Marketing exam #1
What is sustainable competitive advantage?
Unique strengths competitors can’t easily copy (e.g., brand, patents, customer service).
Growth strategy: “Creating a new product for a new market.” New product, new market
Diversification
Growth strategy: “Expanding an existing product into new markets.” Existing product, new market
Market development
Growth strategy: “Launching a new product in an existing market.” New product, existing market
Product development
Match growth strategy: “Selling more existing products to current customers.” Same product, same market
Market penetration
What does STP stand for?
Segmentation, Targeting, Positioning
What does SWOT stand for?
Strengths, weaknesses, opportunities and threats
What are the 6 steps of a marketing plan?
Mission → Objectives → SWOT → STP → 4Ps → Evaluate
Formula for Customer Lifetime Value (CLV)?
(Avg purchase value × purchase frequency) × customer lifespan
How does product in the 4 p's create value
Addressing the specific needs and desires of the target audience
How does price in the 4 p's create value
Reflects the value of the product, influences the buying decisions when customers compare to competitors, balances profitability and accessibility
How does place in the 4 p's create value
Creates value by ensuring the product is available when and where the customer wants it. enhancing accessibility, convenience, and brand positioning.
How does promotion in the 4 p's create value
Communicating the products benefits, building brand awareness, generates demand.
What are the 5 core aspects of marketing?
Satisfies needs/wants, exchange relationships, value creation via 4Ps, performed by orgs/individuals, involves multiple stakeholders
What is the definition of marketing?
Creating, capturing, communicating, delivering, and exchanging value for customers, partners, and society.
List the 5 steps of the marketing process
Understand customers → Design strategy → Construct 4Ps → Engage customers → Capture value.
Mission statement
why we exist, what we do, for whom, how
Goals/Objectives in marketing steps
Make them specific and measurable
Situation Analysis
– SWOT (Strengths, Weaknesses, Opportunities, Threats
Identify Opportunities
STP (Segmentation, Targeting, Positioning)
Implement Marketing Mix
4 p's in action
Evaluate Performance
metrics (sales, market share, CLV, retention)
Customer lifetime value
CLV=(Avg.PurchaseValue×PurchaseFrequency)×CustomerLifespanCLV = (Avg. Purchase Value × Purchase Frequency) × Customer
Immediate environments
Company, competitors, physical environment, and corporate partners (suppliers/distributors)
Macroenvironments
Culture, Demographic, Social trends, Technology, and economy
Core competencies
a unique capability or advantage that a business possesses, allowing it to outperform competitors and deliver greater value to customers.
Consumer decision process
Factors influencing consumer decisions
Psychological(perception, motives, lifestyle), Social (family, culture), Situational (Purchase situation), and the Marketing mix (4 p's)
Big mac index(PPP)
The purchasing power is makes you tell which country's currency is undervalued or overvalued.
Lowest risk global entry strategy
Exporting
Highest risk global entry strategy
Direct investment
Franchising
A firm allows a local firm to where is being expanded to operate a business using its brand, business model and products.
Strategic alliance
Partnership between to firms to collaborate
Joint venture
Two or more firms pool their resources to create a new business entity together.
Compensatory rules
Consumers trade off good attribute against bad ones
Non-compensatory rules
If one key attribute fails,
Cognitive dissonance
Post-purchase regret or doubt about a decision