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BUS 2010 MARKETING 1 FINAL EXAM NOTES ALL CHAPTERS COVERED WITHIN THE COURSE
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BUS 2010 MARKETING 1 FINAL EXAM NOTES ALL CHAPTERS COVERED WITHIN THE COURSE
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lOMoAR cPSD| 43283024BUS 2010 MARKETING 1
FINAL EXAM NOTES ALL
CHAPTERS COVERED
WITHIN THE COURSE
, lOMoAR cPSD| 43283024
BUS2010F – Exam Notes:
The Marketing Process:
1) Understanding the Marketplace and Customer Needs:
o Needs, wants and demands
o Marketing Myopia = define your business in terms of customer needs and not on the basis
of your product
o Marketing Environment:
o Marketing management cannot always control environmental factors = choose proactive vs.
reactive in approach
a) Micro-Environment: (FICSPC) – actors close to firm that affect ability to serve
customers
o Firm = all groups within firm need to be taken into account when designing
marketing plans
o Suppliers = provide resources to firm (impact customer value delivery)
o Marketing Intermediaries = businesses help firm promote, sell and distribute its
goods to final buyers e.g. resellers, financial
o Customers = customer, business, reseller, government and international markets
o Competitors = firm must provide greater customer value and satisfaction then
competitors to be successful (direct vs. indirect, SOW, substitutes)
o Public = any group interest in or impact on a firm’s ability to achieve objectives
b) Macro-Environment: (DENTPC) – external forces that shape world, environment
and people
o Demography = age, location, race, occupation (in SA no set demographic profile
as all so diverse)
o Economic Environment = factors that affect consumer buying power and
spending patterns e.g. changes in income impacts spending on food, housing,
transportation, health care and other categories (Engel’s law)
o Natural Environment = natural resources used as inputs (shortages, pollution
and government intervention)
o Technological Environment = new ways to track/learn about consumers, new
ways of communication (online surveys, social media, online focus groups, online
advertising – search engine optimization), redefining relationships with customers
(advantages and disadvantages)
o Political Environment = laws can influence strategy and impact societal trends
(e.g. packaging restraints, cigarette/liquor laws, Consumer Protection Act)
increased legislation to protect firms and consumers for firms, encourage socially
responsible behavior & cause-related marketing
o Cultural Environment = institutions & other forces that affect society’s basic
values, perceptions, preferences and behaviors (impacts how, what and from
where people consume) (core beliefs/values passed down generations more
persistent, while secondary beliefs more open to change – firms target)
, lOMoAR cPSD| 43283024
2) Designing a Customer Driven Marketing Strategy:
oFive different concepts for marketing strategies:
a) Production Concept = consumers favor products available & highly affordable (focus
on improving production & distribution efficiency)
b) Product Concept = consumers favor products offer most quality, performance and
features (product improvements)
c) Selling Concept = consumers buy products that are aggressively promoted (not
efficient in long run – no relationship)
d) Marketing Concept = firms achieve goals by knowing needs/wants of target markets
& delivering desired satisfaction better than competitors (Inside out and outside in
strategies)
e) Societal Marketing Concept = firm make good marketing decisions by considering
consumers wants & long-term interests
oTarget marketing – STP analysis:
a) Segmentation – dividing a market into smaller groups with distinct
needs/characteristics/behaviors
- Geographical Segmentation = dividing a market based on country, province,
region, municipal area, city or neighborhood
- Demographical Segmentation = dividing a market based on age, gender, family
size, income, occupation, education, religion, race, gender, nationality
- Psychographic Segmentation = dividing a market based on social class, lifestyle,
personality
- Behavioral Segmentation = dividing a market based on consumer knowledge,
attitude or response to product e.g. occasions, benefits, loyalty status
Requirements for effective segmentation (DAMAS) = measurable, accessible,
substantial, differentiable, actionable
b) Target Market – set of buyers sharing common needs/characteristics that firm
decides to serve
c) Differentiation and Positioning – place the product occupies in consumers mind
relative to competing brands
- By product attribute
- By price/quality
- By use/application
- By product user
- By class of user
- By competitor
Positioning Statement = statement that summarizes firm/brand positioning
Competitive advantage = offering consumers greater value then competitors
Value proposition = full positioning of brand
Branding:
o Name, term, sign, symbol or design identifies products/services of firm
o Why do companies’ brand = differentiation, competitive advantage, improves
communication of quality/values/personality, helps introduction of new products, shape
consumer perceptions
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