Fundamentals Exam

• Crest


  Markets different products to different consumer segments
• Marketing


  • Not simply a buyer and seller exchanging money for a good or service
  • Can be an exchange of information for convenience
• Marketing exchange


  • I gave George brown money & they give me education
• The 4 P's of Marketing

  • Product - creating value
  • Price - transacting value
  • Place - delivering value
  • Promotion - communicating value
• Types of Marketing


  • B2B (business-to-business)
  • B2C (business-to-consumer)
  • C2C (consumer-to-consumer)
• Settings where Marketing occurs

  • Profit entities
  • Non-profit entities
  • Developed economies
  • Developing economies
  • Institutions (e.g. hospitals, religious)
  • Individuals marketing themselves
• Marketing eras


  • Product-oriented era
  • Sales-oriented era
  • Market-oriented era
  • Value-based marketing era
• "If you fail to plan, you plan to fail." - Benjamin Franklin
• Marketing Plan


  • A way of achieving something
  • An information-gathering experience
  • A roadmap
• What a marketing plan does

  • Informs the plan's participants of their role & function
  • Specifies how resources are to be allocated, the specific marketing tasks, the responsibilities of individuals and the timing of all marketing activities
  • Keeps you aligned and on budget
• Mission Statement

  The foundation of a corporate plan; it is a statement of the organization's purpose
• What a mission statement answers


  • The company's work
  • What they do for a living today
  • What its goals are and how it will accomplish them
• The Heart and Stroke Foundation's mission statement is an example of a well-crafted mission statement
• After the Tylenol cyanide tampering incident, Johnson & Johnson immediately pulled all Tylenol off the shelf at a cost of $100 Million, as it was the obvious decision based on their mission statement
• SWOT Analysis


  An important planning tool that helps an organization identify its internal strengths and weaknesses, as well as its external opportunities and threats
• SWOT Analysis quadrants


  • Strengths (internal positive)
  • Weaknesses (internal negative)
  • Opportunities (external positive)
  • Threats (external negative)
• Strengths


  • An organization's resources and capabilities that can be used for developing a competitive advantage
• Examples of strengths


  • Strong brand names
  • Superior product offerings
  • Strong base of loyal consumers
  • Proprietary technology / intellectual property
  • Strong distribution network
• Weaknesses


  • Something an organization lacks, does poorly, or a condition placing it at a disadvantage
• Examples of weaknesses


  • Little or no brand recognition
  • Limited loyal customer base
  • Lack of proprietary technology
  • Poor location
  • Lack of financial resources
• Opportunities


  • The external environmental analysis may reveal certain new opportunities for profit and growth
• Examples of opportunities


  • An unfulfilled customer need
  • Changes in demographics
  • Loosening or tightening of laws/regulations
  • Removal of international trade barriers
• Threats


  • Changes in the external environment that may present threats to the firm
• Examples of threats


  • Shifts in consumer tastes away from the firm's products
  • Emergence of substitute products
  • New market entrants
  • Arrival of new technologies
  • Economic downturn
  • New laws
  • Natural and other disasters
• The important thing about SWOT analysis is not the analysis itself, but the actions indicated by the results
• Actions indicated by SWOT

  • Capitalize on strengths
  • Invest in opportunities
  • Manage weaknesses
  • Respond to threats
• A marketing environment analysis framework includes the microenvironment and macroenvironment
• Microenvironment


  Factors close to the company that affect its ability to serve its customers
• Macroenvironment


  Broader societal forces that affect the microenvironment
• CDSTEP factors in the macroenvironment

  • Culture
  • Demographics
  • Social Trends
  • Technology
  • Economy
  • Political/Regulatory
• Culture


  Shared meanings, beliefs, morals, values, and customs of a group of people
• Demographics


  Provides an easily understood snapshot of the typical consumer in a specific target market
• Typical demographic factors


  • Age
  • Gender
  • Income
  • Education
  • Marital Status
• Time Poverty


  In the majority of families, all working-age adults work, and technology has made many consumers busier and more likely to multitask
• Technology has impacted every aspect of marketing, including new products, new forms of communication, and new retail channels
• Technology has revolutionized the music industry, displacing CDs and the profits that went with them, and leading to the explosion of music streaming
• Economic factors


  Foreign currency fluctuations, inflation, interest rates, consumer confidence, unemployment
• Examples of political/regulatory factors

  • Competition Act
  • Consumer Packaging and Labelling Act
  • Food and Drugs Act
  • Access to Information Act
  • New Cannabis Laws
• Segmentation, Targeting, Positioning (STP)

  A process for identifying and evaluating market opportunities
• Hertz uses market segmentation to target different customer groups