Marketing 305 – Flashcards
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Marketing
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(new times) Makes sure right goods and services are provided. Only makes product/service when there is a need.
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Production
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(old times) Produces and whoever wants is takes it. Mass production of prudcuts
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Micro Marketing View
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-Needs of Customers, satisfy their needs -Set of activities performed by individual organizations
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Macro View Marketing
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-Should be socially responsible, not focusing on specific needs -Social Process -Matches Supply with demand
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Universal Functions of Marketing
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Buying -> Selling -> Transporting -> Storing-> Standardization and Grading -> Financing -> Risk Taking -> Market Information
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Marketing Role Over Time
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Simple Trade Era (start) -> Production Era -> Sales Era -> Maketing Department Era -> Marketing Company Era (end/current)
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Marketing Concept
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-Customer Satisfaction is KEY -Total Company Effort, entire company works together to satisfy customers -Profit
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Marketing Concept & Customer Value
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-Customer Satisfaction=Customer Value -Do the Benefits outweigh the Cost? -More benefit than cost=Customer Value
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Micro Macro Dilema
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Negative effects on society (social responsibility). Whats good for some firms and consumers may not be good for society as a whole
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The Management Job in Marketing
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1. Marketing-Planning 2. Implementing-Marketing Plans Programs 3. Controlling-Marketing Plans and Programs
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Marketing Plan
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Is a document stating your marketing strategies
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What is Market Strategy Planning?
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Finding opportunities and developing marketing strategies to capitalize on opportunities.
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Marketing mix
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controlled variables of the 4 P's company puts together to satisfy the target market
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Mass Marketing
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Production oriented manager sees every one similar. No specific focus Dont incorporate needs
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Target Marketing
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Marketing oriented manager sees everyone DIFFERENT
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Marketing Mix Categories
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4 P's 1. Product-With Specific Function 2. Place-Location/distribution where customers are 3. Price-Put price to product 4. Promotion-Get people to buy product
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Which of 4 P's Comes First?
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All at the same time work together. Product, place, promotion, price=Selection of target market.
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Marketing Strategy
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Action plan to attain objective
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Marketing Plan
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Document of Strategy
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A Firms Marketing Program
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All marketing plans from different department in one place. The mother of all marketing plans.
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Customer Equity
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Is the expected earning stream over time. Expected earnings from customers. Customer equity grows, so do earnings
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Breakthrough Opportunities
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No one has done it before, its innovative and "groundbreaking" ex; JIB breakfast is served all day
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Competitive Advantage
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You do it so well that one else can do it similarly. Ex; subway is winning the sandwich market with 5 dollar footlongs
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Market Penetration
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High Promotion/Low Pricing Not good at making money, low profit margin
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Product Development
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A product that is attractive to customers, offer new and improved products
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Market Development
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Moving to new markets geographically OR moving into new businesses (expanding on existing)
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Segmentation
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Divide entire market into different groups, each group with different needs
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Targeting
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Selecting one of segmented groups to be the focus of the company.
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Différentiation
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A concept where marketeer makes a product appear different to consumers. Ex; Volvo vs. Toyota
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Positioning
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creating a mental perception of bran in the customers mind. Ex; lexus=luxury
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Product Market Definition
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Define by generic product and subcategory which is the market Product type, customer needs, geographic area, customer type.
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Homogeneous Within
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Customers in a market segment should be as SIMILAR as possible
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Heterogeneous Between
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customers in different segments should be as different as possible
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A segmenter
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-Using a single market and implementing One marketing mix, apply 4 p's to one market -Using multiple markets with different marketing mixes, apply 4 p's to all markets
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A Combiner
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Using a combine target market approach. Aim at two or more submarkets with same marketing mix. Most commonly used and practiced, saves more money,
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Behavioral Dimensions for segmenting consumer markets
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Needs(most common) -> Benefits -> Thoughts -> Rate of Use -> Purchase Relationship -> Brand Familiarity -> Kind of Shopping -> Type of Problem Solving -> Information Required
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Geographic Dimensions for segmenting consumer markets
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Segment market to different region geographically.
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Demographic dimensions for segmenting consumer markets
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Income, sex or age, family size or family life cycle stage, occupation or education, ethnicity or social class
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Segmenting Business Markets
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Business to business with a combination of geographic, behavioral and demographic dimensions.
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Dimensions used to segment markets QUALIFYING DIMENSIONS
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-Must meet qualifying basic needs. -Relevant to including a customer type in a product market -Help identify Core benefits
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Dimensions used to segment markets DETERMINING DIMENSIONS
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-In segmenting market choose this one -What triggers customer to buy -find attributes that make people buy product -affect the customers purchase of a product or brand
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Direct Marketing Environnent
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Controls: 1. Company objectives and resources 2. Competitors, current and prospective
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External Marketing Environnent
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Has no control on economic, technological, political and legal, cultural and social
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Objectives set firms course
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Socially and economically useful function. At times marketeers explore social objectives/functions and they look at macro marketing view when dealing with an opportunity.
