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FINAL EXAM GUIDE - EVERYTHING YOU NEED TO KNOW EVERYTHING you need to know for the entire course summarized in 22 pages. If you learn everything in this package, you don't need to study anything else at all. Includes definitions, examples, and ALL the rea

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University of Toronto St. George
Rotman Commerce
Min Zhao

1 MARKETING FINAL RSM250 SUMMARY Chapter 1: P 4-26 Marketing defined; What is marketing? [1] Marketing is managing profitable customer relationships [2] Marketing is satisfying consumer needs in a socially responsible and ethical manner [3] Marketing (official) is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large [4] The social and managerial process by which individuals and groups obtain what they want and need through exchanging and creating value with others The marketing process: create value for customers and build customer relationships 5 steps [1] Understand the marketplace and customer needs and wants Needs: states of felt deprivation Wants: the form human needs take as shaped by culture & individual personality Demands: Human wants that are backed by buying power Market offerings: Some combination of products, services, information, or experiences offered to a market to satisfy a need or want Marketing myopia: The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products Exchange: The act of obtaining a desired object from someone by offering something in return Market: The set of all actual and potential buyers of a product or service [2] Design a customer-driven marketing strategy Select customers to serve: segmentation and targeting; decide on value proposition: differentiation and positioning Value proposition: the set of benefits or values the company promises to deliver to consumers to satisfy consumer needs Marketing management: The art and science of choosing target markets and building profitable relationships with them; marketing management orientations: (1) Production concept: the idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency (2) Product concept: The idea that consumers will favour products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements (3) Selling concept: The idea that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort (4) Marketing concept: The marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do (5) Societal marketing concept: The idea that a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-run interests and societys long-run interests [3] Construct a marketing program that delivers superior value 2 Implementing the marketing strategy actually delivering value Marketing mix: the set of marketing tools used to implement the marketing strategy 4Ps [4] Build profitable relationships and create customer delight Customer relationship management: The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer value & satisfaction: Customer-perceived value: The customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers Customer satisfaction: The extent to which a products perceived performance matches a buyers expectations Changing nature of customer relationships: (1) Relating with more carefully selected customers selective relationship management; (2) Relating more deeply and interactively technology; marketing by attraction, not intrusion Consumer-generated marketing: Marketing messages, ads, and other brand exchanges created by consumers themselvesboth invited and uninvited Partner relationship management: Working closely with partners in other company departments and outside the company to jointly bring greater value to customers [5] Capture value from customers to create profits and customer equity (1) Creating customer loyalty and retention Customer lifetime value: The value of the entire stream of purchases that a customer would make over a lifetime of patronage (2) Growing share of customer Share of customer: The portion of the customers purchasing that a company gets in its product categories (3) Building customer equity: Customer equity: The total combined customer lifetime values of all of the companys current and potential customers POTENTIAL High Butterflies: True Friends: PROFITABIL profitability Good fit between companys Good fit between companys ITY offerings and customers offerings and customers needs; high profit potential need; highest profit potential Low Strangers: Barnacles: profitability Little fit between companys Limited fit between offerings and customers companys offerings and needs; lowest profit customers needs; low profit potential potential Short-term customers Long-term customers PROJECTED LOYALTY Chapter 2: P 41-48, P 50-56 Corporate Level Business unit, product and market level [1] Defining the [2] Setting company [3] Designing the [4] Planning 3 company mission objectives and goals business portfolio marketing and other functional strategies Strategic planning: The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing market opportunities [1] Mission statement: A statement of the organizations purposewhat it wants to accomplish in the large environment invisible hand [2] Setting company objectives and goals [3] Designing the business portfolio: Business portfolio: The collection of businesses and products that make up the company (A) Analyzing the current business portfolio Portfolio analysis: The process by which management evaluates the products and businesses that make up the company first identify SBUs; then evaluate on strength and attractiveness Growth-share matrix: A portfolio-planning method that evaluates a companys strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks or dogs Boston-Consulting Group Approach: Market Hig STAR: high-growth, high-share QUESTION MARK: Low-share, high- business/product; They often growth business/product; require a growth h need heavy investments to lot of cash to hold their share; rate finance their rapid growth; management has to think hard about eventually growth will slow which question mark to build/which down and will turn into cash to phase out cows Low CASH COW: low-growth, high- DOG: low-growth, low-share share business/product; business/product; they may generate established/successful SBUs enough cash to maintain themselves need less investment to hold but do not promise to be large market share; produce a lot of source of cash cash that company uses to pay bills/support other SBUs needing investment High Low Relative market share Role of SBUs (1) build; (2) hold; (3) harvest; (4) divest Problems with Matrix approach: Difficult/time-consuming/costly to implement; difficult to define SBUs and measure market share and growth Approach focuses on current businesses, provide little advice for future businesses (B) Shape future portfolio developing strategies for growth and downsizing Product/market expansion gr
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