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by: Reina Davis


Reina Davis
GPA 3.71

J. Sun

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J. Sun
Class Notes
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This 10 page Class Notes was uploaded by Reina Davis on Tuesday October 13, 2015. The Class Notes belongs to MKT 3401 at Louisiana State University taught by J. Sun in Fall. Since its upload, it has received 15 views. For similar materials see /class/222529/mkt-3401-louisiana-state-university in Marketing at Louisiana State University.

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Date Created: 10/13/15
CHAPTER 1 1 Marketing has two facets The first is that it s a philosophy Second marketing is the activity set of institutions and processes used to implement the philosophy Marketing is the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large 2 At least 2 parties have something of value communication and delivery freedom to accept or reject desire to deal with another party 3 Production internal capabilities of the firm Sales aggressive sales techniques and belief that high sales result in high pro ts Market satisfying customer needs and wants while meeting objectives Societal satisfying customer needs and wants while enhancing individual and societal well being 4 Selling Disregards market needs and customer demand Sellingcollecting money Market Orientation Focuses on customer s needs and wants to distinguish products from competitor s offerings 5 Relationship Marketing is a strategy that focuses on keeping and improving relationships with current customers It assumes that many consumers and business customers prefer to have an ongoing relationship with one organization rather than switch continually among providers in their search for value CHA P TER 2 1 Business mission statement objectives Strength Weakness Opportunities Threats SWOT Analysis Marketing Strategy Target Market Strategy and the 4Ps Implementation Evaluation Control 2 Strategic Business Units a subgroup of a single business or collection of related businesses within the larger organization 3 Realistic measurable time speci c and consistent with and indicating the priorities of the organization 4 Types of Competitive Advantage Cost Inexpensive raw materials efficient plant operations products designed for the ease of manufacture control overhead costs avoid marginal customers ProductService Differentiation Brand names strong dealer network product reliability image service Niche Strategies used by small companies with limited resources may be used in a limited geographic market 01 5 Market Penetration Increase market share among existing customers Market Development Attract new customers to existing products Product Development Crew new products for present markets Diversification Introduce new products into new markets Portfolio Matrix classi es each SBU by its present or forecast growth and market share Stars Large pro ts need cash for growth Cash Cows Dominant market share technological development allocate excess cash to categories with growth potential Problem Children Need cash invest heavily or drop Dogs Low growth and small market share drop CHA P TER 5 1 Culture The common set of values shared by its citizens that determine what is socially acceptable It in uences product preferences and the marketing mix Language is an important aspect when translating product names slogans production instructions and promotional messages 3 4 Natural Resources Petroleum foodstuffs precious metal timber water Economic and Technological Development Political Structure tariffs quotas boycotts exchange controls market controls trade agreements Demographic Makeup urban vs rural young vs old purchasing power Export Sell domestically produced products to buyers in other countries Licensing Legal process allowing use of manufacturingpatentsknowledge Contract Manufacturing Privatelabel manufacturing by a foreign country Joint Venture Domestic firm buysjoins a foreign company to create new entity Direct Investment Active ownership of a foreign companymanufacturing facility Same as 2 a Companies operate in one country and sell into others Operate in one country and try to sell in others to test the water b Set up foreign subsidiaries to handle sales If everything goes well you ll want to set up a small sales rep of ce in that country so they can take phone calls and emails over there to handle sales and growth in that country c Operate an entire line of business in another country If everything is still going well set up production in that country d Virtual operation Open own store in that country CHAPTER 1639 1 The combination of promotional tools used to reach the target market and fulfill the organization s overall goal Includes Advertising public relations sales promotion personal selling 2 Advertising Impersonal oneway mass communication about a product or organization that is paid for by a marketer Most commonly distributed by traditional media though increasingly through nontraditional media such as Web sites email and blogs Public Relations the marketing function that evaluates public attitudes identi es areas within the organization the public may be interested in and executes a program of action to earn public understanding and acceptance Helps an organization communicate with customers suppliers stockholders government officials employees and the community Sales Promotion marketing activities that stimulate consumer buying and dealer effectiveness Sales promotion is generally a shortrun tool used to stimulate immediate increases