Chapter 1 Marketing Strategy

List seven marketing challenges and opportunities in the new economy.
-Power shift to customers
-Massive increase in product selection
-Audience and media fragmentation
-Changing value propositions
-Shifting demand patterns
-Privacy, security, and ethical concerns
-Unclear legal jurisdiction
What is the goal of marketing
to connect the organization to its customers
AMA definition of marketing
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.
The definition shifts from
“Value” to “offerings that have a value”
Long-term relationships that provide value for both the firm and its sakeholders
Market
Is a collection of buyers and sellers
Marketspace
An electronic marketplace not bound by time or space.
Metamarket
A cluster of closely related goods and services that centers on a specific consumption activity
Metamediary
A single access point where buyers can locate and contact many different sellers in the metamarket
Exchange
The process of obtaining something of value from someone by offering something in return
List the five conditions of exchange
1) there must be at least two parties to the exchange
2) each party has something of value to offer the other party
3) each party must be capable of communication and delivery
4) each party must be free to accept or reject the exchange
5) each party believes it is desirable to exchange with the other party
Product
Something that can be acquired via exchange to satisfy a need or a want.
Products can be
Goods
Services
Ideas
Information
Digital Products
People
Places
Experiences/Events
Real or Financial Property
Organizations
Utility
The ability of a product to satisfy a customer’s needs and wants
Form Utility
Attributes or features that set the product apart
Time Utility
Products available when customers want them
Place Utility
Products available where customers want them
Possession Utility
Transfer of ownership or title; ease of acquisition
Psychological Utility
Positive experiential attributes that customers find satisfying
Strategy
The organization’s game plan for success
Tactical Planning
Specific markets/segments and the development of marketing programs that will meet their needs/wants
Marketing Plan
The outline of the organization will combine product, pricing distribution, and promotion decisions to create an offering that customers find attractive
Internal Analysis
Analyzing the firm’s current strategy and performance
Competitive Intelligence
Analyzing the capabilities, vulnerabilities, and intentions of competing businesses
Environmental Scanning
Analyzing the external environment like economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing effort
Situation analysis
Overall process of collecting and interpreting internal, competitive, and environmental information
Competitive Advantages
Something the firm does better than competing firms
Market Segmentation
When they divide the total market into smaller, relatively homogeneous groups or segments that share similar needs, wants, or characteristics.
List 9 challenges involved in developing marketing strategies
-Unending Change
-People-Driven Nature of Marketing
-Lack of Rules for Choosing Marketing Activities
-Increasing Customer Expectations
-Declining Customer Satisfaction and Brand Loyalty
-Competing in Mature Markets
-Increasing Expansion into Foreign Markets
-Aggressive Cost-Cutting Measures
-Increasing Cooperation with Supply Chain Partners and Competitors
The goal of distribution and supply chain
Is essentially to get the product to the right place, at the right time, in the right quantities, at the lowest possible cost
Product Positioning
Establishing a mental image, or position, of the product offering relative to competing offerings in the minds of target buyers