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MKT 201 Exam 1.pdf

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Department
Marketing
Course
MKT 201
Professor
Smita Kulkarni
Semester
Fall

Description
Exam  1 Mul▯ple  choice  -­‐  30  ques▯ons  (1.5  points  each)  [45  points] True/False  statements  -­‐  10  ques▯ons  (1.5  points  each)  [15  points] Defini▯ons  -­‐  5  (2  points  each)  [10  points]   Short  answers  -­‐  choose  two  out  of  three  (5  points  each)  [10  points]  if  you  do  all  three  she  will  choose  the  best  two  out  of  three Essay  -­‐  1  ques▯on  (20  points) Chapter  1  –Overview  of  Marke▯ng 1.  Understanding  what  is  marke▯ng  and  its  defini▯on Marke▯ng  is  an  organiza▯onal  func▯on  and  a  set  of  processes  for  crea▯ng  (products/offerings  by  ins▯tu▯on),   communica▯ng  (products),  capturing  (value),  and  delivering  value  (products  to  customer/client/partner/ society)  and  for  managing  customer  rela▯onships  in  ways  that  benefit  the  organiza▯on  and  its  stakeholders.   Marke▯ng  deals  with  people  (ac▯vi▯es  centered  around  customers).  Marke▯ng  is  managing  profitable   customer  rela▯onships.  Marke▯ng    is  giving  customer  what  they  need  to  make  the  purchase  experience  easy,   fun,  and  affordable. 2. Core  Aspects  of  Marke▯ng F E A D C B A.    Who  are  your  customers?  Who  are  you  selling  to?  Who  are  your  target  consumers? B.    Exchange:                                                                                Product          Seller/Company                Money                                                      Buyer/Customer C. (3.  Marke▯ng  Mix  –  4Ps  [Value])   Product-­‐  Crea▯ng  Value  by  developing  a  variety  of  offerings,  including:  physical  goods  (tangible),     services  (intangible),  people  (i.e.  poli▯cians,  movie  stars,  singers),  ideas  (i.e.  dona▯ng  blood),  and     places  (tourism)  to  sa▯sfy  customer  needs.   Price-­‐  Capturing  Value;  Price  is  everything  a  buyer  gives  up  (money,  ▯me,  energy)  for  the     product;  Price  is  determined  by  figuring  out  how  much  customers  are  willing  to  pay  and    assessing     whether  a  profit  can  be  made   Place-­‐  Delivering  Value  (place  [supply  chain  management]  describes  all  ac▯vi▯es  needed  to  get    the     product  to  the  right  customer  when  the  customer  wants  it)     Promo▯on-­‐  Communica▯ng  Value  by  a  marketer  that  informs,  persuades,  and  reminds    poten▯al     buyers  about  a  product  or  service  to  influence  their  opinions  or  elicit  a  response D. B2C  Marke▯ng  (Business  to  Customer  marke▯ng),  i.e.  Dell  Computers  -­‐-­‐-­‐>  Customer B2B  Marke▯ng  (Business  to  Business  marke▯ng),  i.e.  Dell  Computers  -­‐-­‐-­‐>  UMiami  (greater  volume) C2C  Marke▯ng  (Customer  to  Customer  marke▯ng) E. Marke▯ng  Impacts  Stakeholders:  Society;  Customers;  Employees;  Supply  Chain  (i.e.  Raw  Material  to  GM   [suppliers]  to  dealer  [retailer]  to  customers  [consumer],  GM  needs  to  supply  enough,  so  car  dealer  does  not   look  bad  to  customers) Employment  Marke▯ng-­‐  undertaking  marke▯ng  research  to  understand  what  poten▯al  employees  are   seeking,  as  well  as  what  they  think  about  the  firm;  developing  a  value  proposi▯on  and  an  employment  brand   image;  communica▯ng  that  image  to  poten▯al  employees;  and  then  fulfilling  the  brand  promise  by  ensuring   the  employee  experience  matches  that  which  was  adver▯sed F.  (4.  