marketing final other notes

marketing final other notes - Benefits to taking this...

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Benefits to taking this course 1. Functional: learn about marketing, get course credit 2. Social: meet friends, business partners 3. Personal: feeling good about learning or excelling 4. Experiential: laugh, be entertained, or catch up on sleep Costs 1. Monetary: tuition and book fees 2. Temporal: time spent in class and studying 3. Psychological: stress studying for exams and listening to instructor 4. Behavioral: expending energy walking to class or getting sick from lectures Porter’s Five Forces * Corporate Strategy: in which industries do we want to compete? (Example cereal not Kellogg) * Industry Profitability Dependent on: Industry competitiveness o Low Intensity = Higher profitability o Industry has low intensity when it has few firms/decreasing firms, similar strategies, and high product differentiation (Not competing with one another) o Examples: Commercial aircraft, oil companies, watches Availability of substitute products o Customers can choose different product as a substitute o Few or No Substitutes = higher profitability o Examples of Few/No substitutes: Gasoline, Proprietary drugs o Examples of Many Substitutes: fresh vegetables, technological products o Green tea is a substitute for coffee. Coke is not a substitute for Pepsi but a competitor. Potentials entrants (Threat of New Competition) o High Barriers to Entry = Higher Profitability o High barriers to entry exists when: high capital requirements, economies of scale are present, high product differentiation, network externalities (technological or learning curve) o Example: Automobile Industry o Example of network barrier: Word Processing software Supplier power and Buyer power o Lower Bargaining Power of Suppliers/Buyers = Higher Profitability o Lower Bargaining power when high number or low information o Low supplier power: computer industry (hard disk drives) o Low buyer power example: medical services (patients) Growth Strategy model Boston Consulting Group Growth-Share Matrix 1. Star: high market growth, high relative market share 2. Question mark: high market growth, low relative market share 3. Cash cow low market growth, high relative market share 4. Dog; low market growth rate, low relative market share
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Consumer buying process 1. Problem Recognition Innate needs: Physiological needs for food, water, air, clothing, shelter, and sex. Also known as biogenic primary needs. Acquired needs: Needs that are learned in response to one’s culture or environment (such as the need for esteem, prestige, affection, or power). Also known as psychogenic or secondary needs. A trio of needs o Power: individual’s desire to control the environment. Gun, air-conditioning, remote control o Affiliation: need for friendship, acceptance, and belonging It is a social need, social networking. Fraternity/sorority o Achievement: need for personal accomplishment, closely related to egoistic and self-actualization needs Educational degree, car 2. Information search
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marketing final other notes - Benefits to taking this...

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