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Marketing 3010 Week 4 Notes

by: Hannah Stephens

Marketing 3010 Week 4 Notes Mkt 3010-001

Marketplace > Clemson University > Marketing > Mkt 3010-001 > Marketing 3010 Week 4 Notes
Hannah Stephens

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About this Document

These notes cover chapters 2, 5, and beginning of 6 from what was discussed in class.
Principles of Marketing
Carter Willis McElveen
Class Notes
Marketing 3010, Clemson University
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This 10 page Class Notes was uploaded by Hannah Stephens on Friday January 22, 2016. The Class Notes belongs to Mkt 3010-001 at Clemson University taught by Carter Willis McElveen in Spring 2016. Since its upload, it has received 45 views. For similar materials see Principles of Marketing in Marketing at Clemson University.


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Date Created: 01/22/16
Chapter  2:    Developing  a  Marketing  Strategy  and  a  Marketing  Plan   • Marketing  Strategy   o What’s  the  organizations  main  activity  at  a  particular  time?   o How  will  it  reach  its’  goals?   1. Identifies  a  Firm’s  Target  Markets   2. A  related  Marketing  Mix—their  4  P’s   3. The  bases  upon  which  the  firm  plans  to  build  a  sustainable   competitive  advantage.   • Sustainable  Competitive  Advantage     Customer   Excellence   Locational   Customer   Operational   Excellence   Value   Excellence   Product   Excellence       o Customer  Excellence—Sets  business  apart  by  great  customer  service   o Operational  Excellence—Idea  that  you  are  efficient  with  business   operation.    i.e.  Wal-­‐Mart  and  Amazon   o Product  Excellence—Set  product  apart  by  its  superiority.  i.e.   Mercedes,  Rolex,  BMW   o Locational  Excellence—Prime  location  to  attract  customers.    i.e.   Cracker  Barrel     • The  Marketing  Plan   o After  you  identify  opportunities,  what’s  the  next  step?   • Planning  Phase:    Step  1—Business  Mission  and  Objectives   o What  business  are  we  in?   o Should  focus  on  the  market  or  markets  the  organization  is  trying  to   serve  rather  than  a  good  or  service  offered.   o Don’t  want  to  be  too  broad  either     o Also  may  include  sustainable  competitive  advantage   o Marketing  Myopia—Defining  a  business  in  terms  of  goods  and   services  rather  in  terms  of  the  benefits  that  customer  seek.   • Planning  Phase:    Step  2—SWOT  Analysis   S —(strengths)  Things  the  company  does  well   W —(weaknesses)  Things  the  company  does  not  do  well   O —(opportunities)  Conditions  in  the  external  environment  that  favor   strengths   T —(threats)  Conditions  in  the  external  environment  that  don’t  relate  to   existing  strengths  or  favor  areas  of  current  weaknesses.     *Strengths  and  weaknesses  are  internal  while  opportunities  and  threats  are   external     Environmental  Scanning—Helps  identifies  opportunities  and  threats     -­‐Guidelines  for  Designing  Marketing  Strategy  based  on  6   Macroeconomic  forces:    Social,  Demographic,  Economic,  Technological,   Political/Legal,  and  Competitive     • Step  3:    Identifying  &  Evaluating  Opportunities  Using  STP   •  Which  segments  of  customers  can   you  satisfy   Segmentation   •  Evaluations  of  each  segments  of   Targeting     attractions   •  How  you  are  positioning  the   Positioning     product  within  the  target  segments         • Step  4:    Implement  Marketing  Mix  &  Allocate  Resources   o Product  value  creation   o Price  value  capture   o Place  value  delivery   o Promotion  value  communication     • Step  5:    Evaluate  Performance  &  Make  Adjustments   o Who  is  responsible  for  performance     o Performance  objectives  and  measures   o Financial  performance  metrics   o Portfolio  analysis     Portfolio  Matrix       Star         Problem  Child   -­‐High  market  growth       -­‐High  market  growth   -­‐High  market  share       -­‐High  market  share   -­‐Cash  neutral           -­‐Cash  absorbing   -­‐Hold           -­‐Build       Cash  Cow       Dog   -­‐Low  market  growth                                                  -­‐Low  market  growth   -­‐High  market  share                                                      -­‐Low  market  share   -­‐Cash  generating                                                              -­‐Cash  neutral   -­‐Harvest  or  milk                                                                -­‐  Divest       • Growth  Strategies   o Target  Market—Defined  group  most  likely  to  buy  a  product   ▯ Changes  as  consumers  age   ▯ External  elements  change  consumers’  desires   o The  Market  Environment   ▯ Consumers  at  center!!***   ▯ The  Micro  Environment   • Successfully  leveraging  company  capabilities     o Core  Competency   o Existing  knowledge,  facilities,  parents,  etc.   o New  markets,  new  products,  etc.   o Competition   ▯ Competitive  Intelligence  (CI)   ▯ Know  strengths  and  weaknesses   ▯ Proactive  rather  than  reactive  strategy   o Corporation  Partners   ▯ Firms  are  part  of  alliances   ▯ Aligns  with  competitors,  suppliers,  etc.   ▯ Just  in  Time  Delivery  Systems  (JIT)   Culture   • Country  Culture  vs.  Regional  Culture   o Texas—Something  “mild”  there  is  considered  spicy   everywhere  else   • Growing  Ethnic  Markets  in  the  US   o Spending  power  of  ethnic  markets  in  2013:   ▯ Hispanics  $1.2  trillion   ▯ African  Americans  $1  trillion   ▯ Asian  Americans  $713  billion   o Diversity  can  result  in  bottom-­‐line  benefits  to  companies   ▯ Growth  in  these  groups  are  outpacing  the  Caucasian   market   • Marketing  to  Hispanic  Americans   o The  population’s  diversity  creates  challenges  for  targeting  this   group—hyper  local  critical!   