MKT 100 Study Guide - Midterm Guide: Marketing Strategy, Marketing Mix, Swot Analysis

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25 Jul 2016
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Chapter 1: Overview Of Marketing
Core Aspects of Marketing:
(6)
1. Marketing is about satisfying customer’s needs and wants:
Need: is when a person feels deprived of basic necessities of life, such as food,
clothing, shelter, or safety.
Want: is the particular way in which the person chooses to fulfill his or her need,
which is shaped by a persons knowledge, culture, and personality.
Market: refers to groups of people who need or want a companys products or
services and have the ability and willingness to buy them.
Target Market: the customer segment or group to whom the firm is interested in
selling its products and services.
2. Marketing Entails Value Exchange:
Exchange: the trade of things of value between the buyer and the seller so that
each is better of as a result.
3. Marketing Requires Product, Price, Place and Promotion Decisions
Marketing Mix (four P’s): Product, Price, Place, and Promotion – the control –
label set of activities that a firm uses to respond to the wants of its target markets.
-Product: Creating Value: one main purpose of marketing is to create value by
developing a variety of offerings, including goods, services, and ideas, to satisfy
customer needs.
Goods: are items that you can physically touch.
Services: are intangible customer benefits that are produced by people or
machines and cannot be separated from the producer.
Ideas: include thoughts, opinions, and philosophies, and intellectual concepts that
also can be marketed.
-Price: Transacting Value: is everything the buyer gives up – money, time, and
energy- in exchange for the product.
-Place: Delivering Value: the third P, Place, describes all the activities necessary
to get the product from the manufacturer or producer to the right customer when the
customer wants it. Place decisions are concerned with developing an efficient system for
merchandise to be distributed in the right quantities, to the right locations, and at the right
time in the most efficient way in order to minimize system wide costs while satisfying the
services levels required by their customers.
-Promotion: Communicating Value: Even best products and services will go
unsold if marketing cannot communicate their value to customers. Promotion is
communication by a marketer that informs, persuades, and reminds potential buyers
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about a product or services to influence their opinions or elicit a response. Promotion
generally can enhance a product or services value, as happened for Parasuco Jeans.
* Although marketing deliver value through each of the four P’s individually, they can
deliver greater value to consumers by configuring the four P’s as a whole rather than by
treating them as separate components. That is, the product or service offered must satisfy
the target customers specific needs and wants, be priced appropriately, be available at
locations where customers want it, and be promoted in a manner and through media that
are consistent with the target consumers *
Marketing Is Shaped by Forces and Players Within the Firm: For marketers to delivers
the best value to their customers, they must leverage the full potential of their internal
capabilities; work effectively with their partners (i.e., suppliers, distributors, and other
intermediaries, such as financial institutions, advertising agencies, and research firms);
and constantly evaluate and respond to the competitive environment.
Marketing is Shaped by Forces and Players External to the Firm: External forces such as
cultural, demographic, social technological, economic, and political and legal changes
shape a company’s marketing activities.
4. Marketing can be performed by Both Individuals and Organizations:
B2C (business to consumer): The process witch businesses sell to consumer.
B2B (business to business): The process witch businesses sell to business.
C2C (consumer to consumer): The process witch consumers sells to consumers.
Social Media: The uses of Internet tools to easily and quickly create and share
content to foster dialogue, social relationships, and personal identities. Social media is
quickly becoming an integral part of their marketing and communications strategies.
5. Marketing Occurs in many settings:
6. Marketing Helps Create Value:
Product Orientation: Product-oriented companies focus on developing and
distributing innovative products with little concern about whether the products best
satisfy customer’s needs.
Sales Orientation: Companies that have a sales orientation basically view
marketing as a selling function where companies try to sell as many of their products as
possible rather than focus on making products consumers really want. Companies with
selling orientation tend to focus on making a sale or on each transaction rather than
building long-term customer relationships.
Marketing Orientation: Marketing oriented companies start out by focusing on
what consumer want and need before they design, make or attempt to sell their products
and services. They believe that customers have choice and make purchase decisions
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based on several factors, including quality, convenience, and price. These are most
successful firms.
Value Based Orientation:
Value: reflects the relationship of benefits to costs, or what you get for what you
give.
Value Based Marketing: Customers naturally seek options that provide the greatest
benefits at the lowest costs. To develop a Value Based Marketing orientation, a business
must also understand what customers view as the key benefits of a given product or
service and how to improve on them.
Value Based Marketing: Focuses on providing customers with benefits that far
exceed the cost (money, time, effort) of acquiring and using products or services awhile
providing a reasonable return to the firm.
Building Relationship with Customers:
Transactional Orientation: Regards the buyer-seller relationship as a serious of
individual transactions, so anything that happened before or after the transaction is of
little importance.
Relational Orientation: A method of building a relationship with customers based
on the philosophy that buyer and seller should develop a long-term relationship. In
contrast, is based on the philosophy that buyer and seller should develop a long-term
relationship.
Customer Relationship Management (CRM): A business philosophy and set of
strategies, programs, and systems that focus on identifying and building loyalty among
the firms most valued customers. Firms that employ CRM systematically collect
information about their customers needs and then use that information to target their best
customers with the products, services, and special promotions that appear most important
to those customers.
Supply Chain: The group of firms and set of techniques and approaches firms use
to make and deliver a given set of goods and services.
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