1. Product
   (The tangible item/idea that is created)
   
   
2. Place
   (Delivery; where and when a customer wants)
   
   
3. Promotion
   (Offering of information, persuasion, education, reminders)
   
   
4. Price
   (Value; can be a competitive weapon)

1. Obtain information about customers, competitors, and market
2. Examine the information from a total business perspective
3. Determine how to deliver superior customer value 
4. Implement actions to provide value to customers

Strengths, Weaknesses, Opportunities, Threats

(S/W = internal; O/T = external)

1. Star
2. Cash Cow
3. Dog
4. Problem Child

High potential for growth; should direct investments to this project. It will become a cash cow when the growth rate declines.

Action: BUILD

(High market share + High growth rate)

Generates cash but without lots of growth; an already-established item that is profitable and so the business should "milk" this product.

'

Action: HARVEST

(High market share + Low growth rate)

Underperformer; drains resources and gives little benefit. Should divest ASAP.

Action: HOLD

(Low market share + Low growth rate)

Rapid growth but no market share (not generating cash)

Action: DIVEST

(High growth rate + low market share)

What makes a company fundamentally different from the competition.

• It is not easy for competitors to imitate.
• It can be re-used widely for many products and markets.
• It must contribute to the end consumer's experienced benefits.

1. Cost competitive
2. Product Differentiation
3. Niche strategy

Aiming to make the cheapest and most efficient operation.

• Inexpensive raw materials
• Efficient plant operation
• Ease of manufacture for products
• Low overhead cost
• No "marginal" customers; only deal with bulk items

Making a product that is unique and valuable to customers; goes beyond having a low price.

• Brand names
• Strong dealer networks
• Product reliability
• Company/brand image
• Service

When a firm seeks to target and effectively serve a small segment of the market (i.e. a minority subgroup in a larger market)

• Typically small companies w/ limited resource
• Often limited geographic market
• Product line may target one specific product category

• Patents
• Copyrights
• Locations
• Equipment
• Technology
• Customer service
• Promotion

• Access to unique talent and skills
• Cost savings because of higher productivity or low overhead
• Existing relationships (switching costs working in your favor)
• Virally organized product and organization
• Large network of users
• Speed
• Monopoly power
  
• Story that resonates with your target audience
  Large media budget
• Insight into worldview of prospects (you make what they care about)
• Emotionally intelligent sales force or customer service people
• Access to capital and willingness to lose money to build share
• Connection to community

1. Market Development
2. Market Penetration
3. Product Development
4. Diversification

Deals with Marketing Strategies

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1. Selecting and describing one or more target markets
   
   
2. Develop and maintain a market mix to produce mutually satisfying exchanges with target markets

1. Segment market based on groups with similar characteristics
2. Analyze market based on attractiveness of market segments
3. Select one or more of these target markets

Options to choose from in a Target Market Strategy

1. Appeal to entire market with your marketing mix
2. Concentrate on one single market (ex. microbrews)
3. Aim for multiple markets with multiple marketing mixes

Blend of the FOUR P'S OF MARKETING

In order of importance:

1. Product
2. Place
3. Promotion
4. Price

Elements in the External Marketing Environment (6)

1. Demographics
2. Social Change
3. Competition
4. Economy
5. Politics
6. Technology

1. Product
2. Place
3. Promotion
4. Price

• Socially responsible companies will outperform their peers by focusing on the worldpeers world’s social problems
  
  
• Opportunities to build profits and help the world at the same time.

