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MGT 8803 - Marketing
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Marketing Strategy - Answer: Finding opportunities and developing profitable strategies to capitalize on those opportunities: Specifies a target market and related marketing mix. 5 Cs of Marketing - Answer: Customer: buyers with needs the company aims to fulfill Company: goods or services provider fulfilling customer need Competitors: Orgs aiming to fulfill the same need as company Collaborators: external entities that work with company to create value Context: Environment where company operates.
- Laws, Economic conditions, Cultural Norms, tech factors
- PESTEL Analysis PESTEL Analysis - Answer: Factors that make up the Marketing Context: -Political
-Economic -Social -Technological -Environmental -Legal Target Market - Answer: similar group of customers to whom a company wishes to appeal. Unique market segment sought as customers. Contrast with Mass Marketing. Marketing Mix - Answer: Controllable variables the company puts together to satisfy the target market 4 P's Customer Marketing Model - Answer: Awareness Interest & Engagement Acquisition Customer Segmentation Customer Retention Support & Advocacy Goal: Develop brand insistence from customer (i need tide)
What Marketing Mix Target When Resources allocate Expected results Means of control 4 P's - Answer: Elements of a marketing mix: Product: Place: Right product, place, time, quantity, condition Price: Promotion Marketing Environment - Answer: 2 Parts: Direct and Indirect Direct Marketing Environment:
- Resources and Objectives of the Firm: Company resources that give competitive advantage
- Customers:
- Competitors: maintain awareness of competitors and potential competitors in environment. External Marketing Environment:
- Cultural and Social Environment: shared beliefs/attitudes. Important to understand customer drivers.
- Political and Legal: Government intervention, and laws protecting consumers.
- Technological:
- Economic: Economy, Interest Rates, Rapid Changes Market Situation Types - Answer: Monopoly: one company serves all customers Monopolistic Competition: multiple firms, with differing marketing mixes (per customer perception) Typical in US. Oligopoly: Few firms control market. HIgh barrier to entry. Pure Competition: Many firms, commodity like competition (price driven). Generic Market Definition 3 parts - Answer: Customer Needs Customer Types Geographic Area Product Market Definition (4 Parts) - Answer: Customer Needs Customer Types Geographic Area
- Company has the right resources available to appeal to each segment. Consumer Segmenting Dimensions - Answer: Dimensions: Demographic: Income, sex/age, family size/life-cycle, Occupation/education, ethnicity/social class Geographic: World region, country region, city size Behavioral: Needs, Benefits sought, Thoughts on brand/product, rate of use (heavy, medium, light), Purchase relationship, Brand familiarity, Kind of shopping, Problem solving type, Info needs Business Segmenting Dimensions - Answer: Dimensions: Kind of relationship: weak or strong loyalty customer type: government, private, non-profit Demographics: Geography, size, industry Use: raw material, input, Buying situation: centralized or decentralized (number of people involved) Buying situation: Bids, vendor analysis, e-commerce websites, other Market Segments: - Answer: Types:
-Qualifying: relevant to including customer type into a market. Used to identify core features of a product for a market. -Determining: affect customers purchase of a brand in a segment Different for Business and Consumer markets Product Segmenting Best Practices (7 steps) - Answer: 1. Select broad market
- Identify customer needs
- form initial homogeneous submarkets
- Identify determining dimensions
- Name the possible markets
- evaluation product-market segment behaviors
- Estimate size of each product-market segment Consumer Adoption Process - Answer: 1. Awareness: Learn of existence of product
- Interest: Gather info and facts
- Evaluation: Mental trial
- Trial: buy, borrow, rent to experiment
- Decision: Adopt or don't
- Confirmation: Consumer evaluates whether purchase was a good decision Consumer Dissonance - Answer: Tension caused by uncertainty about the rightness of a decision. (second guessing) Consumer Problem Solving Continuum - Answer: Continuous line from Low to High involvement:
Social Needs (connection, love, etc) Safety Needs Physiological Needs (food, water, rest...) Selective Exposure - Answer: Consumers notices what interests them Selective Retention - Answer: only remember message that are consistent with our beliefs and attitudes Selective Perceptions - Answer: Only let in messages consistent with our beleifs/attitudes/etc. Psychographic Influences - Answer: Activities, interests, and opinions Measuring Social Class - Answer: Occupation, Education, Housing, Housing location Organizational Customer Types (B2B) - Answer: Producers: manufactures, farmers, developers Intermediaries: wholesalers/retailers Government Units: Federal, state, local, foreign Non-profit: National/Local Organizational Behaviors compared to Consumer: - Answer: Both purchase to meet a need
Focus tends toward quality and specifications Less emotional Fundamentally economic Individual orgs are unique, even within an industry Organizational Buying Center - Answer: all the people who participate in buying a product for a firm. Market to all. -Buyers -Users -Influencers (technical expert)
- Gatekeeper (admins)
- Deciders (management) 3 Organizational Buying Processes - Answer: New-Task Buying: Significant time, effort, review, req'd info Modified Rebuy: Some effort to reevaluate sources, new supplier opportunities Straight Rebuy: routine, little effort Branding - Answer: the use of a name, term, symbol, or design to identify a product.
