Exam 1 Principles of Marketing (Chapter 1-4) – Flashcards
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Old view of Marketing?
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selling & advertising
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New View of Marketing?
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Satisfy customers NEEDS
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Form of Marketing?
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Traditional & Contemporary
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Traditional form of marketing...
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view- making a sale Advertising- TV, magazines, direct mail ("telling & selling")
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Contemporary View of Marketing...
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view- satisfy customer needs Reach customers directly, personally, & interactively Fewer customers are okay-share of customers
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Marketing should create?
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value for customers and build strong relationships in order to capture value from customers
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Marketing Goals?
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Attract new customers/Keep & Grow current customers
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Core concepts for customers & marketplace
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-Needs wants and demands -Marketing offerings -value & satisfaction -exchanges & relationships -markets
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Wants become needs when backed by what?
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buying power
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Maslow's Hierarchy of Needs
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-self-actualization -esteem -love/belonging -safety -physiological
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Market Offerings-
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combination of products, services, information, or experiences
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Marketing Myopia-
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paying more attention to specific products a company offers than to the benefits & experiences
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Customer Value & Satisfaction-
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customers form expectations about the value & satisfaction of market offerings
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Value Proposition-
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set of benefits or values it promises to deliver to consumers to satisfy their needs
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Market management-
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choosing target markets and building profitable relationships with them
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Marketing Management =
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Demand & Customer management
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Basic factors to design winning market strategy
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- target market and value proposition
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Marketing Mix or 4 P's
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Product, Price, Place, and Promotion
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Customer Lifetime Value (CLV)-
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Value of entire stream of purchases a customer makes over a lifetime of patronage
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Share of Customers
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Portion of the customer's purchasing that a company gets in it product categories
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Changing Marketing Landscape
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-Digital Age -Changing Economic environment -Growth for non-profit marketing -rapid globalization -calls for ethics & social responsibility
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Strategic Planning
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process of developing & maintaining a strategic fit between organization's goals & capabilities and changing market opportunities
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Steps in Strategic Planning
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-Define mission, set company objectives, design business portfolio (corp. level) -Planing Market and other functional strategies (market level)
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Role of Marketing in Strategic Planning
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provides guiding philosophy and input to strategic planners
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Value Chain
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series of internal departments that carry out value-creating activities
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Value delivery Network
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Made up of the company, its suppliers, distributors & its customers who partner with each other
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Business Portfolio Planning
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-analyze firms current business -develop growth strategies
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BCG Matrix
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-Stars: dominant market share & good growth prospects -Cash cows: Dominant market & low growth -Dogs: Subordinate market share and low growth -Question marks (problem children) : small market of growing market; require significant cash
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Reasons for downsizing?
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rapid growth of company, lack of experience in market, changer in market environment, & decline of particular product
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Marketing Return on Investment (ROI)
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net return from a marketing investment divided by costs of marketing investment (HARD TO MEASURE)
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Marketing Environment
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outside forces that affect marketing management's ability to build and maintain successful relationships with target customers
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Microenvironment
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Actors close to the company that affect that ability to build and maintain success
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Macro-environment
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larger societal factors that affect the microenvironment
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Business cycle
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prosperity, recession, depression and recovery
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Cultural characteristics that affect market decisions
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-persistance of cultural value -shifts in secondary cultural value
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Political Environment
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forces that influence and limit various organizations and individuals in society
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Goals of business legislation
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-protect companies from each other -protect consumers from unfair business practice -protect interests of society
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Marketing Information Systems (MIS)
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consists of people and procedures to: -assess information needed -develop needed info -help decision makers use info
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Marketers can obtain information from:
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internal data, marketing intelligence, and marketing research
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Marketing Research Process
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-define problem -develop plan -implement research plan -interpreting and report
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Exp. Research
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used to gather information and help define problems and suggest a hypothesis
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Descriptive research
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describe market potential or demographics and attributes
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Casual research
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test hypothesis about cause-and-effect relationship
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Primary Data
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information collected for specific purpose at hand
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Observational Research
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gather primary data by observing research relevant people, activities, and situations
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Experimental Research
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Selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group response
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Online marketing research ( Data is collected how?
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-internet surveys -online focus groups -web based experiments -tracking consumer online behavior
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Research instruments
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-Questionnaires can be administered in person, online email, or phone -mechanical instruments include: people meter, checkout scanners, and neuromarketing (measures brain activity)
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Customer Relationship Management (CRM)
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-managing detailed information about customers -managing customers touch points to maximize customer loyalty -consists of software & analytic tools
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Marketing analytics
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consist of analysis tools, technologies, and process by which marketers dig out meaningful patterns in big data to gain customer insight
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Exchange
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act of obtaining desired goods by offering something in return
