BUS 346 – Flashcard

1. to create value to the product or service by commissions means, delivery means (when, where, & in qualities that the customer wants) 2. even further to create a relationship with the customer

1. they decrease cost and increase benefits --they find out as much as they can about the customers needs/wants ---focuses on relationship rather than what they make in a sale

its an analysis of the current marketing situation, its objectives, the strategy for the four Ps, and appropriate financial statements.

has a three-phase process: planning, implementation, and control.

The planning phase-- managers define the firm's mission and vision and assess the firm's current situation, what are we now and what will we be?

implementation-- how it plans to implement its mission and vision. Specifically, to which customer groups does it wish to direct its marketing efforts, and how does it use its marketing mix to provide good value?

control phase--firm evaluates performance, what worked and what didn't?

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis occurs during the second step in the strategic planning process, the situation analysis.

managers can assess their firm's situation accurately and plan its strategy accordingly by: 1. analyzing what the firm is good at (its strengths), 2.where it could improve (its weaknesses), 3.where in the marketplace it might excel (its opportunities), 4. and what is happening in the marketplace that could harm the firm (its threats)

marketers go through a segmentation, targeting, and positioning (STP) process Firms segment various markets by dividing the total market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them. After identifying the different segments, the firm goes after, or targets, certain groups on the basis of the firm's perceived ability to satisfy the needs of those groups better than competitors and profitably. To complete the STP process, firms position their products or services according to the marketing mix variables so that target customers have a clear, distinct, and desirable understanding of what the product or service does or represents relative to competing products or services.

Firms segment various markets by dividing the total market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them.

After identifying the different segments, the firm goes after, or targets, certain groups on the basis of the firm's perceived ability to satisfy the needs of those groups better than competitors and profitably.

To complete the STP process, firms position their products or services according to the marketing mix variables so that target customers have a clear, distinct, and desirable understanding of what the product or service does or represents relative to competing products or services.

The marketing mix consists of the four Ps— product, price, place, and promotion—and each P contributes to customer value. Thus, firms make trade-offs between the first two Ps, product and price, to give customers the best value. The third P, place, adds value by getting the appropriate products and services to customers when they want them and in the quantities they need. The last P, promotion, informs customers and helps them get a positive image

Portfolio analysis is a management tool used to evaluate the firm's various products and businesses also allocates resources according to which products are expected to be the most profitable for the firm in the future.

A popular portfolio analysis tool developed by the Boston Consulting Group classifies all products into four categories. The first, stars, are in high growth markets and have high market shares. The second, cash cows, are in low-growth markets, but have high market share. These products generate excess resources that can be spun off to products that need them. The third category, question marks, are in high-growth markets, but have relatively low market shares. These products often utilize the excess resources generated by the cash cows. The final category, dogs, are in low-growth markets and have relatively low market shares. These products are often phased out.

Everything a firm does should revolve around the customer without the customer, nothing gets sold.

firms must monitor their competitors to discover how they might be appealing to their customers. Without competitive intelligence, a firm's customers might soon belong to its competitors.

Corporate partners: Good marketing firms or departments work closely with suppliers, marketing research firms, consultants, and transportation firms to coordinate the extensive process of discovering what customers want and finally getting it to them when and where they want it. Each of these activities—discovering customer needs, studying competitors' actions, and working with corporate partners—helps add value to firms' products and services.

Culture: Marketers must be sensitive to such cultural issues to be successful Demographics: they must also consider customer demographics—age, income, market size, education, gender, and ethnicity—to identify specific customer target groups. major social trends: Understanding trends can help marketers serve their customers better Economy: The general state of the economy influences how people spend their discretionary income. When the economy is healthy, marketing success comes relatively easily. But when the economy gets bumpy, only well-honed marketing skills can yield long-term successes. Law: all firms must abide by the law, and many legal issues affect marketing directly. These laws pertain to competitive practices and protecting consumers from unfair or dangerous products.

Firms choose from various methods on the basis of the type of product/ service they offer and their goals for the segmentation strategy. if the firm wants to identify its customers easily, demographic or geographics But if it is trying to dig deeper into why customers might buy its offering, then psychographic, geodemographic, benefits, or behavioral segmentation (occasion and loyalty) work best

undifferentiated strategy: uses no targeting at all and works only for products or services that most consumers consider to be commodities. Larger firms with multiple product/service offerings generally use a differentiated strategy

differentiated: approach targets multiple segments

concentrated: targets only one smaller firms or those with a limited product/service offering often use a concentrated strategy.

micro: custom made

it communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it consists of the attributes of a product or service that are desired by the target market, but not available from competitors.

