Marketing Strategy Study Guide

MKT 850 orbit Guide Chapter 5 * SWOT Analysis * One of the more or less effectual tools in analyzing mart data and knowledge * Links companys locating analysis and growing of selling plan * Uses body structured development to uncover competitive advantages and ladder selection of the strategical focus of the merchandising dodging. * Broken down into * Strengths, Weaknesses, Opport unit of measurementies & Threats * Productive SWOT (manager should) * Use a serial publication of SWOT analyses focusing on specific harvest-home/ securities industry combinations * await for competitors twain(prenominal) personate and future Collaborate with other(a) functional argonas by sharing information and perspectives * Examine essences from the nodes perspective by asking employees * What do guests believe ab off us as a company? * Which of our light-colorednesses provide into a decreased great supply to serve customers? * Looks for causes non characteristics consideri ng the pixilateds resources for each berth * Separate internal and external issues using this tell apart test * Would this issue exist if the duty degraded did non exist? * If yes, issue classified as external * Strengths & Weaknesses Exist because of resources by the firm, or payable to the nature of key relationships between the firm and its customers/employees/outside organizations * may be leveraged into capabilities (strengths) or bounce back (weaknesses) * Meaningful only when they assist or hinder the firm in contacting customer inescapably * Opportunities & Threats * Not potential merchandise actions. Issues/situations that draw in the firms external environments. * Not ignored as the firm gets caught up in exploitation strengths and capabilities for fear of creating an efficient, only if idle organization. Stem from changes in the competitive, customer, economic, political/legal, technological, and sociocultural environments. * SWOT Matrix * Al bases merc handise manager to visualize the analysis * Serves as a catalyst to guide the creation of grocerying strategies that will produce desired results. * Allows manager to pass how strengths and opportunities might be connected to create capabilities that be key to clashing customer need * Assesses the magnitude and importance of each strength/weak/opp/threat. * Competitive Advantage Capabilities in relations to those held by the competition * base on both internal and external factors * establish on populace and customer perception * Based on the basic strategies of operational excellence, merchandise leadership, and customer intimacy. * Strategic Focus Establishment * Based on developing an overall concept or model that guides the firm as it weaves versatile marketing elements together into a coherent strategy * Tied to firms competitive advantage * Use results of SWOT as firm considers four directions of strategic exertions * Aggressiveness Diversification * Turnaround * De fensiveness * Ensures the firm does not step beyond core strengths to consider opportunities outside its capabilities * Visualized with with(predicate) the use of a strategy canvas where the goal is to develop a hold dear curve that is distinct from the competition * Downplay traditional manufacturing competitive factors in favor of saucy onrushes * Lays groundwork for development of marketing goals and objective, connects SWOT outcomes to the rest of the marketing plan. * merchandise Goals Broad, desired accomplishments started in everyday terms. * Indicate the direction the firm attempts to move in, as well as the unbending of priorities will use in evaluating alternative and making finalitys. * Should be attainable, realistic, internally pursuant(predicate), comprehensive, and clarify the roles of all parties in the organization. * Involves more or less degree of intangibility * Marketing Objectives * Specific and quantitative benchmarks that can be employ to label progress toward the achievement of the marketing goals * Should be attainable with reasonable effort Continuous or discontinuous depending on the degree to which they depart from present objectives * Assigned to specific areas, departments, or individuals who gift the responsibility to accomplish them Chapter cardinal * Buyer Behavior in Consumer Markets * oft irrational and unpredictable as consumers say one thing and do another * Progress through five stages * Need Recognition * Information face * Evaluation of Alternatives * barter for Decision * Post Purchase Evaluation Dont always follow these stages in order or may skip stages * May be characterized by hardcorety where consumers simply bargain for the said(prenominal) growth that they bought last time * Involves parallel sequencing of activities with finding the most suitable merchant. * turn what fruit they want, and where to bargain for it * Can occur if a consumer is fiercely loyal to a merchant * Can be affe cted by * complexity of the purchase and decision making action * demographics, Psychographics, and Sociocultural factors * Social influences culture, brotherly class, family, opinion leaders, indication groups. Situational influences physical and spacial influences, social and personal influences, time, purchase task/usage, consumer disposition * Consumers requires & needfully * Shouldnt define inescapably as necessities because everyone has a antithetical perspective on what constitutes a need * Needs occur when a consumers current level of satisfaction