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BUS 346 Study Guide (Final)

Course

Principles of Marketing (BUS 346)

10 Documents
Students shared 10 documents in this course
Academic year: 2018/2019
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California Polytechnic State University San Luis Obispo

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● How marketers create value ○ Create value through co creation of products, as in the firm and the customer work together to create a product. ○ Companies share information across their departments and collect information about customer needs and wants. ○ Balance customer’s perceived value and benefits with the cost ○ Build relationships with customers through customer relationship management, which helps to build customer loyalty ● Why is marketing important? ○ It helps firms expand to global outlets ○ It helps bring together all aspects of the supply chain or marketing channel, so groups like the retailers, wholesalers, distributors all work together and are informed about needs and wants throughout the chain ○ Marketing enriches society, as many companies have taken on projects to make greener products, reduce their carbon footprint, and develop safer and healthier options. ○ It is at the core of entrepreneurial success, as many times these ventures look to satisfy unfilled needs. ● Marketing Strategy- identifies a firm’s target market(s), a related marketing mix such as the four p’s ( place, price product, promotion), the bases on which the firm plans to build a sustainable competitive advantage. Firms choose which consumer groups to pursue through STP ○ They divide the market into groups based on similar characteristics, needs, or wants. (segmenting) ○ Secondly, they evaluate the segment’s attractiveness and decides which to pursue. ○ Lastly, the company determines how it wants to position itself within the segments. The company defines the marketing mix variables, so that the product has a clear, distinctive understanding of what the product does or represents in comparison with competing products. Firms grow through market penetration strategy, market development, product development, and diversification. ○ Market penetration- The firm focuses their efforts on existing customers. It may attract new customers to its current target market or encourage existing customers to buy more from the firm. ( achieved through greater advertising, promotions, and intensified distribution) ○ Market development- employs the existing marketing offering to reach new market segments domestic or international. ○ Product development- offers a new product or service to a firm’s current target market. Ex: Creating new t. shows on MTV to increase time viewers spend watching MTV. ● ● ○ ● ● ● ● ● ● Diversification- introduces a new product or service to a market segment that is not served. 4E framework for social media ○ Excite the customer through mobile apps and games or communicating deals, price promotions, and providing personalized offers. ○ Educate the customer-Tell the customer about the value of the product and the offered benefits of the product. Emphasizing the overlap between the benefits the product provides and the benefit the customer requires. ○ Experience the product-This includes viewing videos about how to use the product, and reviews, free trials (downloading a preview of a book) ○ Engage the customer- engagement comes through interactions on social media and blogs or microblogs controlled by the firm. A relationship is created. Types of social media: ○ Social networking sites- like facebook, linkedin (duuhhhh) ○ Media-sharing sites- Users share content they have generated - instagram, flickr, YouTube, Pinterest ○ Thought sharing sites- Blogs, corporate blogs, microblogs(twitter), professional blogs Types of mobile applications ○ Price check apps, fashion apps, location-based gamified apps 3 parts of social media strategy ○ listen to what customer’s are saying blogs, social network sites, and review sites. Use sentiment analysis- analyze data from these sites to collect consumer comments about consumer products and services. ○ Analyze- determine amount of traffic through hits, pageviews, bounce rates, click paths, conversion rates. ○ Do, after gathering information and analysis- implement findings into a plan to increase business Ethical decision making framework○ Identify issues or what could go wrong ○ Gather information or facts relevant to the ethical issue and identify stakeholders or who is affected by how the issue is resolved. Stakeholders can be employees, suppliers, the gov, customer groups, stockholders, environment. ○ Brainstorm alternatives- parties relevant to the decision making process come together to brainstorm alternatives to the course of action. Ethics into marketing strategy ○ Marketers introduce ethics at the beginning of the planning process by introducing ethical statements in the firm’s mission or vision statements. ○ When firms identify potential markets and ways to deliver the 4p’s, they identify ways to implement ethics. ○ In the control phase, managers are evaluated on their actions from an ethical perspective. Must check whether each ethical issue raised in the planning process was successfully addressed. ○ ○ ● ● ● Customer satisfactionPost purchase cognitive dissonance-internal conflict that arises from inconsistency between two beliefs or between beliefs and behavior. ○ Consumer loyalty- postpurchase of the decision making process marketers attempt to solidify a loyal relationship with their customers. ○ Undesirable consumer behavior-passive customers are those who don’t repeat purchase or recommend the product to others. Sometimes there is negative word of mouth. Factors influencing consumer decision process ○ Psychological factors■ Motives a need or want that is strong enough to to cause the person to seek satisfaction. ■ Maslow’s hierarchy of needs-physiological, safety, love, esteem, and self actualization. ○ Physiological factors- deal with the basic biological necessities of life: food, drink, rest, and shelters. ■ Safety needs-Pertain to protection and physical wellbeing ■ Love needs- relate to our interactions with others. ■ Esteem needs- allow people to satisfy their inner desires ■ self actualization-when one feels completely satisfied with their life and how they live ○ Social Factors ■ Family ■ Reference groups- one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors ■ Culture-beliefs, values, morals, and customs of a group of people ○ Situational Factors ■ Purchase situation ■ Shopping situaton ■ Temporal state Involvement and buying decisions ○ Involvement- the consumer’s degree of interest in the product or service. Make decisions either on extended problem solving or limited problem solving ■ Extended problem solving-When consumer consults beyond her personal experiences such as family and friends and thinks there is a lot of risk ■ Limited problem solving occurs when a decision needs moderate effort and time. B2B segments ○ Manufacturers and service providers ○ Resellers- resell manufactured products like wholesalers or distributors ○ Institutions- Hospitals, educational organizations, and religious organizations, government ● ● ● ● ● ● ● Organizational Culture- Sets of values, traditions, and customs that guide its employee’s behaviors. ○ Autocratic buying center- multiple participants, one person makes the decision alone ○ Democratic buying center- the majority rules ○ Consultative buying center- one person to make a decision, but takes input from others ○ consensus buying center- all members reach a collective decision Buying situations ○ New buy- a customer purchases a good or service for the first time, so the decision is lengthy because it is a new experience ○ Modified rebuy- the buyer has purchased a similar product in the past, but has decided to change some specifications, such as price, quality