Firms could attempt to offer attributes that are important to its customers, whether or not they are offered by competitors. For attributes that are not important to its customers, it should either educate its customers about the importance of those attributes, deemphasize them, or not offer those product or service attributes.

refers to how customers think about a product, service, or brand in the market relative to competitors' offerings.

offering's value—customers get a lot for what the product or service costs. Others determine the most important attributes for customers and position their offering on the basis of those attributes. Symbols can also be used for positioning, though few products or services are associated with symbols that are compelling enough to drive people to buy. Finally, one of the most common positioning methods relies on the favorable comparison of the firm's offering with the products or services marketed by competitors.

First, they determine consumers' perceptions and evaluations of the product or service in relation to competitors Second, they identify the market's ideal points and market sizes for those products or services Third, they identify competitors' positions Fourth, they determine consumer preferences Fifth, they select the position Finally, they monitor the positioning strategy

The first step: define objectives and research needs In the second step: designing the research project, researchers identify the type of data that is needed, whether primary or secondary The third step: involves deciding on the data collection process and collecting the data. The process usually starts with qualitative research methods such as observation, in-depth interviews, or focus groups. The information gleaned from the qualitative research is then used in quantitative research, which may include a survey, an experiment, or the use of scanner and panel data. The fourth step: is to analyze and interpret the data and develop insights. The fifth and final step: develop an action plan and implementation. Although these steps appear to progress linearly, researchers often work backward and forward throughout the process as they learn at each step.

Primary data are collected to address specific research needs. Techniques used for primary: qualitative research-- include observation, social media, in-depth interviews, and focus groups. quantitative research-- include surveys (both offline and online), scanner, panel, and experiments.

Marketing researchers should only collect information on consumers for the sole purpose of conducting marketing research endeavors. Information should not be collected under the guise of marketing research when the intent is to sell products or fund-raise

Brands play important roles in enabling people to make purchase decisions more easily encouraging customer loyalty and reducing costs (e.g., marketing) For firms specifically, they also constitute valuable assets and improve a company's bottom line and help protect against competition.

Brand equity summarizes the value that a brand adds, or subtracts, from the offering's value. It comprises brand awareness, or how many consumers in the market are familiar with the brand; brand associations, which are the links consumers make between the brand and its image; and brand loyalty, which occurs when a consumer will only buy that brand's offer. Brand equity also encompasses the concept of perceived value, which is a subjective measure that consumers develop to assess the costs of obtaining the brand.

brand extension: uses the same brand name for a new product that gets introduced into new or the same markets line extension: simply an increase of an existing product line by the brand.

The adopters: Innovators: buyers who want to be the first to have the new product or service. Early adopters: do not take as much risk as innovators but instead wait and purchase the product after careful review. The members of the early majority really don't like to take risk and therefore tend to wait until the bugs have been worked out of a particular product or service. The late majority: buyers who purchase the product after it has achieved its full market potential. Laggards: like to avoid change and rely on traditional products until they are no longer available. Laggards may never adopt a certain product or service.

can help firms predict which types of customers will buy their products or services immediately upon introduction as well as later as they gain more acceptance in the market.

Steps to develop a new product: First: they generate ideas for the product or service using several alternative techniques, such as internal research and development, R&D consortia, licensing, brainstorming, tracking competitors' products or services, or working with customers. Second: firms test their concepts by either describing the idea of the new product or service to potential customers or showing them images of what the product would look like. Third: the design process entails determining what the product or service will actually include and provide. Fourth: firms test market their designs. Fifth: if everything goes well in the test market, the product is launched. Sixth: firms must evaluate the new product or service to determine its success.

First: reliability refers to whether the provider consistently provides an expected level of service. Second: responsiveness means that the provider notes consumers' desires and requests and then addresses them. Third: assurance reflects the service provider's own confidence in its abilities. Fourth: empathy entails the provider's recognition and understanding of consumer needs. Fifth: tangibles are the elements that go along with the service, such as the magazines in a doctor's waiting room.

