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management job

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marketing decisions; planning marketing activities, direction the implementation of the plans, and controlling the plans: seek new opportunities, plans concern the whole firm

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What is a marketing strategy

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specifies a target market and a related marketing mix

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target market

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fairly homogenous group of customers whom a company wishes to appeal

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marketing mix

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controllable variable the company puts together to satisfy this target group example: herbal essence shampoo: curly hair, straight hair

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target marketing is not

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mass marketing

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marketing strategy is to a _____ target customers

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particular, target marekting to distinguish from mass marketing marketing mix is tailored to fit some specific target consumers

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mass marketing

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typical production orientation appraoch aims at everyone with the same marketing mis. Assumes that everyone is the same.

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Shotgun approach

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mass marketing - everyone is the same

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rifle approach

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target appraoch

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Are mass marketers the same as mass marketing?

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no, mass marketers like kraft foods and walmart are aiming at clearly defined targets!

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developing marketing mixes

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many marketing mix decisions: package, brand name, and warrange can be changed

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what are the four p's

answer

product, place, promotion, price

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product

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developing the right product for the target market. physical good, service or blend. this includes branding, packaging and warranties

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place

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right product to the target market's place. Where and when its wanted, reaches a customer through channel of distribution

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channel of distribution

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any series of firms or individuals that participate in the flow of products from producer to final user or consumer. Southwest airlines example of how american airlines uses many channels and southwest does not (ie hotel info etc expedia) and transporting, storing and handling products

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promotion

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telling and selling the product to the customer, this is the "right product" selling mass selling and sales promotion Markets job to blend methods of communication

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types of methods of communication

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personal selling, customer service, mass seling, publicity, sales promotion

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personal selling

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direct spoken communication between sellers and potential customers

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customer service

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personal communication between a seller and a customer who want the seller to resolve a problem witha purchase

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mass selling

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communicating with large numbers of customers at the same time USES ADVERTISING AND PAID FORM OF THINGS

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PUBLICITY

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UNPAID form of communication

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sales promotion

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those promotion activities other than advertising, publicity, and personal selling such as coupons, pop, signs, contests, events, catalogs

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price

answer

kind of competition in the target market and the cost of the whole marketing mix; if customer doesnt accept the price all things are wasted

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is the customer part of the marketing mix

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NO the customer is surrounded by it

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Should the 4 ps be equal

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yes, they are equally important all are needed and should be tied together. selecting a target market and developing a marketing mix are interrelated MUST BE DECIDED TOGETHER

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EXAMPLE OF TODDLER UNIVERISTY

answer

differnt types of customers, traditionalists, economists, fashionistas, attentive parents they used plan : what marketing mix will be offered, to whom, for how long - what company resources will be needed, what results are expected, include control procedures

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implementation

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puts marketing plans into operation

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operational decision

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short run decisions to help implement strategies that may be needed

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control

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analyzing and correcting what youve done,

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customer equity

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expected profits depend on this. expected earnings stream of a firm's current and prospective customers over some period of time. Top management expects to identify opportunities that will lead to increase customer equity

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what is the key to profit

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customers

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what is an attractive opportunity

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breakthrough, competitive advantage , segmentation, differentiation SWOT

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swot

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analysis which defines the firms strengths, weakness opportunities and threats strengths and weaknesses are internal opportunities and threats are external

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differentiation

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means that the marketing mix is distinct from and better than what is available from a competitor

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opportunities to actually pursue

answer

marketing penetration, market development, product development, diversification

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marketing penetration

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increase sales of a firm present product in its present markets probably through a more aggressive marketing mix, international opportunities

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market development

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trying to increase sales by selling present products with new markets

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product development

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offering new or improved products for present market

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diversification

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moving into totally different lines of business

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what do direct markets include

answer

customers, the company and the competitor

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external market environment is broader than direct market

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it includes economic environment, political and legal environment, cultural and social environment

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firm's objects

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should set firms course, responsibility of top management, look at the whole business, relate to present objectives, resources to external environment and decide what the firm wants to accomplish

