Marketing Chapters 1-8 – Flashcards
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5 Step Process Creating and Capturing Customer Value
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Understand Marketplace, Design a marketing strategy, construct an integrated marketing program, build profitable relationships, capture value from customers to create profits and equity
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The Marketing Concept
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Understand the marketplace and customer needs and wants
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Exchange
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Obtaining desired object by offering something in return
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How to build strong relationships
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Delivering consistent superior customer value
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Marketing Myopia
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Focusing too much on customer existing wants and not underlying needs
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Production Concept
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Customers choose highly available and affordable products
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Product Concept
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Customers favor high quality products with the most features and best performance
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Selling Concept
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Customers will not buy products unless the firm undertakes large scale selling and marketing efforts
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Marketing Concept
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The company must understand market needs/wants then delivering customer satisfaction better than the competition
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Societal Marketing Concept
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Marketing decision include consumer and company requirements but also consumer and sustainable societal long term interests
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Customer Relationship Management
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Delivering superior customer value and satisfaction to build and maintain profitable customer relationships
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Customer-Perceived Value
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Customer's evaluation of the difference between all the benefits and costs of a marketing offer relative to those of competing offers.
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Customer Satisfaction
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Extent to which a product's perceived performance matches a buyer's expectations.
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The 4 P's of the Marketing Mix
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Turns marketing strategy into customer value in the exchange relationship
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Product, Price, Place, Promotion
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The major mix tools the firm uses to implement its marketing strategy and create real value for customers
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Product
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Variety, Quality, Design, Features, Brand Name, Packaging, Services
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Price
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List price, Discounts, Allowances, Payment period, Credit terms
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Promotion
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Advertising, Personal selling, Sales promotion, Public relations
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Place
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Channels, Coverage, Locations, Inventory, Transportation, Logistics
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Star
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High growth rate share and investment
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Cash Cow
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Low growth rate, High share, Less investment, fund other priorities
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Question Mark
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Low share, high growth rate, high investment
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Dog
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Low growth rate share and return
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Market Segmentation
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Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
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Market Segment
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Group of consumers who respond in a similar way to a given set of marketing efforts
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Market Targeting
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Evaluating each market segment's attractiveness and selecting one or more segments to enter
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SWOT Analysis
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A comprehensive marketing plan which also includes the 4 Ps of marketing mix, segmentation and target market strategy, and a business mission statement
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Strengths
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Internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives
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Weaknesses
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Internal limitations and negative situational factors that may interfere with the company's performance
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Opportunities
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External favorable factors or trends that the company may be able to exploit to its advantage
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Threats
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Unfavorable external factors or trends that may present challenges to performance
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Strategic Planning
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Defining company mission, Setting objectives/goals, Designing business portfolio, Planning marketing strategies
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Marketing Plan
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Summary of goals, Current marketing situation, SWOT, Objectives and issues
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Positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
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Actors in Microenvironment
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Company, Suppliers, Marketing intermediaries, Competitors, Publics, Customers
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Major Forces in Macroenvironment
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Demographic, Economic, Natural, Technologies, Political, Cultural
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A good MIS balances...
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What users really need and what is feasible to offer (Too much info can be as harmful as too little) (Assess user info needs->Develop needed info->Helps users analyze and use info)
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Information Users
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Marketing managers, internal and external partners, and others who need marketing information
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Competitive Marketing Intelligence
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Systematic collection and analysis of publically available info regarding the market, customers, and competitors - observation, employee input, competitive bench marking, social media and internet. Used for strategy and hypothesis creation often in conjunction with Market Research.
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Internal Databases
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consumer and market info derived from data sources within the company - cheap (not free) and fast.