level etc ○ Straight rebuys-buyer or organization buys additional units of product that have been purchased before Country market assessment ○ Economic analysis- such as market size, population growth, real income ○ Socialcultural analysis- power distance, uncertainty avoidance, individualism, time orientation ○ Government actions- tariff, quota, exchange control, trade agreement ○ Infrastructure and technology- transportation, channels, communication, commerce BRIC communities ○ Brazil-World’s 7th largest economy and literate population. ○ Russia-Complicated relations with the US, lots of economic downturns, and ethical dilemmas ○ India-most illeterate, but rapidly growing market ○ China-increased liberalization in economy Market entry strategies ○ exporting-producing goods in one country and selling in another. ○ Franchising-franchise contract allows the franchisee to operate a business using the name and business format of the franchisor. ○ Strategic alliance- collaborative relationship between independent firms, they create an equity partnership, but don’t invest in one another. ○ Joint venture- formed when a firm entering a market pools its resources with those of a local firm ○ Direct investment-requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices. Requires highest level of investment and risk Differences in global and domestic expansion ○ Global you have to understand cultural differences like language ○ Consumers view products and their role as consumers differently in each country. 3 product strategies ○ ● ● ● ● ● ● ● ● ● ● Brand loyalty-occurs when a customer buys the same brand’s product or service repeatedly over time Branding strategies ○ Brand Ownership-Brands can be owned by any firm in the supply chain ○ Naming Brands and product lines Brand Line Extension ○ Brand extension-refers to the use of the same name in a different product line ■ Colgate and Crest sell toothpaste, toothbrushes, and other hygiene products ○ Line Extension-Use of the sam brand name within the same product line and is an increase in product line depth. ○ Brand dilution occurs when the brand adversely affects consumer perceptions about the core attributes the core brand is believed to hold Co Branding- the practice of marketing two or more brands together on the same package, promotion, or store. KFC and A&W, Pizza Hut and Taco Bell Brand Licensing- a contractual arrangement between firms whereby one firm allows another to us its brand name, logo, or symbol. Brand Repositioning refers to a strategy in which marketers change a brand’s focus to target new markets Labeling and packaging strategies ○ primary and secondary packages provide opportunities for promotions, attracts customer’s attention, and stand out from competitors. Adopters ○ Innovators ○ Early adopters ○ early majority ○ late majority ○ laggards Product Development Cycle ○ Idea generation ○ Concept testing ○ product development includes alpha and beta testing ○ Market testing ■ premarket testing ■ test marketing ○ Product Launch ○ Evaluation of Results Product Life Cycle ○ Introduction Stage ○ Growth Stage ○ Maturity Stage ○ Decline Stage Services vs product marketing ● ● ● ● ● ● ● ● ○ intangible ○ inseparable ○ heterogenous ○ perishable Service Recovery ○ Listening to the customer and involving them in the service recovery ○ Finding a fair solution ○ Resolve problems quickly Pricing orientations ○ Profit orientation specifically by focusing on target profit, maximizing profit, or target return pricing. ○ Sales orientation- set prices believe that increasing sales will help the firm more than increasing profits. ○ Competitor Orientation■ status quo pricing ○ Customer orientation- is when a firm sets its pricing strategy based on how it can add value to its products or services. Price skimming-selling a new product at a high price that innovators and early adopters are willing to pay in order to obtain it. Lower price after market slows down Market penetration strategy- set the initial price low for the introduction of the new product or service Deceptive Price Strategies ○ Loss Leader Pricing lowers the price below the store’s cost. ○ Bait and Switch- store lures customers with a very low price on an item only to pressure customers into purchasing a higher-priced model Direct Vs Indirect Marketing Channels ○ Direct-seller no intermediaries between the buyer and seller ○ Indirect-one or more intermediaries work with manufacturing to provide goods or services to customers. Supply Chain Management Information Flow ○ Customer to Store- UPC codes are scanned ○ Store to Buyer-POS terminal records the purchase info sends it to buyer ○ Buyer to Manufacturer- Buyer gets order from seller and negotiates with manufacturer about prices ○ Store to manufacturer- sales transaction data sent to manufacturer who decides when to ship ○ Store to Distribution- coordinate deliveries ○ Manufacturer to distribution and buyer-man sends shipping notice to distribution center ( advanced shipping notice) Distribution intensity○ Intensive Distribution-place products in many outlets as possible ○ exclusive distribution-granting exclusive rights to certain geographic territories ○ selective distribution-relies on few selected retail customers ○ ○ ○ ● ● ● ● Sales Promotions Personal Selling Direct marketing ■ Received greatest increase in aggregate spending ○ Online Marketing/Mobile marketing ○ Social Media Advertising campaign Steps ○ Identify Target Audience ○ Set Advertising Objectives ■ objective can be a pull strategy ○ Determine Advertising Budget ○ Convey the Message ■ Determine what ads should convey about product ○ Evaluate and Select Media ■ select what combination of media to use and the frequency ■ Frequency ● countinuous- runs steadily throughout the year ● Flighting- Spurts of advertising then no ads ● Pulsing-increases during certain periods ○ Create Advertisements ○ Assess Impact using marketing metrics ■ lift- additional sales caused by advertisement Types of Media ○ TV ○ Radio ○ Magazines ○ Newspapers ○ Internet ○ Outdoors ○ Direct Marketing Public Relations Toolkit ○ Publications: brochures ○ Video and audio: PSA ○ Annual Reports ○ Media relations: news releases, event sponsorships ○ Electronic Media Sales Promotions ○ Coupons ○ Deals ■ A type of short term price reduction ○ Premium ■ Offers an item for free or at a bargain price to reward some type of behavior ○ ○ ● ● ● ● Contests Sweepstakes ■ Offers prizes based on a chance of drawing entrant’s names ○ Samples ○ Loyalty Programs ○ Point of purchase displays ○ Rebates ■ Type of price reduction in which a portion of the purchase price is returned by the seller to the buyer in cash ○ Product Placement ■ Placing a brand in a movie or TV show Value of Personal Selling ○ Salespeople are knowledgeable and educate customers ○ Build long term relationships with customers ○ Provide information and advice ○ Save time and simplify buying Personal Selling Process ○ Generate and Qualify Leads ■ Trade shows ■ Cold Calls ■ Telemarketing ○ Preapproach and the Use of CRM Systems ■ Sales person conducts further research on client and develops plan with customer ■ May role play to practice ○ Sales Presentation and Overcoming Reservations ■ beginning of presentation most important ■ Must generate interest, get to know the customer ■ Handle reservations customer may have ○ Closing the sale ■ obtaining commitment from the customer to make a purchase ○ Follow-up ■ Prime time to develop relationship 5 service quality dimensions ○ Reliability-Salesperson delivers right product at right time. ○ Responsiveness- Salesperson ready to deal quickly with an issue, question ○ Assurance-Customers are assured through adequate guarantees that purchase will perform as expected ○ Empathy- Salesperson has good understanding of the problems and issues faced by their customers ○ Tangibles-website, presentation of place, packaging Managing a Salesforce