Economies of scale to lower price High demand to allow higher price Brand Approaches - Answer: Family Brand: Brand applies to a family of products Licensed Brand: Company charges a fee to use brand name Generic Brand: Cost based purchasing Individual Brands: company makes many different product types, or different products that target different market segments. Business Product Classes - Answer: 1. installations (capital)
- accessories (capital)
- raw materials (expense)
- components (require processing)
- supplies (maintenance, repairs, operations)
- professional services (consulting) Consumer Product Classes - Answer: 1. Convenience: Staples, impulse, emergency
- Shopping: compared with competing.
- Specialty: no substitutes
- Unsought: new or regularly unsought
Product Life Cycle - Answer: introduction: Gain awareness, low sales, informative promotion, growth: Differentiation, Fast sales growth, short lived due to competition Maturity: Maintain brand loyalty, Sales level off or decline, increased price competition Decline: Milk/phase-out/sell, price competition, loyal customers Factors Affecting Rate thru Life Cycle Stages - Answer: Comparative Advantage Ease of use Ease to communicate Compatible with Consumers Ability to try Innovation shortens cycles Channel Systems - Answer: Direct: Direct contact with customers. Indirect: Intermediary interacts with customers Should achieve ideal market exposure: Extensive, selective, exclusive Direct Channel Benefits - Answer: Greater Control Lower cost
Assorting: putting together a variety of products Intensive distribution - Answer: Product is widely available Maximize availability. selective distribution - Answer: "sell where it sells best" Typical for shopping products. Can reduce costs and obtain better partners Product may transition to intensive distribution when it gains popularity. Align supply with demand Exclusive Distribution - Answer: Sell only through only one intermediary in a geographic area. Think specialized products like luxury sports cars. Maintain image, specialized sales personnel multichannel distribution system - Answer: a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
Market Exposure Distribution Systems - Answer: Ideal Market Exposure: Only enough availability to satisfy customer's needs. Intensive Distribution Selective Distribution Exclusive Distribution Customer Service Level Trade-offs - Answer: Minimize cost at a given customer service level. With increasing customer service levels.. Lost sales decrease then eventually increase due to pricing out. Transportation Costs decrease then increase Inventory Costs Increase Total distribution costs decrease then increase. Storing Function: - Answer: Holding goods so they're available when needed, increasing product availability. Keep prices steady (balance supply/demand) Achieves economies of scale in production.
Penetration Pricing: Maximize volume at a specific price (set price low to maximize volume). Price moves down demand curve. Discount Policies - Answer: List Price: Price customers are normally asked to pay: Quantity Discount: pay less per unit on large volume orders Seasonal: Buy sooner Cash: Encourage buyer to pay quickly. (e.g. 2/10 net 30: 2% discount if paid in 10 days. Interest charged after 30.) Trade: discount to channel member for performing marketing function for producer. (.e.g. signage, sales, etc.) Sale: Price discounts List Price Setting: - Answer: Cost Oriented: Average cost pricing Demand Oriented Set by branding firm. Markup - Answer: the amount added to the cost of merchandise to establish the selling price
% Markup is based on list price. (e.g. 50 cent markup on $1 item is a 33.3% markup (.50/1.50)) Marginal Analysis: - Answer: Find the right price that maximizes profit. "cost of selling one more unit Break Even Point Analysis: - Answer: Point where total revenue = total costs. Average Cost Pricing: - Answer: Pricing based on average cost. Ignores demand and can lead to losses if demand is off Push vs. Pull Marketing - Answer: Push: Promotion to channel members Pull: Get customer to ask for product. Promote to customer for action. Mass selling typical. May use one or both and coordinate. Advertising: - Answer: Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor Publicity: - Answer: any unpaid for of nonpersonal presentation of ideas, goods, or services.