Explain the zone of tolerance. zone of tolerance: The area between customers' desired service and the minimum level of service they will accept It is the difference between what the customer really wants and what he or she will accept before going elsewhere. Firms can assess their customers' zone of tolerance by determining the desired and expected level of service for each service dimension their perceptions of how well the focal service performs and how well a competitive service performs the importance of each service quality dimension.

profit-oriented: focuses on maximizing, or at least reaching a target, profit for the company. sales orientation: sets prices with the goal of increasing sales levels. competitor-oriented: sets its prices according to what its competitors do. customer-oriented: determines consumers' perceptions of value and prices accordingly.

everyday low pricing strategy: when a product's price stays relatively constant at a level that is slightly lower than the regular price from competitors using a high/low strategy and is less frequently discounted. Customers enjoy an everyday low pricing strategy because they know that the price will always be about the same and a better price than the competition. High/low pricing strategy: starts out with a product at one (higher) price, and then discounts the product. This strategy first attracts a less price sensitive customer who pays the regular price and then a very price sensitive customer who pays the low price.

price skimming strategy: the product or service must be perceived as breaking new ground or customers will not pay more than what they pay for other products. Firms use price skimming to signal high quality limit demand, recoup their investment quickly and/or test people's price sensitivity. Moreover, it is easier to price high initially and then lower the price than vice versa. Market penetration: in contrast, helps firms build sales and market share quickly, which may discourage other firms from entering the market. Building demand quickly also typically results in lowered costs as the firm gains experience making the product or delivering the service.

Advertising deceptive prices: Specifically, if a firm compares a reduced price with a regular or reference price, it must actually have sold that product or service at the regular price. Bait and switch: is another form of deceptive price advertising, where sellers advertise items for a very low price without the intent really to sell any at that price. In many states, advertising the sale of products priced below the retailer's cost also constitutes a form of bait and switch. Collusion among firms to fix prices is always illegal.

The more closely aligned the marketing channel members are with each other, the less likely there will be significant conflict. An administered marketing channel occurs when a dominant and powerful marketing channel member has control over the other members. In a contractual marketing channel (e.g., franchising), coordination and control are dictated by contractual relationships between members. Corporate marketing channels can operate relatively smoothly because one firm owns the various levels of the chains. Marketing channels also can be effectively managed through strong relationships developed with marketing channel partners.

trust each other communicate openly have compatible goals realize there is benefit in being interdependent be willing to invest in each other's success.

Information flow involves: Flow 1 (customer to store) Flow 2 (store to buyer) Flow 3 (buyer to manufacturer) Flow 4 (store to manufacturer), Flow 5 (store to distribution center) Flow 6 (manufacturer to distribution center and buyer).

Merchandise flow involves: Flow 1 (manufacturer to retailer distribution centers) Flow 2 (manufacturer directly to stores) Flow 3 (distribution centers to stores, when shipped first to distribution centers) Flow 4 (retailer to customer).

Intensive distribution: the product is available virtually everywhere, in as many places as will agree to carry it. exclusive distribution: intensity strategy, the manufacturer allows only one retailer (or retail chain) in each area to sell its products. Selective distribution: is the middle ground option; several retailers carry the products, but not all of them.

Retailers generally fall into one of three categories: food retailers general merchandise retailers service retailers. Each of the categories consists of various formats, including supermarkets, supercenters, warehouse clubs, convenience stores, department stores, discount stores, specialty retailers, drugstores, category specialists, extreme value retailers, and off-price stores. Although service retailers primarily sell services, if they sell to consumers, they are still retailers. Service retailers span the gambit from universities to automobile oil change shops.

both retailers and manufacturers need to consider all of the four Ps in conjunction: product, place, promotion, and price. developing a coordinated strategy is a key goal for an effective channel partnership between retailers and manufacturers

cost customers channel members competition company objectives

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

GAP 1: Gap between consumer expectation and management perception: arises when the management or service provider does not correctly perceive what the customers wants or needs. GAP 2 : Gap between management perception and service quality specification: this is when the management or service provider might correctly perceive what the customer wants, but may not set a performance standard. GAP 3: Gap between service quality specification and service delivery: may arise pertaining to the service personnel. This could arise due to there being poor training, incapability or unwillingness to meet the set service standard. GAP 4 : Gap between service delivery and external communication: consumer expectations are highly influenced by statements made by company representatives and advertisements. The gap arises when these assumed expectations are not fulfilled at the time of service delivery. GAP 5: Gap between expected service and experienced service: this gap arises when the consumer misinterprets the service quality.