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by: Morgan Christensen


Morgan Christensen

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About this Document

CH 1 Marketing Strategy
Marketing Management
Michael J Swenson
Class Notes
25 ?




Popular in Marketing Management

Popular in Business Management

This 7 page Class Notes was uploaded by Morgan Christensen on Tuesday September 6, 2016. The Class Notes belongs to BUS M 241 at Brigham Young University taught by Michael J Swenson in Fall 2016. Since its upload, it has received 5 views. For similar materials see Marketing Management in Business Management at Brigham Young University.

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Date Created: 09/06/16
BUS M 241 WEEK 1: 08/30 — 09/01 Office Hours • T/Th 2-3PM, 102 JSB (just knock) • By appointment 624 TNRB • • 1st point of contact TA o TA office: 133 TNRB o • DO NOT EMAIL VIA LEARNING SUITE! Marketing — the action/ business of promoting and selling products/services; creates value for the customers, shows who you are, makes you competitive • WARNING: can be used for good (i.e. Mormon Messages LDS church) or bad (i.e. drugs, porn, debt, gambling) Three Levels of Strategy • Corporate Strategy → specialization is better than generalization o What business should we be in? o Pepsico: beverages, salty snacks, packaged foods; They were in fast food for a while, but then got out of it to stay specialized and make more money. • Strategic Business Unit Strategy (SBU) Strategy → what are your strengths for competing? o BCG Portfolio Model →You want a mixed portfolio of these. STAR ? →Cash COW: market leader, slow growth, generates more cash than needed (i.e. iPhone, coca cola) COW DOG →STAR: market leader, fast growth (i.e. apple watch, vitamin water) →DOG: low market share, slow growth BUS M 241 WEEK 1: 08/30 — 09/01 Relative Market Share (% of market (i.e. apple air, FUZEfor a specific entity ie #toyota sold/ all → ?: low market share, fast growth (i.e. apple car brands sold) newton, new coke) • Product Expansion Matrix (Options for growing a business); McDonalds examples Products Existing New Market Product Penetration Development •i.e. combo meals •i.e. buttermilk chicken sandwhich (came out a year ago) Market Diversification Development •i.e. what if McDonalds made •McDonalds in t-shirts to sell in China China? • Functional/ Marketing Strategy → address a target market with the 4Ps • Marketing Philosophies (4) o Production Orientation  Focus on the capabilities of company  May not consider needs of customers/competitors  I.e. IKEA o Sales Orientation  Aggressive sales techniques=higher sales  May not understand customer’s needs BUS M 241 WEEK 1: 08/30 — 09/01  i.e. anything door-to-door sales o Market Orientation  Understand & satisfy needs/wants of customers  Know capabilities of company & competitors  i.e. LL Bean o Societal Orientation  Preserve and enhance society, long term best interest  Concern about environment, enviro-friendly products  I.e. Tom’s shoes, donate a pair of shoes for every pair bought. • The Marketing Strategy Process PROFITS (Capture Value) Sales per customer → margin (difference between price & cost) Customer acquisition → customer retention Marketing Mix (Create/Deliver Value) Product, Place, Price, Promotion Segmentation → Targeting → Positioning Marketing Environment Customers, Company, Competitiors o Customers (target market) o Marketing Mix (4 Ps)  Product • i.e. Make Frozen dolls/products because the movie was such a huge success  Price  Promotion • i.e. #howtodad, PB cheerios targeting Dads.  Place (distribution) • i.e. Amazon Fresh delivers groceries to your door. BUS M 241 WEEK 1: 08/30 — 09/01 VALUE • Why do some products succeed and others fail? → Consumers must see value in them. • Within a firm, marketing is exchange. You create value for the customers by fulfilling their functional and emotional needs. Create an emotional connection between the value and the customer. o Henry Ford: What problems are people buying their horse trying to solve? o How to come up with a killer product? → Ask what would the customer want? • If there is no value, there are no interested customers. Without customers, the business will fail. Marketers must focus on creating value instead of outdoing competitors. o Copycat products give no reason for consumers to change. o Focus on solving the customer’s problems. • Importance of marketing through the eyes of brand champions o That’s how you get more business Determinants of Customer Perceived Value Product Service Total Customer BENEFIT Personnel (i.e. good employees) Image Customer Percieved Value Monetary TIme Total Customer COST Energy Psychic (i.e. maybe you just don't like to shop) BUS M 241 WEEK 1: 08/30 — 09/01 Strategic Triangle Customer Value Value = Benefit - Cost Company Cost Competition We must create more value for our customers than our competitors do.  Lowest Level of the Marketing Strategy Process (Driving Profitability) o Customer acquisition  How can you find new customers and new higher value customers? o Sales per customer  How can you get more out of your existing customers?  Complementary products→ bundle products (BIG MAC, FRIES, SOFT DRINK) or American Girl Doll (so many add-ons)  Partner with other firms  i.e. Kraft & Hershey combine. Marshmallows, Graham Crackers and Chocolate = Smores. Combined marketing o Margins  ↑ price  Help customers buy more expensive products  Change it so customers are less expensive BUS M 241 WEEK 1: 08/30 — 09/01  i.e. Customers pump their own gas, serve their own soft drinks, self-check outs, ATMs, mobile banking  Get rid of unprofitable customers  i.e. A bank will increase the fees. o Customer Retention  Find the root cause and eliminate them  Encourage your customers to file complaints and then fix them. You will retain more customers  Recover customers that have left or are about to leave  Develop Loyalty initiatives  i.e. frequent flyer miles, loyalty cards Customer Lifetime Value (CLV)→ how much revenue does a customer create for a particular company over a “lifetime” with the business.  How much do you need so spend to get one or keep one?  Satisfy transaction  Nurture relationship  Cross sell  Build loyalty  Move to long term  Retain High Profitability/Short- High Profitability/ Long-term term Customers Customers  satisfy transaction  increase share of wallet  no investment  up sell  cross sell Low Profitability/ Short- term Customers Low Profitability/ Long-term Customers  The best products will not succeed without a revenue model. o LOOK FOR THE MONEY!  i.e. $.05 —$.25 flying cake pan exam


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