Placing a product at a certain point or location within a market in the minds of prospective buyers.
Tool to help market geographically view perceptions of competing products within industry.
An organization that regularly provides a standardized set of data to all customers periodically.
Full-service Research Supplier
Marketing Research organization that offers all aspects of the marketing research process.
Limited-service Research Supplier
Marketing research firm that specializes in a limited number of research activities such as conducting field interviews or performing data processing.
Meaning a person attributes to incoming stimuli gathered through the five senses.
Mental filtration passes through which all inputs must pass.
Subconscious receipt of incoming messages.
Process of applying a series of rewards and reinforcements to promote a more complex behavior. Ie. Free Samples, Coupons.
Determine organizations primary objections and adopting courses of action to acquire actions. (Long Term)
Guides the implementation of activities specified in the strategic plan. (Short-Term)
People whose opinions we value and look for guidance. Ie. Celebs
Social Classes (6)
Upper-upper, upper-middle, lower-upper, lower-middle, working.
Trendsetters who purchase new products before others in a group and then influence others in their purchases.
Family structure: Husband-dominant, wife-dominant.
1. Autonomic role. 2. Husband-dominant role. 3. Wife-dominant role. 4. Syncratic role.
Marketing philosophies policies and action to enhance society.
A firm’s obligation to improve its positive effects on society and reduce its negative effects.
Products that can be produced, used, and disposed of with minimal impact of the environment.
1. Top Management
2. Middle Management
3. Supervisory Management
1. Strategic Planning
2. Tactical Planning
3. Operational Planning
5 Elements of Marketing Enviornment
Competitive, Political-Legal, Economic, Technological, Social-Cultural.
1. Operate private + public sector.
2. Adopt marketing strategies to meet objectives.
3. Communicate messages by appearing in ads related to their goals.
4. Form alliances with other non-profit to promote each other, sometimes for-profit as well.
Strengths, Weaknesses (internal)
Opportunities, Threats (external)
Marketing Myopia + Overcoming
Managements failure to recognize the scope of its business.
Overcome by developing broader business ideas- and focus on consumer needs/wants.
5 Types of Non-Traditional Marketing
Person, Place, Event, Organization, Cause.
Buyers and sellers are limited in communication and have little or no ongoing relationship.
Relationship Market + Types
Develop relationship to determine likes/dislikes.
Mobile, Interactive (Buyer centered), Social, Buzz, Partnership.
Functions of Marketing (8)
Securing Marketing Information
Limited time when key requirements of a market and firms participation competitors best fit together.
Strategic Marketing (Target)
Product-strategy: decides what goods/services to offer.
Distribution: customers are able to find product.
Promotion: discounts, communications.
Price: Justifiable prices, realistic/competitive.
BCG Matrix (4)
Dogs: generate little profits. Consider withdrawing., Stars: generate considerable income. Invest more funds for future.
Cash Cows: generate strong cash flow. Milk profits to finance growth of starts and question marks.
Question-marks: have potential to become cash cows or stars. Either invest or dis-invest.
Dogs: generate little profits. Consider withdrawing.
Involves more than just deciding what goods/services the firm should offer to a group of customers. Includes decisions about a customer service package design, brand names, trademarks, patents, warranties, the life cycle of a product, positioning the product in the marketplace, and new-product development.
Consumer problem-solving processes
Routinized response behavior: low-involvement. (routine buy)
Limited problem solving: middle of range. (new shampoo)
Extended problem solving: high involvement. (new home)
Steps in Marketing Planning Process
1. defining organizations mission & objectives
2. assessing organizational resources & evaluating environmental risks and opportunities
3. formulating, implementing, and monitoring the marketing strategy.
4 Types of Utility + Examples
1. Form. Jeans
2. Time. Appointment.
3. Place. Banks in Grocery stores.
4. Ownership. Credit card.
First mover/Second mover
First to offer product in market will be long-term market winner.
Observing closely innovating of the first movers and the improving of an item to gain advantage in market.
Number of alternative a consumer actually considers in making a purchase decision.
Stages of decision making (5)
Problem or opportunity recognition.
Evaluation of alternatives
Purchase decision/purchase act
Personal determinants of consumer behavior
Segmentation system that divides consumers into 8 psycho-graphic categories:
Strategies of target markets
Undifferentiated: focus on single product to all. “Mass”
Differentiated: several products designed to satisfy smaller segments.
Concentrated: “Niche” focus on single market segmentation.
Micro-marketing: narrow. Zip-code, lifestyle.
Pre-need funeral plans
Bought for consumer personal use.
purchased for either directly/indirectly producing of OTHER goods and services.
Division of total market into smaller relatively homogeneous groups.
measurable: (size, purchasing power, profiles of segments can be measured),
substantial: (segments must be large or profitable enough to serve), accessible (segments can be effectively reached and served),
differentiable: (segments must respond differently to different marketing mix elements and actions), actionable (must be able to attract and serve the segments)
division of an overall market into homogeneous groups based on location.
Tendency of members of ONE generation to be influenced and bound together by events occurring during their key formative years, roughly 17-22.
4 Segmentation Approaches
Intro: stimulate sales of new-market entry.
Growth: starts to realize substantial profits.
Maturity: sales start to even out.
Decline: decline in total sales.
Business Product Types
installations: major capital investment in B2B.
accessory equipment: desktop computers, printers, last for shorter periods than installations.
component parts/materials: finished business product of one producer that becomes a final good of another product.
raw materials: natural resources, coal.
supplies: regular expenses, daily operation.
business services: intangible products firms buy to facilitate products.
Product Mix (3)
Width: number of product lines + firm offers.
Length: number of different products firm sells.
Depth: variation in each product.
hiring employees to work from home.
4 Marketing Eras
Production: “Good sells itself”
Sales: “Creative advertising and selling will overcome resistance”
Marketing: “The consumer rules”
Relationship: “Long-term relationship with customer”
Organizational function, process for CREATING, COMMUNICATING, and DELIVERING value to customers and managing relationships in ways that benefit organization and stockholders.
Consumer Product (B2C)
Only for consumer use.
Business to business (B2B)
contributes directly/indirectly to the output of other products for resale.
Impulsive goods and services
products bought in the spur of the moment.
Products consumers purchase after comparing with competing offerings.
Products with unique characteristics that cause buyers to prize these particular brands.
division of population into homogeneous group based on relationship to product.
Market Segmentation Process
Develop relevant profile for each segment
Forecast market potential
Forecast market share
Select specific market segment
4 Product related Segmenation
persons enduring favorable or unfavorable evaluating emotions or actions or tendencies toward some object or idea.
convenience goods and services replenish to maintain a ready inventory.
division of population into groups having similar attitudes/values/lifestyles.
2 Components of Marketing Strategy
1. Target market.
2. Marketing mix: (Product, distribution, promotion and pricing used to target specific target audience)