Test 1 Flashcards
Challenge and opportunities in today’s economy
Power shift to customers
Increase in product selection
Audience and media
fragmentation
Changing value propositions
Shifting demand patterns
Privacy and ethical concerns
Unclear legal jurisdiction
Meta market define
Cluster of closely related goods and services that center around a specific consumption activity
Metamediary
A single access place for a meta market
What must be met for exchange to occur? (5)
Must have two parties
They each have something of value
Each party must be able to communicate
Must be free to accept/reject the exchange
Each party wants to exchange with the other
What are considered products?
Goods Services Ideas Information Digital products People Places Experiences Real or financial property Organizations
5 types of utility
Form Time Place Possession Psychological
Tactical planning
Addresses specific markets or segments and the development of marketing programs that will fulfill
The needs of customers in those markets
Marketing plan define
Provides an outline how the organization will combine product, pricing, distribution, and promotion decisions to create an attractive offering
Situation analysis
Collecting and interpreting internal, competitive, and environmental information
Marketing strategy decision
Must select the right combo of target market and marketing mix
What does the planning process begin with?
Situation analysis
What does the marketing plan do?
Explains how the organization will achieve its goals
Serves as a roadmap for marketing strategy
What does the mission statement do?
Explains the organizations reason for existence
Vision statement
Future oriented, addresses where the company wants to go
What questions should the mission statement answer? (5)
Who are we?
Who are our customers?
What is our philosophy
What is our competitive advantage
What are our responsibilities?
When should he mission statement change
No longer in sync
When competitors drive firms from certain markets
New technology changes delivery
New opportunity approaches
Corporate strategy define
Means for utilizing resources in the area of production, finance, research, HR, and marketing to carry out the organizations mission and achieve goals
Functional strategies must what… (3)
Fit the purpose of the functional area
Be realistic
Be consistent
Difference between marketing plan and business plan?
Research it
Elements of a good marketing plan
Comprehensive
Flexible
Consistent
Logical
Executive summary define
Give the reader a quick understanding of the marketing plan and the time frame for it
*should be written last
Steps in the marketing plan structure
Executive summary
Situation analysis
SWOT
goals
Marketing strategy
Implementation
Evaluation
The importance of marketing goals and objectives section
Sets the performance targets
Defines how the firm will
Measure performance
Purpose of the marketing plan (5)
Explains present /future situations
Specifies expected outcomes
Describes actions to take place
Shows resources that’ll be needed
Monitors each action
Things to keep in mind when conducting a situation analysis(4)
Analysis is not a solution
Data is not the same as information
Benefits of analysis must outweigh the costs
Conducting a situation analysis is challenging
4 dimensions of social responsibility
Economic
Legal
Ethical
Philanthropic
Types of ethical issues
Product related
Pricing related
Distribution related
Promotion issues
Types of price related ethical issues
Price discrimination
Price fixing
Predatory pricing
Superficial discounting
Ethical sourcing practices in supply chain?
Adopt global supplier code of conduct
Make the supply chain diverse
Perform regular audits
Challenges of marketing strategy
Continuous change People driven nature Lack of rules Increase in customer expectations Declining brand loyalty Competing in mature markets Aggressive cost cutting
Marketing management philosophies (4)
Production
Sales
Market
Societal
Production philosophies
Focus on internal capability of the firm. What can we do?
To achieve market orientation one must…
Obtain information about customers
Examine the info
Determine how to deliver customer value
Implement actions
Sources of competitive advantage
Cost
Product/ service differentiation
Nice strategies
What are social responsibility companies can take
Work with suppliers
New packaging
Reduce electricity
Revise transportation
Make commitment announcement
A diff strategic opportunity matrix (x and y)
X: product
Y: market
What goes into ansoff’s opportunity matrix
Market penetration
Market development
Product development
Diversification
Market penetration define
Present product; new market
Increase market share among existing customers
Market development define
New market; present product
Attract new customers to existing products
Product development define
Present market; new product
Create new products for present markets
Diversification define
New market; new product
Introduce new products into new markets
What is on the x and y of the BCG matrix
X: market share
Y: market growth
What’s goes into BCG matrix
Stars
Cash cows
Dogs
Problem children/ question mark
Stars define
High market growth
High market share
(iPhone)
Cash cows define
Low market growth
High market growth
(iPads)
Problem children or question marks define
High market growth
Low market share
(Apple TV)
Dogs define
Low market growth
Low market share
(iMac)
What are BCG portfolio matrix options (4)
Build
Hold
Harvest
Divest/ un-invest
What should you build up from the BCG matrix
Give up short term profits
Stars, potential problem children
What should you hold in the BCG matrix?
No invest anything significant
Cash cows
What should you harvest in BCG matrix
Runs operations for short term cash flow
Cash cows, problem children, dogs
Problems with matrix approaches
Costly, hard, timely
Hard to measure market share
Focuses on current business but little advice for future planning
For centralized management team
“The starfish and the spider”
More customized approaches
Marketing environment define
Forces that affect a company’s ability to build and maintain successful relationships with customers
Who is apart of the micro environment
The company Suppliers Marketing intermediaries Competitors Public’s Customers
Who apart of the marketing intermediaries
Resellers
Physical distributions
Marketing services agencies
Financial intermediaries
Who is apart of public’s
Financial Media Government Citizen action Local General Internal
Who is apart of the macro marketing environment
Demographic Economic Natural Technological Political Cultural
The 3 largest generational groups
Baby boomers( 1946-64) Gen x(1960-80) Gen y (1980-00)
What is apart of the natural environment
Abundance of raw material
Increased pollution
Increased government intervention
Environmentally sustainable strategies
Examples of marketing research
New product development
Merger and acquisition
Different roles of marketing research
Descriptive
Diagnostic
Predictive
Descriptive research define
What is the historic sales trends in the industry?
What is roles of marketing research (diagnostic)
What is the impact on sales of a change in the design of the package
Roles of marketing predictive define
How can the researcher use the descriptive and diagnostic research to predict the results of a planned marketing research?
Past kinds of marketing research
Survey
Evaluative
Qualities analysis
Long time
Current marketing research
Big data
Predictive
Quantitative analysis
Real time
Primary data sources
Observations Surveys In depth interviews Focus groups Panels Experiments Test markets
Secondary data sources
Internal records Publications Data services Personal networking Internet providers Social networks Government agencies
