COMM131 Exam Notes

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4 Dec 2012
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COMM 131 NOTES
8 questions
short answer
100 points
application of concepts
ex. Apply marketing mix
cases
articles ex mind your pricing cues
quantitative analysis
Ch 1 Marketing: Creating and Capturing Customer Value
Marketing managing profitable customer relationships
- both a social and managerial process through which individuals and groups obtain what they need and want
through the creation and exchange of products and value with others
1. Attract new customers by promising superior value (Value = Perceived Benefits Perceived Costs)
2. Keep and grow current customers by delivering satisfaction and building long term relationships with
customers
Marketing Strategy process whereby a company determines who to sell and how to offer their product to that
group (segmentation, targeting, positioning)
Key Questions:
- Who are our customers?
- How do we discover and satisfy their needs?
- …and do so better than competitors?
- ….while remaining profitable?
Marketing Tactics collection of marketing activities that together accomplish the larger goal of satisfying
customer needs and building customer relationships (4 P‟S)
Marketing Process
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COMM 131 NOTES
Market set of actual and potential buyers of a product or service
Need state of felt deprivation including physical, social and individual needs
Wants specific form of a need that is shaped by culture and personality (choices we make to fulfill or needs)
Demand a “want” backed by buying power
Marketing Myopia the mistakes of paying too much attention to product and not customers
- lose sight of the needs that their offerings satisfy
Role of marketing management
- analyze customer markets
- design marketing strategy
- communicate value propositions
- serve customers
Market Segmentation divide the marketing into segments of plausible customers
- segments should be homogenous within and heterogeneous without
Target Marketing select the best segment to cultivate to grow demand or even reduce demand
Value Proposition the value of perceived benefits a marketer promises
- must differentiate this value proposition from the competition
- build customer value and satisfaction through the offer
Positioning arranging for a product to occupy a clear, distinctive and desirable place relative to competing
products in the minds of consumers
Marketing management philosophies
1. Product concept buyers will favour highly affordable and available products
2. Selling concept buyers will favour with the best sales force
3. Marketing concept buyers will favour products which best meet their needs
4. Societal marketing concepts buyers favour companies with CSR implemented
Integrated marketing including and applying every element of the marketing mix (4 P‟S)
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COMM 131 NOTES
Managing/ building customer relationships
Customer relationship management (CRM) managing customer relationships
Touch point any aspect of the integrated marketing mix that reaches the customer
Customer perceived value the difference in perceived benefits and costs
Loyalty program a type of marketing program that bestows benefits on members
Partner relationship marketing managing partnerships between other departments in the organization
- marketing channels: channels of distribution that connect marketers to customers
- supply chain: the chain of processes from raw material through to sale
Customer value
- customer lifetime value: the estimated worth of a customer over their lifetime
- share of customer: the portion of a particular customer‟s purchasing in a specific category
- customer equity: total combined customer lifetime value of all customers
Short-term customers
Long-term customers
High profitability
Butterflies good fit between
company‟s offerings and
customer‟s needs
True Friends good fit
Low profitability
Strangers little fit between
company‟s offerings and
customer‟s needs
Barnacles limited fit
Ch 2 Marketing Strategy: Where Marketing Really Begins
Strategic Planning managing and maintain a strategic fit between goals and capabilities
Mission Statement a statement of the organization‟s purpose – what it aims to accomplish
Business Portfolio the collection of businesses and product that make up a company
Strategic Business Unit (SBU) a unit of the company with a separate mission/ objectives, planned
independently
BCG growth Share Matrix
High market share
Low market share
High growth
Star high growth, high share
business units that require heavy
investment to finance their rapid
growth (when growth slows, turn into
cash cows)
Question Mark low share business units
in high growth markets; require heavy
investment simply to hold onto market
share
Low growth
Cash Cows low growth, high share,
established and successful therefore
require less investment to hold market
share; the units that produce the cash
that is needed to support the other,
growing units
Dog low growth, low share, generate
just enough revenue to maintain
themselves but do not promise to be large
sources of cash
Product/ Market Expansion Grid
Existing products
New products
Existing markets
Market penetration a strategy for
company growth by increasing sales of
current products to current markets
w/o changing product
Product development a strategy for
company growth by offering modified or
new products to current markets
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