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three basic objectives provide guidelines

answer

should be together!! engage in specific activities that will perform a sociall and economically useful function a. Businesses cant exist without approval of consumers 2. Develop an organization to carry on the business and implement its strategies 3. Earn enough profit to survive a. It isn't enough to just make profit. b. Management must specific TIME PERIOD c. Expenses in the short run matter d. BUT - seeking only short hand can ruin things too e. Example: fruit of the loom. Set a target rate of profit that will lead the firm into areas with promising possibilities

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mission statements

answer

sets out the organization's basic purpose for being, should focus on few key goals rather than everything, supply guidelines that help determine which opportunities to pursue

question

company resources may limit opportunities

answer

find strengths and recognize weakness such as financial stregnth you need money before a firm can make its first sale, producng capability and flexibility, smaller firms can be more flexible, marketing strengths helps analyzing current marketing resources, a familiar brand can be a strength starbucks made up own ice crea, new idea or process, collaborators help offset weakness clorox

question

analyze competitors

answer

a. Competitive environment affects the number and types of competitors the marketing manager must face and how they may behave. i. Pure competition ii. Oligopoly iii. Monopolistic competition iv. Monopoly b. Most markets lean towards pure or oligopoly, competitiors offer similar products. Marketing mix with best customer value is not necessarily the lowest price!! c. Marketing managers cannot adopt the same good marketing strategy used by other firms bc it leads to head on comp and spiral downward in prices and profits d. Competitior free environments are rare:

question

types of competition

answer

monopoly only one firm controls a broad product, gov. commonly regulate monopolies, utility companies monopolistic # of diff firms offer marketing mixes that at least some customers see as different -- most face monopolistic competition

question

finding competitive advantage

answer

i. Avoid head on by new ways to satisfy customers' needs and provide value, requires understanding not only of customers but also competitors ii. Competitior analysis is an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies iii. Compare the strenfths and weaknesses of your target market and marketing mix with what competitors are currently doing or are likely to do in response to your strategy 1. Identify potential competitiors iv. Competitive rivals → firms that will be the closest competitors and are usually easy to identify

question

sustainable competitive advantage

answer

a marketing mix that some customers see as better than competitiors and cannot be easily copied , does not involve price

question

competitive barriers

answer

the conditions that may make it difficult or even impossible for a firm to compete in a market, seek info about competitors, ethical issues may arise --> how far do you go to be on top

question

economic environment

answer

macro economic factors including national income, economic growth and inflation that affect patterns of consumer and business spending

question

technological encrionment

answer

technology is the applicaiton of science to convert an economy's resources to output - opportunities for new products and new processes. Internet is reshaping marketing! internet is a system for linking computers around the world, changes how consumers shop and marketers market such as click thoughts. ethical issues production oriented way of thinking

question

political environment

answer

nationalism, regional groupings, unification of european makrkets nafta

question

nationalism

answer

limiting in international markets; it is an emphasis on a country's interest before everything else, affects how macro marketing systems work, nationalistic feelings can reduce sales in international markets. Is it illegal for US firms to offer bribes

question

unification of Euripean markets

answer

reducing conflicting laws to trade within europe - prohinition of lifetime guarantee

question

nafta

answer

lays out a plan to reshape the rules of trade among US, Canada and mexico it is a free trade act. backlash that firms have moved production and jobs to mexico where labor is cheaper

question

legal environment

answer

sets basic rules for how a business can operate in society, legal environment may limit some choices, trying to encourage competition -- comp within small firms helps economy, anitmonopoly laws

question

legal environment FDA,

answer

food and drugs are controlled i. 1906 Pure Food and Drug Act 1. unsanity meat pacing, FDA e. product safety is controlled i. Conumer Product safety act of 1972 , this group has broad power to set safety standards an can impose penalties fro failure to meet these

question

social & cultural environment

answer

how and why people are the way they are. language, education, religion, food clothing, housing, work marriage, family change happens slowly but is important, multiculturalism is making differences

