Chapter 1 and 2 notes
Chapter 1 and 2 notes MKT 423 Market Strategy
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This 2 page Class Notes was uploaded by Samantha Bressler on Friday October 7, 2016. The Class Notes belongs to MKT 423 Market Strategy at College of the Ozarks taught by Mrs. Emily Emery in Fall 2016. Since its upload, it has received 3 views. For similar materials see Market Strategy in Business Administration at College of the Ozarks.
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Date Created: 10/07/16
Marketing: the process involving the activities necessary to enable individuals and organizations to obtain what they need and want through exchanges with others and to develop ongoing exchange relationships. Necessary Factors for successful marketing customers: ultimate customer: buy goods and services for their own use organizational customer: buy goods and services for resale customers needs and wants: need: anything physical or psychological. If unmet it is called a GAP wants: a persons desire and preferences to satisfy a basic need. what gets exchanged: products: something tangible service: less tangible and provided by people exchange create value: customers buy benefits not products, so the trick is that different customers see different benefits example with car buying: need: transportation > benefit sought: social acceptance > choice criteria: brand name, color, rare, year > product/ service/ features: big motor, warranty, sunroof, heated seats, navigation, stereo > brand/ supplier chosen: Cadillac, Mercedes, BMW, Volvo You want to create long term customers. Ex: 10 people renting uniforms for $8/week. $80.00 per week. They must buy 11 shirts and 11 pants, so they can pick up 5 dirty shirts and 5 clean shirts dropped off and 1 uniform on. multiply by 10 people= 220 uniforms * $3.50= $770.00 for cost. To keep these people long term: keep good wills (be proactive and ask them how they are doing) define your market: it must satisfy a need or a want and then understand the customers resources market segment: contains people who are relatively homogeneous in their needs, their wants, and the product benefits they seek. strategic marketing management involves a seller trying to determine the following points in an effort to define the target market: which customer needs and wants are currently not being satisfied by completive product offerings. How desired benefits and choice criteria vary among potential customers and how to identify the resulting segments by demographic variables such as age, sex, lifestyle, or some other characteristics. which segments to target, and which product offerings and marketing programs appeal most to customers in those segments. how to position the product to differentiate it from competitors' offerings and give the firm a sustainable competitive advantage. Formulating a marketing plan Objectives: sales volume, market share, profitability. Competitive advantage: hard to duplicate and sustainable over time. Good marketing manager to carry out this plan. The 4 P's Product, Place, Price, Promotion A marketing plan is a written document detailing the current situation with respect to customers, competitors, and the external environment and providing guidelines for objectives, marketing actions, and resource allocations over the planning period for either an existing or a proposed product or service. Example on page 20 Corporate growth strategy: Expansion: Increasing share of existing market by researching what they want, lower your price, offer rewards, customer service Develop new products: example would be Amazon with streaming or Cintas comes out with new products first Selling existing products in new segments by going overseas and expanding: example would be NFL in England Diversification: (forward) Vertical integration: when a firm moves downstream in terms of the product flow. So like cutting out the middle man. Backward integration: when a firm moves upstream, so when they gain a middle man/ supplier Related (concentric) diversification: no common products but can benefit each other. Cintas started out as a uniform company and the acquired shred it to expand their business. Unrelated (conglomerate) diversification: financial purposes. they join forces with a company not related to your product at all. It is just for financial reasons. Growth and profit do not always happen together: Some companies may spend a lot of money to grow further and reap the reward later. A quick solution to gain profit is to do a large layoff.