MKT 100 Exam Notes 4/22/2012 9:34:00 PM

Chapter 1: Intro to Marketing

What is marketing?: Marketing is the activity and process of creating,

communicating, delivering, and exchanging offerings of value for customers,

clients, and society at large.

Marketing is not black or white it is gray, there are many right answers to

a problem

The marketing mix- The 4 P’s

1) Product

2) Place

3) Price

4) Promotion

Marketing is the diffusion of innovation: ex. Antibiotics is an example of

how marketing helps a product to succeed

Schumpeter wealth creation principle: Innovation and creative destruction

The Smith wealth creation principle: Wealth created through exchanges

The Wealth creation feedback effect: Innovations + exchanges produces

wealth and welfare

Supply and Demand:

Variation in supply/demand is constantly changing

Buyers preferences/ wants are always being changed by changes in

supply

Suppliers’ products/ processes are always being changed by

changes in demand

Product Innovation Life-Cycle:

Introduction (Market fermenting) new product is introduces to

market

Growth (Market making) when sales and profit increase

Maturity (Market equilibrium) sales become steady as the

product either continues in the market or becomes innovated into

something else

MKT 100 Exam Notes 4/22/2012 9:34:00 PM

Chapter 2: Situation Analysis

Metric 1: Expense Types: fixes, variable, and one time fixed

1) Variable Costs:

Parts

Commission

Transportation

2) Fixed Costs:

Rent

Advertising

Insurance

Office Equipment

Machinery

3) One time fixed Costs:

Buying land

Buildings

Heavy machinery

The Strategic Marketing Process

Four ‘Stages’ of Planning

Situation (Market) Analysis

SWOT Analysis

Implementation (STP + 4 P’s)

Budget Preparation

1) Situation AnalysisThe 5 C’s

Customers Competitors

Climate (PEST)

Company

Collaborators

Climate

PEST examples:

Political-Legal: Government policies,

Political trends, Taxation issues

Economic: Market and trade cycles,

Market distribution trends, Job

growth

Socio-cultural: Consumer values,

Media views, Laws affecting social

Technological: Competing

technology development, Research

funding

factors

Customer

Competitors

Examples: LCBO |Gas Stations| Cereal |Fruits/veggies

MKT 100 Exam Notes 4/22/2012 9:34:00 PM

Chapter 3: Situation Analysis Continued:

SWOT Analysis

Strengths: Strong brand reputation, Resources, patents, assets,

experience, knowledge

Weaknesses: No resources or patents, lack of knowledge, poor

distribution

Opportunities: Technology development and innovation, New global

supply chains

Threats: New competitive entries, Increase in input costs such as oil

Ansoff’s Matrix – Opportunity Identification & Assesment:

MKT 100 Exam Notes 4/22/2012 9:34:00 PM

Chapter 4: Situation Analysis

MKT 100 Exam Notes 4/22/2012 9:34:00 PM

Chapter 5: Ethics

The Utility Principle: Do the most good for the most amount of

people

The Categorical Imperative: Asks whether the proposed action

would be right if everyone did it

MKT 100 Exam Notes 4/22/2012 9:34:00 PM

Chapter 6/7: Marketing Research and Consumer Behavior

The Research Process:

Problem definition

Research design

Data collection

Data analysis & interpretation

Presentation of results

Marketing Problems:

What should we do? Did we do the right thing?

Research Design Options:

Explorationto gain background info

Descriptiveto identify/measure marketing

Casualto predict relationships (ex test markets)

Types of Exploratory Research:

Types of Descriptive Research:

Types of Casual Research:

The Two Sides of Marketing:

1) Marketing: Creating, communicating and delivering offerings that have

value for customers

2) Consumption: finding and consuming offerings that have value

Interdisciplinary Perspective:

1) Economics (maximizing economic utility)

2) Psychology (Maslow’s Hierarchy)

3) Sociology (brand vs. product)

4) Anthropology (the world around us)

The Purchase Decision Process: (processes for: searching, acquiring,

consuming, disposing)

1) Need Recognition

2) Information search

3) Evaluation of alternatives

4) Purchase decision

5) Post-purchase behavior

Variations on a theme- Habitual behavior:

1) Need recognition

2) Purchase decision

3) Post-purchase behavior

Variation on a theme- Recreational Shopping:

1) Need recognition

2) Information search

3) Evaluation of alternatives

4) Purchase decisions

5) Post-purchase behavior

Metric 5: Markup & Margin:

Cost: the costs inquired to make the product or buy it

Selling price: how much you sell the product for (to a wholesaler, a

retailer, a consumer)

Difference: Selling Price minus Cost (commonly referred to as

‘markup’ or ‘margin’)