in demand Personal Selling a purchase situation involving a personal paidfor communication between two people in an attempt to influence each other Planned presentation to one or more prospective buyers for the purpose of making a sale 3 Communication The process by which meanings are exchanged or shared through a common set of symbols or The sender originates the message 039 Encoding is the conversion of the sender s ideas and thoughts into a message usually words or signs n Transmission of a message requires a channel some communication medium Reception occurs when the message is detected by the receiver Transmission may be hindered because of noise anything that interferes with distorts or slows down the transmission of information Q Decoding is the interpretation of the language and symbols sent Proper match between the message to be conveyed and the target market s attitude is the job of the marketing manager Differences in culture age social class education and ethnicity can lead to miscommunication Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues D The receiver s response to a message is direct feedback to the source Since mass communicators are cut off from direct feedback they rely on market research or analysis of viewer perceptions for indirect feedback Elements Look at slide 26 143 in book 4 Traditional Media Television Radio Newspapers Magazines Books Direct mail billboards Transit cards New Media Internet Banner ads Viral marketing Email Interactive video 5 Promotion seeks to modify behavior and thoughts in some way It also strives to reinforce existing behavior Promotion has three basic tasks it can inform the target audience persuade the target audience or remind the target audience Often a marketer will try to accomplish two or more of these tasks at the same time 6 AIDA The goal of any promotion is to get someone to buy a good or service or take some action A classic model for reaching promotional goals is called the AIDA concept attention interest desire and action the stages of consumer involvement 7 Integrated Marketing Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer CHAPTER 1 7 1 Institutional Advertising Enhances a company s image rather than promotes a particular product Corporate identity Advocacy advertising typically used to safeguard against negative consumer attitudes and to enhance the company s credibility among consumers who already favor its position Product Advertising Touts the bene ts of a speci c good or service Pioneering designed to stimulate primary demand for a new product or product category Competitive designed to influence demand for a specific brand Comparative compares two or more speci cally named or shown competing brands on one or more specific attributes 2 Definitions of sub categories A 3 Public relations evaluates public attitudes identifies issues of public concern and executes programs to gain public acceptance Tools New product publicity product placement consumer education event sponsorship issue sponsorship and websites 4 Advertising appeal a reason for a person to buy a product Pro t product saves makes or protects money Health Appeals to bodyconscious or health seekers Love or romance Used in selling cosmetics and perfumes Fear Social embarrassment old age losing health Admiration Reason for use of celebrity spokespeople Convenience Used for fast foods and microwave foods Fun and pleasure Key to advertising vacations beer parks Vanity and egotism Used for expensive or conspicuous items Environmental Consciousness Centers around environmental protection 5 Sliceoflife Depicts people in normal settings such as the dinner table or in a car ex Happy Meals on a family outing Lifestyle Shows how well the product will t in with the customer s lifestyle Ex VW Jetta moves through the streets of the French Quarter SpokespersonTestimonial Can feature a celebrity company of cial or typical consumer making a testimonial or endorsing a product Ex Sheryl Crow representing Revlon and Beyonce the new face of American Express Fantasy Creates a fantasy for the viewer built around use of the product Ex Carmakers often use this style to let viewers fantasize about how they would feel in the car Humorous Advertisers often use humor in their ads Ex Snickers Turning into a diva if you don t eat RealAnimated Product Symbols Creates a character that represents the product in advertising Ex GEICO s gecko and caveman Mood or Image Builds a mood or image around the product such as peace love or beauty Ex De Beers ads depicting shadowy silhouettes wearing diamond engagement rings and diamond necklaces Demonstration Shows consumers the expected benefit Ex Dropping a Corelle plate on a slippery runway Plate doesn t break Musical Conveys the message of the advertisement through song Ex Coke usually having songs in their commercials Scientific Uses research or scientific evidence to give a brand superiority over competitors Ex Mederma for stretch marks CHAPTER 18 1 Sales Promotion Marketing communication activities other than advertising personal selling and public relations in which a shortterm incentive motivates a purchase Coupons A certificate that entitles consumers to an immediate price reduction Rebates A cash refund given for the purchase of a product during a specific period Premiums An extra item offered to the consumer usually in exchange for some proof of purchase Ex Gift card with iPod or NEW toys that come with cereal that you have to mail in the box UPC Loyalty Marketing Programs A promotional program designed to build longterm mutually beneficial relationships