Marketing Test 1

Marketing Test 1

1. Chapter 2: Strategic Planning for Competative Advantage

   • Strategic Business Units
     • Distinct mission and specific target
     • Control over reasources
     • Own competitors
     • Single business or collection of related businesses
     • Plan independent of other SBU's (Strategic Business Unit)
   • Innovation Matrix
     • Designed to show how companies really grow
     • Core Innovation
       • Uses existing assets to get people to purchase products; e.g. change packaging
       • Crave Candy
     • Adjacent Innovation
       • Take company stregnths to new markets
       • Main and tail
     • Transformation innovation
       • New products, businesses, and markets
       • GoPro
   • BCG Model
     • Portfolio approach that balances risks and returns
     • Considers market growth (vertical scale) and market share of offerings (horizontal scale)
     • Star
       • Fast growing, market leader
       • Large profits but requires lots of cash
     • Cash Cow
       • Low growth, dominate share
       • Spins off cash
     • Question Mark
       • Rapid growth, poor margins
       • Requires lots of cash
     • Dogs
       • Low share, low growth
   • Components of a Marketing Plan
     • Mission Statement
       • What business are we in?
         • based on benefits sought by target consumers and the current/expected environmental conditions
       • Marketing Myopia
         • Defining the business in terms of goods and services rather than the benefits sought out
     • SWOT analysis
       • Strengths and Weaknesses
         • Under Managements control
       • Oppertunities and Threats
         • Outside managements control
         • Found via an environmental scan
     • Objectives
       • Realistic, Measurable, Time Specific, Compared to benchmark
     • Marketing Strategy
       • Target Market Strategy
         • Marketing Oppertunities Analysis
           • Market viabllity studies
           • Go after most valuable segment
           • Looking for product-market fit
         • Describe
           • What separates your consumers from others
       • Marketing Mix
         • Product Strategies
           • core and extended
         • Place
           • Distribution or location
         • Promotion
           • Personal selling, advertising, on and offline systems
         • Pricing
           • Find a model that best fits mission statement and customer expectations
     • Implementation, Evaluation and Conrol
       • Implementation: Action steps and acceptence
       • Evaluation: how well we are meeting our goals?
       • Control: what helps us achieve our goals?
       • Marketing Audit: Thorough, systematic and periodic. Helps reallocate resources. Useful for getting buy-in from other parts of the organization
   • Competative Advantage
     • Cost
       • Experience curves, e.g. Boeing
       • Efficient labor, e.g. outsourcing labor intensive jobs
       • Government subsidies, e.g. canadian softwood lumber
       • Product design, e.g. BMW and easy deconstruction
     • Product/Service Differentiation
       • Brand name, dealer network, reliablity
     • Niche Competative Advantage
       • Old Dutch

2. Chapter 3: Ethics and Social Responsibility

   • Determinants of a Civil Society
     • Ethics - moral principles or values governing conduct
     • Laws - ethical rules enforced by the government
     • Formal and informal groups - codes of conduct
     • Self regulation - voluntary acceptence of standards established by non-government entities
     • Media - play a key role in informing the public
     • Active civil society
   • Concept of Ethical Behavior
     • Ethics - standard of behavior by whcih conduct is judged
     • Ethical Theories
       • Deontology - stick to obligations and duties
       • Utilitarianism - the needs of the many
       • Casuist - compare current problems to similar ones
       • Moral relativism - truth is relative to the person/group judging the action
       • Virtue - do good
   • Ethical Behavior in Business
     • Pre-conventional - based on immediate punishment and reward
     • Conventional - Based on the expecations of society
     • Post-Conventional - Concerned about self-judging over the long run
   • Ethical Decision Making
     • Healthier environment leads to stronger ethical stands
     • Top managements actions on ethics
     • Magnitude of consequences
     • Social consequences
     • Probability of a harmful outcome
     • Length of time between decision and consequence
     • Number of people affected
   • Ethics in Other Countries
     • Illegal payments and bribes
     • Foreign Corrupt Practices Act
   • Corporate Social Responsibility
     • Stakeholder Theory - pay attention to allstakeholders involved
     • Pyramid of Responsibility
       • Base - economic responsibility
       • Layer 2 - Legal responsibility
       • Layer 3 - Ethical responsibility
       • Top Layer - Philanthropic responsibility
     • Views on CSR (Corporate Social Responsibility)
       • Friedman Approach - market no government determines whats good or bad
       • CSR Advocates - most problems were caused by companies thus they should clean them up and they might find it profitable
   • Growth of Social Responsibility
     • UN Global Compact
     • Introduction of the B-Corp
     • Sustainability
     • Green Marketing
     • Subset - cause-related Marketing
       • Profit and non-profit groups work together for mutal benefits
       • Overuse has led to consumer fatigue

