Chapter 1-2 MKT 3300
Popular in Principles of Marketing
verified elite notetaker
Popular in Marketing
This 8 page Class Notes was uploaded by AnissaNotetaker on Monday September 14, 2015. The Class Notes belongs to MKT 3300 at University of Texas at Dallas taught by Xie,Ying in Fall 2015. Since its upload, it has received 91 views. For similar materials see Principles of Marketing in Marketing at University of Texas at Dallas.
Reviews for Chapter 1-2
I'm a really bad notetaker and the opportunity to connect with a student who can provide this help is amazing. Thank you so much StudySoup, I will be back!!!
-Sonia Casper MD
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/14/15
Ch 1Core Marketing Concepts Saturday September 05 2015 1259 PM Core marketing concepts Needs wants and demands Markets v Products and services Value satisfaction and quality Exchanges transactions and relationships What39s a need 0 Types I Basic survival necessities I Complex emotions relationships 0 Physical vs social needs 0 Basic part of human makeup not created but understood and satisfied Needs Wants and Demands 0 Ex You need a phone but you want an iPhone 0 Ex You wanted McDonalds so you went an bought a Big Mac 0 Needs gt Wants gt Demands Role of Marketing 0 Do consumers know what they want 0 Customer driven market consumer is well informed and loyal to a product 0 Customer driving market unsure of what products they want Maslow39s Hierarchy of Needs Selfactualization Esteem Social Safety Importance And Complexity Physiological MKT 3300009 Page 1 What will satisfy consumers39 needs and wants 0 Product anything that can be offered to a market to satisfy a need or want 0 0 Service an activity or benefit offered for sale that39s essentially intangible and doesn39t result in ownership of anything 0 Includes experiences persons places organizations information and ideas How do consumers choose 0 Customer value the difference between the value gained from a product and costs of obtaining a product 0 Using economic language customers choose a product that maximizes their utility what they can afford to spend 0 Customer satisfaction product39s perceived performance in deliverance value related to buyer39s expectations How do consumers obtain products 0 Exchange act of obtaining desired product from someone by offering something in return 0 Transaction a trade of value between 2 parties 0 Called transaction marketing 0 Relationship marketing deliver longterm value to the customer and thereby secure customer satisfaction and retention of patronage Marketing39s changing orientation 0 Simple trade era 0 Goal sell surplus 0 1850 production era 0 Goal increase supply 0 1920 sales era 0 Goal beat competition 0 1950 marketing department era 0 Goal coordination and control 0 1990 marketing company era 0 Goal longrun customer satisfaction 0 Still used today Marketing philosophies 0 Consumers favor products that are available and affordable 0 Improve production and distribution 0 Consumers favor products that offer most quality performance and innovative features 0 Continue product improvements 0 Consumers won t buy enough products unless company promotessells them 0 Create transaction 0 Focuses on needswants of target markets and delivering value better than competitors do 0 Make good marketing decisions by considering consumers39 wants company39s requirements consumers39 and society39s LR interests Selling vs Marketing 0 Selling concept 0 Existing product gt profits through sales volume MKT 3300009 Page 2 O Focuses on selling what you can make 0 Marketing concept 0 Customer needs gt profits through customer satisfaction 0 Focuses on making what you can sell Major shifts in marketing strategies 0 Company gt consumer 0 Transactions gt relationships 0 Shortterm profit gt creating valuable societal marketing services notforprofit marketing Summary 0 Marketing management is about value creation and value delivery Choose Value 0 Segmentation 0 Targeting 0 Positioning a Provide value 0 Product 0 Pricing 0 Sourcing 0 Distribution gt Communicate Value 0 Sales force 0 Sales promotion 0 Advertising MKT 3300009 Page 3 Ch 2Strategic Planning Saturday September 05 2015 1259 PM Today39s organizations 0 An organization is a legal entity that consists of people with a common mission 0 I Firms 0 I Nongovernment organizations that serves the customers but does not have a profit as organizational goal I Federal state county or city unit that provides a specific service to its constituents 0 Organizations that develop similar offerings create an industry Industry a I Offerings l ForProfit Organizations Nonprofit Organizations 0 Goals 0 Goals 0 Sales 0 Clients 0 Market shares 0 Satisfaction 0 Profit 0 Efficiency Sustainable development Strategic planning What39s the goal