BUS 360 Exam #1 Notes

Chapter #1 ● Marketing is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. (satisfying needs and wants ) ● Marketing entails an exchange . ● Marketing Mix : (4 p’s) controllable set of decisions/activities the firm uses to respond to the wants of its target markets. 1. Product : Value Creation , by developing a variety of offerings (goods, services, and ideas). 2. Price : Capturing value , everything a buyer give up (money, time, and energy). 3. Place : Supply Chain Management , all marketing processes to get the product to the right customer at the right time. 4. Promotion : Communicating Value , communication by a marketer that informs, persuades, and reminds potential buyers. ● Marketing impacts multiple stakeholders (customers, supply chain partners, employees, society, etc.) ● Marketing Analytics : companies collect massive amounts of data about how, when, why, where, and what people buy. ● Resolving ethical/societal dilemmas: conscious marketing, socially responsible firms, making both of these an integral component of corporate strategies. ● Manufacturer (makes product) -> Retailer/B2B (sells product) -> Consumer A/B2C -> Consumer B/C2C Q. In her role as marketing manager, Sonja is responsible for addressing the design of her new product, as well as how much it should cost, what promotional activities should occur, and how the product will be distributed. Sonja is creating a… A. Marketing Plan Q. The Coca-Cola Company targets its soft drinks, Dasani and Smartwater, and Minute Maid juices campaigns to different market ________, including parents, their children, and athletes. A. Segments Q. When a coffee grower sells its coffee beans to Starbucks, it is engaged in ________ marketing. A. B2B Q. Facebook Marketplace, where people can buy or sell virtually anything to other consumers, is an example of ________ marketing. A. C2C Q. The belief that a good product would sell itself came out of the ________ era . A. Production-Oriented Q. What is one of the core practices among value-oriented marketers ? A. constantly measuring the benefits that customers receive against the costs of offerings Q. During the last couple of decades, it has become important for value-oriented marketers to ________ with customers. A. move toward a relational perspective from a transactional orientation Q. A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers is known as… A. Customer Relationship Management Chapter #2 ● Marketing Strategy : identifies a firm’s target market, related marketing mix, and

the bases on which the firm plans to build a sustainable competitive advantage. ● Customer Value 1. Customer Excellence: customer service, retaining loyal customers 2. Operational Excellence: efficient operations, relationships with suppliers, and supply chain management. 3. Product Excellence: provide products with perceived value and effective branding/positioning. 4. Locational Excellence: self explanatory ● Multiple sources of advantage (just cheap prices usually isn’t enough to be sustainable.) ● Phases of a Marketing Plan Planning -> Implementing -> Controlling Step 1: Mission Statement (overall objectives) Step 2: Situation analysis ( SWOT ) factors internally (strengths and weaknesses) factors outside company (opportunities and threats). Step 3: Identifying and Evaluating Opportunities Using STP (segmentation, targeting, and positioning). Step 4: Implement Marketing Mix and Allocate Resources Step 5: Evaluate Performance & Make Adjustments ● Growth Strategies - Market Penetration : current product/service and current markets (existing marketing mix and customers). - Market Development : current product/service and new markets. - Product Development : new product/service and current markets. - Diversification : new product/service and new markets. ● Market Segmentation : dividing the market based on various needs and accommodating specific groups. ● Market Positioning : marketing towards a distinct segment. (ex: Toyota with the Rav4). ● Marketing Metrics : used to evaluate effectiveness of performance of marketing strategies. ● BCG Product Portfolio Analysis:

SEM and paid search. 4. Community: allow customers to interact, use corporate and professional blog, engage in crowdsourcing. 5. Communication: clear, helpful, meaningful content, interact and engage site visitors, provide way of communication for customers. 6. Commerce: desktop usage and conversion rates are higher for online purchases vs. mobile, most loyal customers use multiple channels, customers want a ranger of online purchase options. 7. Connection: engage customers and provide a call to actions, allow continuous interaction, enable positive engagement. ● Wheel of Social Media Engagement : Information, Connected, Network, Dynamic, Timeliness ● Information Effect : when relevant info is spread by firms/individuals to other members of the social network. ● Connected Effect : humans’ innate need to connect with other people. ● Network Effect : outcome in which every post is spread instantaneously across social media agent’s network. ● Dynamic Effect(s) : #1: info is exchanged to network participants through back and forth communications. #2: people flow in and out of networked communities as their interests change. ● Timeliness Effect : social media can engage with the customer at the right place and time. ● App Pricing Models: ad-supported apps, freemium apps, paid apps. ● Firms’ Social Media Engagement Process: Listen -> Analyze -> Do ● Listen: helps determine digital marketing objectives and strategies. ● Sentiment Analysis : allows marketers to analyze/determine consumers’ attitudes and preferences. ● Analyze: hits, page views, bounce rates, click paths, conversion rates, keyword analyses. ● Do: develop/implement social media campaigns. ● Influencer Marketing: using opinion leaders on popular social media to drive marketing to their fan base. ● Assessing the Efficacy of Influencers: relevance, reach, response, return ● Ethical considerations for influencer marketing: 1. Fraudulent Influence: the incentive to boost follower numbers has led to unethical behaviors. 2. Disclosing Advertising: influencers should be clear when they are being paid to promote a product. 3. Sincerity: followers must truly believe that the influencer likes the promoted product. Q. In terms of the 4E framework, a company that employs a media-sharing site such as

YouTube does so to help consumers. A. Experience the Company’s goods/services Q. What type of blogs are central to organizations’ digital marketing efforts? A. Corporate Blogs Q. How does a microblog differ from a personal blog? A. Microblogs allow people to share their thoughts, opinions, and feelings with the entire world, while personal blogs are created by and usually for individuals. Q. Which of the seven critical elements of online marketing is best addressed by thought-sharing sites? A. Community Q. Your employer wants to analyze data that come from other sites, such as measuring where people have come from to get to your company’s site. What would you recommend that your company use to determine how people searched the Internet to find its products? A. Keyword Analysis Q. It is important to determine the amount of traffic using a particular site, visits to the blogs, or tweets about the site. A measure used for this purpose is the number of A. Hits Q. Once a target audience has been determined, what is the third step in developing and implementing a digital marketing campaign? A. Develop the Budget Chapter #4 ● Conscious Marketing ● Overriding principle -> Marketing’s greater purpose: Corporate Social Responsibility (economic, social, and environmental performance). ● Business Ethics : concerned with distinguishing between right and wrong actions and decisions that arise in a business setting. ● Stakeholders of conscious marketing: employees, customers, marketplace, society. 1. Employees: ensure a safe work environment, free of threats to safety, health, or well-being. (Most basic responsibility is to employees!) 2. Customers (current and potential): act quickly to shifts and trends to meet customer needs. 3. Marketplace: one firm in the industry can lead the way towards conscious marketing, partners/competitions have no choice, but to follow. 4. Society: a firm that fails to act responsibly causes damage to all the preceding stakeholders as well as itself. ● Triple Bottom Line : economic, social, and environmental performance. ● Environnement: sustainability combines considerations of all stakeholders. ● Strategic Marketing Planning Process (Planning -> Implementation ->