Download WGU D077 Study Guide (1).docx and more Exams Nursing in PDF only on Docsity!
WGU D077 Study Guide
Integrated Marketing Communications - coordinating the promotion mix elements and synchronizing promotion as a unified effort Marketing - The Activity, set of institutions, and process for creating, communicating, delivering and exchanging offerings that have value for consumers. Also a business function that identifies, satisfies, and retains customers through a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for the customer. Marketing Mix (4 P's) - Product, Place, Price, Promotion Product Life Cycle - describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline The Introduction stage of the product life cycle is characterized by - Low sales, Little or no profit, and Often little to no competition The growth stage of the product life cycle is characterized by - Increasing sales, Rapidly increasing profits, Market has accepted the product and competitors begin to enter the market The maturity stage of the product life cycle is characterized by - High Sales, High then declining profits, High level of competition, may be difficult for original company to compete The decline stage of the product life cycle is characterized by - Declining Sales, Declining Profit, and Competitive pressure remains high and demand falls product mix - The complete range of products offered for sale by a company throughout its product lines, also known as the product assortment product lines - Series of similar products focused on a sector that a company creates under a single brand product depth - Number of versions offered for each product in the product line product width -The number of different product lines, or series of products a company offers
price skimming -Intentionally pricing a new product offering high with the intention of lowering it over time as competition grows, particularly in the case of a unique offering with little or no competition at the outset (Pricing Strategy) penetration pricing - Intentionally pricing a product lower than the market price to gain market share in a new market (Pricing Strategy) leader pricing - Pricing products below market price to attract customers to a store where they would not otherwise shop (Pricing Strategy) prestige pricing -Raising the price of a product to increase the perception of its value (Pricing Strategy) Bundling - Grouping related products together and pricing them as a single product. (Pricing Strategy) Competitive pricing - Setting the price for a product or service relative to competitors (Pricing Strategy) Advertising - Any paid form of nonpersonal promotion by an identified sponsor Personal selling - A face-to-face presentation to a prospective buyer, often based on long-term relationships. Sales promotion - Marketing activities that stimulate consumer buying, including coupons and samples, displays, shows and exhibitions, and demonstrations. Public relations - The linking of organizational goals with key aspects of the public interest and the development of programs designed to earn public understanding and acceptance. Public relations can include lobbying, publicity, special events, internal publications, and media such as a company's internal television channel. Social media - The use of social media platforms such as Facebook, Twitter, Pinterest, Instagram, and various blogs to generate "buzz" about a product or company. E-commerce - The use of a company's website to generate sales through online ordering, information, interactive components such as games, and other elements of the website. Online advertising - The use of the internet to advertise is a form of promotion that comes in many forms including online banner ads, pop-up ads, video advertisements, etc. Content marketing - A subset of digital marketing, content marketing involves the creation and sharing of online material designed to create interest in a product, service, or idea without directly promoting the brand.
Competitive elements - Uncontrollable element such as new and shifting competition Natural/ecological elements - Uncontrollable elements such as natural resources, increased pollution, supply of raw materials, and practices that support environmental sustainability Political-legal elements - Uncontrollable elements such as changes in laws, regulatory agency activities, and political movements Socio-cultural elements - Uncontrollable elements such as the buying behaviors of specific cultures and subcultures, the values of potential customers, the changing roles of families, and other societal trends Demographic elements - Uncontrollable elements such as changes in the ages of potential customers, birth and death rates, and locations of various groups of people. Technological elements - Uncontrollable elements such as advances in telecommunications and computer technology Economic elements - Uncontrollable elements such as changing incomes, unemployment levels, inflation, and recession Price, Product, Promotion and Place elements. - Controllable elements in the marketing environment. Price Fixing - companies agree on the same price a product sells at and that product never goes on sale. (type of price ethics) Price Discrimination - Giving different prices to different people who are buying the same product. (type of price ethics) Predatory Pricing (Undercutting) - prices of products or services are priced low to drive out competitors (type of price ethics) Bait & Switch - advertises a low cost product but switches to a product at a higher price. Seller discourages bait. (type of price ethics) Price Gouging - drives up the cost of a product to increase profit (type of price ethics) Five steps of marketing planning process - Mission Statement, Situations Analysis, Objectives, Strategy Development, and Monitoring & Control Mission Statement - Vision statement, why the marketing plan exists, what problem the company wants to fix. (five steps of marketing planning process)
Situations Analysis -preventing the controllable and uncontrollable elements. Helps understand marketing environment, prospective customer, organization capabilities, and meet market needs. analyze internal and external factors. (five steps of marketing planning process) Objectives - Helps team understand goals, Smart: Specific, Measurable, Achievable, Relevant, Time Bound. (five steps of marketing planning process) Strategy Development - defines how marketing mix can be used to achieve goals. Strategies align with objectives, Identify target market. (five steps of marketing planning process) Monitoring & Control - Tracking progress, measuring performance, and plan the adjustments. Check if products are meeting needs. (five steps of marketing planning process) SWOT analysis - As a situation analysis tool that examines the internal (controllable) and external (uncontrollable) factors that impact the organization and its strategies. Internal factors -Financial, technical, competition position, human resources, product line factors. Divided into strengths and weaknesses. (Type of SWOT analysis factor) External factors -Technology, competition, economic, political, legal, and social trends. Divided into Opportunities and Treats .(Type of SWOT analysis factor) BCG Matrix - This Chart is used when a company has many different products or even many different lines of business, strategy becomes more complex. The company needs to not only complete a situation analysis for each business, but also determine which businesses warrant focus and investment. (Star) High Growth Potential/High Market Share - high market share in a fast-growing industry. This kind of product or business is poised to bring a strong return on the funds invested. It also has the potential to become a cash cow at the end of the product life cycle, which can fund future investments. (BCG Matrix Category) (?) High Growth Potential/Low Market Share - product or business that has low market share currently but is in a growing industry. Has the potential to become a star or a Dog and growth potential requires close monitoring. (BCG Matrix) (Cash Cow) Low Growth Potential/High Market Share - high market share and is in a slow-growing industry. It is bringing in more money than is being invested in it, but it does not have much growth potential. (BCG Matrix)
