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54 Cards in this Set
- Front
- Back
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marketing
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creates, communicates, delivers value to customer. then manages these relationships that betters orgs, and shareholders
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STRATEGIC marketin
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configuring of market offerings for specific product-markets to attain a sustainable competitive advantage
i. to do this you must do 3 things. 1. analyze internal and external situation 2. gain solid understanding of customers, suppliers, competitors, partners and markets 3. know current/future competencies and weaknesses |
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operational link
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the way marketing manipulates product, place, promotion, price to achieve sustainable competitive advantage
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business definition (aka Scope)
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in a customer-focused strategy
1) define customers they want to serve 2) define their needs 3)define how/technology they will need to satisfy needs |
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business mission
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compliments the business definition (scope)
typical dimensions include: customers, offerings, technology, philosophy, markets |
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benefits of business mission
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crystalizes the long term goal of the firm
provides guidance for expanding/market opportunities inspires employees to do things valued by firm |
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business goals
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takes the business mission and puts them into tangible goals and with a time frame
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three types of goal categories
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production goals
financial goals marketing goals |
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review product-market graph
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review product market graph (slide 18 on session 1
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two categories of variable costs
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costs of goods sold
other variable costs (other costs that vary with production) |
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2 types of fixed costs
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programmed costs- attempts to generate sales (marketing is a programmed cost)
committed costs- rent, salaries, factory |
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relevant costs
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future expenditures unique to the decision alternatives under consideration ( opportunity cost)
i. expected to occur in the future bc of some marketing action ii. different for each alternative |
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sunk costs
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PAST expenditures and are irrelevant in whole to decisions
past R+d, last years expense |
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gross margin (on volume basis)
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total revenue- COG
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gross margin (per-unit)
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unit selling price- unit COG
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trade margin (markup)
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difference between unit sales price and unit cost at each level of a marketing channel (manufacturer-wholesaler etc)
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net profit margin
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remainder after these are subtracted
1) cogs 2) variable costs 3)FC-Rev (aka profit) |
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contribution
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total sales revenue- Total VC
or on a per-unit basis unit selling price-unit VC |
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Unit Break Even (volume)
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total fixed cost/ (unit sales price- unit variable cost)
the denominator is also contribution per unit |
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contribution margin
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unit sales price- unit variable cost/ unit sales price
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Break Even ( volume in terms of $)
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total fixed cost/ contribution margin
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working capital
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current assets (cash, AR, inventory)
- current liabilities (A/P, income tax) |
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discount factor formula
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(1/(1+r)^n)
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6 steps to Systematic decision making process
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define the problem
enumerate the deicision factors consider relevant info identify the best alternative develop a plan for implementing the chosen alternative evaluate the decision and the decision process (first 4 are what we use in deciding cases) (first 3 are part of SWOT analysis) |
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well defined problem...
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outlines the framework within which a solution can be chosen in a comprehensive way
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unbounded questions
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need to resolved using creativity
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types of relative info
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characteristics of industry/competitive environment
characteristics of the org characteristics of alternatives alot of times you need to QUESTION given info and then PRODUCING other relevant info (calculations) |
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decision alternatives matches identified...
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alternatives to uncertain events in the environments and then assigns to them a probability
(DECISION TREE) |
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6 questions that help decide if you evaluated decisions well
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did i define the problem
did i consider all relevant options where my assumptions logical and realisitc did identify all pertinent alternatives/uncertainties did i recommend the appropriate course of actin did i say how to suggestion could be implemented |
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if you think your missing info, what 5 questions do you ask yourself
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what info do i really need to have
why " "? where is this info and how much time/money does it take to get what difference does it make' can i get by without the info |
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opportunity analysis (steps)
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find opportunity and identify it
see if it matches with your org (do swot analysis) evaluate the opportunity (profitable) -this part is quantitative - based on potential sales and budgets - can be qualitative though |
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market
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businesses or consumers who are willing and able to buy a current or potential product/service
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served market
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a market where hte firm is competing for customers
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what strategy to use for high served market
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you want to continue to develop the market so you use a market development strategy
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what strategy to use for a low served market
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so youre either not getting the right amount of exposure or the product isnt meeting needs so you would want to use
product devolopment penetration strategy |
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benefits of segmentation
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identify opportunities for new product development
helps make marketing programs more effective improves allocation of marketing resources |
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bases for market segmentation (two categories, and 5 subcategories)
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consumers
socioeconomic behavioral psychographic industrial buyers socioeconomic behavioral |
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requirements for effective market segmentation
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measurable
differentiable accessible substantial |
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after market has been segmented what 3 questions do they ask
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when to compete
where to compete (which market segment(s) to concentrate on) how to compete (how many segments to market to) |
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differentiated marketing
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pursue alot of markets at once with a diff strategy for each market
multiple products, but increases marketing expenses |
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concentrated marketing
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focus on one segment, one product
provides operating economies limits growth opportunities if no grown in segment |
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formula for estimating sales potential
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#of buyers x average unity price x Quantity of average order
bxpxq |
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marketers face three offering related strategy decisions
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modify the offering mix or
position offerings branding offerings |
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chain ratio method of calculating market share
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Population aged 8 years and over×proportion of the population that consumes soft drinks on a daily basis
×proportion of the population preferring cola-flavored soft drinks ×the average number of carbonatedsoft drink occasions per day ×the average amount consumed per consumption occasion (in ounces)×365 days in a calendar year ×the average price per ounce of cola |
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benefits of chain ratio
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def: multiplying a base number by different adjusting factors that may influence market share
Benefits: quantitative approach to getting market share highlights controllable and non controllable aspects flexible in accounting for demand for different groups |
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depth
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the number of items in a line
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bundling
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benefits both marketers and buyers
buyrs see it as more of a value bc they dont have to make more than one purchase lowers marketing costs |
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positioning
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placing a companies offering and products in a distinct and memorable place in the consumers mind relative to competitors
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brand equity
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the added value a brand gives to the item outside of the functions it performs
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advantages of brand equity
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allows companies to charge higher prices
competitive advantage |
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implications of heterogeneity
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service depends on a lot of factors
depends on consumer/provider relationship no way to know that what was planned is delievered impossible to get 100% quality |
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sources of variance in service
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location, employee, customer
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7 p's of services
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product, place, promotion, price, people, process, physical evidence
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offering/market square
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market penetration
market development new offering diversification |