3. Chapter 4: The Marketing Environment

   • Understanding the External Environment
     • Understand current customers - How, what, why, when and where they buy
     • Understand how customers make decisions - Awareness, interest, desire, action
     • Identify the most valuable customers and their needs - Pareto Rule
     • Understand the competition
   • Social Change
     • Attitudes, values and lifestyles
     • U.S. Values
       • Self-sufficient
       • Upward mobility
       • Work ethic
       • Equality
       • Individualism
       • Achievement orientation
     • Component Lifestyles
       • Piecing together parts to meet diverse lifestyles
   • Social Media and Behavior
     • Internet of things
     • Changed the way we consume information and interact
     • Increasing source of advice - crowdsourcing and influencers
     • Changed the way opinions are shared
     • Increasing sophistication
     • Creating communities - eBags
     • Social media myths vs. Reality
   • Demographics - Population
     • Movement continues - Texas is the big winner while the Dakotas continue to see outflow
     • Married later in life
     • Tweens (8-12 years olds)
       • Control $180 billion in spending
     • Teens
       • 25 million strong connected 72 hours/week
       • Passing technology to their parents
     • Millenials
       • 1979 - 94
       • Largest group in the workforce
       • No lifetime employment
       • True digital consumers
   • Population
     • Gen X
       • 1965-78
       • Independent, resilient and adaptable
       • High incomes and positive outlook
       • Save money
       • Not easily swayed by marketers
     • Boomers
       • 1946-64
       • Independent, resilient and adaptable
       • High amount of accumulated wealth
       • Price and quality are purchasing drivers
   • Ethnic Markets
     • Hispanic
       • Not a homogeneous group
       • Largest user of mobile technology
       • Maintain strong family ties and obligations
       • Take a bilingual and bicultural approach to media
     • African Americans
       • Younger demographic
       • Tremendous influencers of pop culture
       • Brand loyal but expect brands to support socail causes
       • Increasing household income
     • Asian Americans
       • opulation growth fueled by immigration
       • Not a homogeneous group
       • Highest family income group of all
       • Hold their own culteres as well as adopted culture
       • Focus on organic food and nutrition
     • Other groups
       • Muslim americans
       • Native americans
   • Economic Factors
     • Consumer Incomes
       • According to Pew Research in 2018 Median household income returned to 2000levels
       • Zero earners jump as Boomers retire
       • Education is the primary determinant of income
     • Purchasing power
       • Income compared to cost of living
       • ND offers one of the highest purchasing power levels in the US
     • Inflation
     • Recession
   • Technology and Innovation
     • Research
       • Basic
       • Applied
     • Stimulating Innovation
       • Talking to early adopters
       • Using market research
       • Creating innovative environment
       • Catering to entreprenuers
     • Innovation and employment
       • Closely tied
       • Beware of the robots
   • Political and Legal Factors
     • Federal Legislation
       • Sherman Antitrust Act
       • Federal Trade Commision
     • State and Local Laws
     • Regulatory Agencies
       • FDA
       • Consumer Product Saftey Commision
       • OSHA
       • EPA
     • Consumer Privacy
   • Competative Factors
     • Competition for market share and profits
     • Global competition

4. Chapter 6: Consumer Decision Making

   • Values considered by Consumers
     • Value - personal assesment of the net worth obtained from making a purchase
     • Preceived value - what you expect to get
     • Utiltarian value - degree to which your problem was solved by the product
     • Hedonie value - feel better for having purchased the item
     • Same experience can yeild both utilitarian and hedonic values e.g. having an expensive meal
   • Decision Making Process
     • Need Recognition
       • Imbalance between actual and dired states
         • Triggered by Stimulus
           • Internal
           • External
       • Want-recognition of an unfilled need and a product that will satisify it
         • Economizing
         • Sustaining
         • Treating
         • Rewarding
     • Information Search
     • Evaluation of Alternatives
     • Purchase
     • Post purchase behavior