In a SWOT analysis, which of the following would be considered a strength?
internal resources (Strengths are internal capabilities that we have at our disposal.)
What is a Marketing Environment
a set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers.
SWOT Analysis
strengths weakness
opportunities threats
Environmental scanning
The process of collecting information about forces in the marketing environment
Methods:
-Observation
-Secondary sources
-Market research
Environmental analysis
The process of assessing and interpreting information gathered through environmental scanning
Responding to Environmental Forces -Reactive Approach
-Passive view of the environment as uncontrollable
-Current strategy is cautiously adjusted to accommodate environmental changes
Responding to Environmental Forces-
Proactive approach
-Actively attempts to shape and influence the environment
-Strategies are constructed to overcome market challenges and take advantage of opportunities
porter's 5 forces
Bargaining power of customers, Bargaining power of suppliers, Threat of new entrants, Threat of substitute products, Competitive rivalry within an industry
types of competitors
brand competitors, industry competitors, form competitors, generic competitors
brand competitors
market products with similar features and benefits to the same customers at similar prices
industry competitors
compete in the same product class, but their products have different features, benefits, and prices
form competitors
provide very different products that solve the same problem or satisfy the same basic customer need
generic competitors
compete for the limited financial resources of the same customers
monitoring competition
Helps determine competitors' strategies and their effects on firm's own strategies
economic cycle (top to bottom)
prosperity, recession, depression, recovery
expectations and willingness to spend
future employment, prices, general economic conditions, family size, income levels
political forces
reactive response- making adjustments to business practices as laws are passed
proactive response- campaign contributions, political action committees, lobbying elected officials
Federal Trade Commission (FTC)
Enforces laws and guidelines regarding business practices; takes action to stop false and deceptive advertising, pricing, packaging, and labeling
Food and Drug Administration (FDA)
Enforces laws and regulations to prevent distribution of adulterated or misbranded foods, drugs, medical devices, cosmetics, veterinary products, and potentially hazardous consumer products
Consumer Product Safety Commission (FCC)
Ensures compliance with the Consumer Product Safety Act; protects the public from unreasonable risk of injury from any consumer product not covered by other regulatory agencies
Federal Communications Commission (FCC)
Regulates communication by wire, radio, and television in interstate and foreign commerce
Environmental Protection Agency (EPA)
Develops and enforces environmental protection standards and conducts research into the adverse effects of pollution
Federal Power Commission (FPC)
Regulates rates and sales of natural gas producers, thereby affecting the supply and price of gas available to consumers; also regulates wholesale rates for electricity and gas, pipeline construction, and U.S. imports and exports of natural gas and electr
marketing environment
economic forces, competitive forces, political forces, legal forces, technological forces, sociocultural forces
Technology
The application of knowledge and tools to solve problems and perform tasks more efficiently
Impact of Technology
-Dynamic means constant change
-Reach refers to how technology quickly moves through society.
sociocultural forces
aging population, more people living alone, entering another baby boom, increase in multiculturalism, health concerns and values, environmental values, family makeup and values, marital/parental status, income and education, age, gender, race, ethnicity
STP process-
Segmenting:
divide market based on needs/benefits, demographics, lifestyles, behavioral measures
Targeting:
select most appropriate market
Positioning:
target marketing messages through 4P's
what is a market
a group of people seeking products in a specific product category
segmentation, targeting and positioning process
1. establish strategic objectives
2. determine which segmentation variables to use
3. evaluate relevant market segments
4. select specific target markets
5. develop positioning strategy
segmentation
identifying a group of customers in your market who share a similar set of needs and wants
importance of segmenting markets
Markets have a variety of product needs and preferences
A market segment has specific needs and wants as well as the ability and willingness to buy
Marketers can better define customer needs (Competitive advantage)
why segment markets?
