Strategic Marketing Objectives 1.01 and 1.02 Review

Marketing
The process of developing, promoting, pricing, selling, and distributing products to satisfy customer’s wants and needs. Marketing involves all the activities necessary to get a product from the manufacturer to the consumer. The goal of marketing is to attract new customers and create a lasting relationship through customer satisfaction.
Product
Businesses must decide which products to offer customers. Products include both goods and services.
Promotion
Informing and reminding customers of the products available to them and persuading them to purchase.
Consumer
The person who uses the product.
Customer
The person who purchases the product. In many cases, the customer is also the consumer.
Market
The group of potential buyers.
Needs
A necessity for living
Service
Intangible items that satisfy customer’s needs and wants.
Price
The amount a business charges customers for a product.
Place
Having the product available at the right time and location. Place is also known as distribution or logistics.
Wants
Products that are not necessities but are simply desired by the consumer.
Goods
Tangible items that satisfy customer’s needs and wants.
Target Market
The group of consumers a business desires to have as customers.
Production Orientation
Is a philosophy that focuses on the internal capabilities of the firm rather than the desires and needs of the marketplace.
Sales Orientation
Is based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
Market Orientation
Involves obtaining information about customers, competitors, and markets; examining the information from a total business perspective; determining how to deliver superior customer value; and implementing actions to provide value to customers.
Societal Orientation
States that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests.
Relationship Marketing
Is a strategy that focuses on keeping and improving relationships with current customers.
Customer Satisfaction
Is the customer’s evaluation of a good or service in terms or whether that good or service has met the customer’s need and expectations.
Customer Value
Is the relationship between benefits and the sacrifice necessary to obtain those benefits.
Strategic Planning
Is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities
Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager
What are the elements of a Marketing Plan?
Mission statement, marketing plan objectives, SWOT or situational analysis. As a result of the SWOT the firm should identify competitive advantages, strategic direction, target market and the marketing mix
Mission Statement
Answers the question “What business are we in?” It is a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
Marketing Myopia
Defining a business in terms of goods and services rather than in terms of the benefits that customers seek
Marketing Objective
Is a statement of what is to be accomplished through marketing activities
SWOT or Situational Analysis
Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
Competitive Advantage
Is a set of unique features of a company and its products that are perceived by the the target market as significant and superior to the competition
Strategic Directions
Marketing direction developed as a result of the SWOT and analysis of the competitive advantages. Some options include: market penetration, market development, product development and diversification
Market Penetration
A marketing strategy that tries to increase market share among existing customers
Market Development
A marketing strategy that entails attracting new customers to existing products
Product development
A marketing strategy that entails the creation of new products for current customers
Diversification
A strategy of increasing sales by introducing new products into new markets
Target Market
Marketing products to market segment consisting of a group of individuals or organizations that share one or more characteristics
Marketing Mix
A unique blend of product, place, promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market
Four Ps
Product, place, promotion and price, which together make up the marketing mix
Exchange
People giving up something to receive something they would rather have