FOUNDATIONS OF MARKETING
FOUNDATIONS OF MARKETING MKT 320F
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This 6 page Class Notes was uploaded by Delores Stanton on Sunday September 6, 2015. The Class Notes belongs to MKT 320F at University of Texas at Austin taught by William Cunningham in Fall. Since its upload, it has received 62 views. For similar materials see /class/181399/mkt-320f-university-of-texas-at-austin in Marketing at University of Texas at Austin.
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Date Created: 09/06/15
MKT 320F Test 2 Chapter 5 Consumer Behavior Marketers search for growing markets Markets consist of people with money to spend Population in other countries is growing too expand markets Less developed countries exhibit fastest rate of pop Growth Population is becoming more concentrated Population density is important to marketers There s no market when there s no income Income is one of the most demographic dimensions Gross domestic product GDP the total market value of all goods and services provided in a country s economy in a year by both residents and nonresidents of that Gross national income G NI like GDP but doesn t include foreign income Reading writing and marketing problems The ability of country s people to read and write has a direct influence on the development of its economy US population is shifting Marketers always look for fastgrowing markets Most populated states developed near inexpensive water transportation Despite the large increases the rate of pop Growth in the Us has slowed dramatically Birthrate number of babies born per 1000 people The graying of America The median age is growing because percentage of pop in older age groups has increased Singleadult households are on the rise Chpt 2 Mkting Strategy plan The management job in mkting a Mkting management process planning implementing and control Continuous Planningmanagers set guidelines for the implementing job and specify expected results 1 Set objectives 2 Evaluate opportunities 3 Create mkting strategies 4 Prepare mkting plans 5 Develop mkting program I Control Expected results are used in the control job to determine if everything worked out 1 Measure results 2 Evaluate progress iv the link from planning to control is important because the feedback from these 2 leads to changes in the plans or new plans v Manager should seek new opportunities 1 Really attractive opportunities are those that fit with what the whole company wants to do and is able to do well S Strategic management planning the job of planning strategies to guide a whole company the managerial process of developing and mainstreaming a match btwn an org s resources and its market opportunities 1 Should be marketoriented What is mkting strategy a Mkting strategy planningfinding attractive opportunities and developing profitable mkting strategies b Mkt strategy specifies a target market and a related mkting mix i 2 interrelated parts are needed 1 Target mkt a similar group of customers to whom a company wishes to appeal 2 Mkting mix the controllable variables the company puts together to satisfy this target group EX product offered at a price with some promotion and a way to reach the customer s place Selecting a mkt oriented strategy is target mkting a Target mkting mkting mix is tailored to fit some specific target customers rifle approach i Mkting oriented managers sees everyone as different and practices target mkting b Mass mkting the typical productionorientation approach aims at quoteveryonequot with the same mkting mix shot gun approach i Considers everyone is the same and are all potential customers ii Production oriented managers sees everyone as similar and practices mass mkting Squot Mass mkting vs mass marketers i Mass mktingselling to everyone ii Mass marketersaiming at clearly defined target mkts 53 Target mkting in not limited to small mkt segments only to fairly homogenous ones EX diapers that are mkted to children vs diapers for the elderly different sizes and form The basic reason to focus on specific target customers is so that you can develop a 5 mkting mix that satisfies those customer s specific needs better than they are satisfied by some other firm f When a firm carefully target its mkting mix it s less likely to face competitors IV Developing mkting mixes for target markets a The 4 P s that make up the mkting mix 39 Productconcerned with developing the right quotproductquot for the target mkt good service features benefits quality level installation brandingetc Placeconcerned with all the decisions involved in getting the quotrightquot product to the target mkter s PLACE 1 Channel of distribution any series of firms that participate in the flow of products from product to final user or consumer 2 When a mkting manager has many diff target mkters many diff channels of distribution is needed 3 Include objectives intermediaries transporting and storing kinds and locations of storesetc iii Promotiontelling the target mkter or others in the channel of distribution about the quotrightquot product 1 Include personal selling mass selling and sales promotion 2 Personal sellinginvolves direct spoken communication btwn sellers and customers 3 Customer service a personal communication btwn a seller and a customer who wants the seller to resolve a problem with a purchase a Key to building repeat business b Expensive c Blended with mass selling and sales promotion 4 Mass selling communicating with large numbers of customers at the same time a Advertisingmain formany paid form of nonpersonal presentation of a product b Publicity any unpaid form of nonpersonal presentation of a product 5 Sales promotionpromotion activities other than advertising publicity and personal selling that stimulate interest trial or purchase by final customers or others in the channel coupons samples catalogsetc iv Price price setting must consider the kind of competition in the target mkt and the cost of the whole mkting mix v when a mkting mix is developed all decisions about the P s should be made at the same time They are all equally important 57 customer is not a part of the mkting mix but is the target mkt Selecting a target mkt and developing a mkting mix are interrelated It s