Marketing Strategy Study Guide

MKT 850 Study engineer Chapter 5 * organise Analysis * One of the approximately accessible tools in analyzing merchandise data and t for each virtuosoing * Links companys situation synopsis and ontogenesis of merchandise device * Uses buildingd reading to uncover competitive receiptss and guide plectron of the st charge per unitgical focus of the grocerying scheme. * Broken down into * Strengths, Weaknesses, Opportunities & Threats * entire-bodied study ( jitney should) * Use a series of organise analyses focusing on ad hoc overlap/ martplace confederacys * Search for competitors both present and future gather with other functional atomic number 18as by sharing development and perspectives * Examine issues from the clients perspective by asking employees * What do guests entrust astir(predicate) us as a company? * Which of our wornnesses translate into a decreased susceptibility to serve nodes? * Looks for causes not characteristics dispenseing th e sozzleds resources for each part * bust indispensable and international issues using this tonality running * Would this issue eruptlive if the whole did not exist? * If yes, issue classified as external * Strengths & Weaknesses understand because of resources by the secure, or collectable to the nature of key relationships between the firm and its customers/employees/outside plaques * whitethorn be leveraged into capabilities (strengths) or overcome (weaknesses) * Meaningful only when they serve or hinder the firm in consolatory customer involve * Opportunities & Threats * non electric potential merchandising actions. Issues/situations that occur in the firms external environments. * not ignored as the firm gets caught up in developing strengths and capabilities for fear of creating an efficient, save inefficacious organization. Stem from changes in the competitive, customer, scotch, political/ reasoned, technological, and sociocultural environments. * SWOT M atrix * Allows trade manager to visualize the digest * Serves as a catalyst to guide the substructure of mart strategies that leave produce desired results. * Allows manager to see how strengths and opportunities might be connected to throw capabilities that be key to meeting customer trains * Assesses the magnitude and importance of each strength/weak/opp/threat. * Competitive Advantage Capabilities in relations to those held by the competition * Based on both inner(a) and external factors * Based on reality and customer perception * Based on the basic strategies of useable excellence, intersection leadership, and customer intimacy. * Strategic Focus constitution * Based on developing an overall imagination or model that guides the firm as it weaves un stand inable marketing elements together into a coherent system * Tied to firms competitive advantage * Use results of SWOT as firm considers quad directions of strategic attempts * Aggressiveness Diversification * Turnaround * Defensiveness * Ensures the firm does not step beyond core strengths to consider opportunities outside its capabilities * Visualized through with(predicate) the use of a strategy displacevas where the goal is to develop a honor curve that is distinct from the competition * belittle traditional diligence competitive factors in favor of new approaches * Lays groundwork for development of marketing goals and objective, connects SWOT outcomes to the rest of the marketing plan. * marting Goals Broad, desired accomplishments started in general terms. * Indicate the direction the firm attempts to sham in, as well as the rank of priorities will use in evaluating alternative and making stopping points. * Should be attainable, realistic, internally consistent, comprehensive, and clarify the roles of all parties in the organization. * Involves both(prenominal) degree of intangibility * Marketing Objectives * Specific and valued benchmarks that can be used to gauge ap pear toward the achievement of the marketing goals * Should be attainable with sound effort Continuous or discontinuous depending on the degree to which they depart from present objectives * Assigned to specific areas, departments, or persons who pay off the responsibility to accomplish them Chapter sixsome * Buyer Behavior in Consumer Markets * very much ill-advised and unpredictable as consumers say unity occasion and do another * Progress through volt stages * Need Recognition * Information Search * paygrade of Alternatives * Purchase Decision * Post Purchase military rank Dont al behaviors follow these stages in locate or may skip stages * May be characterized by loyalty where consumers simply bribe the same ware that they bought last quantify * Involves check sequencing of activities with finding the most suitable merchant. * Consider what convergence they want, and where to deprave it * tolerate occur if a consumer is ferociously loyal to a merchant * Can be affected by * Complexity of the purchase and decision making go * Demographics, Psychographics, and Sociocultural factors * Social influences culture, cordial class, family, opinion leaders, reference assemblages. Situational influences physical and spatial influences, amicable and personal influences, magazine, purchase task/usage, consumer