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Business Administration 3301K Study Guide - Final Guide: Global Entry, Strategic Planning, Claudio Procesi

60 pages62 viewsFall 2015

Department
Business Administration
Course Code
Business Administration 3301K
Professor
mr.White
Study Guide
Final

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Chapter 1: Overview of Marketing Notes
Overview of Marketing
Essentially about creating value for consumers and company's shareholders
Creating value for consumers and firm requires that marketers develop and nurture long-term, profitable relationships with consumers
What is marketing
Exchanging something of value that satisfies a need
Firms develop a marketing plan that specifies marketing activities for a specific period of time
Buyer and seller should be satisfied with value they obtained from a transaction
Marketing: A set of business practices designed to plan for and present an organization's products or services in ways that build effective customer
relationships.
Marketing Plan: A written document composed of an analysis of current marketing situation, opportunities and threats for firm, marketing
objectives and strategy specified in terms of four Ps, action programs, and projected or pro forma income (and other financial) statements
Marketing Is About Satisfying Customer Needs and Wants
Need: A person feeling physiologically deprived of basic necessities, such as food, clothing, shelter, and safety.
Want: particular way in which a person chooses to satisfy a need, which is shaped by a person's knowledge, culture, and personality
Market: Refers to groups of people who need or want a company's products or services and have ability and willingness to buy them.
Target market: customer segment or group to whom firm is interested in selling its products and services.
To understand needs and wants, company must identify customers or market for its product or service
Marketers divide market into subgroups or segments of people to whom they are interested in marketing their products, services, or ideas.
Process of identifying customer segments company wants to target with its products and services requires market research
Marketing Entails Value Exchange
Exchange: trade of things of value between buyer and seller so that each is better off as a result.
Sellers provide goods or services, then communicate and facilitate delivery of their offering to consumers
Buyers complete exchange by giving money and info to seller
Marketing Requires Product, Price, Place, and Promotion Decisions
Marketing mix: Product, price, place, and promotion— controllable set of activities that a firm uses to respond to wants of its target markets.
Product: Creating Value
oCreate value by developing a variety of offerings
oServices are intangible customer benefits that are produced by people or machines and not be separated from producer
oIdeas: Include thoughts, opinions, philosophies, and intellectual concepts.
oExchange of value they have adopted, or become “purchasers,” of idea that group marketed
Price: Transacting Value
oPrice: overall sacrifice a consumer is willing to make—money, time, energy—to acquire a specific product or service
oMust determine price of a product carefully on basis of potential buyer's belief about its value
oKey to determining prices is figuring out how much customers are willing to pay so that they are satisfied with purchase and seller
achieves a reasonable profit
Place: Delivering Value
oDescribes all activities necessary to get product from manufacturer or producer to right customer when that customer wants it
oConcerned with developing an efficient system for merchandise to be distributed in right quantities, to right locations, and at right time
in most efficient way in order to minimize systemwide costs
oConcerned with developing an efficient system for merchandise to be distributed in right quantities, to right locations, and in most
efficient way to minimize systemwide costs while satisfying service levels required by customers
Promotion: Communicating Value Even best products and services will go unsold if marketers not communicate their value to customers
oCommunication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions
or elicit a response
oGenerally enhance a product or service's value
o deliver greater value to consumers by configuring four Ps as a whole rather than by treating them as separate components
Marketing Is Shaped by Forces and Players Within Firm
Marketers to deliver best value to their customers, they must leverage 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 competitive environment
Marketing Is Shaped by Forces and Players External to Firm
Such as cultural, demographic, social, technological, economic, and political and legal changes shape a company's marketing activities
Marketing Be Performed by Both Individuals and Organizations
Marketing intermediaries, such as retailers, accumulate merchandise from producers in large amounts and then sell it to you in smaller amounts
B2C (business-to-consumer): process in which businesses sell to consumers.
B2B (business-to-business): process of selling merchandise or services from one business to another.
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C2C (consumer-to-consumer): process in which consumers sell to other consumers.
Individuals also undertake activities to market themselves
Organizations that practise sustainability must strive to conduct their business in such a way as to minimize harm to environment, follow good
governance practices, and comply with social standards
Sustainable Marketing
Truly comprehensive and proactive approach to sustainability requires that businesses develop practices and policies around all three perspectives:
environmental, governance, and social
Sustainability practices and policies must be embedded in all facets of organization
Must involve all employees
Social Media Marketing
Social Media: use of Internet tools to easily and quickly create and share content to foster dialogue, social relationships, and personal identities.
Participants act as both publishers and consumers
Openness, authenticity, and transparency are key elements of effective social media
An excellent way to reach consumers
To be part of conversation or to initiate conversations, companies must participate in social media
Enables marketers to accomplish many marketing goals
Social media is quickly becoming an integral part of their marketing and communications strategies
Marketing Occurs in Many Settings
also jump-start economies of less developed countries by actually putting buyers and sellers together to create new markets
Often designed to benefit an entire industry, which help many firms simultaneously
Marketing Helps Create Value
Four different marketing orientations/philosophies: Product orientation, sales orientation, market orientation, and value-based orientation
Product oriented companies focus on developing and distributing innovative products with little concern about whether it satisfies customers’ needs
