1) A fee manufacturers pay to stores to have their products (often new market entrants) placed on the store's shelves.

e.g Coke coming out with Coke Zero

Fact: 84% of retailers charge slotting allowances.

1) Creates "exchanges" that satisfies individual needs and organizational objectives.

3 main objectives

A. Assesses needs: what people want.

B. Satisfies them: satisfies consumer needs.

C. Makes a profit.

1) Marketing Mix

1) Price

     Product

     Promotion

    Place

1) Price

2) Product

3) Promotion

4) Place

1) Setting Prices for customers, wholesalers, retailiers, based on costs and demand or/and competition.

2) Design, packaging, branding, support services and variations/features.

3) Advertising, sales (e.g coupons and rebates), public relations, direct marketing and personal selling.

4) How, where, when the product is available to targeted customers.

1)

A. 2 or more entities with unsatisfied needs.

B. Desire & Ability to satisfy those needs for both parties.

C. A way for parties to communicate (i.e the marketing mix as a communication tool).

D. Something to exchange (i.e product, service, time, etc.).

1)

A. Form Utility

B. Place Utility

C. Time Utlity

D. Possession Utility

1) Form Utility

2) Place Utility

3) Time Utility

4) Possession Utility

1) Produces or modifies goods/services and adds volume (e.g computers than computers with built in webcams)

2) Having something where you want it.

3) When I want it now. When I want it year round (in reference to seasonal products).

4) allosing customers to take ownership. "Facilitating" exchange.

1) Focusing on the most efficiant ways to make and distribute a product.

A. Adds new features without consumer need or even consumer want.

1) "Get the dogs to eat the dog food."

A. Focus on one-time sales of goods rather than repeat business.

B. Reduce inventories.

1) Satisfy customer's needs.

A. Start by asking the customer what they want.

1) Focus on competitor intelligence and advancement.

A. Learning and reacting to what the competition is doing.

e.g Walmart coming to town.

1) New Era Societal Marketing Orientation

1) Emphasis on satisfying customers needs while also satisfying the broader needs of society.

e.g. Cigarette companies and second hand smoke.

1)

A. Planning

B. Implementing (doing it)

C. Control (evaluating the results)

1) Planning

1)

A. Conduct a situation analysis.

B. Set Goals.

i. SWOT

ii. Portfolio Analysis

C. Write a marketing plan.

1) What is the purpose of a Situational Analysis?

2) What step of the Strategic Marketing Process does it appear?

1) To assess a firm's internal and external environments.

2. Planning (step 1)

1) What does S.W.O.T stand for?

2) Which aspects of SWOT are external factors? Which are internal?

1) Strength Weakness Opportunity Threat

2)

A. External: Oppurtunity and Threat

B. Internal: Strength and Weakness

1)

A. Government regulations

B. Price of raw materials

C. International labor laws and export prices.

1) What is the purpose of a portfolio analysis?

2) What are two different application types?

1) To evaluate a firm's business mix and assessing the potential and assessing the potential of an organizations strategic business units.

2)

A. Boston Consulting Grid Model.

B. Product Market Grid.

1)

X Axis (From Left to Right)

Existing Products. New Products.

Y Axis (From Bottom to Top)

New Market. Existing Market.

Strategies: As they appear in the box.

Penetration              Product Development

Market Development            Diversification

1)

X Axis: High Relative Market Share. Low Relative Market Share.

Y Axis: Low Market Growth Rate. High Market Growth Rate.

SBUs:

Stars          Question Marks

Cash Cows                Dogs

Strategies:

A. Build (inject cash)

i. Stars or Question marks.

B. Hold (maintain status quo)

i. Cash Cows

C. Harvest (Reduce cash to one SBU to fund another)

i. Reduce from cash cow or dogs

ii. Fund question marks.

D. Divest (Drop the SBU or sell to another firm)

i. Drop dogs/question marks.

ii. Stars if they are bad (expensive).

1) SBUs

2) What types of SBUs exist?

3) How do they relate to BCG Grid?

1) Individual units within a firm, each having its own mission, objectives, resources, managers and competition.

2)

A. Brand

B. Product lines

C. Company divisions

D. Profit centers.

3) They make up the quadrants within the grid.