-Develop offerings that are higher value to each segment than an undifferentiated offer
-Charge more for providing higher value products and services
-Achieve higher sales volume overall by better meeting the needs of each segment
segmentation variables
demographics, behavioral, psychographics, needs
demographic segmentation
Age Occupation
Gender Income
Ethnicity Geography Family life cycle
psychographic segmentation
Values Lifestyle
Personality Activities
Interests Opinions
the three VALS (values and lifestyles)
-ideals orientation (thinkers/believers)
-achievement orientation (achiever/striver)
-self-expression orientation (experiencers/makers
behavioral segmentation
-Dividing a market by the amount of product bought or consumed
-Usage rate
-80 / 20 Principle
-20 percent of all customers generate 80 percent of the demand
needs segmentation
The process of grouping customers into market segments according to the benefits they seek from the product
targeting
The process of evaluating the various segments and then selecting the most viable segment(s) who share a similar set of needs and wants
undifferentiated targeting strategy
Marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix
differentiated targeting strategy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
niche targeting strategy
A concentrated strategy of focusing on a narrow market is sometimes more profitable than spreading resources over several different segments
micromarketing targeting strategy
One-to-one marketing which is individualized, information intensive, with a long-term perspective and goal of increasing customer loyalty
positioning
Act of designing the company's offering and image to occupy a distinctive place in the mind of the target market.
perceptual mapping
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
value proposition
Answers the question of "Why should I buy your brand?"
More quality for more/same/less price?
The same quality for a lower price?
Less quality for a much lower price?
positioning statement
For [Target Market], the [Brand] is the [Point of Differentiation] among all [Frame of Reference] because [Reason to Believe]
point of differentiation (POD)
how your brand or product benefits customers in ways that set you apart from your competitors
frame of reference
the segment or category in which your company competes
Business Products
Are used to manufacture other products
Become part of another product
Aid the normal operations of an organization
Are acquired for resale without change in form
Business Markets
-producer markets(trades producer goods. ex. raw materials or equipment)
-reseller markets (buys something intending to resell. ex. wholesalers, retailers, and distributors)
government markets (federal, state, or local governments as the target consumers)
types of business products
major equipment, accessory equipment, raw materials, component parts, processed materials, supplies, business services
demand for business products
-derived demand
(a demand for a commodity, service, etc. which is a consequence of the demand for something else. ex. more people want phones therefore demand for materials to make that phone goes up)
-inelastic demand
(buyer's demand does not change as m
characteristics of a business market
-organizational demand
-larger volume
-fewer number of customers
-concentrated location
-promote personal selling
-multiple buying influences
-more complex negotiations
characteristics of a consumer market
-individual demand
-smaller volume
-many customers
-dispersed location
-advertising promotion
-single buying influence
-simpler negotiations
Sub-Culture
Groups of individuals whose characteristic values and behavior are similar, but also differ, from those of the surrounding culture.
enculturation
learning your own culture
acculturation
learning a new/foreign culture
reverse acculturation
home society impacted by other cultures
culture
the accumulated value, knowledge, beliefs, customs, objects, and concepts of a society
social responsibility
an organizations obligation to maximize its negative impact on society
Corporate Social Responsibility
-philanthropic(be a good citizen)
-Ethical (do what is right)
-Legal (obey the law)
-Economic (be profitable)
cause-related marketing
the practice of linking products to a particular cause on an ongoing or short-term basis
green marketing
the specific development, pricing, promotion, and distribution of products that do not harm the natural environment
Ethical development levels
-Pre-conventional Morality
(�Based on what will be punished or rewarded
�Self-centered, calculating, selfish)
-Conventional Morality
(� Moves toward the expectations of society
�Concerned over legality and the opinion of others)
-Post-conventional Moralit
multinational corporation
a company that is heavily engaged in international trade, beyond exporting and importing
Global marketing perks
-access to new markets
-fain scale economies
-access lower costs
-offset domestic cycles
-enhance brand image
-overcome trade barriers
-access foreign investment
Global Marketing Standardization
Production of uniform products that can be sold the same way all over the world.
