MKTG 3310 Chapter 2&3 Notes
MKTG 3310 Chapter 2&3 Notes MKTG 3310-001
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This 6 page Class Notes was uploaded by Melissa Cooey on Friday February 5, 2016. The Class Notes belongs to MKTG 3310-001 at Auburn University taught by Jeremy Wolter in Spring 2016. Since its upload, it has received 84 views. For similar materials see PRINCIPLES OF MARKETING in Business at Auburn University.
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Date Created: 02/05/16
Friday, February 5, y MKTG Chapter 2 Notes continued.. Making Marketing Accountable Customer lifetime value total stream of purchases customer may contribute over their lifetime. Customer equity the expected profitability from a firm’s customers over some period of time. Marketing mix: Product Price Place Promotion To pick your target market, you need to pinpoint attractive opportunities. Attractive opportunities for a particular firm are those that the firm has some chance of doing something about given its resources and objectives. S.W.O.T Analysis Identifies the firm’s strengths, weaknesses opportunities, and threats. With a S.W.O.T analysis, a marketing manager can begin to identify strategies that take advantage of the firm’s strengths and opportunities while avoiding weaknesses and threats. Diversification Analysis Market penetration means trying to increase sales of a firm’s present products in its present markets, probably through a more aggressive marketing mix. 1 Friday, February 5, y Market development means trying to increase sales by selling present products in new markets. Product development means offering new or improved products for present markets. Diversification means moving into totally different lines of business new products and a new market. Critical thinking reflective thinking involved in the evaluation of evidence relevant to a claim so that a sound or good conclusion can be drawn from the evidence. MKTG Chapter 3 Notes Creating Competitive Advantage Competitive advantages require delivering more value and satisfaction to target consumers than competitors. Competitive marketing strategies are how companies analyze their competitors and develop valuebased strategies for profitable customer relationships. Competitive analysis is the process of identifying, assessing, and selecting key competitors. Identifying the company’s competitors. Assessing competitors’ objectives, strategies, strengths and weaknesses, and reaction patterns. Selecting which competitors to attack or avoid. Identifyin Competitors. Competitors can include: All firms making the same product or class of products. All firms making products that supply the same service. All firms competing for the same consumer dollars. Assessing Competitors: 2 Friday, February 5, y Objectives profitability market share Strategies Strengths and weaknesses Estimating reactions Selecting Competitors: Close vs distant firms that offer similar products and are like yours vs firms that are different from yours. Good vs bad firms that play by the rules and don’t try to undermine you, or competitors that play dirty. Blueocean going some place where there are no competitors. There is room to mess up. Strong vs weak focus on the either the strong competition, or the weaker competition. Customer value analysis determines the benefits that target customers’ values and how customers rate the relative value of various competitors’ offers. Competitive Strategies Michael Porter’s 4 basic competitive positioning strategies 3 winning strategies 3 Friday, February 5, y Overall cost leadership the company works hard to achieve the lowest production and distribution costs, which allows the company to charge less than it’s competitors. Differentiation the company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry. Focus the company focuses its effort on serving a few market segments well, rather than going after the market as a whole. 1 losing strategy Middleoftheroaders this company tries to be good at all strategies, which hurts them. They are not the lowest in cost, the highest perceived valued, or best in serving some market segment. Value Disciplines operational excellence lowest cost leader. High quality at a value. (ex. McDonalds) customer intimacy provide service, build relationships with customers. Customers are willing to go out of their way to buy your product. (ex. Starbucks) product leadership the most innovative. Excitement and variety. (ex. Taco Bell) Competitive positions Market leader strategies market leader 40% market challengers 30% market followers 20% market nichers 10% Strategies: 4 Friday, February 5, y expand total demand new users, uses, more usage protect their current market continuous innovation, strong relationships expand market share Nonmarket leader strategies Market Challenger strategies: challenge the leader 2nd mover advantage? can be dangerous leaders are well positioned in the market, spending money to challenge them could be wasteful because it probably won’t affect the leader at all. Market Follower strategies: do not rock the boat copy and improve leader’s positions bring distinctive advantages keep costs and prices low Market Niche strategies: specialization 5 Friday, February 5, y Marketing ROI Return on Marketing What firms do (actions). What customers think/feel (perceptions). What customers do (behavior). What firms get (outcomes). Metrics Metrics a system that quantifies a trend, dynamic, or characteristic. Makes is possible to: compare observations across regions and time periods. Access whether goals are achieved. Facilitate understanding and collaboration. We need metrics from every step because: we need to look at the steps holistically. you have to be careful about which metrics you choose from each area. Don’t measure too much. track things through the return. 6
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