MKT 473: Marketing Management: Policy And
Strategy Exam Study Guide
Marketing as an Art and a Science - ANSWER Art:
-human relationships in exchange
-brands have human like qualities
-creativity and art displayed in product styles, merchandising, and advertising
Science:
-Data-driven research decisions
-systematic process for making rational marketing decisions
-big data, track eye movements in stores
-customer journeys tracked at various touch points to improve efficiency and
performance
Marketing Process - ANSWER SWOT analysis
Business Plan
Market Segmenting
Market Mix
4 Eras of Marketing - ANSWER -production - Prior to 1900s
-sales - prior to 1920s
-marketing - prior to 1950s
-relationship - prior to 1980s
Era 1 - ANSWER -Commodity approach:
-focused on a particular product category
-Institutional approach:
-focused on a particular institutional type (retailer, wholesaler, broker, B2B,
B2C, B2G)
-functional approach:
-focused on a particular activity (promotion, distribution, pricing, product
development, customer service)
Era 2 - ANSWER functional approach:
-physically supplying the market
-creating opportunities for exchange
-undertaking auxiliary or facilitating functions
Efficiency:
-associations, newsletters, journals, textbooks
-1925 Journal of Retailing
-1936-37 AMA established, Journal of Marketing first journal
-Today, AMA supports four primary journals
,Era 3 - ANSWER Knowledge Development
-marketing concept
-market segmentation
-marketing mix (4 P's)
-brand image
-marketing management as analysis (look at environment we are operating in),
planning (make decisions on targeting), implementation (decide where you are
going to place message), and control (testing)
-market myopia
Emergence of Science
-national effort to infuse math and statistics
-development of computer as a research tool
-focus on systematic process of gathering and analyzing data so informed
decisions could be made
-recognition of importance of qualitative and quantitative approaches to data
collection
Era 4 - ANSWER -mainstream fragments
-specialty outlets and tracks
-publish or perish
-field continues to grow and evolve
-demand for business degrees holding steady, but skepticism of business
degrees is rising, with an increased transparency and awareness of business
practices
-(social) crimes of omission and crimes of commission
AMA definitions - ANSWER -marketing is the performance of business activities
that direct the flow of goods and services from producers to consumers (1935)
-Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges
that satisfy individual and organizational objectives (1985)
-Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and it stakeholders (2004)
-Marketing is the activity...
Era 5 - ANSWER societal marketing
aggregate marketing system - ANSWER -concerns about supply and demand
-macro marketing concept
-huge and sprawling human institution, embedded in the daily life of its society
-marketing monitors the wants and needs of its citizens, and works to deliver
satisfactions of these
-suppliers, producers, consumers, and the institutions that support these
relationships
,-derived demand
-macro way of looking at suppliers, producers, and consumers and thinking
about how they work together every day to meet the needs of consumers
Marketing's contributions - ANSWER -accumulate over time
-diffuse through a society
-occur within the context of everyday life
What is marketing? (AMA definition) - ANSWER the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large
Value - ANSWER -value does not equal price
-perception
-price can tell us something about the product, but it's the total set of attributes
that allow us to understand if we see a market offering as "valuable"
What does marketing do? - ANSWER -consumers have wants and needs:
-need - state of felt deprivation
-want - need that is shaped by a person's knowledge, culture, and personality
-marketing connects two or more parties with unsatisfied needs who have the
desire and ability to satisfy these needs, a way to communicate, and something
to exchange
Framework - ANSWER -typical problem --> typical solution
-specific problem --> specific solution
Factors to consider when pricing products - ANSWER -cost
-competitors
-strategic objectives
-consumer willingness to pay
-context
Dominant Logics - ANSWER -economic approaches are overly simplistic when it
comes to value
-tyranny of efficiency and cost savings
-examples where other forms of value exist but are little recognized
-recognizing that markets are a way of organizing
pivotal question - ANSWER -help to improve strategic decision making by
exposing take-for-granted assumptions embedded in current thinking
-assumptions play a huge role in why market strategies fail
-come from thinking outside-in, explore future scenarios, be a contrarian, look
for patterns, create new options, and learn from failure
poor questions - ANSWER -too narrow
, -overly protective of the current business
-imply assumptions that further restrict strategic thinking
Customer Orientation - ANSWER Product
-Focus: Internal
-Customers: Don't care
-Key Question: What can we make?
Sales
-Focus: Internal
-Customers: Everyone
-Key Question: How can we sell what we have?
Market
-Focus: External
-Customers: Many different groups
-Key Question: What value do consumers want?
Background to Levitt - ANSWER -Post WWII America
-economic growth outpacing understanding of how growth is achieved
Marketing Myopia - ANSWER -growth will continue, leading to further success of
businesses
-focusing on the firm capabilities is short-sighted
-the purpose of business is to delight customers
-the nature of how customers perceive value is often murky, and is always
changing
-railroads are being myopic
Myth 1 - ANSWER -belief: an ever-expanding and more affluent population will
guarantee our growth
-result: we focus on products, not customers' needs
Myth 2 - ANSWER -belief: there is no competitive substitute for our industry's
major product
-result: we fail to innovate
Myth 3 - ANSWER -belief: we can protect ourselves through mass production
-result: we focus on selling instead of marketing
Myth 4 - ANSWER -belief: technical R&D will ensure our growth
-result: we think our products will sell themselves
Error of analysis (Levitt) - ANSWER -what business are you REALLY in?