Eras:  Produc▯on-­‐Oriented,  Sales  Oriented,  Marke▯ng  Oriented  and  Value  Based  Marke▯ng) Produc▯on-­‐  No  compe▯▯on Sales-­‐  Pressured  customers  into  buying Marke▯ng-­‐  Tried  to  find  out  what  customers  wanted Value-­‐based  Marke▯ng-­‐  (5.  What  is  Value  Based  Marke▯ng?  Give  an  example.  What  do  value  based   companies  do?)     Value  reflects  the  rela▯onship  of  benefits  to  costs;     Value-­‐based  Marke▯ng  focuses  on  ge▯ng  customer  to  understand  performance  of  product  and  price     tag  a▯ached;     Value  Co-­‐crea▯on  is  when  the  customer  acts  as  a  collaborator  to  create  the  product  (i.e.     designing  their  own  Nike  shoes  or  designing  M&Ms);     Value-­‐Driven  Companies  share  informa▯on  across  their  organiza▯on,  balance  customer’s     benefits  and  costs,  and  build  rela▯onships  with  customers     Customer  Rela▯onship  Management  [CRM]  is  a  business  philosophy  and  set  of  strategies,       programs,  and  systems  that  focus  on  iden▯fying  and  building  loyalty  among  the  firm’s  most       valued  customers,  companies  try  to  a▯ract  loyal  customers  by  crea▯ng  a  loyalty  program  [i.e.       CVS  extra-­‐care  card]         Other  rela▯onships  that  exist  are:         Transac▯onal  Orienta▯on-­‐  regards  buyer-­‐seller  rela▯onship  as  a  series  of         individual  transac▯ons  and  gives  li▯le  importance  to  anything  that  happened         before  or  a▯er  any  transac▯on       Rela▯onal  Orienta▯on  is  based  on  the  philosophy  that  buyers  and  sellers  should         develop  a  long-­‐term  rela▯onship 6. Why  is  Marke▯ng  important? Expands  firm’s  global  presence,  pervasive  across  organiza▯on,  pervasive  across  supply  chain,  makes  life  easier   and  provides  employment  opportuni▯es,  can  be  entrepreneurial,  and  enriches  society Chapter  2  –Developing  Marke▯ng  Strategies  and  a  Marke▯ng  Plan 1. What  is  a  marke▯ng  strategy?  What  is  Sustainable  Compe▯▯ve  Advantage? A  Marke▯ng  Strategy  iden▯fies:  ①  a  firm’s  target  market  (who  will  buy?  who  will  influence  the  decision?)  ②   a  related  marke▯ng  mix  (selec▯on  of  4  Ps)  ③  the  bases  on  which  the  firm  decides  to  build  a  Sustainable   Compe▯▯ve  Advantage  (SCA)  (companies  specialize  in  an  area  to  achieve  it) Sustainable  Compe▯▯ve  Advantage  (SCA)  is  an  advantage  that  a  firm  has  over  the  compe▯▯on  that  is  not   easily  copied  and  thus  can  be  maintained  over  a  period  of  ▯me i.e.  Dunkin’  Donuts  -­‐-­‐>  simple  coffee,  accessibility,  appeal  to  all  busy  people,  friendly  staff/experience,  and   quality  (they  throw  out  their  coffee  a▯er  18  minutes) 2. How  to  deliver  customer  value  and  develop  sustainable  compe▯▯ve  advantage?  (Refer  Exhibit  2.1) Customer  Excellence  is  achieved  when  a  firm  develops  value-­‐based  strategies  for  retaining  loyal  customers   and  provides  outstanding  customer  service 80%  of  customers  yield  20%  of  business,  20%  of  customers  yield  80%  of  business “Business  is  like  a  [open-­‐ended]  bucket”  -­‐VP  of  Holiday  Inn  (customers  come  in  and  they  leave) i.e.  Best  Buy Opera▯onal  Excellence  is  achieved  through  efficient  opera▯ons  (get  customers  what  they  want,  when  they   want  it),  excellent  supply  chain  management  (①sell  merchandise  in  par▯cular  region  ②obtain  special  terms   of  purchase  that  are  not  available  to  compe▯tors  ③receive  popular  merchandise  that  may  be  in  short   supply),  strong  rela▯onships  with  suppliers,  and  excellent  human  resource  management  (yields  produc▯ve   employees) Efficient Operations Excellent Supply Chain Management i.e.  