MGM 301 Study Guide - Midterm Guide: Marketing Management, Brand Management, Subliminal Stimuli
20 Jun 2018
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Marketing Review Sheet: Test 1
CHAPTER 1:
Advertising ages top 5 “marketers of the Century”:
1. Proctor and Gamble (P and G)- uses multiple branding strategy- allows to go
after different segments of the market (different brand names and different
products) still under P and G name, invented brand management contract
(management team for a specific product), 60 billion dollar/year company,
number 1 advertiser worldwide, credited with term soap operas, first use of the
internet (saw it as ad space), brands go through product lifecycle- need to have
ready replacement, spends time on consumer innovation research
2. McDonalds- single operator in 1960’s, major franchise, a lot of emphasis on
“tweens”, transformational advertising- advertising transforms products into
experiences and events
- Problems: social trends hurt McDonalds in 2000, bad relation with
“super size” (unhealthy diet), slow on innovation
- Solutions: price promotions (lazy way to compete), Hamburger
University (employee training), healthy meals now (salads), option to
substitute in kids meals (milk instead of soda, fruit instead of fries)
3. Coca-cola- one of most powerful brand names, *brand equity- value of firm
subtract value of all tangible assets, looks at things other than tangible assets, so
strong because of imagery and name (60% of total value is the name), but people
like taste of Pepsi better
4. Anh. bush (Budweiser)- 1st national brewery, #1 market share nationwide,
creative advertising- key to developing products and keeping alive
5. Nike- family branding- use same name on all products
*Lowering your price is a bad way to compete- making product better is more stable-
sustainable competitive advantage
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Marketing- the activity of creating, communicating, delivering, and exchanging
offerings that benefit the organization, its stakeholders, and society at large
- Focus: creation of product services deliverances to consumers, and customers
through communication (exchange)
- Customer value- exchanges take place both consumer and company must be
better off (or else competition wins)
- The purpose of a business is to create and retain customers
- Discover needs and wants of prospective customers and satisfy them
- Marketing in the profitable creation of customer value
- Marketing focuses on: Assessing and Satisfying consumer needs
- 4 factors needs for marketing to occur:
o 2 or more parties with unsatisfied needs
o Desire and ability to satisfy those needs
o A way for parties to communicate
o Something to exchange
- Marketing tries to satisfy both customer needs and wants
o Need- when a person feels deprived of a basic necessity
o Want- need that is shaped by a persons knowledge, culture, and
personality
Market- people with both the desire and ability to buy a specific offering (made up by
potential consumers)
Target market- one or more specific groups of potential consumers toward which an
organization directs its marketing program
The Exchange Process- the trade of things of value between buyers and sellers so that
each is better off after trade
- Key to achieving marketing objectives to serve buyers
- Marketing management facilitates the exchange of value and satisfaction of
consumer needs by the use of the marketing mix
- Diminishing Marginal Utility- amount of utility consumer gets is function of
how much consumer actually has, more quantity makes less valuable
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The controllable Marketing Mix Factors
- Neil Gordon invented the marketing mix- can be used to solve marketing
problems, combination of what is going to work well together
- The 4 P’s
- Product- a good, service, or idea to satisfy consumer needs (variety, quality,
design, features, brand name, packaging, services, warranties)
- Price- what is exchanged for the product, needs to be controlled by developer
(list price, discounts, allowances, payment period, credit terms)
- Place- a means of getting the product to the consumer (channels, locations,
inventory, transportation, atmospheres)
- Promotion- a means of communication between the seller and the buyer
(sales promotion, advertising, sales force, public relations, direct marketing,
E-commerce)
The Uncontrollable Factors
- Environmental forces:
o tgSocial
o Economic
o Competitive
o Regulatory
o Technological
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find more resources at oneclass.com