doesnt jibe their desired level * Wants are consumers desire for a specific crossroad that will satisfy a specific need * Firm essential understand basic needs fulfilled by its harvest-homes. Allows firm to particle markets and create marketing programs that show needs into wants for their yield * Most growths are marketed on the basis of wants not need fulfillment * Wants are not the same as gather up * Demand occ urs when the consumers ability and willingness to pay backs up a want for a specific yield * Information Search * Passive and Active * Passive- consumer become more attentive and receptive to information * Active- consumer engages more aggressive seeking information reckon * Depends on some(prenominal)(prenominal) issues Degree of risk * Level of expertise * Actual cost of search (time and money) * Culminates in an evoked set of suitable buy alternatives * Evaluation of Alternatives * Translates needs into wants for specific crossings or brands * Evaluate products as bundles of attri only whenes that experience varying abilities to satisfy their needs * Priority of each consumers choice criteria can change * Want the product to be in the evoked set of potential alternatives * ever re brain them of their company and products * Purchase Stage Intent to purchase and the developed act of buying are distinct concepts * Key issues * product accessibility how favourable is it to get the product where the consumer is * possession utility how easy is it to bump off ownership * Postpurchase Evaluation * Outcome of buying process is linked to the development of long-term customer relationships. Closely follow customers responses to monitor performance and ability to meet customers expectations * Will experience one potential outcomes Delight, satisfaction, dissatisfaction, or cognitive dissonance * Business Markets * Purchase products for their use in their operations, like buying raw materials, buying office supplies, or leasing cars * Consists of four types of vendees * Commercial markets * Reseller markets * giving medication markets * Institutional markets * cardinal unique characteristics not found in consumer markets * The buyer center economic buyers, technical buyers, and users * Hard and soft cost are equally important Hard- monetary toll or purchase costs * Soft- downtime, opportunity costs, HR costs * Reciprocity dividing line buyers and seller s often buy products from each other * Mutual dependence sole-source or limited-source buying makes both buying and selling firms mutually dependent * Business Buying attend * Sequence of Stages * Problem Recognition * Development of product specifications * vender recognition and qualification * Solicitation of proposals and bids * Vendor selection Order processing * Vendor performance review * Can be affected by several factors including environmental conditions, organizational factors, and interpersonal/individual factors * Market naval division process of dividing the total market for a finical product or product category into relatively homogeneous segments or groups * Groups should have similar members, but groups must be dissimilar from each other * Fundamental decision of whether to segment at all Allows firms to be more successful imputable to the fact that they can tailor products to meet the needs of a particular market segment * Traditional market segmentation appro ach * apply successfully for decades, not out of date, and are used by many of todays most successful firms * Can be used in combination with newer approaches by the firm, depending on the brand/product or market in question * Successful segmentation Must be identifiable and measureable * Substantial * Accessible * Responsive * executable and sustainable * avoid ethical/legally sensitive segments * Avoid viable segments that dont outfit firms mission * Mass Marketing no segmentation and is aimed at the total market for a product * undifferentiated approach assumes all customers have similar needs/wants * Works outstrip when needs are relatively homogeneous Advantage- production efficiency and trim down marketing costs * Disadvantage- risky because a standardized product is susceptible to competitors that offer specialized products that better get together customers needs * Differentiated Marketing divides the total market into groups of customers having relatively homogenou s needs, attempting to develop a marketing program that appeals to one or more of these groups * Necessary when customer needs are similar within a single group, but the needs differ across groups * Two options * Multi-segment approach * Market concentration approach Niche Marketing focusing efforts on one small, well outlined market segment or niche that has a unique, specific set of needs * Requires that firms understand and meet needs of tooshie customers. Although small in size, firms substantial share makes the segment highschoolly productive * Individualized Segmentation Approaches * Viable due to advances in technology especially in communication and the internet * Organizations can now track customer with a high degree of specificity * Allows firms to combine demographic data with past/current purchasing behavior. Tweak marketing programs in ways that allow them to precisely match customers needs, wants, and preferences * Become more important in the future because thei r focus on individual customers makes them critical to the development and living of long-term relationships * Expensive to digest * Two important considerations * Automated delivery of the marketing program * Personalization matched Marketing involves the creation of an entire unique product or marketing program for each customer in the target segment * ordinary in business markets where unique programs and systems are designed for each customer * Growing rapidly in consumer markets, in luxury or custom made products or processs * Mass customization providing unique products and solutions to individual customers on a mass scale * terms-effective and practical due to advances in supply- mountain range management. real time inventory control) * utilize frequently in business markets, especially electronic procurement systems * Permission Marketing different from one-to-one marketing because customers choose to become a member of the firms target market * Commonly executed via opt in netmail lists * Advantage customers already interested in firms oblations * Allows precise target of individuals, eliminating the line of work of wasted marketing effort and expense * Identify Market Segments selecting most relevant variables to identify and define the target market, many of which come from the situation analysis 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 * Behavioral segmentation most reasonful approach because it uses unfeigned consumer behavior or product usage helps to make distinctions among market segments Demographic segmentation divides markets using factors much(prenominal)(prenominal) as gender, age, income, and education * Psychographic segmentation state-of-mind issues such as motives, attitudes, opinions, nurtures, invigorationstyles, interests, and per sonality * Geographic segmentation most useful when feature with other segmentation variables, geodemographic segmentation or geoclustering. * Business markets are found on types of market or on things such as organization, characteristics, benefits desire/buying process, personal/psych characteristics, or relationship intensity. Top Marketing Strategies * Based on military rating of the attractiveness of each segment and whether each offers opportunities that match firms capabilities and resources * Single segment targeting, selective targeting, mass market targeting, product specialization, and market specialization. * Also consider issues connect to noncustomers, like why they do not buy and finding ways to remove obstacles to purchase. Chapter 7 Product strategy at the heart of every organization and it defines what the organization does and why it exists * Creating a productive offering that is a bundle of physical (tangible), work (intangible), and emblematic (perceptua l) 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 on 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 create benefits including economies of scale, share uniformity, standardization, gross taxation and distribution efficiency, etc. Service Products Challenges stem from the intangibility of services. another(prenominal) characteristics include simultaneous production/ manipulation, and perish ability/client ground relationships * Other issues * Ex perience problems in balancing supply and demand * clipping and place dependent because customers must be present for delivery * Customers have a unenviable time evaluating smell of service before it is purchased * choice of service is often inconsistent and hard to standardize * Need for some services are not always apparent to customers.Service marketers often have trouble tying offerings to needs * reinvigorated Product Development critical part of a firms efforts to sustain growth and gain * 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 entirely new market * New product lines- represent new offerings by the firm, but they become introduced into completed markets * Product line extensions- supplement an existing product line with new styles, models, features, or flavors * Improvements/Revisions of existing products- offer customers impro ved performance or great compassd value * Repositioning- targeting existing products at new markets or segments * Cost reductions- modifying products to offer performance similar to competing products at a lower determine * Depends on firms ability to create differential advantage for the new product * Proceeds through five stages * Idea generation * Screening and evaluation * Development * Test marketing * Commercialization * dirting Strategy selecting the proper(ip) combination of name, symbol, term, and design that identifies a specific product * Two part * Brand name words, letters, and numbers * Brand mark symbols, figures, or a design * exact 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 * tribe (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 * Manufacturer vs. private-label brands- private label brands are more profitable than manufacturer brands for the retailers that carry them. Manufactured brands have built-in demand, 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- branding strategies, such as co branding that involve developing close relationships with other firms. * Packaging and labeling * Part of developing a product, its benefits, its differentiation, and its i mage * Issues such as color, shape, size, convenience of the package or container * Are often used in product modifications/co branding to wobble the product or go past it new features. * Vital in helping customers make proper product selections * alpha 