oBelieved a good product would sell itself, and retail stores typically considered places to hold merchandise until consumer wanted it
oGenerally start out by thinking about product they want to build; they try selling product after it is developed
Sales orientation basically view marketing as a selling function where companies try to sell as many of their products as possible
oDepend on heavy doses of personal selling and advertising to attract new customers
oFocus on making a sale or on each transaction rather than building long-term customer relationships
oBelieve that if consumers try their products, they will like them
Market-oriented companies start out by focusing on what consumers want and need before they design, make, or attempt to sell their products and
services
oBelieve that customers have choice and make purchase decisions based on several factors
o“Customer is king,”
oMarketers’ role is to understand and respond to needs of consumers and to do everything possible to satisfy them
o Most successful firms today are market oriented
Value-based orientation
oValue: Reflects relationship of benefits to costs, or what consumer gets for what he or she gives
oBetter marketing firms recognized they would have to give their customers greater value than their competitors
oEvery value-based marketing firm must implement its strategy according to what its customers value
What is value-based marketing
Value-based marketing: Focuses on providing customers with benefits that far exceed cost (money, time, effort) of acquiring and using a product
or service while providing a reasonable return to firm.
Business must also understand what customers view as key benefits of a given product or service and how to improve on them
Other side of value equation entails firm's ability to provide a better product/service mix at same cost or same level of quality and convenience for a
lower cost
How Firms Compete on Basis of Value
Marketers must keep a vigilant eye on marketplace so they adjust their offerings to meet customer needs and keep ahead of their competition
It should be at core of every firm's functions
Nonprofit organizations need to focus on creating value to ensure services they provide to stakeholders are of high quality while also minimizing
total fundraising required
How Firms Become Value-Driven
Sharing Info
oMarketers share info about customers and competitors that has been collected through customer relationship management, and integrate it
across firm's various departments
Sharing and coordinating such info represents a critical success factor for any firm
Balancing Benefits with Costs
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oConstantly measure benefits that customers perceive against cost of their offering
oUse available customer data to find opportunities in which they better satisfy their customers needs and in turn develop long-term
loyalties
Building Relationships with Customers
oTransactional orientation: Regards buyer–seller relationship as a series of individual transactions, so anything that happened before or
after transaction is of little importance.
oRelational orientation: A method of building a relationship with customers based on philosophy that buyers and sellers should develop a
long-term relationship.
oCustomer Relationship Management (CRM): A business philosophy and set of strategies, programs, and systems that focus on
identifying and building loyalty among firm's most valued customers
Why is Marketing Important
Works with other departments
Creates mutually valuable relationships between company and external firms that are involved in firm’s marketing process
Identifies elements that local customers value and makes it possible for firm to expand globally
Makes it easier for consumers to learn about new products and services
Marketing expands firm’s global presence by using knowledge gained through analyzing customer’s needs and wants
Marketing is pervasive across organization
oWorks with other functional areas of company to design, promote, price and distribute products
Power of Internet 1.1
oAround 2004, marketers realized an effective marketing strategy requires integration of online and offline businesses to provide customers
with “multi-channel marketing” experience
oReleased for commercial use in 1993
oEarly focus on technology and product is reminiscent of product-oriented market era of early twentieth century
o2012, websites are much more complex technologically and focus shifted to consumer
oFrom Static Websites to Social Media to Mobile Marketing
Websites were static, text-based sites, which marketers used to “push” info to customers about their products and companies
Second-generation provided info to customers’ requests in real time, made use of multimedia technology, and offered modest
interactivity
E-commerce capability, that is, ability to order and pay for goods and services online
Foundations for growth of online marketing; could reach customers worldwide through online stores and customers
could order products and services anytime, anywhere
Personalization and customization, where customers were given ability to customize look and feel of a website, and products
shown, to suit their preferences
oThree aspects of Internet marketing will keep marketers awake at night
Figuring out how to create a winning multichannel marketing strategy that evolve as new technologies are developed and
deployed
How to develop and implement an effective and efficient mobile marketing strategy
Figure out profitable social media marketing strategy
oMobile, multichannel, and social media marketing are next likely frontiers for Internet marketing
Marketing Is Pervasive Across Supply Chain
oSupply Chain: group of firms and set of techniques and approaches firms use to make and deliver a given set of goods and services.
oExcellent supply chains effectively and efficiently integrate supply chain partners to produce and distribute goods in right quantities, to
right locations, and at right time
oOften, supply chains take a transactional orientation in which each link in chain is out for its own best interest
oFor supply chain to provide signifit value to customer, parties must establish long-term relationships with each other and cooperate to
share data, make joint forecasts, and coordinate shipments
Marketing Makes Life Easier
oBalance product or service offering with a price that makes you comfortable with your purchase
Marketing Provides Career Opportunities
Marketing Enriches Society
oEncourage their employees to participate in activities that benefit their communities and invest heavily in socially responsible actions and
charities
oGood corporate citizenship through socially responsible actions help their bottom line in long run
Marketing Be Entrepreneurial
oKey to success of many such entrepreneurs is that they launch ventures that aim to satisfy unfilled needs
Chapter 2: Developing a Marketing Plan and Marketing Strategies Notes
Levels of Strategic planning in corporations
Strategic planning in most organizations occurs on at least corporate level and functional level
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