BUS602: Marketing Management

1a. Explain the role of marketing in a business 

• What is customer value?
• What are the elements of the Marketing Mix?
• How do the 4Ps relate to the 4Cs?
• Why are positioning and targeting important?
  

Customer value encompasses the benefits a customer receives relative to the cost when buying a good or service relative. Goods and services are communicated to consumers through the marketing mix, which encompasses the 4Ps: Product, Price, Place, and Promotion. Each of these factors works together to present a product or service in a way that connects with the company's target market.

To better reflect the customer's perspective, the 4Ps have been revised to the 4Cs: Customer value, Cost, Convenience, and Communication. For example, Customer Value relates to how the product benefits the customer. Cost to the customer represents Price and other costs such as time spent on the purchase. Convenience for the buyer relates to the Place element of the 4Ps and how easy it is to find out information about a product and make the purchase. Communication corresponds to Promotion in the 4Ps, which is now a two-way dialogue between a company and its customers.

The role of positioning is to differentiate a product from that of the competition. This identifies the company's value proposition and what the product does. Targeting refers to the group of consumers whose needs will be met by that product. By identifying the segment of the marketplace that is most likely to need and want a product, a company will have a greater chance of achieving success.

To review, see Fundamentals of Marketing Basics.

1b. Explain the role of ethical marketing activities 

• What is the purpose of a written Code of Ethics?
• Why is it important to be ethical in the sales process?
• How can salespeople generate trust and goodwill with their customers?
  

Marketing's role within an organization is to communicate what a company has to offer and generate sales for that company. The many demands of this function affect how decisions are made to meet organizational goals. Ensuring that these decisions are made ethically can be challenging.

A written Code of Ethics provides guidelines by which company employees should behave. Since every possible situation cannot be accounted for, all employees should use good judgment when making decisions. Additionally, managers should use their discretion when making decisions or evaluating the decisions of other employees.

When salespeople are honest and ethical, they can better build relationships with their customers and generate trust. Sales in an ongoing and long-term process, and when unethical practices exist, the potential for future sales may be gone.

Salespeople can generate trust by not over-promising and always putting the customer's best interests first. By seeing the problem through the eyes of the customer, a salesperson can address the problems that exist and seek to find appropriate and effective solutions.

To review, see The Importance of Ethical Marketing and Ethics in Sales.

1c. Describe the strategic planning process

• What is a value proposition?
• What is the purpose of a Mission Statement?
• How does a SWOT analysis fit into the strategic planning process?
• What is the difference between strategies and tactics?
  

The strategic planning process is an essential part of the marketing function. This enables an organization to best allocate its resources and leverage opportunities in the marketplace.

Creating a value proposition is the first step in the process. It identifies the product or service being offered and the benefits a consumer will receive by purchasing. This lets the customer know why they should buy a product or service from a company.

A Mission Statement communicates what the company does and its overall philosophy. This statement should be a guiding factor for all of an organization's activities.

When identifying the internal and external factors that can impact an organization, a SWOT analysis is used for conducting a situational analysis. This enables a company to see the threats and opportunities that exist and what elements they can control. A company can identify a competitive advantage, see where improvements are needed, and plan for events that may occur in the future.

Strategies represent the overall approach a company takes to achieve its objectives. Tactics are the specific activities a company takes to meet those objectives. For example, one strategy might be to increase sales of existing products. Tactics for accomplishing this objective might include distributing coupons for a product, offering discounts or promotions, or offering new ways to use a product.

To review, see Components of the Strategic Planning Process, Objectives and Strategies, and Executing Strategy.

1d. Describe the role of marketing within the strategic planning process 

• What are the factors that comprise an organization's external marketing environment?
• How does consumer behavior impact the marketing process?
• What is the purpose of a Marketing Plan?

Forces external to an organization – the external environment – are difficult for a company to control. However, being aware of these factors can enable a company to develop more effective marketing strategies. They can present a company with both threats and opportunities, requiring changes and adjustments to marketing efforts.

These external factors include the political and regulatory environment, the economy, competition, technology, and the social/cultural environment. By understanding the trends and events within each of these factors, a company can develop products and services that will meet consumer needs and have a greater chance of succeeding in the marketplace.

Consumer behavior is the process by which consumers make a purchase decision. Additionally, those purchase decisions are impacted by various influences, including family, society, and psychological factors. The consumer buying process begins with the consumer recognizing a need. This could be as simple as buying a cup of coffee or as complex as buying a new car. Once a need has been identified, the consumer will search for information and evaluate available options. The consumer will then make a purchase, followed by an evaluation of that purchase. Throughout this process, marketing is ever-present through advertising, promotions, public relations, social media, and other channels consumers receive information. These messages seek to address the consumer's needs from practical and emotional perspectives.

No strategy can be implemented without a sound plan in place. The purpose of the Marketing Plan is to identify factors that impact the sales process and how an organization will communicate with its customers in a meaningful way. Elements of a Marketing Plan include an overview of the marketplace, strategies to be implemented, and associated costs.

To review, see The Marketing Environment and Marketing Plan Basics.

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• 4Cs
• Code of Ethics
• consumer behavior
• consumer buying process
• customer value
• external environment
• Marketing Mix (4Ps)
• Marketing Plan
• Mission Statement
• positioning
• strategies
• SWOT Analysis
• tactics
• targeting
• value proposition