Test review 1@5 5-07 answers-for ed to use in class

What IS

Review For TestThe “What Is” Questions?Review For TestThe “What Is” Questions?

What IS

What is Marketing? What is Marketing?

What is Marketing? What is Marketing?

• An organizational function

• Set of processes to create, communicate, and deliver value to customers

• Involves managing customer relationships in ways that benefit organization and its stakeholders

What IS

If Relationships Are Important, Then What’s Relationship Marketing?

If Relationships Are Important, Then What’s Relationship Marketing?

If Relationships Are Important, Then What Is Relationship

Marketing

If Relationships Are Important, Then What Is Relationship

Marketing

• Relationship marketing: The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

• Let’s Talk About Strategic Planning

What Is The differenceWhat Is The difference

• Between strategic planning, functional (departmental planning) and operational planning?

What’s The Difference What’s The Difference

Term Strategic Planning

Functional Planning (mkt. dept)

Operational planning

Responsibility Top-mgmt.

Corporate

Functional level mgmt. (CMO or Mkt. director)

Supervisory managers

Action 1. Define mission

2. Evaluate internal/external env.

3. Set org. objectives

4. Establish bus. Portfolio

5. Develop growth strategies

1. Perform sit. Analysis

2. Set mkt. obj.

3. Develop mkt. strats.

4. Implement mkt. strats.

5. Monitor and control mkt. strats.

1. Establish action plans to implement mkt. plans

2. Use mkt metrics to control/measure mkt. plan effectiveness

What IS

What is strategic planningWhat are its steps?

What is strategic planningWhat are its steps?

Strategic planning: Strategic planning:

1. Strategic planning: 1. Developing a strategy for long-run survival and growth.

2. Steps1. Defining a clear company mission

1. Should market oriented, realistic, motivating, and consistent with the market environment.

2. Evaluate internal/external environment

3. Set objectives and goals 1. Detailed goals and objectives to guide entire company

4. Design and assess business portfolio1. Decide which businesses/products are allocated resources2. What level of resources

5. Ensure functional plans are developed to support objectives and goals 1. Each business/product unit develops detailed marketing plans that align with

company’s plans

What IS

How would you describe the steps to marketing planning (i.e. functional planning)

How would you describe the steps to marketing planning (i.e. functional planning)

How would you describe the steps to marketing planning (i.e. functional

planning)

How would you describe the steps to marketing planning (i.e. functional

planning)

• Perform a situational analysis (Internal/external environment)

• Set marketing objectives – Marketing objectives state what marketing function must accomplish if

firm is to achieve overall business objectives

• Develop marketing strategies – Segmentation, targeting, positioning– Marketing mix strategies

• Implement and control the plan

What IS

What’s The Marketing Mix What’s The Marketing Mix

What’s The Marketing Mix What’s The Marketing Mix

• Product

• Place

• Promotion

• Price

What IS

What Four Growth Strategies Does The Product-Market Expansion Grid Provide

What Four Growth Strategies Does The Product-Market Expansion Grid Provide

What Four Growth Strategies Does The Product-Market Expansion Grid

Provide

What Four Growth Strategies Does The Product-Market Expansion Grid

Provide

1. The product–market expansion grid suggests four possible growth paths: market penetration, market development, product development, and diversification.

What IS

What are some of the internal and external stakeholders that a situational analysis should consider

What are some of the internal and external stakeholders that a situational analysis should consider

What are some of the internal and external stakeholders that a situational analysis should

consider

What are some of the internal and external stakeholders that a situational analysis should

consider

• Buyers (consumers and customers)• Investors in the company• Community residents• Governmental agencies/regulators• Employees• Suppliers/members of supply chain/value chain• Media• Trade Associations• Functional departments • Other publics

What IS

Quality Mgmt. May Also Be Included In The Strategic Discussion What is TQM?

Quality Mgmt. May Also Be Included In The Strategic Discussion What is TQM?

Quality Mgmt. May Also Be Included In The Strategic Discussion

What is TQM?

Quality Mgmt. May Also Be Included In The Strategic Discussion

What is TQM?

• TQM:– Total quality management

• Mgmt. philosophy• Focus: Satisfy consumers

through employee empowerment

• Empower employees to be an active player in continuous quality improvement

• Quality: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

What Are Some Common Benchmarks For Quality Mgmt.?

What Are Some Common Benchmarks For Quality Mgmt.?

• ISO 9000:

• ISO 14000:

• Six Sigma:

What Are Some Common Benchmarks For Quality Mgmt.?

What Are Some Common Benchmarks For Quality Mgmt.?

• ISO 9000: Criteria developed by International Organization for Standardization to regulate product quality in Europe

• ISO 14000: Principles (standards) established by International Organization for Standardization; concerned with environmental management focusing on minimizing harmful effects on environment

• Six Sigma: Process whereby firms work to limit product defects to 3.4 per million or fewer.

• Total quality management: – Major approach to providing

customer satisfaction and company profitability.