strategies that must be evaluated against the company s objectivesnot alternative target mkters or Squot alternative mkting mixes V The mkting plan is a guide to implementation and control a Mkting plan a written statement of a mkting strategy and the time related details for carrying out the strategy It should spell out the following in detail 39 What mkting mix will be offered and for how long What company resources will be needed at what rate iquot What results are expected iv Plan should also include some control procedures so that whoever is carrying out the plan will know if things are going wrong b Implementationputting mkting plans into operation 39 Strategies to plans only work out only when they are implemented Operational decisionsshort run decisions to help implement strategies may be needed iquot If strategies don t work managers will reevaluate the strategy instead of working harder to implement it c Controlprovides the feedback that leads manager to modify their mkting strategies analyzing and correcting what you ve done i Every org needs planning and without control it s impossible to know if the plans are working d Marketing program blends all the firm s mkting plans into one llbig plan i Whole mkting program is an integrated part of the whole company strategic plan VI The mkting program should build customer equity a Customer equity the expected earnings stream profitability of a firm s current and prospective customers over some period of time Owners and stockholders expect financial returns from managers c Profitrevenuecost d The best way to increase customer equity is to find cost effective ways to increase earnings from current customers while bringing profitable new customers into the field VII The importance of mkting strategy planning a The quotonetimequot strategy decisionthe decisions that decide what business the company is in and the strategies it will follow usually determine success or failure b EX timex watches constantly competing to be in the mkt VIII Creative strategy planning needed for survival a When creating a strategy managers have to think about the basic consumer needs they serve how those needs may change in the future and how they can improve the value they offer to customers They need to be flexible b Focus on best practices for improved results IX What are attractive opportunities a Attractive opportunity those that the firm has some chance of doing something about given its resources and objectives b Breakthrough opportunities opportunities that help innovators develop hard to copy mkting strategies that will be very profitable for a long time i You want these bc there are many imitators that want to quotsharequot your profits if they can easily imitate your idea c Competitive adv a firm has a mkting mix that the target market sees as better than a competitor s mix i EX cutting cost brand name strong sales force ii Whatever the source an adv only succeeds if it allows the firm to provide superior value and satisfy customers better than other competitors X Mkting strategy planning process highlights opportunities a Narrowing down process Starts with a broad look at a market paying attention to customer needs the firm s objectives and resources and competitors There are many diff opprortunities and strategies for an org so screening will make it clear to why you selected a strategy Segmentation helps pinpoint the target EX diff types of customers with diff needs 1 Helps a manager decide to serve on some segment of customers and not others iv Differentiation the mkting mix is distinct from and better than what s available from a competitor 1 More obvious to target customers when there s a consistent theme integrated across the 4 P s decision areas F the main goal is to narrow down from all possible mkting mixes to one that s differentiated to meet target customers needs particularly well vi SWOT analysisidentifies the firm s strengths weaknesses opportunities and threats 1 Useful aid for identifying relevant screening criteria and for zeroing in on a good strategy 2 Helps the manager focus on a strategy that takes adv of the firm s strengths and opportunities while avoiding its weaknesses and threats to its success XI Types of opportunities to pursue X a 4 broad possibilities Market penetrationtrying to increase sales of firm s present products in its present mkts through a more aggressive mkting mix 1 Many firms try to increase mkt penetration by developing closer relationships with customers so that they will be loyal Mkt developmenttrying to increase a present product in a new market 1 Involves searching for new uses for a product EX EZGO was for golf carts but are now used to travel in the mall 2 May advertise in a diff media or a diff channel ofdistribution EX dunkin donuts sold in stores instead of its own outlet Product developmentoffering new or improved products for present mkts 1 Knowing the present mkt needs a firm can see ways to satisfy customers EXCampbell changing their recipe because they found out that their consumers were health conscious people Diversification moving into totally diff lines of businesses perhaps entirely unfamiliar products markets or even levels in the production mkting system 1 Can look attractive 2 Involves the biggest risk bc you might be targeting to the wrong customers EX MCdonalds wanted to target families during the week but ended up to target business travelers instead Which opportunities come first 1 Usually firms find attractive opportunities that are close to mkts they already know 2 Most firms think first of greater mkt penetration 3 Others believe that mkting development is another profitable way to take adv of current strengths International opportunities should be considered a b c d e International trade is increasing Develop a competitive adv at home and abroad A company facing tough competition at home may want to start fresh in another country where demand is higher Find better trend in other countries Weigh the risks of going abroad Many firms fail because they don t know the foreign country s culture Learning foreign regs can be difficult and costly Political or social unrest may make it difficult to operate
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