Marketing Strategy Chapter 1

Commoditization
A consequence of mature industries, where slowing innovation, extensive product assortment, excess supply, and fickle, price-conscious consumers force margins to the floor.
rapid technological change, economic/financial anxiety, and increasing consumer skepticism.
Today’s economy is characterized by what three things?
-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
List seven marketing challenges and opportunities in the new economy.
to connect the organization to its customers
What is the goal of marketing?
marketing
an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
value and customer relationships
What are the two things marketing stresses today?
standard of living
What is marketing linked to?
market
a collection of buyers and sellers
marketplace
a physical location where buyers and sellers meet to conduct transactions.
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, which usually involves obtaining products for money.
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
List the five conditions of exchange
product
something that can be acquired via exchange to satisfy a need or a want.
utility
the ability of a product to satisfy a customer’s needs and wants.
-form utility
-time utility
-place utility
-possession utility
-psychological utility
List the five types of utility provided through marketing exchanges.
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 marketing programs that will meet their needs/wants
marketing plan
the outline of the marketing program
social responsibility
maximizing positive impact on society, while minimizing negative impact
marketing ethics
principles/standards that define acceptable conduct in marketing activities
internal analysis
analyzing the firm’s current strategy and performance
competitive intelligence
analyzing competing businesses
Environmental scanning
analyzing the external environment
Situation analysis
combination of all three analyses
competitive advantage
something the firm does better than competing firms
-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
List 9 challenges involved in developing marketing strategies.