Question

Ch. 11 Business

1.) What steps are involved when implementing the marketing concept?

2.) Identify and describe the major types of markets.

3.)Describe the environmental forces that affect a firm’s marketing decisions and activities.

4.) What are the major components of a marketing plan?

*Please answer all four questions*

Answer 1

1) What steps are involved when implementing the marketing concept?

Identify and define your target market - Define each segment as specifically as possible.

Determine your customers’ needs - This quick analysis points out segments with widely varying needs. So, the obvious next step is to determine what those needs are.

Integrated marketing - The publisher adhering to the marketing concept would not end his or her strategizing here. The marketer knows that all parts of the marketing process must be coordinated or the results will be diluted. In fact, there are four parts that must be integrated into your marketing campaigns: the product and its distribution, price and promotion.

Profitability - The selling concept emphasizes profitability as the goal in the publishing process. The publisher operating under these conditions will seek short-term revenue even if it comes at the expense of long-term success.

2) Identify and describe the major types of markets.

Perfect competition describes a market structure, where a large number of small firms compete against each other. In this scenario, a single firm does not have any significant market power.

Monopolistic competition also refers to a market structure, where a large number of small firms compete against each other. However, unlike in perfect competition, the firms in monopolistic competition sell similar, but slightly differentiated products.

An oligopoly describes a market structure which is dominated by only a small number of firms. That results in a state of limited competition.

A monopoly refers to a market structure where a single firm controls the entire market. In this scenario, the firm has the highest level of market power, as consumers do not have any alternatives. As a result, monopolies often reduce output to increase prices and earn more profit.

3)Describe the environmental forces that affect a firm’s marketing decisions and activities.

There are other forces at work in the marketing world - forces over which marketers have much less control. These forces make up a company’s external marketing environment such as Political and regulatory, Economic, Competitive, Technological and Social and cultural.

Political and regulatory - Federal, state, and local bodies can set rules or restrictions on the conduct of businesses. The purpose of regulation is to protect both consumers and businesses.

Economic - Every day, marketing managers face a barrage of economic news. They must digest it, assess its impact, and alter marketing plans accordingly.

Competitive Environment - Imagine playing tennis without watching what your opponent was doing. Marketers who don’t pay attention to their competitors are playing a losing game.

Technological Environment - In addition to making old products obsolete, technological advances create new products.

Social and Cultural Environment - Marketers also have to stay tuned to social and cultural factors that can affect sales. The values and attitudes of American consumers are in a state of almost constant flux.

4) What are the major components of a marketing plan?

Here are the essential components of a marketing plan that keeps the sales pipeline full.

Market research - Research is the backbone of the marketing plan. Your local library is a great place to start, offering reports. Some library cards even allow access to online services from home. Identify consumer buying habits in the industry, market size, market growth or decline, and any current trends.

Target market - A well-designed target market description identifies your most likely buyers. In addition, you should discuss at least two or three levels of segmentation. A language tutoring business might target both students and foreign-born employees who want to improve their English.

Positioning - The difference in how the target market sees you is your positioning. Develop compelling branding and marketing messages that clearly communicate how you want to be perceived.

Competitive analysis - You need to know who your competitors are and how your products and services are different. What is the price point at which your competitors are selling, and what segment of the market are they aiming to reach? Knowing the ins and outs of your competitors will help you better position your business and stand out from the competition.

Market strategy - Your marketing strategy is your path to sales goals. It should look at the entire marketplace and then break down specific tactics including such as events, direct mail, email, social media, content strategy, street teams, couponing, webinars, seminars, partnerships, and other activities that will help you gain access to customers.

Budget - Develop a month-by-month schedule of what you plan to spend on marketing. Also include a “red light” decision point. For each activity, establish a metric that tells you to stop if it’s not generating sufficient return on investment (ROI).

Metrics - Track your marketing success with Google Analytics for website conversions and a simple Excel sheet to compare your budget against the actual ROI. Test programs over the course of a 30- to 60-day period, and evaluate the results. Repeat any programs that are delivering sales or sign-ups to your email list, and get rid of anything that’s not.