between a company and key customers Ex AE All Access Pass Contests Promotions that require skill or ability to compete for prizes Sweepstakes Promotions that depend on chance or luck with free participation Sampling A promotional program that allows the consumer the opportunity to try a product or service free Direct mail doortodoor delivery packaging with another product retail store demonstration Pointof Purchase Promotion Build traffic advertise the product induce impulse buying 2 Trade Allowances A price reduction offered by manufacturers to intermediaries such as wholesalers and retailers Push Money Money offered to channel intermediaries to encourage them to push products that is to encourage other members to the channel to sell the products Training Free Merchandise Store Demonstration Conventions and Trade Shows 3 Personal Selling is direct communication between a sales representative and prospective buyers in an attempt to influence each other in a purchase situation Steps Generate leads qualify leads probe customer needs develop solutions handle objections close the sale follow up 4 Relationship Selling A sales practice that involves building maintaining and enhancing interactions with customers in order to develop longterm satisfaction through mutually beneficial partnerships Tr dit39 a Ional Persona selling Relatlonshlp Selling Sell products Sell advice assistance counsel l Closing the sale Handling objections gl e ads A Continuing Process CHAPTER 19 1 ProfitOriented Profit maximization setting prices so that total revenue is as large as possible relative to total costs satisfactory profits represent a reasonable level of profiB that is consistent with the level of risk an organization faces target return on investment net profit after taxes divided by total assets SalesOriented Market share a company s product sales as a percentage of total sales for that industry and sals maximization shortterm objective to maximize sales ignores profits competition and the marketing environment may be used to sell off excess inventory Want to gain market share and customer base first Drop the price level at first Then increase the price over time Status Quo Maintain existing prices and meet the competition39s prices This category requires little planning and is essentially a passive policy 2 Demand The quantity of a product that will be sold in the market at various prices for a specified period Supply The quantity of a product that will be offered to the market by a supplier at various prices for a specific period 3 Yield Management Systems A technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity When competitive pressures are high a company must know when it can raise prices to maximize is revenues Yield management systems which were first developed by the airline industry utilize complex mathematical software to profitably fill unused capacity Stimulate demand when demand is low and maximize profits when demand is high 4 Markup Pricing The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for Keystoning The practice of marking up prices by 100 or doubling the cost Profit Maximization A method of setting prices that occurs when marginal revenue equals marginal cost Marginal Revenue The extra revenue associated with selling an extra unit of output or the change in total revenue with a oneunit change in output Breakeven Pricing Revenue cost Pricequality relationship Competition Demands of large customers Distribution Promotion strategy Intranet and extranets CHAPTER 20 1 The process of setting the right price on a product involves 4 major steps a establishing price goals b estimating demand cosB and profits c choosing a price policy to help determine a base price d finetuning the base price with pricing tactics A price strategy establishes a longterm pricing framework for a good or service The three main types of price policies are price skimming penetration pricing and status quo pricing 2 Product Line Pricing Setting prices for an entire line of products 3 Price Skimming A firm charges a high introductory price often coupled with heavy promotion Penetration Pricing A firm charges a relatively low price for a product initially as a way to reach the mass market Discouragesblocks competition from market entry boosts sales and provides large profit increases and can justify production expansion Status Quo Pricing Charging a price identical to or very close to the competition39s price It is simplistic and the safest route to longterm survival for small firms but the strategy may ignore demand andor cost 4 Discounts a Quantity discounts with lower prices for buying in multiple units of above a specified dollar amount b Cash discounts offered for prompt payment of a bill c Functional discounB trade discounB are offered when channel intermediaries perform a service for the manufacturer d Seasonal discounts are lower prices for buying merchandise out of season e Promotional allowances or trade allowance are paymenB to dealers for promoting the manufacturer s products f Rebates are cash refunds given for purchasing a product within a specified period g Zero percent financing offers no interest charge to increase sales However it does cost the manufacturers h Valuebased pricing seB the price at a level that seems to the customer to be a good price compared to other prices Geographic pricing Uniform The seller pays the freight charges Delivered and bills the purchaser an Pricing identical 39flat freight charge Special pricing tactics cl Tn mm m mm a amine claim is U


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