Exam #1 Flashcards
4 P’s
Product, Place, Price, Promotion
The Marketing Concept and its basic ideas (3)
An organization aims all of its efforts at satisfying its customers, at a profit.
3 Basic Ides:
1-Customer Satisfaction (The core objective)
2-Total Company Effort (The organization as a total system)
3-Profit as an Objective (The necessary condition for the system’s survival)
Needs
Are disparities between customers’ actual conditions and their desired conditions. (Needs create motivations to seek satisfaction. Without needs and the motivations to fulfill them, there would be no exchanges.)
Wants
Are the consumption choices people make to satisfy their needs
Utility (5 types)
The power to satisfy human needs 5 Types: Form Utility Task Utility Time Utility Place Utility Possession Utility
Types of Discrepancy (2)
Discrepancies of Quantity
Discrepancies of Assortment
Conditions for Exchange (5)
- Must be at least 2 parties
- Each party must have something that the other is interested in
- Each must be able to communicate and deliver
- Each must be able to reject the offer
- Each must believe the exchange in desirable to deal with the other party
Types of Marketing Exchange (3)
Pure Transactions
Repeated Transactions
Relationships
Eras in the History of Commerce (4)
Simple Trade Era
Production Era
Selling Era
Marketing Era
5-C’s
Customers Context Capabilities Chains/Channels Competitors
Components of Market Strategy (3)
Target Market
Market Position
Marketing Mix
Analysis Elements
External Analysis
Internal Analysis
Strategy Identification & Selection
Ansoff Matrix
Present Products New Products Present Markets (Market Penetration) (Product Expansion) New Markets (Market Expansion) (Diversification)
Draw it!
BCG Matrix
Draw it! Stars Question Marks Cash Cows Dogs Business Growth Rate (10%) Relative Market Share (1.0)
GE-McKinsey Matrix
Draw It!
Build
Hold
Harvest
Business Position
Industry AttractivenessFormulating a Competitive Strategy (4)
What is the business doing now?
Implied assumptions.
What is happening in the environment?
What should the business be doing?
Porter 5-Forces Model
Draw it!
New Entrants
v
Suppliers > Existing Competitors < Buyers
/\
SubstitutesGeneric Strategies
Draw it!
Differentiation Overall Cost Leadership
—————- Focus ——————————-
Porter Competitive Advantage Value Chain
Draw It! v Firm Infrastructure 2 Resource Management n Technology Development d Procurement Inbound Logistics, operations, outbound Logistics Marketing & Sales, Service (Primary) Margin
Economic
Disposable Income
Discretionary Income
Buying Power
Competitive Structures of Markets (4)
Monopoly
Oligopoly
Monopolistic Competition
Pure Competition
Components of American Culture (7)
Values Language Myths Customs Rituals Laws Material artifacts
Technological
Advanced Technology
Materials Science
Types of Separation (5)
Spatial Separation Separation in Time Separation in Information Separation of Values Separation of Ownership
Spatial Separation
Producers tend to locate where it is economical to produce.
Consumers are located in many scattered locations.
Separation in Time
Producers may require time to transport goods to consumers.
Consumers may not want to consume goods or services at the times producers would prefer to produce them.
Separation in Information
Producers do not know who needs what, where, when, and at what price.
Consumers do not know what is available from whom, where, when, and at what price.
Separation of Values
Producers value goods and services in terms of costs and competitive prices.
Consumers value goods and services in terms of utility and ability to pay.
Separation of Ownership
Producers hold title to goods and services that they themselves do not want to consume.
Consumers want goods and services that they do not own.
Discrepancies of Quantity
Producers prefer to produce and sell in large quantities.
Consumers prefer to buy and consume in small quantities.
Discrepancies of Assortment
Producers specialize in producing a narrow assortment of goods and services.
Consumers need a broad assortment.
Form Utility
When something tangible is produced.
Task Utility
When a task is performed for someone else.
Time Utility
Having the product when the consumer wants it.
Place Utility
Having the product where the customer wants it.
Possession Utility
Obtaining a good or service and having right to use or consume it.
The Exchange Process
Is giving something of value in return for something of value. (Goods, ideas, and services)
Pure Transactions
One-time exchange of value
Repeated Transactions
Preference and loyalty
Relationships
Interactive, on-going, two-way
Simple Trade Era
When families traded or sold their “surplus” output to local middlemen.
