COMM 300: Exam notes

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Chapter notes

Chapter 1

marketing strategy
- 1. identifying tarket markets
- 2. tailoring marketing mixes that meet the needs & wants of each target market
- 3. developing marketing mixes that reinforce the products desired positioning strategy

marketing mix
- The four Ps (see handout 1)

positioning
- the image customers have about a product in relation to the products competitiors

Chapter 2

SWOT analysis
- page 56

organizational plannin
- page 40
- strategic planning
  - long horizon (3-5 yrs)
  - organization's overall game plan
  - performed at the corporate & business levels of the organization
  - answerrs "what business should we be in?" etc
- marketing planning
  - 1 year horizon
  - performed at the marketing or product level of the organization
- tatical planning
  - specifying details
  - detailed account of firm's short-term activities as outlined in previous two plans

six steps of strategic planning
- page 42
- establishing the organization's mission
- defining strategic business units
- specifying organization objectives
- analyzing SBU perrformance
- assessing organization growth opportunities
- developing marketing plans

strategic business unit
- page 43
- smaller divisions of company to facilitate planning

value chain
- page 51
- marketing channel (part)
  - wholesaler
  - retailer
  - customer

backward integration
- acquring companies up the value chain (upstream)

forward integration
- down the value chian (downstream)

horizontal integration
- competitors in the same stage of the value chain as you

components of a marketing plan
page 53
- executive summary
- market situation analysis
- swot analysis
- specification of marketing objectives
  - Specific
  - Measurable
  - Achievable
  - Relevant
  - Time-bound
  - (SMART)
- formulation of marketing strategies
- preparation of action programs & budgets
- development of control procedures

Chapter 3

Marketing etics & social responsibility

Chapter 4

International marketing Also in handout 8

Four step process in screening & identifying international markets
see page 107
- conduct preliminary screening
- determine market potential
- estimate sales potential
- select optimal marketing mix

motivations to go abroad (109)
- proactive motivations
  - profit advantage
  - unique products
  - technological advantage
  - exclusive information
  - economies of scale
- Reactive motivations
  - competitive pressures
  - overproduction
  - declining domestic sales
  - excess capacity
  - saturated domestic markets
  - proximity to customers and ports (ease)

Chapter 5

Marketing research & information systems

many terms on page 148

The research process

pg. 135

problem defiition
research design
data collection
data analysis & interpretation
presentation of results

primary data

qualitative research
- in-depth interview
- customer visits
- focus groups
quantitative research
- sampling

competitor reserach

page 158

who are the major players in the market?

channel reserach

page 164

different than customer research
studying distribution channels

Chapter 6

pg 175

Consumer buying / decision process

Page 177
problem recognition
- needs & wants (178)
- routine & latent problems (178)
information search
- awareness set (brands consumer is aware of)
- evoked set (brands that consumer remembers when making a decision)
- consideration set (brands consumer considers when buying)
  - initally info is seeked from the consideration set
- info search can bring more brands into all three sets
alternative evaluation
purchase
post-purchase evalutation
- Cognitive dissonance - postpurchase doubt about a decision & wisdom of choice (handout 4)
- Consumer will react with:
  - rationalizing / cognitive overlap
  - exit
  - voice (complain to management)
  - loyalty

Family decision process

page 192

conflict in decision on goals or perceptions
childrens influence

Sources of information

page 180

marketer sources
- advertising, packaging, in-store displays, or other product literature
nonmarketer sources
- independent sources (consumer reports), personal sources

choice models

pg 181

compensatory

consumer arrives at a choice by consdering all of the attributes of a product & trading off the alternatives perceived weaknesses in attributes for its perceived strenght in other attributes

noncompensatory

pg 181

conjunctive
- sets minimum cut-off requirements for all attributes and only chooses product that meets that minimum
disjunctive
- trade-offs between different aspects
- trade one feature for another
lexicographic
- rank order in terms of importance
- consider those that meet a certain threshold
elimination-by-aspects (simiar to above)
- narrow down starting w/ min cut off of feature ranked highest

consumer behavoior

pg 185

perception
learing
motivation
emotions
involvement
attitude
psychograpics
values
self-concept
lifestyle

social bases

pg 191

reference groups
- Groups that influence a purchase decision

VALS (Values & Lifestyles)

pg 188

SEE VALS diagram on pg 190
Actualizers, fulfilleds, achievers, experiencers, believers, strivers, makers & strugglers
Contrast on:
principle vs. status vs. action orientation
Low resources & innovation vs. high resources & innovation