In order of importance:

1. Economic
   (Be profitable)
   
   
2. Legal
   (Obey the law)
   
   
3. Ethical
   (Do what is right)
   
   
4. Philanthropic
   (Be a good citizen)

1. Preconventional
2. Conventional
3. Postconventional

More childlike:

• Based on what will be punished or rewarded
• Self-centered, calculating, selfish

• Moves toward the expectations of society
• Concerned over legality and the opinion of others

• Concern about how they judge themselves
• Concern if it is right in the long run

Guideline to help employees make better decisions

• Helps identify acceptable business practices
• Helps control behavior internally
• Avoids confusion in decision making
• Facilitates discussion about right and wrong

1. Social
2. Demographic (Generations)
3. Economic
4. Technology
5. Politics
6. Competition

1. Attitudes
2. Values
3. Lifestyle

1. Tweens
2. Gen X
3. Gen Y
4. Baby Boomers

• Ages 8-14
• Purchasing power = $29 million
• View TV ads as “just advertising”
• Emerging as “the richest generation”and the “most influential generation in history”
• Purchasing power lies in the ability to sway the parents

• Years 1979-1994
• Purchasing power = $60 million
• Word of mouth marketing is most effective
• Impatient, opinionated, diverse

• Years 1965-1978
• Purchasing power = $40 million
• Time is at a premium, and outsourcing is utilized
• Entering their money-making years

• Between 1946-1964
• Purchasing power = $77 million
• The largest demographic segment
• Income grows as they get older

1. Consumer income distribution
2. Inflation (affects baby boomers the most)
3. Recession

Laws and regulations protect:

1. New technology
2. Society
3. Businesses
4. ConsumersLaws

1. Recognize the need
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Post-purchase behavior

• Imbalance of actual and desired states
  
  
• Marketing helps consumers recognize this imbalance
• Marketing can also create the "preferred state", eg. convince you that you need a new phone when yours works just fine
• Present states affected by stimuli such as sight, taste, smell, touch, and hearing

Search in the environment; there is marketing-controlled and non-marketing controlled content (news, blogs, word of Mouth, Twitter)

Note that company can only react to nonmkting information.

• Less Risk
• More knowledge
• More product experience
• Low level of interest
• Confidence in decision

• More Risk
• Less knowledge
• Less product experience
• High level of interest
• Lack of confidence

Group of brands, resulting from an information search, from which a buyer can choose

(from Information Search)

1. Form an evoked set
2. Analyze product attributes
3. Use cutoff criteria
4. Rank attributes by importance

1. Routine Response (Less involvement)
2. Limited Decision Making (Some Involvement)
3. Extensive Decision Making (More Involvement)

1. Level of consumer involvement
2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered

1. Cultural
2. Social
3. Individual
4. Psychological

• Little involvement in selection process
• Frequently purchased low cost goods
• May stick with one brand
• Buy first/evaluate later
• Quick decision

• Low levels of involvement
• Low to moderate cost goods
• Evaluation of a few alternative brands
• Short to moderate time to decide

• High levels of involvement
• High cost goods
• Evaluation of many brands
• Long time to decide
• May experience cognitive dissonance (discomfort from having conflicting options)

1. Previous Experience
2. Level of interest
3. Situation
4. Social visibility
5. Perceived Risk of negatives

Provide extensive and informative marketing promotion to the target market

(eg. brochures at car dealerships)

Attempt to catch the buyer's attention and cater to their impulsiveness:

• In-store promotion
• Packaging graphics
• Good displays
• Coupons
• 2-for-1 deals

Social Factors/Influences

1. Reference Groups
2. Opinion Leaders
3. Family Members

Groups in the same scoial class often share behavioral norms

Individual Factors/Influences

1. Gender
2. Age/Life-cycle
3. Personality/Lifestyle/Self-concept

1. Perception
2. Motivation
3. Learning
4. Beliefs & Attitudes

What is acceptable and what is not

Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

1. Occupation
2. Wealth
3. income
4. Education
5. Other

• Indicates which medium to use for advertising
• Helps determine the best distribution for products

Reference Group

Individual who influences opinion of others

eg. Oprah

Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

Selective retention && Selective exposure

THIS IS WHAT MATTERS IN MARKETING; HOW PEOPLE PERCEIVE YOUR PRODUCT DETERMINES WHETHER THEY WILL BUY IT!!!!

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Learning (Experiential)

An organized pattern of knowledge that an individual holds as true about his or her world.

(what we hold true)

Our beliefs can change, be more or less important over time, and can add new beliefs