Marketing 220 Exam #1

Marketing
how you promote,advertise,or sell a product/item.
4 P’s of Marketing
*1)Product*
*2)Promotion*
*3)Price*
*4)Place*
3 Rules of Marketing
1) know your product
2) know your customers
3)know your competition
“SWOT”
*(S)–> Strengths*
*(W)—> Weakness*
*(O)—> Opportunities*
*(T)—>Threats*
Promotion(mix)
aka Communication.
4 Types of Promotion:

*1) Advertising*
*2)Public Relations*
*3) Personal Selling*
*4) Sales Promotion*

Value Added
add value to service. Give customers more than he or she expects.
Viral Marketing
marketing by word of mouth
Competitive Advantage
standing out from the crowd. Incorporates comparative advantage.
*Technology–> Innovation—> Creativity—> Quality—> Service—>Bench Marking—> People*
Bench Marking
finding out what the #1 company is doing, but improving yours without copying.
Cost Competitive Advantage
being the low cost competitor in an industry maintaining good profits.
Market orientated
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product.
*1) needs satisfying products*
*2) strategy planning*
*3) profitable value*
*4) total integration*
Social Marketing Orientation
extending the market concept by acknowledging that some products that customers want may not really be in the interest of society as a whole.
*products must be beneficial to community*
Data base marketing
computerized record on consumer base
environment of business
consists of technology, surroundings, consists of economy, competition uncontrollable. If you don’t do anything it will crush you. If you do minimize impact.
Market History
*1860’s-1930’s: Industrial Revolution Period

1930’s-1940’s: Product orientated.
Competition began to emerge. If you produce a good product it will sell. Transition from cheap–>good

1940’s-1950’s: sales orientated. All that mattered was selling and convincing you to buy.
1950’s-1960’s: Marketing Department. major entities: Sales and Production. Introduced greater coordination; creating a system.

1970’s-1980’s: Marketing orientated companies.*

Product Orientated
a product will sell if it is cheap and available.
Henry Ford
Model “T Ford” Mass Marketer.
Maslow
studied the anatomy of needs. “Maslow’s Hierarchy of needs”.
Needs have a level just like a pyramid.Once you satisfy one need, another emerges
Pyramid
Top of pyramid: “Self Actualization” . referred to as the “peak”. ex:Beyonce
Second: Psychological: self esteem
Third: Social: acceptance
Fourth: Security: shelter
Fifth: Physical: food,water,sex,etc.
*Social, Security,and Physical needs are Primary!*
Market Segmentation
Identifying who your customers are.
*Market Segmentation–> Target Market 4 P’s–> Product Position–> Product Differentiation–> Comparative Advantage*
Product Positioning
developing an image in your mind on what the product can do for you. Differentiating yourself from others.
Customer Value
relationship between benefits and the sacrifice necessary to obtain those benefits.
Marketers interested in customer value:

*offer products that perform*
*Earn trust*
*Avoid unrealistic pricing*
*give buyer facts*
*co-creations*
*Offer organization wide commitment*

Strategic Planning
the process of creating and maintaining a fit between the organization’s objective and resources.
Strategic Business Unit (SBU)
subgroup of single business or collection of related businesses within the larger organization.
An SBU has the following characteristics:
* a distinct mission and specific target market.
*control over it’s resources
*It’s own competitors
*a single business or a collection of related businesses
*Plans independent of the other SBU’s in the total organization.
Diversification
strategy of increasing sales by introducing new products into new markets.
ex: UGG introducing upscale mens footwear.
4 Options Firm can explore
*1) Market Penetration- market strategy that tries to increase market share among existing customers*

*2) Market Development- attracting new customers to existing products.*

*3) Product Development- the creation of new products for present markets.*

*4) Diversification- increasing sales by introducing new products into new markets.*

Portfolio Mix
a tool for allocating products or strategic business units of relative market and market growth
“Star”
in the portfolio matrix, a business unit that is a fast growing market leader
“Cash cow”
in the portfolio matrix, a business unit that generates more cash than needs to maintain market shares.
“Problem child”
aka “question mark”. shows rapid growth but poor profit.
“Dog”
low growth potential and small market
Market Plan
written document that acts as a guidebook for the marketing manager
Marketing Planning
designing activities involving marketing objectives & changing market economy.
Mission statement
statement of the firm’s business based on careful analysis.

Elements of a Marketing Plan:

*Mission Statement–>”SWOT” Analysis–> Objectives–>Marketing Strategy (4 P’s)*

Marketing Myopia
business in terms of goods and services rather than the terms customers seek
Product/service Competitive Advantage
something that is unique and valuable to buyer beyond the lower price.
Niche Competitive Advantage
advantage achieved when a firm seeks a small part of the market.
Market opportunity Analysis(MOA)
estimation of size and sales potential of market segments that are of the interest of the firm.
Implementation
turning a market plan into action assignments and assignments are executed to accomplish objectives
Market Audit
systematic evaluation of objectives,strategies,and performance of the organization
Ethics
refers to the moral principles or values that generally govern the conduct of an individual or a group
*also viewed as standard behavior by which conduct is judged*
Morals
the rules people develop as result of cultural values and norms.
*usually characterized as good or bad
ex: A doctor who runs large ads offering discounts on open-heart surgery would be considered bad.
Morals and Business Ethics
* Ethical values are situation specific and time orientated
*Everyone must have an ethical base that applies to conduct in the business world and personal life.
3 Levels of Ethical Development
*1) Pre-convential mortality- calculating,self-centered*

*2) Conventional mortality- ego centric view point towards expectation of society.Loyalty and obedience to the company.*

*Post conventional mortality- mortality of the mature adult.People are less concerned about how others might see them*

Code of Ethics
Aka “code of conduct”. guideline to help marketing managers and other employees,make better decisions.
Foreign Corrupt Practices Act (FCPA)
enacted because congress was concerned about U.S. Corps use of illegal payments in international dealings
Corporate Social Responsibility (CSR)
A business concern for society’s welfare.
Sustainability
idea that social companies call outperform their competition by focusing on social problems and viewing them as an opportunity
Pyramid of Corporate Social Responsibility
Top:Philanthropic responsibilities
second: Ethical responsibilities
third: Legal responsibilities
fourth: Economic responsibilities
Green Marketing
development of products designed to minimize physical environment effects.
Cause-related marketing
marketing efforts between profit and non-profit organization