Chapter 7

business to business marketing
pg 206

Chapter 8

Market segmentation & target markets
page 233

advantages vs disadvantages of segmentation (pg 240)

market selection process (pg 243)

Segmentation strategies (pg 245)
- Undifferentiated
- Concentrated
- Differentiated

Chapter 9

Marketing's role in new product development & product decisions
pg 272

Chapter 10

services marketing
pg 315

Chapter 11

Marketing channels & distribution
pg 352

Chapter 12

Retailing & wholesaling
page 390

Chapter 13

Integrated marketing communications: advertising & promotions
page 430

types of marketing
- page 431

Integrated marketing communications

(pg 433)

integrating all marcom elements - so everythng aheres to the same message
- starts w/ the customer to determine appropriate message
- involves any relevent form of customer contact
- achieves synergy in communication elements
- builds relationships
- affects behavior

it achieves:
- reduced dependence on mass-media
- increased reliance on targeted communication methods
- expanded efforts to assess communications return on investment

Chapter 14

personal selling & sals management
page 476

Chapter 15

pricing strategies & determinatoin
pg 506

Pricing techniques (pg 508)
- cost plus pricing
  - natural but sometimes wrong
  - Standard markup
  - Target return pricing

break even analysis (511)
profit maximization & elasticity of demand

profit maximization (pg 514)
- using marginal revenues / costs

Strategic drivers of price

pg 517

positioning strategy / competition
- two extremes:
  - low-cost leadership
  - differentiation
Pricing to meet objectives
- achieve a traget ROI
- Pricing to stablize price & margin
- pricing to raech a market-share target
- Pricing to meet / prevent competition (521)
- Pricing for profit max
- pricing for survival

New product pricing: (521)
- price skimming
  - starting high, working down
- price penetration
  - starting low

Handout nots

Marketing overview

Handout 1

Marketing (what is it?)

Management of the four Ps (MARKETING MIX)

Product
price
promotion
place

Components of a marketing plan

see handout (pyramid)

BCG Matrix

- Page 47

Star (high relative market share, high industry growth rate) build, maintain	? or problem child (low relative market share, high industry growth rate) build, niche, divest
Cash cow (high relative market share, low industry growth) havest, maintain	Dog or cash trap (low relative market share, low industry growth rate) maintain, niche, divest

X axis is relative market share
- Calculated by dividing your share by that of the largest competitor
Y is industry growth

Market growth strategies

page 49
see sheet (handed out)
is it an existing or new market?
is it an existing or new product?
broken down into 4:
- market penetration
- market development
- product development
- product diversification

Product & business growth

Handout 2

Brands, & more about product growth & BCG matrix

Product growth

Market penetration Existing markets with existing products. Increasing sales	Market development Itendifying new markets for existing prodcuts
Product development Intorducing new products into existing markets	Product diversification Offering new products to new markets (RISKY)

Products, services & brands

Handout 3

What is a product?

Brand equity - a combination of brand awareness & brand image

Brand awareness
- Consumers are familar with brand
Brand image
- consumers have stored in memory favorable, strong, and unique brand associations

Squential process of new product development
- ideas
- Screening
- Business analysis
- Development
- Testing
- Commercialization

Product life cycle
- Introduction
- Growth
- Maturity
- Decline

Product diffusion process
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggards

Consumer behavior

Handout 4

Three roles for consumers
- User
- Buyer
- Payer

Consumer models & theories
- deterministic
  - economic ( you can predit!!)
- stochastic
  - consumer is random

Buying decision process
- (see chapter 6)

Needs vs Wants
- Hierarchy of needs

VALS

Handout 5

marketing reserach
problem definition
reserach instrument design
analysis of data

Handout 6

Advertising, promotion, & corporate communication

Handout 7

Managing price & distribution

Handout 8

Globalization of marketing & international marketing
See chapter 4 (page 110)

Suggestions for study

Chap 1 - pp 32=33 questions 1,2,8 & internet questions 1 & 2
Chap 2 - p 62 - 2, 3, 4, 8, 9

Chap 5
- entire chapter
- pp 169-170 - Questions 1,2,3,5, and 9
Chap 6
- entire chapter
- p 200 questions 1,4,5 & internet 2
Chap 7
- entire chapter
Chap 9
- entire chapter
chap 11
- entire
chap 13
- in depth
chap 14
- lightly
Chap 15
- entire chap
entire international chapter
- focus on market-entry strategies