– Besides measurement and reward systems, delivering quality requires total management and employee commitment

What IS

What is segmentation, targeting and positioningWhat is segmentation, targeting and positioning

What is S-T-PWhat is S-T-P

• Segmentation: Dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes.

• Targeting: The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

• Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

What IS

What Are the Various Ways You Could Segment A Consumer Market (I.e. on what variables)?

What Are the Various Ways You Could Segment A Consumer Market (I.e. on what variables)?

What Are the Various Ways You Could Segment A Consumer Market

(I.e. on what variables)?

What Are the Various Ways You Could Segment A Consumer Market

(I.e. on what variables)?

• geographic segmentation: Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.

• demographic segmentation: Dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality.

• age and life-cycle segmentation: Dividing a market into different age and life-cycle groups.

• gender segmentation: Dividing a market into different groups based on sex.

• income segmentation: Dividing a market into different income groups.

• psychographic segmentation: Dividing a market into different groups based on social class, lifestyle, or personality characteristics.

• behavioral segmentation: Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product.

• occasion segmentation: Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

• benefit segmentation: Dividing the market into groups according to the different benefits that consumers seek from the product.

• intermarket segmentation: Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

What Types of Market Coverage Strategies Could A Firm/Marketer Choose?

What Types of Market Coverage Strategies Could A Firm/Marketer Choose?

• Basically, what are the major ways a firm could choose to segment and cover the market?

What Types of Market Coverage Strategies Could A Firm/Marketer Choose?

What Types of Market Coverage Strategies Could A Firm/Marketer Choose?

1. To target the best market segments, firm evaluates each segment’s:

1. Size 2. Growth characteristics3. Structural attractiveness, 4. Compatibility with company objectives and resources

2. Then, it can choose one of the market coverage strategies1. Ignore segment differences (undifferentiated marketing),2. Develop different market offers for several segments (differentiated

marketing)3. Attempt to attract one or a few market segments (concentrated

marketing). 4. Micromarketing: Tailoring products and marketing programs to suit the

tastes of specific individuals and locations—includes local marketing and individual marketing

1. Local marketing: Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.

2. Individual marketing: Tailoring products and marketing programs to the needs and preferences of individual customers—also labeled one-to-one marketing, customized marketing, and markets-of-one marketing.

What IS

What About International Markets?

What Are the Various Strategic Options To Enter International

Markets?

What About International Markets?

What Are the Various Strategic Options To Enter International

Markets?

What About International Markets?What Are the Various Approaches to

International Markets?

What About International Markets?What Are the Various Approaches to

International Markets? • Firm must decide how to enter each market

• Major options/alternatives includes: – Exporting: Company enters a foreign market by sending and

selling products through international marketing intermediaries (indirect exporting) or the company's own department, branch, or sales representative or agents (direct exporting).

– Joint venture: Firm enters foreign markets by joining with foreign companies to produce or market a product or service.

– Licensing: Firm enters a foreign market by contracting with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty.

What IS

When Operating In A The International Market, What’s The Difference Between a Global Marketing Strategy and A Customized Marketing Strategy?

When Operating In A The International Market, What’s The Difference Between a Global Marketing Strategy and A Customized Marketing Strategy?

Global Marketing Strategy (GMS) vs. a Customized Marketing Strategy

Global Marketing Strategy (GMS) vs. a Customized Marketing Strategy

• This is basically a question of how firms adapt their marketing mixes for international markets.

• Companies must also decide how much their products, promotion, price, and channels should be adapted for each foreign market. At one extreme, global companies use a (Global marketing strategy) standardized marketing mix worldwide.

• Others use an adapted marketing mix (customized marketing strategy), in which they adjust the marketing mix to each target market, bearing more costs but hoping for a larger market share and return.

What IS

What Is A Service and its characteristics?What Is A Service and its characteristics?

What Is A Service and its characteristics?

What Is A Service and its characteristics?

• Intangible products that are exchanged directly from product to consumer

• Intangibility– Can’t see, touch, smell good or service

• Perishability– Impossible to store or save for later

• Inseparability– Impossible to separate production of service from consumption of

service

• Variability– Even same service performed by same person for same customer can

vary

What IS

What are the attributes of service quality? How do consumers assess whether a service is quality or not?

What are the attributes of service quality? How do consumers assess whether a service is quality or not?

• Search quality:– Product characteristics consumer can examine prior

to purchase (i.e. decor)

• Experience qualities– Product characteristics that customers can determine

during or after consumption (i.e. a vacation)

• Credence qualities– Product characteristics that are difficult to evaluate

even after they have been experienced (doctor’s qualifications)

What IS

How Doe We Measure Service Quality? What is Gap Analysis?How Doe We Measure Service Quality? What is Gap Analysis?

Gap AnalysisGap Analysis

• Marketing research method– Measures difference between customer’s expectation of a

service quality and what actually occurred

• Gap between management’s perception and quality standards firm sets.

• Gap between established quality standards and service delivery

• Gap between service quality standards and consumers’ expectations

• Gap between expected service and actual service