This document provides an overview of key marketing concepts including the 4Ps (Product, Price, Promotion, Place), segmentation, targeting, positioning, distribution channels, marketing research, and strategic planning. It defines marketing as an exchange relationship between customers and companies. Key points covered include using the 4Ps and segmentation approaches like demographics to develop effective marketing strategies and assess product portfolios.

1. Business bmal 590 marketing | Education homework help
BUSINESS BMAL 590 Marketing1. What is Marketing?a. Marketing Is Am Exchange
Relationship i. The customer seeks benefits from the
company and expects to pay ii. The Company offers
benefits to its customers and seeks profitsb. Why Is Marketing
Important? i. The goal is to build and maintain
relationships with the customerc. The Marketing
Framework i. 5Cs:1. Customer2. Context:includesth
e macro-environment: the economy, legal constraints, cultural differences, and global
segments3. Collaboration4. Competitors5. Help marketers asses any business
problem or opportunity in terms of a general analysis of the entire business
situation ii. STP:1. Segmentation: Customers aren’t all
the same;they vary in their preferences, needs, and resources2. Targeting: Attracting
some of those customers makes better sense than going after others3. Positioning:
Communicate your benefits clearly to your intended
customers iii. 4Ps: Product, Price, Promotion, and
Place iv. The 5Cs, STP and 4Ps are independentd. The
Marketing Science of Customer Behavior i. Types of
Shopping1. Business to Consumer (B2C)a. Convenience Purchases: Staples (standard,
frequently consumed goods such as bread or gas) Impulse Purchases (candy or magazine
near check-out stand)b. Sopping Purchases: going online to find a restaurant and make
reservations when heading out of townc. Specialty Purchases: a new car, some fashions
or shows, an expensive laptop computer2. Business to Business (B2B)a. Straight
Rebuy: You’re out of toothpaste and you mindlessly pop a tube of your usual brand into the
cartb. Modified Rebuy: Your reach for your brand of toothpaste but you try a new
flavorc. New Buy: You’re buying teeth whitening strips for the first time and consider the
attributes of eachd. Segmented by selling installations, accessories, raw materials, parts,
or business servicese. Roles in B2B
Purchases i. Initiato
r: A secretary who notices a printer in the office frequently needs
repair ii. User: Every
staff member who sends a job to that
printer iii. Influence:
The IT person who knows Brand X is

2. cheaper iv. Buyer:
Administrator who orders equipment and
supplies v. Gatekeep
er: Accountant who controls the budget ii. Customer
Involvement1. Its not the type of product or purchase that matters. It’s the type of
customer behavior (customer or business level of involvement) that is relevant and the
marketing actions and reactions.2. Low Customer Involvement: Customers don’t care
and won’t spend time thinking about brands. They will typically be somewhat price
sensitive.3. Moderate Customer Involvement: Some effort is expended prior to purchase
to obtain good value4. High Customer Involvement: For expensive purchases, brand,
uniqueness, and quality matter. iii. Purchase Decision
Making1. Identify needs/wants2. Search for Alternative Solutions3. Evaluate
Alternatives4. Purchase5. Evaluate Post-
Purchase iv. Models of How Buyers Make
Decisions1. Lexicographic Method: A customer compares brands by the most important
attributes or dimensions. The Customer them compares the brand on the next important
attribute, etc. until only one brand is left2. Average Method: This method uses average so
one attribute can’t make or break a brand. If a brand is strong on one attribute and average
on another, it will dominate a brand that was just average on all attributes3. Use
Attribute Importance: Models can be more complex by bringing in weights to express how
important the attributes are to the customer. Those important weights underpin how
segments of customers differ.2. Marketing Segmentationa. Why
Segment? i. Marketers need to examine any given market
for differences among customers ii. There must be
differences among the customer population for segmentation to be
feasible iii. Noting that consumers have unique needs and
desires acknowledges that a market will demonstrate heterogeneity. This means that dies to
these differences, different products will be required in order to satisfy the different needs
in the market. iv. The ability to find a smaller homogeneous
market within a larger heterogeneous market is the foundation of
segmentation. v. Often times with these smaller
homogeneous markets, demand can become less price elastic: consumers are willing to pay
more to get something that is closer to what they want. Therefore. Marketers deal with
customer variation through segmentation.b. What Are Market
Segments? i. Segmentation is breaking the heterogeneous
market into small. Homogeneous markets. ii. Market
Segment: is a group of customers who share similar inclinations toward a
brand. iii. Segments: are homogenous groups of
customers iv. Groups of Customers1. Mass Marketing:
All Customers would be treated the same2. One-to-One Marketing: Each customer serves
as is or her own segment3. Segmentation Strategy: Customers are broken into more
homogeneous groups that are small enough that customer needs are met but large enough
to be profitable.4. Niche Marketing: The company strategically focuses and targets a