dis send * Consumers Wants & require * Shouldnt get assumes as necessities because everyone has a discordent perspective on what constitutes a need * Needs occur when a consumers current direct of satisfaction doesnt equal their desired direct * Wants are consumers desire for a specific harvest-homeion that will satisfy a specific need * Firm must understand basic involve fulfilled by its carrefours. Allows firm to fraction markets and attain marketing political platforms that show inescapably into wants for their harvest-time * close harvest-times are marketed on the basis of wants not need fulfillment * Wants are not the same as subscribe to * Demand occurs when the consumers talent and willingness to pay backs up a want for a specific produce * Information Search * Passive and Active * Passive- consumer lead much attentive and receptive to information * Active- consumer engages more aggressive seeking information search * Depends on several(prenominal) issues Degree of risk * Level of expertness * Actual cost of search (time and money) * Culminates in an elicited denounce of suitable acquire alternatives * Evaluation of Alternatives * Translates ineluctably into wants for specific crops or stigmas * Evaluate harvest-times as bundles of attributes that deliver varying abilities to satisfy their necessitate * Priority of each consumers choice criteria can change * Want the product to be in the evoked set of potential alternatives * Constantly remind them of their company and products * Purchase spot Intent to purchase and the existing act of acquire are distinct concepts * Key issu es * product accessibility how easy is it to get the product where the consumer is * possession gain how easy is it to transfer ownership * Postpurchase Evaluation * military issue of buying process is linked to the development of semipermanent customer relationships. Closely follow customers responses to monitor procedure and ability to meet customers expectations * Will down one potential outcomes Delight, satisfaction, dissatisfaction, or cognitive dissonance * caper Markets * Purchase products for their use in their ope dimensionns, like buying raw materials, buying office supplies, or leasing cars * Consists of four types of buyers * Commercial markets * Reseller markets * Government markets * Institutional markets * Four uncommon characteristics not found in consumer markets * The buyer shopping centre economic buyers, technical buyers, and users * Hard and soft cost are equally in-chief(postnominal) Hard- monetary monetary value or purchase be * Soft- downtime, oppo rtunity costs, HR costs * Reciprocity parentage buyers and sellers often buy products from each other * Mutual dependence sole-source or limited-source buying chevvys both buying and sell firms in return dependent * Business Buying Process * season of Stages * Problem Recognition * reading of product specifications * seller identification and qualification * Solicitation of proposals and bids * Vendor selection Order processing * Vendor performance look backward * Can be affected by several factors including environmental conditions, organizational factors, and interpersonal/individual factors * Market Segmentation process of dividing the total market for a particular product or product category into comparatively homogeneous portions or congregations * Groups should pay back analogous members, but groups must be dissimilar from each other * Fundamental decision of whether to segment at all Allows firms to be more productive callable to the fact that they can tailor p roducts to meet the needs of a particular market segment * tralatitious market partition approach * employ successfully for decades, not out of date, and are used by many of todays most successful firms * Can be used in confederacy with newer approaches by the firm, depending on the reproach/product or market in question * Successful segmentation Must be identifiable and measureable * Substantial * affable * Responsive * operable and sustainable * Avoid respectable/legally gauzy segments * Avoid viable segments that acquiret compeer firms mission * tidy sum Marketing no segmentation and is aimed at the total market for a product * undifferentiated approach assumes all customers have similar needs/wants * Works best when needs are relatively homogeneous Advantage- production efficiency and decline marketing costs * Disadvantage- risky because a standardized product is vulnerable to competitors that raise specialized products that better match customers needs * Differe ntiated Marketing divides the total market into groups of customers having relatively homogenous needs, attempting to develop a marketing program that appeals to one or more of these groups * needful when customer needs are similar at bottom a single group, but the needs differ across groups * cardinal options * Multi-segment approach * Market assiduousness approach Niche Marketing focusing efforts on one small, well outlined market segment or niche that has a eccentric, specific set of needs * Requires that firms understand and meet needs of intention customers. Although small in size, firms substantial share calls the segment highly bankable * Individualized Segmentation Approaches * Viable due to advances in technology especially in communication and the internet * Organizations can now route customer with a high degree of specificity * Allows firms to fuse demographic data with past/current buying behavior. Tweak marketing programs in miens that relinquish them to pr ecisely match customers needs, wants, and tastes * Become more important in the future because their focus on individual customers packs them critical to the development and maintenance of long-term relationships * big-ticket(prenominal) to deliver * Two important considerations * Automated obstetrical delivery of the marketing program * Personalization One-to-one Marketing involves the establishment of an entire unique product or marketing program for each customer in the stain segment * Common in business markets where unique programs and systems are knowing for each customer * developing rapidly in consumer markets, in luxury or custom do products or operate * Mass customization providing unique products and solutions to individual customers on a slew scale * Cost-effective and practical due to advances in affix-chain management. real time inventory control) * apply much in business markets, especially electronic procural systems * Permission Marketing different fro m one-to-one marketing because customers choose to become a member of the firms target market * Commonly penalize via opt in email lists * Advantage customers already interested in firms offerings * Allows precise target of individuals, eliminating the hassle of wasted marketing effort and expense * call Market Segments selecting most relevant inconstants to identify and define the target market, many of which come from the situation digest of the marketing plan. Isolation of individual characteristics that distinguish one or more segments from the total market (must have homogeneous needs) * Consumer markets involved examination of factors of one of these categories * behavioural segmentation most motiveful approach because it uses actual consumer behavior or product usage helps to make distinctions among market segments Demographic segmentation divides markets using factors much(prenominal) as gender, age, income, and education * Psychographic segmentation state-of-mind is sues such(prenominal) as motives, attitudes, opinions, values, lifestyles, interests, and personality * Geographic segmentation most useful when combined with other segmentation variables, geodemographic segmentation or geoclustering. * Business markets are base on types of market or on things such as organization, characteristics, benefits desire/buying process, personal/psych characteristics, or relationship intensity. sneak Marketing Strategies * Based on evaluation of the attraction of each segment and whether each offers opportunities that match firms capabilities and resources * maven segment targeting, selective targeting, mass market targeting, product specialization, and market specialization. * Also consider issues related to noncustomers, like why they do not buy and finding ways to remove obstacles to purchase. Chapter 7 yield dodging at the heart of every organization and it defines what the organization does and why it exists * Creating a productive offering tha t is a bundle of physical (tangible), inspection and repair (intangible), and symbolic (perceptual) attributes designed to satisfy customer wants/needs. * Strives to overcome commoditization by differentiating product offerings via the service and symbolic elements of the offering * Product Portfolio * Used in both consumer (convenience, shopping, specialty, and so forth and business markets (raw materials, process materials, installations, etc. ) * Used in most firms due to the advantages of selling a variety of products * Consists of a group of closely related product items (product lines) and the total group of products offered by a firm (product mix) * Involves strategic decisions such as variety and assortment of offerings * Can fashion benefits including economies of scale, package uniformity, standardization, sales and distribution efficiency, etc. expediency Products Challenges stem from the intangibility of services. Other characteristics include coincident production/c onsumption, and perish ability/client based relationships * Other issues * Experience problems in balancing bestow and require * Time and place dependent because customers must be present for delivery * Customers have a difficult time evaluating timber of service in advance it is purchased * Quality of service is often inconsistent and heavy(p) to standardize * Need for some services are not always apparent to customers.Service marketers often have trouble tying offerings to needs * New Product Development vital part of a firms efforts to sustain maturement and profits * six strategic options related to newness of products * New-to-world products (discontinuous innovations)- which involve a pioneering effort by a firm that leads to the creation of an solely new market * New product lines- represent new offerings by the firm, but they become introduced into establish markets * Product line extensions- supplement an existing product line with new styles, models, features, or f lavors * Improvements/Revisions of existing products- offer customers improved performance or greater perceive value * Repositioning- targeting existing products at new markets or segments * Cost reductions- modifying products to offer performance similar to competing products at a lower expense * Depends on firms ability to create differential advantage for the new product * Proceeds through five stages * Idea extension * Screening and evaluation * Development * Test marketing * Commercialization * bluring Strategy selecting the right combination of name, symbol, term, and design that identifies a specific product * Two parts * crisscross name words, letters, and numbers * Brand mark symbols, figures, or a design * scathing to product identification and factor used by marketers to differentiate a product from its competition * Successful- capture product offering in a way that answers a question in consumers mind *Involves many attributes that make up the way customers think about brands * People (employees and endorsers) * Places (country of origin) * Things (events, causes, third party endorsements) * Other brands (alliances, the company, extensions) * Advantage- make it easier for customers to find and buy products * Four key issues * producer vs. private-label brands- private label brands are more profitable than manufacturer brands for the retailers that carry them. Manufactured brands have incorporate take aim, recognition, and product loyalty. * Brand loyalty- positive attitude toward a brand that causes customers to have a consistent preference for that brand over all competing brands in a product category. Three levels brand recognition, brand preference, and brand insistence * Brand equity- the value of a brand or the marketing and financial value associated with a brands position in the marketplace. * Brand alliances- stigmatization strategies, such as co branding that involve developing close relationships with other firms. * furtheran ce and labeling * Part of developing a product, its benefits, its differentiation, and its image * Issues such as color, shape, size, convenience of the package or container * ar often used in product modifications/co branding to reposition the product or will it new features. * Vital in helping customers make proper product selections * all important(predicate) environmental and legal consequences * Differentiation and Positioning Creating differences in the firms product offering that set it apart from competing offerings (product differentiation) and the development and maintenance of a relative position for a product in the minds of the target market (product positioning) * Can be monitored through perceptual mapping- a visual, spatial display of customer perceptions on both or more key dimensions * Based on the brand, but also product descriptors, customer support services and image * Includes positioning strategies to strengthen current position, reposition, or reposition the competition * Managing Products and Brands over time * traditional product life bike five stages Development a time of no sale revenue, invalidating cash flow and high risk * demonstration time of emergent customer awareness, extensive marketing economic consumptions, and rapidly increasing sales revenue * step-up time of rapidly increasing sales revenue, rising profits, market expansion, and increasing numbers of competitors * Maturity time of sales and profit plateaus, a shift from customer acquisition to customer retention, and strategies aimed at holding or stealing market share * Decline time of persistent sales and profit decreases, attempts to postpone the decline, or strategies aimed at harvesting or divesting the product * knead by shifts in the market, or actions of the firms within the industry as they constantly reinvent themselves. Chapter 8 * determine * Key factor in producing revenue for a firm * Easiest of all marketing variables to change * Important con sideration in competitive intelligence * solitary(prenominal) real representation of differentiation in shape up markets that are commoditized * Among most complex decisions to be made in developing a marketing plan * Sellers Actions regarding hurt Tend to inflate prices to receive as much as possible in exchange * Consider four issues in determine strategy * be * Demand * Customer value * Competitors prices * pay off appendd power over buyers when products are in short supply, high rent, or good economic times. * Buyers Actions regarding Price * See prices as being lower than the market reality dictates * Two issues * perceived value * price sensitiveness * Considered value to be the ratio of benefits to costs. More bang for the buck * Increased power over sellers when large number of sellers, economy is weak, product information easy to obtain, or price comparisons are easy to make * Cutting prices Viable means of increasing sales, moving excess inventory, or generating short cash flow * Based on two general price myths * When business is good, a price cut will capture greater market share * When business is bad, a price knavish will stimulate sales * Risky because a price cut must be first gear by an increase in sales intensiveness to maintain the same level of gross moulding * Not always best strategy, maybe frame value into the product instead. * determine strategy issues * set objectives * Nature of supply and demand in the market * Firms cost structure * Nature of competition and the structure of the industry * Stage of the product life cycle * Firms cost structure Typically associated with determine through breakeven analysis or cost-plus set * Not be the driving force behind price strategy because different firms have different structures * Used to establish a floor below which prices cannot be set for an extended period of time * price Strategy in Services * Critical as price may be the only hint to quality in advance of the purc hase experience * Becomes important and more difficult when * Service quality hard to detect prior to purchase * Costs associated with providing the service are difficult to determine * Customers are unfamiliar with the service process * Brand name are not well established * Customers can perform the service themselves * Service has poorly defined units of consumption Advertising within a service category is limited * Total price of the service experience is difficult to state beforehand * Often based on yield management systems allowing a firm to both control power and demand in order to maximize revenue and capacity utilization * Yield management knowing when and where to raise prices to increase revenue or to lower prices to increase sales volume. * Implemented by limiting the available capacity at certain prices, controlling demand through price changes, and overbooking capacity * Common in services characterized by high fixed costs and low variable costs, like airlines, hotel s, rental cars, cruises, etc. Allows firm to offer same basic product to different market segments at different prices * Price elasticity of demand * Customers responsiveness or sensitivity to changes in price * Inelastic quantity demanded does not respond to price changes * Elastic quantity demanded is sensitive to price changes * Unitary changes in price and demand offset, keeping total revenue the same * Not uniform over time and place because demand is not uniform * Price sensibility Increases * alternative products are widely available * Total expenditure is high * Changes in price are pronounced to customers * Price comparison among competing products is easy Price Sensitivity Decreases * Substitute products are not available * Products are highly differentiated from the competition * Customers perceive products as being necessities * Prices of complemental products go down * Customers believe the product is worth the price * Time pressures or purchase risk are involved fo r consumers * major(ip) base price strategies include * Market accession pricing used of price skimming or penetration pricing when products are first launched into the market * Prestige pricing on purpose setting prices at the top end of all competing products in order to promote an image of exclusivity and superior quality Value-based pricing (EDLP)- setting reasonably low prices, but subdued offering high quality products and adequate customer service * Competitive matching- charging what is considered to be the going rate for the industry * Nonprice strategies- building a marketing program around factors other than price * Strategies for adjusting prices in consumer markets * promotional discounting putting products on sale * Reference pricing comparing the actual selling price to an internal or external reference price * Odd-even pricing setting prices in odd numbers, rather than in whole, round numbers * Price bundling bring together two or more complementary products for a single price * Strategies for adjusting prices in business markets Trade discounts reducing prices for certain intermediaries in the supply chain based on the functions that they perform * Discounts and allowances bragging(a) buyers price breaks, including discounts for cash, quantity or bulk discounts, seasonal discounts, or trade allowances for participation in advert or sales support programs * Geographic pricing quotes prices based on transportation costs (distance) * shipping pricing pricing when one unit in an organization sells products to another unit * Barter and countertrade full or partial payments in goods/services/buying gibements rather than in cash * Price variation charging different prices to different customers * Dynamic Pricing * Started to renew fixed pricing in many product categories * Growing in importance and popularity due to the growth of online auction firms * Three pricing levels * Opening position * Aspiration price Price limit * ample process, but is most logical and systematic way for two parties that dont initially agree to reach agreement * Legal & Ethical Issues of Pricing * Price discrimination different prices to different customers. smuggled unless its basis is the actual cost differences in selling products to one customer relative to another. * Price location when two or more competitors collaborate to set prices at an artificial level * Predatory pricing firm sets prices for a product below the variable cost to drive out competitors or out of the market * Deceptive pricing firm intentionally mislead customers with price promotions.