MKTG 2030 Study Guide - Midterm Guide: Customer Relationship Management, Affinity Analysis, Strategic Planning

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Published on 19 Apr 2013
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MKTG 2030 Midterm Review
Chapter 1
Objective I: What marketing is and how value creation is central to the
marketing concept
Marketing: creating, communicating, delivering, and exchanging offerings that have
value
Value & value proposition: the benefit customer receives from buying a good/service
o Value from customer’s perspective: bundle of benefits to satisfy needs or wants
relative to cost
o Lifetime value of customer: long term cost to acquire/retain a customer vs.
benefit
Marketing meets needs
o Customer = businesses/not end-user
o Consumer = end use
Marketing concept: identifying and satisfying consumer needs to ensure LT
profitability
Needs: difference b/w actual state and desired state
Want: desire to satisfy specific need
Demand: desire for products coupled with resources to obtain them
Market: group of consumers with a common need that can be satisfied by a product
o Target market: the group of consumers a company chooses to serve
Marketplace: any location/medium used to conduct an exchange
Heart of marketing is an exchange relationship transfer of value b/w buyer and
seller
Objective II: How marketing is decision making process and the planning &
marketing mix tools used in the process
Marketing decision making process involves:
o Understanding the opportunity
o Developing marketing strategy
o Designing marketing mix
o Realizing value
For external analysis/environmental analysis: PEST (Political, Social-cultural, Economic,
Technological), SWOT, Porter’s 5 forces (rivalry, bargaining power of suppliers/buyer,
threat of substitutes/new entrants)
For consumer marketing strategy:
o Segmentation based on common needs, wants, preferences
o Targeting decide which segment to focus on
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o Positioning how brand will be known by consumers
Internal analysis: corporate capabilities -> core competencies, current strategy,
resources
Marketing Mix: the 4 Ps
o Product objectives, service, design, brand
o Price MSP, RSP, margins, mark-up
o Promotions audience, messaging/tactics, communication mix, budget
o Place objectives, distribution system, suppliers/buyers, channel management,
supply chain
Positioning a brand involves:
o USP unique selling proposition (distinctive competency): what a brand does
really well and better than its competition
o POD point of difference (differential benefit): benefit uniquely offered by
brand
o Brand personality: what is the distinctive, desirable image of the brand
Value chain: series of activities involved in creating end product/service
Consumer generated value: consumer interaction-> co-creation that is integrated in
product development. Think crowdsourcing
Objective III: Ethical decisions in marketing and other perspective in
marketing
Triple bottom line: Financial, Social, Environmental
Customer Relationship Management (CRM): integrating the customer. Tracking their
needs in a way that benefit society and profit firm.
Social marketing concept: managers must satisfy customers’ needs in a way that also
benefits society and earns profit
Sustainable development: creating products that meet present needs and ensure future
generations can meet theirs
o Green marketing one type
Other perspective on marketing
o Product orientation -> emphasis on most efficient ways to produce/distribute
products
o Selling orientation -> infomercials (pushing the product). Marketing is a sales
function
o Consumer orientation -> marketing campaign: needs and problems
Objective IV: Ethical issues relating marketing decisions
Business ethics: rule of conduct in organization
Code of ethics: written standards of behaviour to which everyone in org must subscribe
to
Consumerism: social movement that attempts to protect consumers from harmful
business practices
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Consumer’s Association of Canada: inform and educate consumers. Advocate on
consumers’ behalf
Chapter 2: Strategic Market Planning
Objective I: How businesses develop plans at different levels within
organization
Business planning
o Identifies/builds on firm’s strengths
o Helps managers make informed decisions
o Develops objectives before action is taken
Levels of planning:
o Top-level (big picture): Strategic planning
Managerial. Matches firm’s resources and capabilities to market
opportunities for long-term growth and survival
Defines firm’s purpose and objectives
Strategic business units semi-autonomous entities that operate in an
independent business
o Middle-level: Functional planning
Decision process that concentrates on developing detailed plans for
strategies & tactics for short term. Supports organization’s long term
strategic plan
Conducted by functional areas of firm
Type of functional planning
Typically includes 3-5 year broad plan to support strategic plan and a
detailed annual plan
o Bottom-level: Operational planning
Focus on day-to-day execution of functional plans
Conducted by first-line managers
Typically includes one or more of: annual, semi-annual, quarterly plans
Strategic planning steps:
o 1. Define the mission
Determining the mission/purpose of existence of an organization
What business are we in? What customers should we serve? How do we
develop firm’s capabilities and focus its efforts?
Mission statement: formal document and describes firm’s overall
purpose and what it hopes to achieve in terms of its customers,
products, and resources
o 2. Evaluate internal & external environment
Situational analysis
Assessment of firm’s internal and external environment
(environmental analysis/business review)
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Document Summary

Objective i: what marketing is and how value creation is central to the marketing concept. Marketing: creating, communicating, delivering, and exchanging offerings that have value. Marketing meets needs: customer = businesses/not end-user, consumer = end use. Marketing concept: identifying and satisfying consumer needs to ensure lt profitability. Needs: difference b/w actual state and desired state. Demand: desire for products coupled with resources to obtain them. Market: group of consumers with a common need that can be satisfied by a product: target market: the group of consumers a company chooses to serve. Marketplace: any location/medium used to conduct an exchange. Heart of marketing is an exchange relationship transfer of value b/w buyer and seller. Objective ii: how marketing is decision making process and the planning & marketing mix tools used in the process. Marketing decision making process involves: understanding the opportunity, developing marketing strategy, designing marketing mix, realizing value. For external analysis/environmental analysis: pest (political, social-cultural, economic,

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