3. smaller market with particular needs that the company can serve well. Falls between one-
to-one and segments strategies. Usually smaller that segmentsc. How Do Marketers
Segment the Market? i. Bases for Consumer
Segmentation1. Demographics2. Geographic’s3. Psychological4. VALS (values
and lifestyles)5. Behaviors ii. Bases for B2B
Segmentation1. Demographics2. Geographic3. Type of
Firm4. Attitudesa. Price sensitivityb. Risk tolerancec. Corporate
cultured. Profitabilitye. High vs. low maintenance
accounts iii. Effective Segmentation1. Effective
Segmentation utilizes appropriate data2. Effective Segmentation allows access to
customers3. Effective Segmentation had profitability potential4. Effective
Segmentation fits with corporate goals5. Effective Segmentation is
actionable iv. Different Strategies1. Breadth Strategy:
Reaching Multiple Marketsa. This company elects to market a single product to two or
more segments2. Depth Strategy: Serving One Segment Wella. This company focuses
on single segment and has multiple offering for the segment3. Tailoring Strategy:
Customizing For Segmentsa. This company serves multiple segments, marketing a
different product to each segment3. Channel of Distribution and Business Marketing
Networks and Logisticsa. What Is
Distribution? i. Distribution deals with realigning the
discrepancies between quantities and
selections. ii. Breaking bulk means making goods available
in smaller batches iii. A distribution channel is a network
of inter-connected firms that provide sellers a mean of purchasing those goods as efficiently
and profitably as possible1. Customer oriented (ordering, handling, and
shipping)2. Product oriented (storage and display)3. Marketing-centric
(promotion)4. Financial oriented5. Logisticsb. What Are Distribution Channels,
Logistics, And Supply Chain Management? i. Distribution
Channels are networks of interconnected firms who activities enable products to be sold
and consumers to have easier access to those products to be
sold. ii. Logistics is the coordination of the flow of all the
goods, services, and information between channel members throughout the
channel. iii. The upstream partners that a company has to
deal with are its suppliers; this is called supply chain and dealing with those firms is called
supply chain management. iv. The downstream is how the
company reaches the consumers; they provide the way to channel merchandise to the
customer v. Designing Distribution
Channels1. Intensive distribution is used for widely distributed products (snack food,
shampoo, newspapers). Heavy promotion, lower prices, and average or lower quality
products.a. The pull strategy is used to promote directly to end consumers in order to
pull the goods from the manufacturer to the consumer.2. Selective distribution is used
for less widely distributed products. Complex and/or expensive products.a. The push
strategy is used to provide incentives to the distribution partners to help push the goods to

4. the buying customer. vi. Push and Pull1. The term push
and pull refer to whether the manufacturer targets consumers of channel partners with its
marketing communications.2. Customers pull goods through channel, while
intermediaries push goods to consumers from the manufacturer.3. Push activities:
advertisements to partners, selective distribution, sales force incentives, price discounts,
quantity discounts, financing typically directed at the intermediary, and allowances for
marketing activities4. Pull activities: consumer-directed advertising, wide distribution,
coupons, rebates, loyalty point, price discounts, quantity discounts, and fee
samples. vii. Channel Conflict and Power1. Coercive
power (the “bully”) is when one party can make another party do something by taking away
benefits or inflicting punishment on the other party2. Information power (the “know-it-
all”) is when one party gets cooperation because it has information the other party
seeks.3. Legitimate power is when by size or expertise, one party can make claims and
threats that encourage the other party to conform4. Referent power is when one party
cooperates with another because the former seeks affiliation with the latter5. Reward
power is when one party had the ability to provide good outcomes for the other
party viii. Transaction Cost Analysis and Revenue
Sharing1. Transaction Cost Analysis (TCA) is a model that considers the channel
member’s production and governance costs, both of which are ideally
minimizeda. Intermediaries often reduces costs of producing2. Governance costs are
those costs associated with coordination and controlling the members in the
channel3. Double marginalization is the problem associated with determining what is a
proper profit for the manufacturer and retailer without increasing the price paid by the
consumer to the point where demand drops ix. Channel
Integration1. Integration refers to the back or buy decision that firms face when
determining whether to do a distribution function or have someone else undertake the
activity2. Integration means having the activity “done in house” rather than
outsourced.3. Firms ay forward integrate, meaning doing an activity that is
“downstream” so the function is closer to the end consumer, or backward integrate,
meaning doing an activity “upstream”, so the function is further away from the customer
than the company is currently doing4. Horizontal competition: competition between
retailers of different types5. Vertical competition: competition between manufacturers
and their partners. x. Retailing1. Retailing is often the
most visible element of the channel and can impact image, positioning, and brand
equity2. Multisite: opening additional
stores xi. Franchising and E-Commerce1. Franchising is
a form of multi-size expansion that allows the company to retain some control without
complete ownership of capital expenditure2. Franchisor (Company)
Benefitsa. Capitalb. Efficiencies and economies of scalec. Committed
peopled. Reduced investment riske. Ability to focus on core functions (product
development)3. Franchisee (Local Owner) Benefitsa. Well-known brandb. Market
awarenessc. Supplier relationshipsd. Traininge. Support4. Product Franchising:
a supplier authorizes a distributor some territory to carry its products, use its name, and