question

womens roles

answer

women in the job market boosted economic growth 70% of women 35-44 are working

question

screening criteria

answer

analyze firms resources, product market screening both quantitative and qualitative components, criteria should be realistic, whole plans should be evaluated ROI appoach can evaluate possible plans

question

quantitative

answer

summarize the firms objectives ": sales, profits, and return on investment

question

qualitative

answer

what kinds of businesses the firm wants to be in , what businesses it wants to exclude, what weaknesses it should avoid and what resources and trends it should build on

question

sustainability

answer

idea that is important to meet present needs without compromising the ability of future generations to meet their own needs

question

multiproduct firms

answer

have difficult strategy planning, must develp plans for different bsuiness and balance plans so the whole company reaches its objectives

question

what is a company's market

answer

group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services - not just products

question

generic markets t

answer

market with broadly similar needs and sellers offering various often diverse ways of satisfying hose needs. sellers have to focus on the need the customer wants not how the sellers product is better than another!

question

product market

answer

market with very similar needs and sellers offering various close substitute ways of satisfying those needs

question

complete product market definition

answer

what: prodcut type to meet what: customer needs for whom: customer types where: geographic areas, should meet customer needs

question

generic market doesnt include

answer

product type terms NO PRODUCT TYPE

question

market segmentation

answer

naming broad product markets, segmenting these broad product markets in order to select target markets and develop suitable marketing mixes

question

segmenting

answer

aggregation process putting people with similar needs into a market- homogenous group of people who will respond to a marekting mix in a similar way look for similarities

question

segmenting broad product market

answer

homogenous similar withi, heterogenous, different between, substantial big enough to profit, operation useful for identifying customers and deciding on marketing mix variables operational!! ages, sex, income, location and family size, moodiness is not a practical operational use

question

what to taget marketers aim

answer

they aim at specific targets, three basic ways -- single target market approach, multiple target market approach, combined target market approach

question

single target market appraoch

answer

pick one of the homogenous segments as the firms target markets

question

multiple target market appraoch

answer

segmenting the market and choosing two or more segments and then treating each as a separate target market needing a different marketing mix

question

combined target market approach

answer

combining two or more submarkets into one large target market as a basis for one strategy

question

combiners try to satisfy pretty well

answer

try to increase the size of their target market by combining two or more segments 1. similarities

question

segmenters try to satisfy very well

answer

i. segmenters aim at one or more homogenous and try to make different mix for each ii. really fine tune marketing mixes iii. idea of superior value

question

segmenting may product bigger sales

answer

such a close relationship with the market profit is the balancing point

question

IV. what dimensions are used to segment markets

answer

a. several dimensions at the same time b. qualifying dimensions → are those relevant to including a customer type in a product market c. determining dimensions → are those that actually affect the customer's purchase f a specific product or brand in a product market page

question

A best approach to segmenting product markets

answer

a. Select the broad product-market i. Build on the firms strength b. Identify potential customers' needs i. Identify and write down as many relevant needs as you can considering all f the potential customers in the broad product market ii. Brainstorming step c. Form homogeneous submarkets narrow product markets d. Identify determining dimensions e. Name the possible product markets (nickname) i. Based off relative importance f. Evaluate why product market segmetns behave as they do g. Make a rough estimate of the size of each product market h. Next... i. Improve the marketing mix for current customers

question

More sophisticated techniques may help in segmenting

answer

a. Clustering usually requires a computer i. Try to find similar patterns with sets of data. Clustering is groups of customers who are similar on their segmenting dimensions into homogeneous segments. Clustering approaches use computers ii. Importance of different needs iii. Sometimes you get new marketing strategies b. Customer database an focus the effort i. Customer relationship management , the seller fine tunes the marketing effort with information from a detailed customer database→ customers past purchases!!

question

Differentiation and positioning take the customer point of view

answer

a. Differentiate the marketing mix to serve customers better i. Customers see your firms competitive advantage b. Positioning → refers to how customers think about proposed or present brands in a market i. Product space c. Each segment may have its own preferences d. Combining vs segmenting i. Positioning analysis may lead a firm to combining rather than segmenting it managers they they can make several general appeals to different parts of a compbined market

question

positioning as a part of broader analysis

answer

positioning helps manager understand how custoers see their market target is as visual aid to understanding a product market concisely identifies the firms desired target market product type primary benefit or point of differentiation and the main reason a buyer should believe the firms claims.