Walmart Product  Excellence  is  having  products  with  high  perceived  value  and  effec▯ve  branding  and  posi▯oning i.e.  Apple   Loca▯onal  Excellence  is  having  good  physical  loca▯on  and  internet  presence,  it  is  important  for  retailers  and   service  providers 3. Steps  in  the  marke▯ng  plan  (Refer  Exhibit  2.2)  (You  should  be  able  to  briefly  describe  the  five  different  steps   in  the  marke▯ng  plan) Marke▯ng  Plan  is  a  wri▯en  document  composed  of  an  analysis  of  the  current  marke▯ng  situa▯on,   opportuni▯es  and  threats  for  the  firm,  marke▯ng  objec▯ves  and  strategy  specified  in  terms  of  the  four  Ps,   ac▯on  programs,  and  projected  or  pro-­‐forma  income  statements. Step  1:  Mission  Statement-­‐  Broad  descrip▯on  of  a  firm’s  objec▯ves  and  the  scope  of  its  ac▯vi▯es  it  plans  to   undertake  (i.e.  MADD  strives  to  stop  drunk  driving,  support  vic▯ms  of  this  violent  crime  and  prevent  underage   drinking) Step  2:  Situa▯on  Analysis  (SWOT)-­‐  Non-­‐biased  analysis  of  current  market  situa▯on  (compe▯tors  &  $$) Internal  Evalua▯on:  Strengths  (posi▯ve)  and  Weaknesses  (nega▯ve) External  Evalua▯on:  Opportuni▯es  (posi▯ve)  and  Threats  (nega▯ve) Step  3:  Iden▯fying  and  Evalua▯ng  Opportuni▯es  Using  STP Market  Segmenta▯on:  Process  of  dividing  the  market  into  groups  (market  segments:  consist  of  consumers   who  respond  similarly  to  a  firm’s  marke▯ng  efforts)  of  customers  with  different  needs,  wants,  or   characteris▯cs  -­‐  who  therefore  might  appreciate  products  or  services  geared  especially  for  them Targe▯ng:  a▯er  a  firm  has  iden▯fies  the  various  market  segments  it  might  pursue,  it  evaluates  each  segment’s   a▯rac▯veness  and  decides  which  to  pursue Posi▯oning:  involves  the  process  of  defining  the  marke▯ng  mix  variables  so  that  target  customers  have  a  clear,   dis▯nc▯ve,  desirable  understanding  of  what  the  product  does  or  represents  in  comparison  with  compe▯ng   products Step  4:  Iden▯fies  marke▯ng  objec▯ves  in  reference  to  the  4  Ps  (Product  Value  Crea▯on,  Price  Value  Capture,   Place  Value  Delivery,  Promo▯on  Value  Communica▯on) Step  5:  Evalua▯ng  the  results  of  the  strategy  and  implementa▯on  program  using  marke▯ng  metrics   (measurement  system  that  quan▯fies  a  trend,  dynamic,  or  characteris▯c) Who  is  accountable  for  performance?   What  are  the  performance  objec▯ves  and  metrics  of  the  firm’s  various  products  and  businesses  (projected   income)?   What  are  the  financial  performance  metrics  (i.e.  sales  and  profits)  and  how  do  they  compare  with   compe▯▯on? Por▯olio  Analysis:  Strategic  Business  Unit  (SBU)  or  Product  Line  (division  of  the  firm  that  can  be  managed  and   operated  somewhat  independently  from  other  divisions  and  may  have  a  different  missions  or  objec▯ves),   Market  Share  (percentage  of  a  market  accounted  for  by  a  specific  en▯ty  and  is  used  to  establish  the  product’s   strength  in  a  par▯cular  market),  Rela▯ve  Market  Share  (provides  a  product’s  rela▯ve  strength,  compared  to   that  of  the  largest  firm  in  the  industry),    Market  Growth  Rate  (annual  rate  of  growth  of  the  specific  market  in   which  the  product  competes) 4. What  are  Planning,  Implementa▯on  and  Control  Phase? Three  Phases  of  a  Strategic  Plan: Phase  1:  Planning  Phase  consists  of  ①  the  business  mission/philosophy  and  objec▯ves  and  ②  the   Strengths  