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 twain or more key dimensions * Based on the brand, but also product descriptors, customer abet services and image * Includes positioning strategies to strengthen current position, reposition, or reposition the competition * Managing Products and Brands over time * Traditional product life circle five stages Developm ent a time of no sale gross, shun hard currency flow and high risk * Introduction time of wage hike customer awareness, extensive marketing expenditures, and rapidly increasing sales revenue * Growth 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 * Influence 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 consideration in competitive intelligence * Only real message of differentiation in mature markets that are commoditized * Among most complex decisions to be made in developing a marketing plan * Sellers Actions regarding determine Tend to inflate prices to receive as much as mathematical in exchange * Consider four issues in price strategy * cost * Demand * Customer value * Competitors prices * Have outgrowthd power over buyers when products are in short supply, high demand, or well economic times. * Buyers Actions regarding toll * See prices as being lower than the market reality dictates * Two issues * perceived value * price sensitivity * 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-term currency flow * Based on two general pricing myths * When business is good, a price cut will capture greater market share * When b usiness is bad, a price cute will kick up sales * Risky because a price cut must be offset by an increase in sales volume to have the same level of gross margin * Not always beat out strategy, maybe build value into the product instead. * determine strategy issues * Pricing 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 pricing through breakeven analysis or cost-plus pricing * Not be the driving forcefulness behind pricing strategy because different firms have different structures * Used to establish a floor below which prices cannot be set for an drawn-out period of time * Pricing Strategy in Services * Critical as price may be the only cue to quality in advance of the purchase experience * Becomes important and more difficult when * Service quality hard to detect prior to purchase * Costs associated with p roviding the service are difficult to determine * Customers are unfamiliar with the service process * Brand names are not well naturalised * Customers can perform the service themselves * Service has poorly defined units of consumption Advertising within a service category is limited * entirety price of the service experience is difficult to state beforehand * Often based on yield management systems allowing a firm to both control capacity 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 open 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, hotels, letting cars, cruises, etc. Allows firm to offer same basic product to different market segments at different prices * Price elas ticity 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 Sensitivity Increases * Substitute products are widely available * Total expenditure is high * Changes in price are marked 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 complementary products go down * Customers believe the product is worth the price * Time pressures or purchase risk are involved for consumers * Major base pricing strategies include * Market admission pricing used of price skimming or penetration pricing when produc ts are first launched into the market * Prestige pricing intentionally background knowledge prices at the top end of all competing products in order to put up an image of exclusivity and superior quality Value-based pricing (EDLP)- setting reasonably low prices, but still offering high quality products and adequate customer service * Competitive matching- charging what is considered to be the going rate for the industry * Nonprice strategies- mental synthesis a marketing program around factors other than price * Strategies for adjusting prices in consumer markets * Promotional discounting putting products on sale * Reference pricing analyse the authentic 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 bringing 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 giving buyers price breaks, including discounts for cash, quantity or bulk discounts, seasonal discounts, or trade allowances for participation in ad or sales support programs * Geographic pricing quotes prices based on transportation costs (distance) * Transfer pricing pricing when one unit in an organization sells products to another unit * Barter and countertrade full or partial payments in goods/services/buying agreements rather than in cash * Price discrimination charging different prices to different customers * Dynamic Pricing * Started to supersede fixed pricing in many product categories * Growing in importance and popularity due to the growth of online auction firms * Three pricing levels * enterprise position * Aspiration price Price limit * Long process, but is most logical and systematic way for two parties that dont initially agree to reach agreement * Legal & Eth ical Issues of Pricing * Price discrimination different prices to different customers. Illegal unless its basis is the actual cost differences in selling products to one customer relative to another. * Price fixing 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.