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BUS 346 Study Guide (Final)

Course: Principles of Marketing (BUS 346)

10 Documents
Students shared 10 documents in this course

University: California Polytechnic State University San Luis Obispo

Was this document helpful?
● How marketers create value
○ Create value through co creation of products, as in the firm and the
customer work together to create a product.
○ Companies share information across their departments and collect
information about customer needs and wants.
○ Balance customer’s perceived value and benefits with the cost
○ Build relationships with customers through customer relationship
management, which helps to build customer loyalty
● Why is marketing important?
○ It helps firms expand to global outlets
○ It helps bring together all aspects of the supply chain or marketing channel, so
groups like the retailers, wholesalers, distributors all work together and are
informed about needs and wants throughout the chain
○ Marketing enriches society, as many companies have taken on projects to make
greener products, reduce their carbon footprint, and develop safer and healthier
options.
○ It is at the core of entrepreneurial success, as many times these ventures look to
satisfy unfilled needs.
● Marketing Strategy- identifies a firm’s target market(s), a related marketing mix such as
the four p’s ( place, price product, promotion), the bases on which the firm plans to build
a sustainable competitive advantage.
● Firms choose which consumer groups to pursue through STP
○ They divide the market into groups based on similar characteristics, needs, or
wants. (segmenting)
○ Secondly, they evaluate the segment’s attractiveness and decides which to
pursue.
○ Lastly, the company determines how it wants to position itself within the
segments. The company defines the marketing mix variables, so that the product
has a clear, distinctive understanding of what the product does or represents in
comparison with competing products.
● Firms grow through market penetration strategy, market development, product
development, and diversification.
○ Market penetration- The firm focuses their efforts on existing customers. It may
attract new customers to its current target market or encourage existing
customers to buy more from the firm. ( achieved through greater advertising,
promotions, and intensified distribution)
○ Market development- employs the existing marketing offering to reach new
market segments domestic or international.
○ Product development- offers a new product or service to a firm’s current target
market. Ex: Creating new t.v. shows on MTV to increase time viewers spend
watching MTV.

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