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Marketing Research
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Systematic design, analysis, collection and reporting of data developed for a SPECIFIC marketing situation affecting the company
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Secondary Data
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Info that already exists and has been collected for another purpose. Often comes from the Marketing Info System or the Internal Data system. Used for strategy and hypothesis
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Primary Data
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Typically associated with formal market research and is collected/developed for a specific purpose and to address a specific customer or market issue
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CRM System
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Different from the marketing concept of Customer Relationship Management. The CRM is an actual data system that stores all of the company's marketing information so it is organized, and easy to retrieve and analyze for decision making purposes. These system are called CRM because they facilitated the entire marketing process of building value for the customer and the exchange inherent in the Mktg process
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Online Contact Method
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Cheapest, fastest way to reach target market
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Marketing Research Process
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Defining problem & research objectives, develop research plan, implement research plan, interpret findings
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Buyer Decision Process
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Need Recognition, Info search, Evaluate alternatives, Purchase decision, postpurchase behavior
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Culture CIF
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Culture, subculture, social class
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Social CIF
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Groups and social networks, family, roles and status
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Personal CIF
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Age and life-cycle stage, Occupation, Economic situation, Lifestyle, Personality and self-concept
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Psychological CIF
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Motivation, perception, learning, beliefs and attitudes
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Innovators
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Risk takers
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Early Adopters
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Opinion leaders in their communities and adopt new ideas early but carefully
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Early Mainstream
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Adopt new ideas before the average person
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Late Mainstream
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Adopt an innovation only after a majority of people have tried it (skeptical)
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Lagging Adopters
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Adopt the innovation only when it has become something of a tradition itself
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Business Buying Behavior
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Marketing and other stimuli affect the buying organization and produce certain buyer responses
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Buying Center
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Made up of a variety of people and inputs and is NOT a structured organizational element
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Buying Decision Maker
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Can be a variety of company managers or execs
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Business Buying Behavior Stages
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Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review
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Differentiation
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Refers to the actual components of the product that distinguishes it from competing products
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Positioning
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Creates the image of the product in the consumers mind relative to the competition
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Market Targeting Strategies
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Mass marketing, segmented marketing, niche marketing, local/individual marketing
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Undifferentiated (Mass) Marketing
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Sees the market as all the same; sees only one big market to be reached with one marketing mix
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Micromarketing (Local/Individual Marketing)
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Focuses products and programs on individuals in specific locations. Tries to capture a large share of a small market.
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Winning Value Propositions
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(Look on phone)
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Perceptual Positioning Map
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Compares consumer perception among competitive brands along important buying dimensions
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Consumer Products
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Convenience, shopping, specialty, unsought (LOOK ON PHONE)
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Industrial Products
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Materials and Parts (Raw materials), Capital (Offices, factories), Supplies and Services (Lubricants, coal)
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Product and Service Decisions
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Individual product decisions, product line decisions, and product mix decisions
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Individual product decisions
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Product Attributes->Branding->Packaging->Labeling-> Product Support Services
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Product Lines
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Represent closely related products that have similar functions and customer groups and are sold through similar outlets or fall within given price ranges
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Product Line Length
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The number of items in the product line and can be expanded by product line filling and stretching
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Product Line Filling
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Adding more items within the present range of the line
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Product Line Stretching
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When a company lengthens its product line beyond its current range
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Product Mix
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Set of all product lines and items that a particular seller offers for sale (Drink, Simple, Baked)
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Width, Length, Depth, Consistency
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Number of different product lines the company carries, Total number of items a company carries within its product lines, Number of versions offered for each product in the line, Relativity of the various product lines in end use, production requirements, distribution channels, or some other aspect
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Intangibility
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Services cannot be seen, tasted, felt, heard, or smelled before they are bought
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Inseparability
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Services cannot be separated from their providers
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Variability
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The quality of services depends on who provides them as well as when, where, and how they are provided
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Perishability
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Services cannot be stored for later sale or use
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3 Types of Service Marketing
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Internal (company+employees), External (company+customers), Interactive (employees+customers)
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Positive/Negative Brand Equity
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When consumers react more/less favorably to the brand than to an unbranded version of the same product
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Brand Valuation
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The estimated total financial value of a brand
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Customer Equity
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The value of customer relationships that the brand creates
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Major Brand Strategy Decisions
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(Look on Phone)
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Stages in New Product Development
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Idea Generation(need/wants/demand), Idea Screening, Concept Development and Testing, Marketing strategy development, Business analysis, Product development($$$), Test marketing($$$), Commercialization
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3 sources of idea generation (#1)
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INTERNAL (employees), External (customer, competitor), Crowdsourcing (Internal and external communities)
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(#2) Idea Screening
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Simply screening new product ideas to spot good ones and drop poor ones as soon as possible
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(#3) Concept Development and Testing
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Create alternative product concepts, find attractive ones, choose best
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(#4) Marketing Strategy Statement
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Describing Target market, value proposition, sales, market-share, and profit goals Price, distribution, and initial marketing budget Plan for long-run sales, profit goals, and marketing mix strategy - 4Ps
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(#5) Business Analysis
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Transitions the marketing strategy statement into a detailed review of the new product sales, costs, and profit projections
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(#6) Product Development
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The new product only exists as a word description and analysis. Product Development turns it into something physical. (Prototypes)
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(#7) Test Marketing
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The product and its proposed marketing program are introduced into realistic market settings ($$$ + time)
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(#8) Commercialization
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Launching new product into market (Time - economics, business cycle, competitive releases, other company news) (Place - single location, region, national market, or international market)
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Managing New Product Development
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Holistic approach, customer-centered, team-based, and systematic effort
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Product Life Cycle
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(Look on Phone)
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Style
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basic of distinctive form of expression - timeless; come in and out of favor
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Fashion
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Currently accepted or popular style in a given field; slow rise; slow decline
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Fad
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Temporary period of high consumer enthusiasm; fast growth and fast decline
