71 terms

Marketing 101

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Marketing
An organizational function and set of processes for creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and it's employees, customers, investors and society as a whole
Supply Chain
a set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances and information from a source to a customer.
Members of a Supply Chain
Manufactures
Wholesalers
Retailers
Transportation companies
Logistics of Supply Chain
The parts of the chain that plans, implements and controls the flow of goods, services and info between the point of origin and the final customer
TREND :Product orientation
-Prior to 1920s
-Focused on efficient processes and production to create products and reduce unit costs
-quality products would simply sell themselves
TREND Sales Orientation
-Great Depression
-Personal selling and advertising to persuade customers to buy new products and more of existing products
TREND Marketing Concept
-Long-term success must include a company-wide after to satisfy customer needs
-Characterized by customer orientation
-Stresses everyone must satisfy the customer
Stakeholder Responsibility
obligations an organization has to those who can affect whether or not it achieves its objectives.
Internal Stakeholders
Employees
Managers
Owners
External Stakeholders
Suppliers
Society
Government
Creditors
Shareholders
customers
Need
Customers feels deprived when they lack something useful or desirable like food, clothing, shelter, cars and safety .
Wants
Form that human needs takes as they shaped by personality, culture, and buying situation.
Difference between needs v. wants
The difference between needs and wants impacts the way companies market their product
Value
is created when consumer wants and needs are satisfied
The 4 Marketing P's
1. Product
2. Price
3. Place
4. Promotion
Product
Specific combination of goods, services or ideas that a firm offers to consumers. -- What is my product?
What features does it have?
How long has it existed?
Price
amount of something - money, time, effort- that a buyer exchanges with a seller to obtain a product-- What price should I sell my product at?
Should I offer a discount?
Should I price it differently in another country?
Place
The activities a firm undertakes to make its product available to potential consumers--What suppliers to use?
How to deliver the products?
How much inventory to hold?
Promotion
all activies that communicate the value of a product, and persuade customers to buy it
includes:
1 advertising
2 public relations
3 personal selling
4 selling promotion
Where to advertise?

Should I use sales promotion tools (coupons)?
Should I hire sales people?
How do I want the public to perceive my product?
NAFTA (The North American Free Trade Agreement)
International agreement that established a free trade zone among the US, Canada and Mexico
Brand
Name, term and symbol that identifies and differentiates a firms product
Non-profit Marketing
They need to pay close attention to the implementation and accountability sections of the mkt plan, money is tight and must spend wisely.

-Still use the same marketing principles

depends on:
1. Economy
2. Political
3. Legal
4. Technological
Strategic Planning
process of thoughtfully defining a firms objected and developing a method for achieving those objectives

-helps ensure that marketers will select and execute the right marketing mix strategies to maximize success

1. Market Penetration
2. Product Development
3. Market Development
4. Diversifaction
Parts of Strategic Planning
1. Market penetration
2. Product Development
3. Market development
3. Diversification
Market Penetration
emphasizes selling more of existing good and services to existing customers
Product development
creating new goods and services for existing mkts
Market Development
focus on selling existing goods and services to new customers
Diversification
seek to attract new customers by offering new products that are unrelated to the existing products produced by the organization
Marketing Plan
Guides the analysis, implementation and control of the firms marketing strategy
Steps of the Marketing Plan
1. Executive Summary
2. Situation Analysis
3. Marketing Strategy
4. Financials
5. Controls
Executive Summary
-Describes the current state of the market
-Sets the stage for situation analysis by focusing on the market to which the firm will sell its product
-Helps organization understand what resources to invest-
-last stage
Situation Analysis
Analysis of the Environment
-Marketing Summary
-SWOT analysis
-Competition
Marketing Strategy
Defines and targets marketing plan outlines strategies based on specific, measurable, and realistic objectives.
Financials
details about financial projection including sales, expense forecast and break-even analysis
Controls
Propose how to monitor and adjust the plan by
1. implementation
2. organization
3. contingency
What types of objectives should be considered in the marketing strategy?
specific, measurable and realistic objectives
Should a marketing plan have a short term or long term vision?
Both and it should tie into the organization's mission for long term sustainability.
Mission Statement
-The first step in creating a quality marketing plan is to develop an effective mission statement
-a concise affirmation of the firms long-term purpose and first step is creating a marketing plan
-provides motivation for employees
Target Markets
the group of customers towards which an organization has decided to direct its marketing efforts
multinational company
Firms with mulitiple markets that operates in two or more countries is call
SWOT analysis
1. Strengths (internal)
2. Weakness (internal)
3. Opportunity (external)
4. Threats (external)
Direct Competition
Type of competition that occurs among businesses that offer similar goods or services
Indirect Competition
Type of competition that occurs among businesses that don't offer the same or similar goods and services
Exchange
Involved a buyer/seller that have value and trade so that each is better off
Main US Exports
1. Canada 2. Mexico 3. China
Primary Data
Data obtained for the first time and used specifically for the particular problem or issue under study.
Secondary Data
Data that has already been collected for some purpose other than the current study
Gross Domestic Product
measure of market value recognizing final goods and services produced within a country in a given period.
Consumer Confidence
Measures how optimistic consumers are about the overall state of the economy and their personal finances
-People buy more when they have more confidence and secure in their jobs
Marketing research Steps
1. Problem Definition
2. Plan Development
3. Data Collection
4. Data Analysis
5. Take Action
Demand
Quantity of a good or service that consumers are willing and able to buy.
Relationship Marketing
A marketing strategy that focuses on attracting, maintaining, and enhancing customer relationships.
Corporate Social Responsibility
An organization's obligation to maximize its positive
impact and minimize its negative impact on society.
Market Penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product.
External Marketing Impact
1. Economic
2. Demographic
3. Political
4. Technological
5. Legal
6. Sociocultural
Environmental Scanning
The act of monitoring developments outside of the firm's control with the goal of detecting and responding to threats and opportunities.
Demographics
Characteristics of human population that can be used to identify consumer markets
Sociocultural
combination of social and cultural factors that effect individual development
Political
Government policy affects markets position on products.
Legal
Ensures business compete fairly, don't take advantage of customers
Social Media
A group of internet based applications that allow the creation and exchange of user-generated content.
Sales forecasting
A form of research that estimates how much of a product will sell over a given period of time.
Importance of Sales Forecasting
don't want to over produce and have inventory sit.
Break even Analysis
combines data provided in the sales forecast and expense forecast to estimate how much the company needs to sell to cover it's expenses.
S- SWOT
Strengths (internal)
Internal capabilities that help the company achieve its objectives
Marketing Research
act of collecting, interpreting, and reporting information concerning a clearly defined marketing problem.
What percent of new businesses fail?
Over 80%, because do not deliver value to customers.
Why do we market?
1. attract new customers by promising superior value.
2. Keep and grow current customers by delivering satisfaction.
W- SWOT
Weaknesses (internal)
Internal limitations that may prevent or disrupt the firms ability to meet its standards
O-SWOT
Opportunities (external)
Firm may be able to capitalize on to meet or exceed its stated objectives
T-SWOT
Threats (external)
Current and potential factors that may challenge the firms short and long term performance