five forces identified in Porter's five forces model - Threat of New Entrants, Threat of Substitutes, Rivalry, Bargaining power of Suppliers, and Bargaining power of Buyers. Threat of New Entrants - New companies coming into the same market. Can lead to decreases in profitability (five forces identified in Porter's five forces model) Threat of Substitutes - the existence of different product that fulfill the same need makes it more likely for customers to switch to alternatives. (five forces identified in Porter's five forces model) Rivalry - intensity of competitive rivalries determines the competitiveness of an industry. (five forces identified in Porter's five forces model) Bargaining power of Suppliers - when there are few substitutes, suppliers of materials, components, labor, and services the supplier has power over the organization. Suppliers can make demands. (five forces identified in Porter's five forces model) Bargaining power of Buyers - Customers put company under pressure, buyers are more sensitive to price changes, buyers have more power than suppliers. (five forces identified in Porter's five forces model) Strategic Planning - Strategies are what an organization is going to do to achieve its objectives. A marketing strategy is how you will achieve the specified objectives in the marketing plan. (Big Picture) Tactical Planning - the actions a company implements to affect the controllable elements of the strategy. Tactics include specific actions, such as coupons, television commercials, banner ads, and social media posts, used to execute the strategy. (steps to achieve the big picture) five common subjects that marketing research investigate - Environmental factors, Customer attitudes, behaviors, and perceptions, Product research, Marketing, advertising, and promotion research, and Corporate research. Environmental factors and how they affect consumer behavior - the health of the economy, the legal environment, market trends and other social factors, technology and its influence, and cultural factors that make doing business different in one region or country compared to others. (five common subjects that marketing research investigate.) Customer attitudes, behaviors, and perceptions - Marketing research can be essential in understanding customer needs, how their needs are or
are not being met by the market, views about various products and companies, satisfaction levels, preferences for product features and pricing, the consumer decision-making process, and factors that influence it. (five common subjects that marketing research investigate.)
Survey Research - questionnaires are given to people in target market, people are asked to respond. (six primary research techniques) Experiments - tests the effects of various ideas or factors. (six primary research techniques) five common techniques for sourcing secondary data - sourcing data from Internal Data, Government agency, nonprofit, and NGO data, Industry and professional associations, Commercial marketing research companies, and Internet Searches. Internal Data - data such as Sales records, Customer records, employee records etc. info that has already been collected by organization. (five common techniques for sourcing secondary data) Government agency, nonprofit, and NGO data - data such as a Census, used a lot by healthcare, political polls, demographic info agencies freely publish economic demographic and trade data. (five common techniques for sourcing secondary data) Industry and professional associations - data or research within the members of the organization. online or offline news, magazines, newsletters, and journals and collect data about their industry or profession. (five common techniques for sourcing secondary data) Commercial marketing research companies - Syndicated research of consumer data for purchase. Consumer purchase and behavior info for sale. (five common techniques for sourcing secondary data) Internet Searches -looking it up on the internet. (five common techniques for sourcing secondary data) two basic elements that the Strategic Opportunity Matrix analyze - New vs Current product opportunity. New product opportunity- creating a new product for growth Current product opportunity- how to use an existing product for growth New vs Current market opportunity. New market opportunity- growth by finding new places to sell a product and to new target markets Current market opportunity- growth by offering products to existing target markets four types of growth strategies an organization may pursue - Market Penetration, Product Development, Market Development, and Diversification Strategy Market Penetration - more products to current customers (Loyalty programs) (type of growth strategies)
Product Development - New products to current customers (butcher shop selling spices) (type of growth strategies) Market Development - Same product new market (Opening new stores) (type of growth strategies) Diversification Strategy - New products and new market (Buying a company in a completely different industry) (type of growth strategies) customer relationship management (CRM) - combo of policies, processes and strategies used to unify a company's customer interaction and provide mechanism for tracking customer info. Aligns with marketing concept. Relies on customer data. Lead - Identifying a person that is a potential purchaser. Prospect - a perspective customer that can become a lead. five steps in the customer life cycle - Reach, Acquisitions, Conversion, Retention, and Loyalty Customer lifetime value (CLV) - this is one measure that marketing may use to determine the profitability and effectiveness of marketing campaigns. How to calculate Customer lifetime value (CLV) - Profit margin per customer X # of years they are an active customer - the cost of acquiring the customer= Lifetime value. Focuses on longevity vs momentary gains, helps predict profit associated with a customer's lifetime purchase relationship to a company. customer equity - this term refers to the total combined customer lifetime values for all the purchases the customers make for that product over their total buying experience. three drivers to customer equity - Value- value of products or services Brand- value of brand compared to competitors Retention- likeliness that a customer will maintain loyalty regardless of change. (Customer point of view) customer satisfaction - Ensuring that the customer got right product at the right place at the right time for the right price. four guidelines regarding fair information practices recommended by Federal Trade Commission (FTC) - 1. Notice: Consumers should be given notice of a company's information practices before any personal information is collected from them.
