BADM 320 Exam Notes
Chapter 1
The Marketing Mix: The 4 Ps of Marketing:
1. Product – creates value
a. Talk to customers/clients and make sure it is what they want and not what you think they want
2. Price – captures value
a. Base it off competition, perceived value (compared to your value)
3. Place – delivers that value to customers
a. Where are you selling it?
b. Store, Internet, etc.
4. Promotion – communicates that value to the customers
a. Advertising
b. Word of mouth
Chapter 2
Sustainable Competitive Advantages:
Advantages that your competition cannot easily imitate and thus give your firm a long-term advantage
a. Customer excellence:
i. Great customer service – treat them like a life time customer ii. Developing loyal customers iii. Developing lifelong customers iv. Specifically position your brand (e.g. McDonald = the fast one, Clovers = the cheese curls one)
b. Operational excellence
i. If managements, supply chain, HR, accounting, finance are run extremely well and that reflects in the success of the company ii. E.g. Restaurant – someone knows how to pick seafood well, someone knows how to pick vegetables well, all produces are fresh and it reflects in the quality of the dishes/menu
c. Location excellence
i. Buy up prime real estate (e.g. Starbucks on opposite sides of the street) ii. Be where the customers want to be
d. Product excellence
i. Product design & attributes ii. Having a strong brand = need to convince customers why to spend more money on this. (E.g. why people pay 30% more for apple than for PC)
Sustainable Competitive Advantage doesn’t last forever, need to keep improving
Growth Strategies & The Ansoff Matrix:
Divides things into two groups:
1) New Products/Customers
2) Old Products/Customers
Market Penetration: Selling more Old Products to Current Customers
E.g. McDonald opens a 24 hour service and a McDrive (drive through)
Product Development: Develop New Products for Current
The Marketing Mix: The 4 Ps of Marketing:
1. Product – creates value
a. Talk to customers/clients and make sure it is what they want and not what you think they want
2. Price – captures value
a. Base it off competition, perceived value (compared to your value)
3. Place – delivers that value to customers
a. Where are you selling it?
b. Store, Internet, etc.
4. Promotion – communicates that value to the customers
a. Advertising
b. Word of mouth
Chapter 2
Sustainable Competitive Advantages:
Advantages that your competition cannot easily imitate and thus give your firm a long-term advantage
a. Customer excellence:
i. Great customer service – treat them like a life time customer ii. Developing loyal customers iii. Developing lifelong customers iv. Specifically position your brand (e.g. McDonald = the fast one, Clovers = the cheese curls one)
b. Operational excellence
i. If managements, supply chain, HR, accounting, finance are run extremely well and that reflects in the success of the company ii. E.g. Restaurant – someone knows how to pick seafood well, someone knows how to pick vegetables well, all produces are fresh and it reflects in the quality of the dishes/menu
c. Location excellence
i. Buy up prime real estate (e.g. Starbucks on opposite sides of the street) ii. Be where the customers want to be
d. Product excellence
i. Product design & attributes ii. Having a strong brand = need to convince customers why to spend more money on this. (E.g. why people pay 30% more for apple than for PC)
Sustainable Competitive Advantage doesn’t last forever, need to keep improving
Growth Strategies & The Ansoff Matrix:
Divides things into two groups:
1) New Products/Customers
2) Old Products/Customers
Market Penetration: Selling more Old Products to Current Customers
E.g. McDonald opens a 24 hour service and a McDrive (drive through)
Product Development: Develop New Products for Current