MKTG 305: Ch. 1, 2, 4, 5, & 8 (Exam #1)

Exchange
The trade of things of value between the buyer and the seller so that each is better off as a result.
Consumer’s Value Equation
Value = Benefit / Cost
Eras of Marketing
1) Early 1900’s-1920: Production-Oriented Era = Good products sell themselves.
2) 1920-1950: Sales-Oriented Era = Less consumption of goods.
3) 1950-1990: Market-Oriented Era = Consumers were in control of purchases.
4) 1990-Present: Value-Based Marketing Era = What you get for what you give.
Becoming Value Driven
1) Sharing information about their customers and competitors across their own organization and even with other firms that benefit them.
2) Striving to balance their customers’ benefits and costs.
3) Concentrating on building relationships with customers.
4) Taking advantage of new technologies and connect with their customers by using social/mobile media.
Definition of Marketing Strategy
A firms target market, marketing mix, and method of obtaining a sustainable competitive advantage.
Sustainable Competitive Advantage
Something the firm can persistently do better than its competitors.
4 Strategies that Develop Sustainable Competitive Advantage
1) Customer Excellence = Retaining loyal customers and excellent customer service.
2) Operational Excellence = Efficient Operations and excellent supply chain and human resource management.
3) Product Excellence = Having products with high perceived value and effective branding and positioning.
4) Locational Excellence = Having a good physical location and internet presence.
Phases of Marketing Plan
1) Planning Phase = Defining the vision.
2) Implementation Phase = Evaluating.
3) Control Phase = Making corrections.
Steps of Marketing Plan
1) Define the business mission.
2) Conduct a situation analysis = SWOT analysis
3) Identifying and evaluating opportunities = STP = Segmentation, targeting, and positioning.
4) Implement marketing mix and allocate resources.
5) Evaluate performance using marketing metrics.
SWOT/ Situation Analysis
Strengths and Weaknesses, Opportunities and Threats.
Segmentation, Targeting, Positioning (STP)
1) Segmentation = Dividing market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them.
2) Targeting = Go after certain groups on the basis of the firm’s perceived ability to satisfy the needs of those groups better than competitors and profitability.
3) Positioning = Use marketing mix to communicate a clear, distinctive, and desirable understanding of what the product or service does or represents relative to competing products or services.
4 Growth Strategies
1) Present Product, Present Market = Market Penetration.
2) Present Market, New Product = Product Development.
3) Present Product, New Market = Market Development.
4) New Product, New Market = Diversification.
Ethics vs. Legal
Being Ethical doesn’t mean that it’s legal, and something being legal doesn’t mean that it’s ethical.
Corporate Social Responsibility
Voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.
Creating an Ethical Climate
1) Values (Establish, share, understand).
2) Rules (Management commitment, employee dedication).
3) Controls (Reward, punishment).
Ethics and Marketing Strategy
1) Planning Phase (Define the mission and/or vision, perform a situation analysis).
2) Implementation Phase (Identify and evaluate opportunities (STP), implement marketing mix and resources).
3) Control Phase (Evaluate performance).
Consumers (Analysis Framework)
The centerpiece of the marketing environment.
Immediate Environmental Factors (Analysis Framework)
Actions of the focal company, the company’s competitors, or corporate partners that work with the firm to make and supply products and services to the consumers.
Macro Environmental Factors (Analysis Framework)
Culture, demographics, social, technological, economic, and political/legal factors.
Forces Creating Globalization
The processes by which goods, services, capital, people, information, and ideas flow across national borders.
Components of a Country Market Assessment
1) Economic analysis using metrics (General economic environment, market size and population growth, real income).
2) Infrastructure and technological analysis (Transportation, channels, communication, commerce).
3) Sociocultural Analysis (Power distance, uncertainty avoidance, individualism, masculinity, time orientation).
4) Government Actions (Tariff, quota, exchange control, trade agreement).
Market Entry Strategies (Advantages/Disadvantages of Each)
1) Export = Low control, low risk.
2) Franchising = Mid-low control, mid-low risk.
3) Strategic Alliance = Middle control, middle risk.
4) Joint Venture = Mid-high control, mid-high risk.
5) Direct Investment = High control, high risk.
Global Product Strategies
1)Sell the same product or service in both the home country market and host country.
2) Sell a product or service similar to that sold in home country but include minor adaptions.
3) Sell totally new products or services.
Global Pricing Strategies
1) Tariffs
2) Quotas
3) Anti-dumping Policies
4) Economic Conditions
5) Competitive Factors
Global Distribution Strategies
1) Some global channels are very long and complex.
2) Consumers shop small local stores.
3) Suppliers must be creative in delivering to these outlets.
Global Communication Strategies
1) Literacy levels
2) Media availability
3) Advertising regulations
4) Differences in language, customs, and culture