Marketing 340 Exam 1 Iowa State

Marketing
– the art and science of meeting needs profitably
– managing profitable customer relationships
– creating value for customers and capturing value in return
Marketing orientation
– production concept (make it cheaper)
– product concept (make it better)
– Selling concept
– Marketing concept
– Societal concept (sustainable marketing)
Marketing process
1. Understand the marketplace and customer needs and wants
2. design a customer driven marketing strategy
3. construct a marketing program that delivers superior value
4. build profitable relationships and create customer delight
5. capture value from customer to create profits and customer quality
needs
•states of felt deprivation
– food, clothing, warmth (physical)
– belonging, affection (affection)
– knowledge, self expression (individual)
wants
form human needs take as they are shaped by culture and individual personality
– need food, want BigMac
demand
wants that are backed by buying power
exchange
act of getting a desired object by offering something else in return
marketing myopia
•paying more attention to the specific product offered than the benefits and experiences produced by these products
marketing concept
achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than the competitor.
societal marketing concept
questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare.
customer perceived-value (expectations?)
•customer evaluation of differences between all the benefits and all the costs of a marketing offer relative to competing offer
customer satisfaction
•how well a products perceived performance matches a buyers expectations
business portfolio
• the collection of businesses and products that make up the company
BCG matric
High low market growth rate vs. high low relative market share
•see diagram in notes (cash cow)
Product/market expansion grid
•tool for identifying company growth opportunities through…
•Existing markets and new markets
•existing products and new products
– (see notes)
Microenvironment
•actors close to the company that affect its ability to serve its customers- suppliers, company,public
Macroenvironment
larger societal forces that affect the microenvironment- demographic, economic, political
cause related marketing
• lets companies “do well by doing good” by linking purchases of the companys products or services with a benefiting worthwhile cause or charity organization.
corporate social responsibility
•encourage managers to look beyond what the regulatory system allows and simply “do the right thing”
Planned obsolescence
•causing products to become obsolete (out dated) before they actually should need replacement.
Marketing ethics
•helps achieve sustainable marketing goals of long term consumer and business welfare
• corporate ethics policies usually created since everyone has different moral definition
Ethical pitfalls
•stereotyping
•price discrimination
•setting unrealistic business goals
•making false claims
Marketing code of ethics
•Do no harm
•foster trust in the marketing system
•embrace ethical values
Marketing criticisms
• high pressure selling
• high costs of distribution (without adding value)
• deceptive practices
Consumer responsibilities
• everyones responsibilities to report companies wrong doing
• push for regulations where free market does not attain social goals
sustainable marketing
• social and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Margin in channel of distribution
1. manufacturer
2. wholesaler
3. retailer
4. consumer
strategic planning
process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunity
Steps in strategic plan
• defining company mission
• setting company objectives and goals
• designing the business portfolio
• planning marketing and other functional strategies
Environmental scanning
•look at competitors/ behaviors
•look at full picture of the market they are in (athletic shoes)
profit=
(Price-Unit variable cost) x quantitiy – fixed cost
CLV=
M(r/(1+i-r))

•m=annual profit (per customer)
•i=discount rate
•retention rate

quantity=
fixed cost- marketing expenditure
—————————————-
price – variable cost
unit margin=
selling price – unit variable cost
% margin=
selling price – unit variable cost
———————————–
selling price