Final Exam - MKT 100

• Marketing


  the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
• 4 Components of Marketing

  1. Creating Value - collab with suppliers and customers to create offerings that have value

  2. Communicating Value - describing those offerings, as well as learning from customers

  3. Delivering Value - getting those offerings to the consumer in a way that optimizes

  4. Exchanging Value - trading value for those offerings
• Value


  everything a customer gets for what they give up
• 4 P's of Marketing

  1. Product

  2.Promotion

  3. Place

  4. Price
• Target Markets


  customers segment to whom the firm is interested in selling its products and services
• What is SWOT


  strengths, weaknesses, opportunities, threats
• Market Penetration Strategies

  focus on increasing a company's sales of its existing products to its existing customers
• Product Development Strategies

  creating new products for existing target customers
• Market Development Strategies

  focus on entering new markets with existing products
• Diversification Strategies

  entering new markets with new products or doing something outside a company's current businesses
• Sustainable Competitive Advantage


  a company develops an advantage over the competition that cannot easily be copied and can be maintained over the long term
• 4 Types of SCA

  1. Locational Excellence - advantage through number of locations

  2. Operational Excellence - focusing on improving your company operations through strong supplier relationships

  3. Product Excellence - offering customer products that have a high perceived value and/or effective branding

  4. Customer Excellence - developing value-based strategies for retaining loyal customers and providing them excellent customer service
• Market Growth Rate


  how fast the unit is growing compared to the industry in which it competes
• Relative Market Share


  how the unit share of the market compares to the market share of its competitors
• Stars


  a product with high market growth rate and a high relative market share
• Cash Cows


  low market growth and a high relative market share
• Question Marks


  low relative market share in a high growth market
• Dogs


  low market growth and low relative market share
• Consumer Purchase Decision Process

  1. Need recognition

  2. Search

  3. Evaluation

  4. Choice

  5. Post Purchase Evaluation
• Steps in Marketing Research Process

  1. Define the problem

  2. Design the research

  3. Design the data-collection forms

  4. Specify the sample

  5. Collect the data

  6. Analyze the data

  7. Write the research report and present its findings
• External Factor


  situational factors

  social norms

  time

  reason for purchase
• Personal factors


  gender/age/stage of life

  lifestyles/activities/interests

  mood

  personality/self-concept
• Psychological Factors


  motivation

  perception

  learning

  attitude
• Societal Factors


  culture

  subculture

  social class

  family
• Types of Marketing Research

  Quantitative research

  Qualitative research

  Causal research
• What is PESTC


  Political

  Economic

  Socio-cultural

  Technological

  Competitive
• Derived Demand


  demand that springs from or is derived from, a source other than the primary buyer of a product
• Fluctuating Demand


  small change in demand by consumers can have a big effect throughout the chain of businesses that supply all the goods and services that produce it
• Joint Demand


  when the demand for one product increases the demand for another
• Producers


  companies that purchase goods and services that they transform into other products/services
• Resellers


  companies that sell goods and services produced by other firms without materially changing them
• Buying Centres


  groups of people within organizations who make purchasing decisions
• Initiators


  people within the organization who first see the need for the product
• Users


  people and groups within the organization that actually use the product
• Influencers


  people who may or may not use the product but have the experience or expertise that can help improve the buying decision
• Gatekeepers


  people who will decide if and when you get access to members of the buying centre
• Decider


  The person who makes the final purchasing decision.
• Straight Rebuy


  purchaser buys the same product in the same quantity from the same vendor
• New Buy


  firm purchases a product for the first time
• New-to-an-organization


  buying situation is a rare occurrence