Mkt 301 Exam 1 Study Guide

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Chapter 1

Marketing: the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Exchange: People giving up something in order to receive something they would rather have.

Conditions necessary for exchange to occur:
1.There must be at least two parties.
2.Each party has something that might be of value to the other party. 3.Each party is capable of communication and delivery.
4.Each party is free to accept or reject the exchange offer, 5.Each party believes it is appropriate or desirable to deal with the other party.

The four marketing management philosophies:
Production: Focuses on internal capabilities of the firm rather than desires of the marketplace. “What can we do best?” Sales: Based on aggressive sales techniques and believes that high sales results in high profit; do not always understand what is important to customers. Market (and marketing concept): Satisfying customers’ needs and wants while still meeting organizational objectives. What a business thinks it’s producing is not important; it’s what CUSTOMERS THINK they are buying-the perceived value- that defines a business. Societal: The organization exists to satisfy customer needs and wants while enhancing individual and societal well-being.

Customer satisfaction: Customers’ evaluation of a good or service in terms of whether it has met their needs and expectations. Customer value: The relationship between benefits and the sacrifice necessary to obtain those benefits.

Chapter 2
Strategic planning: The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities. Marketing plan: A written document that acts as a guidebook of marketing activities for the marketing manager.

Reasons to write a marketing plan
Provides a basis for comparison of actual and expected performance. •Provides clearly stated activities to work toward common goals. •Serves as a reference for the success of future activities. •Provides an examination of the marketing environment.

Allows entry into the marketplace with awareness.

Elements of a marketing plan

Marketing myopia: Defining a business in terms of goods and services rather than in terms of the benefits customers seek.

SWOT analysis: Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).
Strengths
Things the company does well.Weaknesses
Things the company does not do well.
Opportunities
Conditions in the external environment that favor strengths.Threats Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

Competitive advantage: A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition. Sustainable competitive advantage: An advantage that cannot be copied by the competition.

Marketing strategy: The activities of selecting and describing one or more target markets and developing and maintaining market mix that will produce mutually satisfying exchanges with target markets.

Types of competitive advantage
**Cost: Being the low-cost competitor in an industry while maintaining satisfactory profit margins. (This is relevant!)
Product (service) differentiation: The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.
Niche: The advantage achieved when the firm seeks to target and effectively serve a small segment of the market.

Ansoff Strategic Opportunity matrix:

Existing productsNew Products
Existing MarketsMarket Penetration: tries to increase market share among existing customers.Product Development: the creation of new products for...
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