- Choice: Consumers should be given options to control how their data is used by opting in or opting out.
- Access: Consumer should have the ability to view the data collected and
- Security: Information collectors should ensure that the data they collect are accurate and secure. Information collectors can keep their data secure by protecting against both internal and external security threats. They can limit access within their company to only necessary employees to protect against internal threats, and they can use encryption and other computer- based security systems to stop outside threats. Controlling the Assault of Non-Solicited Pornography and Marketing (CAN- SPAM) act - this was passed in 2003 and gives consumers the ability to opt out of communications. Business-to-Consumer (B2C) - a company does business with individual customers. Includes: mass marketing, a single purchase, a single step buying process. Business-to-Business (B2B) - a company does business with other businesses. Includes: personal selling, multiple purchases and one- time, multiple steps buying process. Market Segmentation - divides the market into smaller group. Target Marketing -separates segmented markets into even more targeted groups that are most likely to purchase a particular item. Four segmentation strategies - Geographic Segmentation- groups separated by location Demographic Segmentation- groups separated by gender, age, income, ethnicity, woman vs man, or kids Psychographic Segmentation- attitudes, interests, opinions, beliefs. Product-Related Segmentation- how people use it. Benefit sought, usage rates, brand loyalty. four types of targeting strategies - Differentiated Marketing- more than one group is targeted. Must create different strategies for different groups. More expensive. Undifferentiated Marketing- no targeting special things to special markets. Covering all with one strategy. Cheaper. Concentrated Marketing- Niche marketing, targets a narrow market only. Its makes the company vulnerable to competitors. But meets needs of targeted group well. Micro-Marketing- individual/local marketing. Experiences are built to focus on a single customer a at time. Personalized suggestions based on pervious data. seven positioning strategies - Positioning- establishing a particular perception in the mind of consumer about how your product or brand compares to the other products on the market. Product Attributes- what is special about the product. What makes it stand out or different from competitors. Price- lowest cost or best value to the customer for the price. Quality- highest quality Competition- against the competitor, comparatively trying to out position competitors. Product Application- based off how it is
used. What category or group does it fall into? Product User- targets a specific user group. Product Category- within the products category with focus on relativity to the category.
Low involvement purchase decisions - Purchase decision that has less importance purchases, typically routine. Little risk in purchase. No time taken in decision making.
three types of problem-solving processes - Routine Problem Solving- Low involvement. Routine process. Not taking time on purchasing decision. Limited Problem Solving- Limited info or time, gather some info before making decision. Extended Problem Solving- Lots or Extensive info. Supply Chain Transparency - when a company is disclosing how its products (and their components) are sourced and made Personal selling - the use in-person interaction to sell products and services. Addressing the needs of the buyer is core to effective personal selling. four main types of sales approaches - consultative selling- Sales approach where the seller becomes a trusted advisor to the customer and builds a relationship to truly understand her needs. solution selling- Seller identifies a problem and then helps customer find a solution. team selling- multiple people work together to sell a product. telemarketing- Phone calls, cold calls. Four social styles in the Social Style Matrix - Analytical- Low responsiveness and Low assertiveness Driver- Low responsiveness and High assertiveness Amiable- High responsiveness and Low assertiveness Expressive- High responsiveness and High assertiveness
- Prospecting/Qualifying- Advertising to find customers that have a need for the product. Trade shows, conferences, social media, web site.
- Approaching Customers- Giving customers the information they need. Through things like email, web content, product info, online reviews, blogs, or white pages.
- Presenting and Demonstrating- Give presentations, provide case studies, videos product demonstrations and comparisons to help customer evaluate alternatives. Handling Objectives- provide details that clarify common concerns thru case studies, comparisons, videos or testimonials in order to help customer make a purchase decision. Closing the Sale- getting the order/sale Following up the Sale- reaching out to customer after purchase thru email, social media, or surveys in order to understand customer post purchase feelings.
