MKTG 301, Week 2 Notes
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This 4 page Class Notes was uploaded by Alicia Polcha on Wednesday January 20, 2016. The Class Notes belongs to MKTG301 at a university taught by Dr. Zina Taran in Spring 2016. Since its upload, it has received 170 views.
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Date Created: 01/20/16
Chapter 2 Notes: Week of 1/19/16 1. Marketing Philosophies/Orientations ** a. Managerial Assumptions b. Productions Concept: Consumers favor products that are available and highly affordable i. Can lead to marketing myopia: 1. Focusing too narrowly on their own operations and lose sight of real objective the customer ii. Low labor costs, high production effiecieny, and mass distribution iii. Examples 1. Walmart is a good example of this 2. “In, Out, Cheap” haircuts 3. “Hot n Ready” 4. “Cheap and Ready on the Go!” c. Product Concept: Consumers favor products that offer the most quality, performance, and innovative features. i. Product quality and improvement ii. Too much focus on this can result in myopia 1. A better product will not sell unless the manufacturerse designs, packages, and prices are attractive to consumers 2. Bring attention to those who need it and convince buyers that it is a better product iii. Examples 1. Apple is a good example of this a. Apple offers up to date and reliable technology, not just a product 2. Nike is a good example of this a. Nike offers performance, not just a shoe 3. “The best money can buy” 4. A pizza maker “Best ingredients around” d. Selling concept: consumers will buy products only if the company promotes/sells these products i. Consumers will not buy enough of the firm’s product unless it undertakes a largescale selling and promotion effort ii. Aggressive selling for products that people don’t normally think of buying iii. Example 1. Insurance iv. Negativity: aggressive sells flaw lack of building customer relations and trust e. Marketing Concept: Focuses on needs/wants of target markets and delivering satisfaction better than competitors i. Customercentered; senseandrespond philosophy ii. Goal is not to find the right customers but the right procut for your customers iii. What does the market/customers like? iv. Example 1. “Your pizza, Your Way” f. Societal Marketing Concept: Focuses on needs/wants of target markets and society i. Maintain and improve customer and society’s well being 1. Examples a. UPS b. Johnson and Johnson 2. Building Customer Relations a. Customer Relationship Management (CRM) i. Overall process of bulding and maintain profitable customer relationships by delivering superior value and satisfaction ii. Ways to keep track of what consumers like and react on this iii. Example 1. “Happy Birthday” from salesmen iv. customer value v. lifetime value vi. share of customer vii. customer equity viii. right relationships with the right customers ix. Examples 1. “Butterflies” a. Buy a lot/Not so loyal b. Go to several different places 2. “Strangers” a. Buy minimal product/only come once 3. “Barnacles” a. “Sale Shoppers” b. Loyal, but not profitable 4. “True Friends” a. Loyal customers; Profitable 3. Marketing Development a. Digital age; technology b. Globalization c. Ethics and social responsibility d. Notforprofit marketing 4. Formal Planning a. Encourages management to think ahead i. If you do it right b. Forces managers to clarify objectives and policies c. Better coordination of company efforts d. Clearer performance standards and expectations e. Helps company adjust to change and sudden developments quickly f. What you want to achieve and can vs what you don’t 5. Jim Collins’ Book a. “From Good To Great” 6. Hedgehog Concept **On exam a. What can you be to be the best in the world? b. Passionate c. What the market place wants (What is profitable?) 7. Steps to Strategic Planning a. Define Company MIssoin b. Setting Company objectives and goals c. Design Business Portfolio d. Planning, Marketing, and other functional strategies 8. Mission Statement: Organizaoint’s purpose, what it strategizes, and wants to accomplish in the larger environment a. Characteristics of a good Mission Statement: i. Market oriented ii. Realistic iii. Specific iv. Fit marketing environment v. Distinct competencies vi. Motivating b. The “invisible hand’ that guides people in the organization 9. Designing the Business Portfolio a. A Business Portfolio is the collection of businesses and products that make the company i. Develop growth strategies b. Example i. GE wants to own Networking Company 1. This can help GE advertise 2. Both businesses strategized and used hand in hand help each other grow 10. Growth Share Matrix a. Vertical Axis: Market growth rate (Measures market attractiveness) i. Porter’s Five Forces 1. Barriers to Entry (Entry into market) 2. Supplier Power 3. Buyer Power (Buyers tell you how it is) 4. Substitutes (Costs of Subs) 5. Rivalry b. Horizontal Axis: relative market share (Measures company strength in the market) c. Stars: Increased Growth, Increased Business Share d. Cash Cows: Decreased Growth, Increased Business Share e. Question Marks: Decreased Business Share units in Increased Growth Markets f. Dogs: Decreased Growth, Decreased Share Businesses and Products
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