll take usually Triability degree to which innovation can be tried on a limited basis rst adopters face nancial loss an ridicule from others lessened by limited trials Observability degree to which results of using product are observable to others tangible superiority will increase adoption rate BUSINESS BUYING BEHAVIOR Majority of business school grads take jobs in rms that compete in the business market The business market is larger than the consumer market BZB markets manufacturersservice providers resellers institutions 0 O govt BZB buying process 1 2 3 need recognition generated internally or externally sources come from suppliers sales people or competitors product speci cation used by suppliers to develop proposals can be done with suppliers RFP process request for proposal 000 4 proposal analysis and supplier selection often several vendors negotiating against each other considerations other than price play a role in nal selection 5 order speci cation rm places order exact purchase details are speci ed all terms are detailed including payment 6 vendorperformance assessment using metrics Business market all the orgs that buy goods and services to use in the production of other products and services for consumption use in production process to sell Consumer behavior is required in most UG programs but business marketing is not Consumer behavior has higher level journals than business marketing CB is more developed theoretically but je thinks BM is more important New buy purchasing for rst time likely to be very involved buying center will prob use all 6 steps in buying process Modi ed buy buy similar product but change speci cations current vendors have advantage Straight rebuy buy additional units or products that have previously been purchases must BZB purchases fall in this category Buying center decision making unit of a buying org not a xed or formally identi ed unit varies depending on product and situations 1 lnitiator rst suggests buying the product or service 2 ln uencer views in uence other members in making nal decision 3 Decider ultimately determines any part of the buy or the whole buy in general Buyer handles paperwork of actual purchase User consumes or uses product or service Gatekeeper controls info or access or both to decision makers and in uencers PM
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