of strategy planning 0 Can39t be quotall things to all peoplequot I Limited resources forbid this 0 Strategy positions the firm to optimize 0 Strategy must consider alignments of internal and external factors I Externalconsumers competition I Internalcompany I Board of directors I The Board of Directors oversees the 3 Corporate level levels of strategy in an organization 0 Corporate 0 Business unit I Strategy business unit level I 0 Function MKT 3300009 Page 4 vvl rlvl y 0 Business unit I Strategy business unitlevel I 0 Function Functional level I L Information Finance Research and Marketing Manufacturing Human Systems Development Operations Resources Business unit production and Corporate IEVEI marketing eve Defining the Setting Planning company company Des39gn39ng the marketing and mission objectives and bus39ness portfo39m other functional goals strategies Step 1 mission statement 0 A statement of the organization39s purpose what your business iswhat you do 0 Often used interchangeably with vision 0 Market oriented I Focus on customer needs not product 0 Clear concise and realistic o Distinction competencies o Motiving and inspiring 0 Ex quotWe are the guardian of our customers39 financial dreamsquot Charles Schwab Step 2 organization39s objectives 0 Organization39s mission gt organization39s objectives 0 SMART I Specific measurable attainable relevant and timebased 0 Goals or objectives 0 Profit Sales Market share Quality Customer satisfaction Employee welfare Social responsibility 0 Efficiency Step 3 designing business portfolio OOOOOO MKT 3300009 Page 5 0 The business portfolio is the collection of business and products that make up the company 0 Company must I Analyze current business portfolio or strategic business units SBU39s ii SBU a unit of the company that has a separate mission and objective and that can be planned independently from other company business I Decide which SBU39s should receive more less or no investment I Develop growth strategy for adding new products or business to portfolio Relative Market Share High Low High Star Question Mark 0 Profit potential 0 Build into stars or 0 Attracts phase out competition 0 Require cash to Market GrOWth 0 May need heavy build market share Rate investment Low Cash Cow Dog 0 Successful SBUs 0 Low profit 0 Competition potential weakened 0 Usually I No serious discontinue unless investments holds significant 0 Produces cash share in very diversified market 1gt means low control not dominant company 1lt means high control dominant company GEMcKinsey Matrix SBU Competitive Market Attractiveness Market size growth rate cyclicality economies of scale High Medium Low P05ition Market share brand High Protect Invest to bqu Build selectively image product pos39t39on quality financial Medium Build Selectively manage Limited expansion resources selectively for earnings or harvest dIStr39pthn Low Protect and Manage for divest capabilities refocus earnings Existing product New product Existing Market penetration Product development marketsconsumers MKT 3300009 Page 6 New Market development diversification marketsconsumers Market Penetration 0 Id gain more customers from existing target markets or increase purchases in current customers all with current product 0 Methods 0 Pricing 0 Promotion 0 Distribution 0 Examples 0 GM improves manufacturing process gt lowers cost gt lowers price gt Greater sales 0 PampG gets current customers to purchase more tubes of toothpaste by promoting brushing at work Market development 0 Id look for new target markets with existing product 0 New geographies 0 New demographics 0 New business outlet Product development 0 Id do not become complacent keep current customers happy and interested 0 Examples 0 PampG developed allinone toothbrushfloss 0 3M developed flag highlighter flag pen etc 0 Apple newer better tablet computers I Ipad gt ipad 2 gt ipad 3 I Concern product cannibalization III Your own product competes with your own product 0 Ipad vs ipad 2 vs ipad 3 Diversification 0 Id compete in a portfolio of markets one company should not depend on one product lineindustry 0 Examples Proctor and Gamble home appliance line Sony acquired Columbia Pictures ESPN entertainment restaurants Levis formal suits 0000 Step 4 Marketing Plan Analyze Market Opportunities 0 Environment analysis 0 Competitive analysis 0 Consumer analysis l Select Target Markets 0 Segmentation 0 TA raminc MKT 3300009 Page 7 Select Target Markets Segmentation Targeting positionin Formulate the Market Mix Production Pricing l Market Research Promotion Distributionplace Implementation and control opportunities Threats External Mission Environment scan statementobjectives SWOT Analysis Internal Weaknesses MKT 3300009 Page 8
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'