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Monopoly
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1 person/company is controlling the product/market
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Monopolistic Competition
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When market has (1) different heterogeneous products and (2) sellers who feel they have some competition in the market. A few control market/products
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Oligopoly
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Special market situation when market has homogeneous products, few sellers, and inelastic demand curves.
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Pure Competition
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Let market/customers decide. easy entry for buyers and sellers
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Key Economic Forces
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Global Economy -> Rapid Changes -> Interest Rates
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The Technological Environment
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An Advancement in Technology
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The Political Environment
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NAFTA-North American Free Trade Agreement
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The Cultural and Social Environment
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Means Domestic and demographic trends
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Target Maketeers focus on the Consumer 3 Main Questions
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1. What are its relevant segmenting dimensions 2. Size: How big is it? 3. Location: Where is it?
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People with Money Make Markets (Population)
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Birthrate in the US is declining every year, this equates to a smaller market. We need to look abroad for new markets.
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Key Trends; Young and Old
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-Population growing, but... -Birthrate boom or bust -Graying of America -appealing to older consumers
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Changing of US income
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People in the middle and upper income levels are becoming richer, have a raise in income
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Economic Needs (consumer behavior)
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-Economy of purchase -Convenience -Efficiency in use -dependability
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Psychological Variables (consumer behavior)
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-motivation:Drive to attain something -Perception: things we make meaning of -Learning: use past experience in decision making -Attitude- POV/Expression about a brand -Personality/Lifestyle- on weekend of leisure
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Social Influence (consumer behavior)
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-People make impact on decision making -Family -Social Class -Reference Groups -Culture
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Purchase Situation (consumer behavior)
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-purchase reason -time -surroundings
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Psychological Influences with an Individual NEEDS
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Basic and Natural. Thirsty=Drink Water
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Psychological Influences with an Individual WANTS
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"acquired" or learned needs, being more specific of needs. A want is a need with a brand. Thirsty=want a gatorade
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Hierarchy of needs PSSP
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Personal Needs (top) Social Needs Safety Needs Physiological Needs (bottom)
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Perception Determines what Consumers See and Feel
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1. Selective Exposure-See what you want to see 2. Selective Perception- Believe what you want to believe 3. Selective Retention-Remember what you want to remember
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Attitudes Related to Buying ATTITUDE
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A point of view
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Attitudes Related to Buying Belief
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An Opinion, a reason behind attitude
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Personality and Lifestyles
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Personality;How people see things, assume personality behind a brand (i.e harley davidson) Personality is about activities, interest and opinions
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Other Social Influences
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1. Reference Groups-(few people) people closes to you playing a role in helping you decide 2. Opinion Leaders-(one person) 3. Culture
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Problem Solving Continuum LOW INVOLVEMENT
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Routine response behavior: low involvement, frequently purchased, inexpensive, little risk, little information.
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Problem Solving Continuum HIGH INVOLVEMENT
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Extensive problem solving: High Involvement, infrequently purchased, expensive, high risk, much information desired. Key of marketing is to make this into low involvement
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4 Categories of Organization Customers
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1. Producers-Makers of product (ford, nestle, Coke) 2. Middlemen- Dont make just sell (Walmart, Victoria Secrets 3. Governments-(USPS, FBI) 4. Non Profits (CSUSB, Public Library)
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Organizational Customers are Different
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Most orgs buy for basic purpose. Basic purchasing needs are economic. Org buyers are usually less emotional.
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People that Influence a Decision
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Purchasing Managers are specialist in buying. They make decisions based on influences by the buying Center
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Buying Center
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Buyers -> Influencers(technical knowledge) -> Deciders(bosses) -> gatekeepers (administration/operations) -> Users (users of products)
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Buyer Seller Relationships in Business Markets
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1.Close Relationships=Mutual Benefits: Reliable supply, cost reduction, improved quality, reduced uncertainty. BUT 2. Relationships may not make sense: reduced flexibility, small/infrequent purchases.
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Dynamics of Buyer-Seller Relationships
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1. Powerful Customer May Control Relationship (buyer may dictate terms of contract) 2. Buyer may use several suppliers 3. Reciprocity may influence relationship
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The Scientific Method of Marketing Research
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Define Problem -> Analyze Situation -> Getting Problem Specific Data -> Interpreting the Data -> Solving the Problem
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Define the Problem Step 1
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Most difficult, but most important 1. Find the right problem level 2. Problem vs. Symptom 3. Setting Research Objectives
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Analyze the Situation Step 2
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Formulating Objective, do we have enough info to solve problem. 1. What info do we have 2. pick brains of people around you 3. situation analysis helps educate researcher
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Secondary Data
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Data from secondary research, research done before.
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Primary Data
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Research conducted for the first time
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Focus Groups Stimulate Discussion
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Focus group=a meeting with people and a person controlling and asking the questions.
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Quantitative Research
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research that has the numbers. a survey intended to find a number to be summarized and analyzed.