-creativity, insights, audacity
Focus on your customers' needs, - ANSWER not your capabilities
Strategy Exam Study Guide
Marketing as an Art and a Science - ANSWER Art:
-human relationships in exchange
-brands have human like qualities
-creativity and art displayed in product styles, merchandising, and advertising
Science:
-Data-driven research decisions
-systematic process for making rational marketing decisions
-big data, track eye movements in stores
-customer journeys tracked at various touch points to improve efficiency and
performance
Marketing Process - ANSWER SWOT analysis
Business Plan
Market Segmenting
Market Mix
4 Eras of Marketing - ANSWER -production - Prior to 1900s
-sales - prior to 1920s
-marketing - prior to 1950s
-relationship - prior to 1980s
Era 1 - ANSWER -Commodity approach:
-focused on a particular product category
-Institutional approach:
-focused on a particular institutional type (retailer, wholesaler, broker, B2B,
B2C, B2G)
-functional approach:
-focused on a particular activity (promotion, distribution, pricing, product
development, customer service)
Era 2 - ANSWER functional approach:
-physically supplying the market
-creating opportunities for exchange
-undertaking auxiliary or facilitating functions
Efficiency:
-associations, newsletters, journals, textbooks
-1925 Journal of Retailing
-1936-37 AMA established, Journal of Marketing first journal
-Today, AMA supports four primary journals
,Era 3 - ANSWER Knowledge Development
-marketing concept
-market segmentation
-marketing mix (4 P's)
-brand image
-marketing management as analysis (look at environment we are operating in),
planning (make decisions on targeting), implementation (decide where you are
going to place message), and control (testing)
-market myopia
Emergence of Science
-national effort to infuse math and statistics
-development of computer as a research tool
-focus on systematic process of gathering and analyzing data so informed
decisions could be made
-recognition of importance of qualitative and quantitative approaches to data
collection
Era 4 - ANSWER -mainstream fragments
-specialty outlets and tracks
-publish or perish
-field continues to grow and evolve
-demand for business degrees holding steady, but skepticism of business
degrees is rising, with an increased transparency and awareness of business
practices
-(social) crimes of omission and crimes of commission
AMA definitions - ANSWER -marketing is the performance of business activities
that direct the flow of goods and services from producers to consumers (1935)
-Marketing is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges
that satisfy individual and organizational objectives (1985)
-Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and it stakeholders (2004)
-Marketing is the activity...
Era 5 - ANSWER societal marketing
aggregate marketing system - ANSWER -concerns about supply and demand
-macro marketing concept
-huge and sprawling human institution, embedded in the daily life of its society
-marketing monitors the wants and needs of its citizens, and works to deliver
satisfactions of these
-suppliers, producers, consumers, and the institutions that support these
relationships
,-derived demand
-macro way of looking at suppliers, producers, and consumers and thinking
about how they work together every day to meet the needs of consumers
Marketing's contributions - ANSWER -accumulate over time
-diffuse through a society
-occur within the context of everyday life
What is marketing? (AMA definition) - ANSWER the activity, set of institutions,
and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large
Value - ANSWER -value does not equal price
-perception
-price can tell us something about the product, but it's the total set of attributes
that allow us to understand if we see a market offering as "valuable"
What does marketing do? - ANSWER -consumers have wants and needs:
-need - state of felt deprivation
-want - need that is shaped by a person's knowledge, culture, and personality
-marketing connects two or more parties with unsatisfied needs who have the
desire and ability to satisfy these needs, a way to communicate, and something
to exchange
Framework - ANSWER -typical problem --> typical solution
-specific problem --> specific solution
Factors to consider when pricing products - ANSWER -cost
-competitors
-strategic objectives
-consumer willingness to pay
-context
Dominant Logics - ANSWER -economic approaches are overly simplistic when it
comes to value
-tyranny of efficiency and cost savings
-examples where other forms of value exist but are little recognized
-recognizing that markets are a way of organizing
pivotal question - ANSWER -help to improve strategic decision making by
exposing take-for-granted assumptions embedded in current thinking
-assumptions play a huge role in why market strategies fail
-come from thinking outside-in, explore future scenarios, be a contrarian, look
for patterns, create new options, and learn from failure
poor questions - ANSWER -too narrow
, -overly protective of the current business
-imply assumptions that further restrict strategic thinking
Customer Orientation - ANSWER Product
-Focus: Internal
-Customers: Don't care
-Key Question: What can we make?
Sales
-Focus: Internal
-Customers: Everyone
-Key Question: How can we sell what we have?
Market
-Focus: External
-Customers: Many different groups
-Key Question: What value do consumers want?
Background to Levitt - ANSWER -Post WWII America
-economic growth outpacing understanding of how growth is achieved
Marketing Myopia - ANSWER -growth will continue, leading to further success of
businesses
-focusing on the firm capabilities is short-sighted
-the purpose of business is to delight customers
-the nature of how customers perceive value is often murky, and is always
changing
-railroads are being myopic
Myth 1 - ANSWER -belief: an ever-expanding and more affluent population will
guarantee our growth
-result: we focus on products, not customers' needs
Myth 2 - ANSWER -belief: there is no competitive substitute for our industry's
major product
-result: we fail to innovate
Myth 3 - ANSWER -belief: we can protect ourselves through mass production
-result: we focus on selling instead of marketing
Myth 4 - ANSWER -belief: technical R&D will ensure our growth
-result: we think our products will sell themselves
Error of analysis (Levitt) - ANSWER -what business are you REALLY in?
-creativity, insights, audacity
Focus on your customers' needs, - ANSWER not your capabilities