Production Era
Producing goods faster with greater efficiency; prevailing attitude was that a good physical quality product would sell itself.
Selling Era
Creative advertising will overcome consumer resistance; problem wasn’t just to produce but to beat the competition and win customers.
Marketing Era
The customer is King! Find a need and fill it.
Customers
Needs, Segments, Behavior
Context
Culture, Social, Economic, Political/Regulatory, Technical and Natural Environment
Capabilities
Brand Name & Image, Production Efficiency & Effectiveness, Financial Strengths, Strategy & Structure, Personnel Skills and Knowledge
Chain or Channels
Suppliers, Wholesalers, Manufacturers, Distributors, and Retailers
Competitors
Competitor Actions, Capabilities, and Resources
Target Market
Subset of customers
Market Position
Place in minds
Marketing Mix
Product, Place, Price, and Promotion
External Analysis
- customer analysis
- competitive analysis
- industry analysis
- environmental analysis
Internal Analysis
- performance analysis
- determination of strategic options
Strategy Identification & Selection
- specify mission
- identify alternatives
- select strategy
- implement strategy
Planning Considerations (3)
Dimensions
Levels
Direction
Vision
Highest aspirations and ideals for the firm.
Mission
Describes the firm in terms of its business.
Competitive Advantage
A firm’s ability to perform activities more cheaply or more effectively than rival firms.
Distinctive Competences
What a firm can do especially well.
Strategic Business Unit (SBUs)
A grouping of related businesses.
Growth Opportunity Analysis
Firm sales Competitive gap Product line gap Distribution gap Usage gap
Disposable Income
Income - Taxes
Incomes the consumer retains after paying taxes.
Discretionary Income
Disposable Income - Necessities
Remainder of disposable income after paying for necessities.
Buying Power
Consumer’s ability to purchase products.
Business Cycle
Draw it!
Prosperity Prosperity
Recession Recovery
Depression
Monopoly
Single seller, Many buyers
Oligopoly
Few sellers, Many buyers
Monopolistic Competition
Dominant seller and several other sellers, Many buyers
Pure Competition
Many sellers, Many buyers
Materials Science
Smart gels
-swell, shrink, mold to meet needs in response to heat, light, electricity or magnetism
Blue light
-tiny, powerful blue-light emitting diodes and laser diodes producing light of much shorter wavelengths
Plastic brains
-plastic computers for throwaway intelligence
Ersatz silk
-“biomimetics” spider silk, barnacle glue, abalone armor
Composites
-“robowrapper” wrap and heat systems
Advanced Technologies
Genetic Engineering
-mapping, restructuring and remodeling of genetic codes
Advanced Biochemistry
creating drugs and other chemicals through biological processes
Bioelectricity
-stimulating damaged or dysfunctional tissues bioelectrically
Advanced Computers
-faster, more powerful chips
Multisensory Robotics
-smart generation of robots
New Polymers
-lighter, stronger, conductive to electricity
High-tech Ceramics
-resistant to wear and high-temperatures
Advanced Technologies Cont…
Artificial Intelligence
-learning, adaptation, recognition and self-correction
Fiber Optics
-use in telecommunications and data transmission
Photovoltaics
-converting sunlight into energy
Micromechanics
-tiny mechanisms that will link with microelectronics
Molecular Design
-supercomputer created material built molecule by molecule
Fiber-reinforced Composites
-lightweight, noncorrosive materials
Superconductors
-materials that carry electricity without energy loss
Advanced Satellites
-new and improved uses
Household Patterns (6)
Traditional Single Live-Alones Adult Live-Alones Single-Parent Families Childless Married Couples Empty Nesters
Education Attainment Groups (5)
Illiterates High School Drop-outs High School Graduates College Degrees Graduate/Professional Degrees
Generational Influences
Life stages > Cohort experiences < Current conditions
v
Values
v
Preferences
v
Behaviors
Age Cohorts (7)
Preschool School-age Tweens ( 10 – 12 ) Teens ( 13 – 19 ) Young Adults ( 20 - 40 ) Middle-aged ( 40 - 65 ) Older Adults ( 65 + )