5. benefits of its advertising. (automobile dealerships and gas stations)5. Business Format
Franchising: offer a system in which to conduct business, a brand name, and advertising.
(McDonald’s, Holiday Inn, 7-Eleven convenience stores)4. Marketing Research
Toolsa. What is Marketing Research, And Why IS It Useful to
Marketers? i. Examples of Relevant Marketing
Research1. STPa. Cluster analysis for segmentationb. Multidimensional scaling for
perceptual mapping, targeting, and
positioning i. MDS
asks how similar items are2. 4Psa. Conjoint for new productsb. Scanner data for
pricingc. Surveys to assess customer satisfaction with internet as a distribution
optiond. Experiments to verify ad testing3. 5Csa. Secondary data to understood
contextb. Observational data to check on competitorsc. Networks to study
collaboratorsd. Interviews to study company’s employeese. Surveys for customer
satisfaction ii. Marketing Research Process1. Define
marketing and marketing research problem2. Try answer questions with secondary
data3. Design primary data collectiona. Sample(e.g., random sample, stratified sample
by
segment)b. Technique
i. Qualitative: interviews, focus groups, observations,
ethnographies ii. Qua
ntitative: surveys, experiments, scanner data analysisc. Instrument (e.g., questionnaire,
focus group moderator guide)d. Modality of administration (e.g. Web survey, mail,
personal interview)4. Collect data5. Analyze data6. Communicate results (white
paper, presentation, recommendations) iii. Kinds of
Data1. Secondary Vs. Primarya. Secondary data already existsb. Primary data
requires that marketers design a study, collect, and analyze data2. Exploratory,
Descriptive, Casuala. Exploratory: Focus groups and interviews are used to formulate
marketing questionsb. Descriptive: Surveys and scanner data are used to obtain large-
scale statsc. Casual: Experiments are used to study the effects of manipulated marketing
mix variables on measures of sales and customer
attitudes iv. Seven Popular Marketing Research
Techniques1. Cluster analysis for segmentationa. Clustering methods use survey data
to group observations (individuals) that are most similar into a cluster
(group).2. Perceptual mapping for positioninga. Are used to understand how
customers view a business in the marketplace3. Focus groups for concept testinga. 8-
10 consumers; 3-4 groups4. Conjoint for testing attributesa. To understand how
consumers make trade-offs among attributes uncovering what combinations of attributes
customers value most5. Scanner data for pricing and coupon experiments and brand
switchinga. Can be used to forecast demand6. Surveys for customer
satisfaction7. Network methods to identify opinion leaders in buzz marketinga. Social
network methods can be used to study patterns of buzzb. Network methods are simple
techniques used to study patterns of interconnected “actors”.c. An actor is some agent,
such as consumer, a firm, etc.5. Marketing

6. Strategy i. Marketingstrategy centers on assessing the
current situation and determining future direction ii. The
link between corporate goals and operational tacticsb. Portfolio
Assessment i. The Boston Consulting Group (BCG) Matrix
is used in portfolio analysis and classifies brands or products according to whether each has
a strong or weak market share and a slow or growing
market. ii. Dog: Products in low growth markets and with
low relative market share (optimize or hold) iii. Star:
Product in high growth markets with high relative market share (minimize or
divest) iv. Cash Cow: Products in low growth markets but
with high relative market share (milk) v. Question mark or
problem child: Products in high growth markets but having low markets share (products in
development, new technologies, uncertain markets)c. Measures to Facilitate Marketing
Strategy &nb