Marketing Prelim #1 Review Notes

Marketing Prelim #1 Review Notes - Marketing Prelim 1...

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Marketing – Prelim 1 – Lecture Notes Review Six Key Marketing Concepts I. Price vs. Value a. Value = Benefits / Price b. Benefits include (but is not limited to) – Taste, quality, nutrition, recipes, information, safety, freshness, fun c. Price can be direct or indirect II. Economic Utility a. Degree to which customer wants/needs are satisfied b. Marketers may create by: i. Form ii. Time iii. Place iv. Possession III. Marketplace Orientations a. Focuses its efforts on: i. Continuously collecting information about customers’ needs ii. Sharing this information across departments iii. Using it to create customer value b. 4 “marketing eras” i. Production – Goods were scarce ii. Sales – Goods were in excess, hire more salespeople iii. Marketing – Marketing Concept iv. Customer Relations – Era of the consumer IV. Total Quality Management a. Quality involves improving those features and characteristics of an offering that influence its ability to satisfy customer needs b. Benchmarking – discovering the best practices of organizations in its own and other industries and then imitating them to leapfrog its competitors c. Strategies to promote TQM: i. Involving top management ii. Marketing audit iii. Continuous improvement iv. “Benchmarking” – (See IV b.) v. Focus on customer satisfaction V. Customer Satisfaction a. Internal marketing – employees as customers b. Training and education c. Teamwork d. Employee empowerment – authority to make decisions e. Drivers of customer satisfaction at supermarket i. 32% Customer Service, 36% Value, 32% Quality ii. Overall employee satisfaction does not affect customer satisfaction with either the quality and value factors
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VI. Marketing Mix Factors – Tools to satisfy consumer needs a. These are controllable factors: i. Product – A good, serive, or idea to satisfy the consumer’s needs ii. Price – What is exchanged for the product iii. Promotion – A means of communication between the seller and buyer iv. Place – A means of getting the product to the consumer b. Uncontrollable factors include: i. Social – Demographics and culture ii. Economic – Income distribution in US households and economy iii. Regulatory – rules and regulation set forth by the government iv. Competition – Other companies will naturally form if it is a good idea v. Technological – Changes in rapidly developing forms of technology BCG Matrix (Boston Consulting Group) I. Relative market share (share relative to largest competitor) vs. Market Growth Rate (% per year) II. Four quadrants: High High, High Low. ... III. Several terms associated with the BCG matrix include: a. Cash Cows – are SBUs that generate large amounts of cash far more than they can invest profitably in themselves. They have dominant shares of slow- growth markets and provide cash to cover the organization’s overheard and to invest in other SBUs b. Stars – are SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows,
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Marketing Prelim #1 Review Notes - Marketing Prelim 1...

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