o Hispanics  tend  to  be  brand  loyal,  but  are  now  aware  of  many   US  brands   o Ambicultural  Group:    Ability  to  switch  between  2  cultures   seamlessly   • Marketing  to  African  Americans   o Many  firms  are  creating  products  for  the  African  American   market   o More  aggressive  consumers  of  media  and  shop  more   frequently   o Favor  smaller  retail  outlets  like  drug  stores,  convenience   stores,  more  dollar  stores   • Marketing  to  Asian  Americans   o Younger,  better  educated,  and  have  more  average  income  of  all   groups   o Called  a  “marketers  dream”   o Leading  segment  of  online  shopping—77%  made  internet   purchases  in  2013   o Cultural  diversity  within  the  Asian  American  market   complicated  promotional  efforts   • Ethnic  and  Cultural  Diversity   o Multi-­‐Culturalism—Occurs  when  all  major  ethnic  groups  in  an   area  (city,  county,  or  census  tract)  are  roughly  equally   represented.   o US  trend  is  toward  greater  multiculturalism     o America’s  racial  and  ethnic  patterns  have  taken  on  distinctly   regional  dimensions   Demographics   o People  are  the  basis  for  any  market   o Demographic  characteristic  relate  to  buyer  behavior   ▯ Tailoring  products  to  what  customers  value  is  key  to   sales   ▯ Demographic  cohorts  have  their  own  needs,  values,  and   consumption  patterns   • Seniors—“Greatest  Generation”   o Born  before  1946   o More  likely  to  complain   o Needs  special  attention   o Takes  time  browsing  before  purchasing   o Made  in  USA   o Not  into  designer  labels   o Loyal  and  willing  to  spend  but  quality  conscious  and  want   convenient  hassle  free  shopping   • Baby  Boomers   o Born  between  1946  and  1964   o Wealthiest  generation  in  history   ▯ Acct.  for  50%  of  consumer  spending   ▯ Hold  ¾  of  the  nation’s  financial  assets   o Recession  hit  baby  boomers  hard,  eating  into  savings  and   retirement  prospects   o Represent  strong  targets  for  financial  services   o See  work  as  more  central  to  their  lives  that  later  generations   • Generation  X   o Born  from  1965-­‐1976   o Most  educated  generation  to  date   o Less  materialism  than  other  groups   o Skeptical  of  marketing   o Careful  spenders   o Independent,  value  autonomy  and  freedom   st o 1  generation  to  fully  embrace  the  internet   o More  socially  liberal  than  other  generations   • Millennials/Gen  Y   o Born  between  1977-­‐2000   o $733  billion  in  purchasing  power   o Ethnically  diverse   o Fluent  with  digital  technology     o Personalization  product  customization  are  key  to  marketing   success   o Raised  by  “soccer  moms”     o Always  known  danger   • Gen  2/Tweens   o Ages  0-­‐18   o Purchasing  power  of  $44  billion  annually   o Parents  spend  $600  billion  on  them  annually   o Like  online  shopping   o Realistic  and  Savers   o View  TV  ads  as  “just  advertising”   o Aspire  to  be  older—but  are  still  children   o Want  to  be  unique—but  also  fit  in.   o Entrepreneurship  in  their  DNA!     Income   • Purchasing  power  is  tied  to  income   • Census  bureau  tracks  income   • Many  middle  class  families  feel  the  decline  in  purchasing  power  in   recent  years   • Asians  targeted  more  and  deemed  the  marketer’s  dream  because  they   make  more  money  because  of  higher  education   • Education  is  related  to  income,  which  determines  spending   power!       • Gender—Male/female  roles  have  been  shifting     o Marketing  has  changed  to  reflect  these  shifts   • Social  Trends   o Thrift:    Consumers—Spend  less  on  luxuries,  attempting  to  save   more,  do  not  dip  into  their  savings   o Health  &  Wellness  Concerns   ▯ Worldwide  pandemics  or  epidemics   ▯ Child-­‐teenage  obesity   o Greener  Customers   ▯ Customers  who  appreciate  firms  efforts  to  supply  the   with  environmentally  friendly  merchandise   ▯ Greenwashing—Pretending  to  be  very  green  and  eco-­‐ friendly  but  really  not   o Privacy  Concerns   ▯ Loss  of  privacy   ▯ Identity  theft   ▯ Do  not  call   ▯ Do  not  email   o Time  Poor  Society   ▯ In  the  majority  of  families,  most  parents  work     ▯ Consumers  have  many  more  choices  regarding  less  time   ▯ Many  consumers  multitask   ▯ More  businesses  open  more  hours   o Technological  Advances   ▯ Technology  has  impacted  every  aspect  of  marketing   • New  products,  new  forms  of  communication,   new  retail  channels   o Economic  Situation   ▯ Foreign  currency  fluctuations     ▯ Combined  with  inflating  and  interest  rates  affect  firms’   ability  to  market  goods  and  services   o Political/Regulatory  Environment   ▯ Competitive  proactive  and  trade  legislation     Ch.  6:    Consumer  Behavior   • Men  buy,  Women  Shop—Differences  in  the  shopping  aisle   o Women  view  shopping  as  a  personal  experience   o Men  view  shopping  as  a  mission  –Not  going  to  look  around!   • Understanding  Consumer  Behavior   o How  consumers  make  purchase  decisions   o How  consumers  use  and  dispose  of  product   • Consumers  Decision  Process   1. Need  recognition   2. Information  search   3. Alternative  evaluation   4. Purchase   5. Post  purchase                                                                                  


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