MKTG 2P91 Midterm Study Notes Chapter 1 ⢠Marketing ...
MKTG 2P91 Midterm Study Notes Chapter 1 • Marketing: organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders • 4 types of utility o Form o Place o Time o Ownership • 3 reasons for embracing global marketplace: o International agreements being formed in attempts to expand trade among nations o Growth of e-commerce bringing previously isolated countries into marketplace o No nation produces all materials and finished goods its citizens need or consumes all output without exporting • 4 eras of marketing: o Production o Selling o Marketing o Relationships • Non-traditional marketing: o Person (i.e. celebrity endorsements) o Place (tourist attractions) o Cause o Event o Organization • 8 universal marketing functions: o Buying o Selling o Transporting o Storing o Standardizing & grading o Financing o Risk taking o Securing marketing information Chapter 2 • Strategic planning vs tactical planning • Planning at different levels: o Top management – strategic planning o Middle management – tactical planning o Supervisory management – operational planning
• •
•
•
•
•
•
•
•
Mission: the essential purpose that differentiates the company from others Porter’s 5 Forces model o Competition within industry o Threat of substitute products o Threat of new entrants o Bargaining power of buyers o Bargaining power of suppliers First mover strategy o Attempt to capture greatest market share & develop long-term relationships by being the first to enter the market Second mover strategy o Observing the innovations of first movers and improving them to gain advantage SWOT analysis o Strengths o Weaknesses o Opportunities o Threats Environmental Framework o Competitive o Social/cultural o Technological o Economic o Legal/political Marketing Mix Variables (4 Ps) o Pricing o Promotion o Product o Place (distribution) BCG Market Share o Stars o Cash Cows o Question Marks o Dogs Ansoff’s strategic growth opportunity matrix Present Product New Product Present Market
New Market
Market Penetration
Product Development
-Tim Hortons Roll Up
-KFC Double Down
Market Development
Diversification
-McCain Foods in Africa
-Zappo cologne
Chapter 3 • Types of competition o Direct o Indirect • Determining a competitive strategy: o Should we compete? o If so, in what markets should we compete? o How should we compete? • Ethics Chapter 4 • Determinants of consumer behaviour o Interpersonal: Cultural influences Social influences Family influences o Personal: Needs & motives Perception Attitudes Learning Self-concept • Maslow’s Hierarchy of Needs o Physiological o Safety o Belongingness o Esteem o Self-actualization • Asch phenomenon o Theory that individuals conform to majority rule, even if it goes against their beliefs • Consumer decisions o High involvement House Car University o Low involvement Chocolate bar Pen Socks
Chapter 5 • B2B marketing: organizational purchase of goods and services to support production of other products, to facilitate daily company operations, or for resale • Commercial market: individuals and firms that acquire products to be used, directly or indirectly, to produce other goods and services • 4 ways to segment business markets: o Demographics o Customer type o End-use application o Purchasing situation • 4 classifications of business buying situations: o Straight rebuying o Modified rebuying o New-task buying o Reciprocity Chapter 7 • Types of research firms o Syndicated services Standard data that all can purchase o Full-service research suppliers Conduct all types of research (entire project) o Limited-service research suppliers Conduct one or more components of research study (polling, surveys, mystery shoppers) • Marketing research process o Define the problem o Conduct exploratory research o Formulate a hypothesis o Create a research design o Collect data o Interpret and present research information • Primary research methods: o Observation o Surveys and interviews o Controlled experiments • Sampling techniques o Sampling Sample is drawn from population we wish to study o Probability sample Simple random sample Stratified cluster – groups chosen randomly o Nonprobability sample Convenience sample
Mall intercept Quota sample
Chapter 8 • Criteria for effective segmentation o Segment must have measurable size and purchasing power o Marketers must find a way to promote and serve the market segment o Segment must be sufficiently large to offer good profit potential o Firm must aim for segments that match its marketing capabilities • Segmenting consumer markets o Geographic segmentation o Demographic “ o Psychographic “ o Product-related “ • VALS Framework
• •
•
•
•
•
•
•
•
Mission: the essential purpose that differentiates the company from others Porter’s 5 Forces model o Competition within industry o Threat of substitute products o Threat of new entrants o Bargaining power of buyers o Bargaining power of suppliers First mover strategy o Attempt to capture greatest market share & develop long-term relationships by being the first to enter the market Second mover strategy o Observing the innovations of first movers and improving them to gain advantage SWOT analysis o Strengths o Weaknesses o Opportunities o Threats Environmental Framework o Competitive o Social/cultural o Technological o Economic o Legal/political Marketing Mix Variables (4 Ps) o Pricing o Promotion o Product o Place (distribution) BCG Market Share o Stars o Cash Cows o Question Marks o Dogs Ansoff’s strategic growth opportunity matrix Present Product New Product Present Market
New Market
Market Penetration
Product Development
-Tim Hortons Roll Up
-KFC Double Down
Market Development
Diversification
-McCain Foods in Africa
-Zappo cologne
Chapter 3 • Types of competition o Direct o Indirect • Determining a competitive strategy: o Should we compete? o If so, in what markets should we compete? o How should we compete? • Ethics Chapter 4 • Determinants of consumer behaviour o Interpersonal: Cultural influences Social influences Family influences o Personal: Needs & motives Perception Attitudes Learning Self-concept • Maslow’s Hierarchy of Needs o Physiological o Safety o Belongingness o Esteem o Self-actualization • Asch phenomenon o Theory that individuals conform to majority rule, even if it goes against their beliefs • Consumer decisions o High involvement House Car University o Low involvement Chocolate bar Pen Socks
Chapter 5 • B2B marketing: organizational purchase of goods and services to support production of other products, to facilitate daily company operations, or for resale • Commercial market: individuals and firms that acquire products to be used, directly or indirectly, to produce other goods and services • 4 ways to segment business markets: o Demographics o Customer type o End-use application o Purchasing situation • 4 classifications of business buying situations: o Straight rebuying o Modified rebuying o New-task buying o Reciprocity Chapter 7 • Types of research firms o Syndicated services Standard data that all can purchase o Full-service research suppliers Conduct all types of research (entire project) o Limited-service research suppliers Conduct one or more components of research study (polling, surveys, mystery shoppers) • Marketing research process o Define the problem o Conduct exploratory research o Formulate a hypothesis o Create a research design o Collect data o Interpret and present research information • Primary research methods: o Observation o Surveys and interviews o Controlled experiments • Sampling techniques o Sampling Sample is drawn from population we wish to study o Probability sample Simple random sample Stratified cluster – groups chosen randomly o Nonprobability sample Convenience sample
Mall intercept Quota sample
Chapter 8 • Criteria for effective segmentation o Segment must have measurable size and purchasing power o Marketers must find a way to promote and serve the market segment o Segment must be sufficiently large to offer good profit potential o Firm must aim for segments that match its marketing capabilities • Segmenting consumer markets o Geographic segmentation o Demographic “ o Psychographic “ o Product-related “ • VALS Framework