question

target market focus on the

answer

global customer to develop marketing strategies that find unsatisfied customers to whom they can offer superior value through more attractive marekting mixes

question

what three questions do marketers need to answer

answer

group vs customers how big is it where is it

question

global consumer markets

answer

literacy, population density technology

question

population is becoming more concentrated

answer

population density is important, urbanization increase in , affluent big city consumers have similar lifestles and needs

question

there is no market when there is no

answer

incom

question

measures of national income

answer

gross domestic product gross national income gross national income per capital

question

gross domestic product

answer

total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country does not include foreign income

question

gross national income

answer

measure that is similar to GDP but this does not include income earned by foreigners who owned resources in that national

question

GNI per capital

answer

is per person, is a useful figure becuase it gives some idea of the income level of people in the country

question

US population is shifting

answer

population is different in parts of the country population will keep growing but growth has slowed down

question

birthrate booms and busts

answer

i. Birthrate is the number of babies born per 1,000 people 1. Post WW2 lasted until 1960's ii. Generation called baby boomers came from 1960's people born between 1946-1964 iii. 1970's called baby bust → women stayed in the workforce and waited longer to have children iv. echo boom → when baby boomers had their own children in the 1980's-1990's v. trend toward smaller families

question

boomers drive the

answer

graying of america - median age rose to 37

question

geneartion x

answer

i. Called Gen X refers to generation following baby boom 1965-1977 ii. Since there was a decline it was result of the baby bust!! iii. Better educated than previous generations iv. Women more highly educated v. Smaller in size

question

generation y

answer

Millenials 1978-1994 ii. echo boom , grew 12.1% iii. grew up with technology iv. digital lifestyles

question

income dimensions of the US market

answer

a. More people are in middle and upper income levels i. Family incomes generally increased with GNI ii. The distribution of income changed drastically over time which is evne more important iii. Started off as a pyramid most low level income is at the bottom b. Real income growth has slowed but for how long? i. Real income - income that is adjusted to take out the effects of inflation on purchasing power c. Higher income groups receive a big share i. Divides families into 5 equal sized groups from lowest to highest income ii. Median income in 2008 was 62k top 20% made 200k d. How much income is enough i. Income distributon just focus on the median income e. Can low income consumers protect themselves i. Disposable income is what is left after taxes ii. Discretionary income what is left of disposable income after paying for necessities 1. Necessities caries from family to family and over time

question

spending and family cycle

answer

demographic dimensions are useful in understanding consumer buying: marriage, age, age of children in the family

question

is there a typical american household

answer

no!! single adult households are on the rise,

question

young people and families

answer

accept new ideas, single and young couple willing to try new products, spend greater amounts on discrepencies, divorce disrupts the family cycle patter

question

reallocation for teenagers

answer

american teens spend almost 200 billion

question

selling to the empty nesters

answer

empty nesters people who child are grown and who are not able to spend money in other ways

question

senior citizens are big market

answer

people over 65 senior citizens are not only a large group but more prosperous than ever before older people have different needs

question

ethnic dimensions of the US market

answer

a. Do ethnic groups buy differently i. People from different ethnic groups may be influenced by very different cultural variables ii. 1 out of 5 families speaks another language iii. differences in attitudes, experiences, and values as well as where they shop and what advertising appeals they attend to, come together to shape differeneces in buying behavior b. stereotypes are common misleading i. this is changing, black families are still the poorest but are trying to make more money c. ethnic markets are becoming more important i. # of ethnic groups is growing at a much faster rate than the overall society ii. immigration d. Hispanic market is growing i. Largest and fastest growing ethnic group int eh USA e. Asian market grows fast too i. Have the highest median family income f. Income and population create ethnic market buying power g. Strategy changes may be needed

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