Entering the Global Marketplace: Licensing
legally allow the use of our manufacturing, patents, logos, knowledge, etc on other peoples products if they pay a licensing fee. (franchising is a great example of this. You are paying for the right to sell their products and you are full responsible.)
Entering the Global Marketplace: Contract Manufacturing
private label manufacturing by someone in a foreign country ( nike might enter into a manufacturing agreement with china in which they would mass produce shirts with nikes logo on them and sell them to nike)
global marketing standardization: one product one message
same message and product look across the globe (lays potato chips original flavor)
global marketing standardization:
product adaptation
same cheap prices but a shift of product here and there to accommodate for the location (McDonalds changes up their foods depending on the country because all countries eat different types of food due to culture)
global marketing standardization:
message adaptation
ex. in japan kit kats translates to "surely win" so in japan kit kats are a sign of good luck. people will give kit kats out during test season and anything else someone may need good luck for.
global marketing standardization:
product invention
outback steakhouse doesn't actually serve authentic Australian food
Business Plan
a written document that defines the operational and financial objectives of a business over a particular time, and defines how the business plans to accomplish those objectives.
Marketing Plan
a document that includes an assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initiatives.
Sections of a Marketing Plan:
executive summary
Written with senior leadership as primary audience,
- Goals
- Recommendations
Sections of a Marketing Plan:
Company description, purpose, and goals
Includes historical information on business and products, and the company's core competencies and reason for existence
Sections of a Marketing Plan:
Marketing situation
Contains assessments of: - Customers
- Competitors
- Product portfolio
- Distribution channels
- Marketing environment
Sections of a Marketing Plan:
Forecasting
Anticipated outcome if marketing objectives are met
Sections of a Marketing Plan:
Marketing strategy
What actions should be taken to meet objectives.
- Target market
- Positioning
- Marketing mix
Sections of a Marketing Plan:
Measurement and control
How to monitor progress toward meeting objectives?
- Financial factors
- Nonfinancial factors
A good marketing plan will:
- Explain both the present and future situations of the organization
- Specify the outcomes that are expected
- Describe the specific actions that are to take place
- Identify the resources that will be needed
- Be realistic, achievable and measurable
consumer behavior
-the dynamic interaction of affect and cognition, behavior, and the environment in which human beings conduct the exchange aspects (product and service purchases) of their lives
-Describes how consumers make purchase decisions and how they use and dispose
consumer decision process
-need recognition
(buyer becomes aware of difference between a preferred state (ideal state) and the present condition (actual state))
-information search
-evaluation of alternatives
-purchase
-post-purchase evaluation
cost-benefit analysis
going to work solely because you want to get paid and or you don't want to get fired.
multi-attribute model
-list outcome, rat each outcome on importance
non-compensatory models
nothing can replace it- (if i want to be somewhere with a beach for spring break then all other places with no beach are no longer an option for me)
conjunctive rule
set of minimum standards for one or more attributes ( price willing to pay, miles willing to travel, need to be somewhere sunny,- if violated then it is taken off the table)
lexicographic rule
rank attributes in order of importance ( who is the best of the attributes?.. v
situational influences: social
role-your decisions may be based off the role you are playing and the expectations of that role
aspirational
positive affect
Disassociative
negative affect
opinions leaders
expert in something that I am not in which I can look up to them and learn from them.
marketing research
The systemic design, collection, analysis, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
purpose of marketing research
-Descriptive (gather and presenting factual statements
-diagnostic (explaining data)
-predictive (attempting to estimate the results of a planned marketing decision)
selective exposure
process of selecting inputs to be exposed to our awareness while ignoring others
selective distortion
an individuals changing or twisting of information when it is inconsistent with personal feelings or beliefs
selective retention
remembering information inputs that support personal feelings an beliefs and forgetting inputs that do not