Exam 1 Principles of Marketing (Chapter 1-4)

Old view of Marketing?
selling & advertising
New View of Marketing?
Satisfy customers NEEDS
Form of Marketing?
Traditional & Contemporary
Traditional form of marketing…
view- making a sale
Advertising- TV, magazines, direct mail (“telling & selling”)
Contemporary View of Marketing…
view- satisfy customer needs
Reach customers directly, personally, & interactively
Fewer customers are okay-share of customers
Marketing should create?
value for customers and build strong relationships in order to capture value from customers
Marketing Goals?
Attract new customers/Keep & Grow current customers
Core concepts for customers & marketplace
-Needs wants and demands
-Marketing offerings
-value & satisfaction
-exchanges & relationships
-markets
Wants become needs when backed by what?
buying power
Maslow’s Hierarchy of Needs
-self-actualization
-esteem
-love/belonging
-safety
-physiological
Market Offerings-
combination of products, services, information, or experiences
Marketing Myopia-
paying more attention to specific products a company offers than to the benefits & experiences
Customer Value & Satisfaction-
customers form expectations about the value & satisfaction of market offerings
Value Proposition-
set of benefits or values it promises to deliver to consumers to satisfy their needs
Market management-
choosing target markets and building profitable relationships with them
Marketing Management =
Demand & Customer management
Basic factors to design winning market strategy
– target market and value proposition
Marketing Mix or 4 P’s
Product, Price, Place, and Promotion
Customer Lifetime Value (CLV)-
Value of entire stream of purchases a customer makes over a lifetime of patronage
Share of Customers
Portion of the customer’s purchasing that a company gets in it product categories
Changing Marketing Landscape
-Digital Age
-Changing Economic environment
-Growth for non-profit marketing
-rapid globalization
-calls for ethics & social responsibility
Strategic Planning
process of developing & maintaining a strategic fit between organization’s goals & capabilities and changing market opportunities
Steps in Strategic Planning
-Define mission, set company objectives, design business portfolio (corp. level)
-Planing Market and other functional strategies (market level)
Role of Marketing in Strategic Planning
provides guiding philosophy and input to strategic planners
Value Chain
series of internal departments that carry out value-creating activities
Value delivery Network
Made up of the company, its suppliers, distributors & its customers who partner with each other
Business Portfolio Planning
-analyze firms current business
-develop growth strategies
BCG Matrix
-Stars: dominant market share & good growth prospects
-Cash cows: Dominant market & low growth
-Dogs: Subordinate market share and low growth
-Question marks (problem children) : small market of growing market; require significant cash
Reasons for downsizing?
rapid growth of company, lack of experience in market, changer in market environment, & decline of particular product
Marketing Return on Investment (ROI)
net return from a marketing investment divided by costs of marketing investment (HARD TO MEASURE)
Marketing Environment
outside forces that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment
Actors close to the company that affect that ability to build and maintain success
Macro-environment
larger societal factors that affect the microenvironment
Business cycle
prosperity, recession, depression and recovery
Cultural characteristics that affect market decisions
-persistance of cultural value
-shifts in secondary cultural value
Political Environment
forces that influence and limit various organizations and individuals in society
Goals of business legislation
-protect companies from each other
-protect consumers from unfair business practice
-protect interests of society
Marketing Information Systems (MIS)
consists of people and procedures to:
-assess information needed
-develop needed info
-help decision makers use info
Marketers can obtain information from:
internal data, marketing intelligence, and marketing research
Marketing Research Process
-define problem
-develop plan
-implement research plan
-interpreting and report
Exp. Research
used to gather information and help define problems and suggest a hypothesis
Descriptive research
describe market potential or demographics and attributes
Casual research
test hypothesis about cause-and-effect relationship
Primary Data
information collected for specific purpose at hand
Observational Research
gather primary data by observing research relevant people, activities, and situations
Experimental Research
Selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group response
Online marketing research ( Data is collected how?
-internet surveys
-online focus groups
-web based experiments
-tracking consumer online behavior
Research instruments
-Questionnaires can be administered in person, online email, or phone
-mechanical instruments include: people meter, checkout scanners, and neuromarketing (measures brain activity)
Customer Relationship Management (CRM)
-managing detailed information about customers
-managing customers touch points to maximize customer loyalty
-consists of software & analytic tools
Marketing analytics
consist of analysis tools, technologies, and process by which marketers dig out meaningful patterns in big data to gain customer insight
Exchange
act of obtaining desired goods by offering something in return