Weaknesses  Opportuni▯es  Threats  Analysis Phase  2:  Implemen▯ng  Phase    consists  of  ①  iden▯fying  opportuni▯es  and  ②  implemen▯ng  the   marke▯ng  mix Phase  3:  Control  Phase  consists  of  evalua▯ng  performance  through  feedback  and  monitoring  how  the   product  is  doing 5. Growth  Strategies  –  Market  /  Products  and  Services  Strategies  (Exhibit  2.8) Market  Penetra▯on  Strategy-­‐  employs  exis▯ng  marke▯ng  mix  and  focuses  the  firm’s  efforts  on  exis▯ng   customers  (want  customers  to  be  loyal) Market  Development  Strategy-­‐  employs  exis▯ng  marke▯ng  offering  to  reach  new  market  segments,   whether  domes▯c  or  interna▯onal  (expanding  to  foreign  market) Product  Development  Strategy-­‐  offers  a  new  product  or  service  to  a  firm’s  current  target  market   (added  new  products  to  an  exis▯ng  market) Diversifica▯on  Strategy-­‐  introduces  a  new  product  or  service  to  a  market  segment  that  currently  is  not   served  (do  something  different  to  what  you  have  been  doing) Related  Diversifica▯on-­‐  current  target  market  and/or  marke▯ng  mix  shares  something  in  common   with  the  new  opportunity  (i.e.  Staples  -­‐-­‐>  copy  and  print  services) Unrelated  Diversifica▯on-­‐  new  business  lacks  any  common  elements  with  the  present  business  (i.e.   Disney  movies,  TV  shows,  and  stores) Chapter  4  –  Analyzing  the  Marke▯ng  Environment 1. Know  what  is  marke▯ng  environment-­‐  micro  environment  and  macro  environment Marke▯ng  Environment-­‐  Forces  that  affect/project  a  business Micro  Environment  (Immediate  Environment)  –   Company  capabili▯es-­‐  Realize  who  you  are,  what  are  your  strengths  (i.e.  infrastructure),  who  is  your  strength Core  competency  -­‐-­‐-­‐>  Exis▯ng  knowledge,facili▯es,  patents,  etc.  -­‐-­‐(apply  to)-­‐>  new  markets,  new  products,  etc. Compe▯▯on-­‐  Compe▯▯ve  intelligence  (CI)  consists  of  market  research  on  compe▯tors,  proac▯ve  rather  than   reac▯ve  strategy  (know  your  compe▯tor’s  ac▯ons)  consists  of  buying  compe▯tor’s  products  and  analyzing   them  (opening  product,  what  is  it  made  of,  learn  about  inside  details  [also  known  as:  reverse  engineering]) Corporate  partners-­‐  Firms  are  part  of  alliances,  align  with  compe▯tors  and  suppliers  (corporate  giants  help   suppliers  by  telling  them  how  to  make  products  be▯er  and  how  to  improve  on  their  marke▯ng  and  they  help   retailers  by  marke▯ng  their  stores),  just  in  ▯me  delivery  systems  (JIT) Macro  Environment  (External  Environment)  –  A  good  company  will  sense  changes  and  build  them  up  to  suit   the  needs  of  the  customer  (i.e.  electric  car) Culture-­‐  shared  meanings,  beliefs,  morals,  values,  and  customs  of  a  group  of  people  (iden▯fying  similari▯es   and  differences  in  cultures  to  segment  market) Country  Culture  (tools  and  ar▯facts,  behavior,  dress,  symbols,  physical  se▯ngs,  ceremonies,  language,  colors,   tastes,  and  food)  vs  Regional  Culture i.e.  State  Farm’s  9/11  Commercial  and  how  McDonald’s  serves  avocado  as  a  topping  in  Chile Demographics-­‐  Characteris▯cs  of  human  popula▯on  segments,  provides  an  easily  understood  snapshot  of  the   typical  consumer  in  a  specific  target  market,  provides  a  study  of  a  popula▯on Genera▯onal  Cohorts-­‐  group  of  people  of  the  same  genera▯on Generational Cohort Tweens Gen Y Gen X Baby Boomers Seniors Range of Birth Years 1996-2000 1977-1995 1965-1976 19
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