GB214 Marketing – Flashcards

an organization function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and it's stakeholders

all the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange

Potential Market → Qualified Available Market (potential minus those that can't pay) → Target Market → Penetrated Market (already purchasing)

1. Situational Analysis (internal and external environments) 2. Marketing Objectives (sales, market share, profit, ROI) 3. Marketing Strategies (segmenting, targeting, positioning, strategies for mix) 4. Implement and Control

The benefits a customer recieves from buying a good or service

1. Production 2. Sales 3. Relationship 4. Triple Bottom Line

production orientation - A management philosophy that emphasizes the most efficient ways to produce and distribute products (Ford)

Great Depression selling orientation--a managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory

-Consumer orientation - a business approach that prioritizes the satisfaction of customers' needs and wants -Total quality management (TQM) - A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement -- Instapreneur- a business person who only produces a product when it is ordered

a business orientation that looks at financial profits, the community in which the organization operates and creating sustainable business practices. - Customer relationship management (CRM) - a systematic tracking of consumer's preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. CRM allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts

a systematic tracking of consumer's preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. CRM allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts

a company's success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars

a management philosophy that marketers must satisfy customers' needs in ways that also benefit society and also deliver profit to the firm

a systematic tracking of consumer's preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individual's unique wants and needs. CRM allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts 1. Lifetime Value of Customer 2. Customer Equity 3. Share of customer 4. Customer prioritization

o Popular culture o Myths o Consumer goods o Services o Business-to-Business marketing - the marketing of goods and services from one organization to another o Industrial goods o E-commerce - the buying and selling of goods and services electronically, usually over the internet o Shrinkage- losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise o Anticonsumption- the deliberate defacement of products o Not-for-profit organizations

4 P's Product: (and services) developed to satisfy a target consumer's need or want; name, branding, assortment, design Price: assignment of value and amount target consumer must exchange to receive the product or service; cost, demand, time, money, effort Place: channel members partner to efficiently deliver product/service to the target customer when and where desired; bricks and mortar, e-retailers, bricks and clicks Promotion: integrated marketing communications are coordinated activities used to influence, inform, persuade and remind the target market

legal, cultural, political, technological, natural, economic, demographic

suppliers, competitors, publics, customers, marketing intermediaries

A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market

the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts

the way in which the target market perceives the product in comparison to competitors' brands

fresh understanding of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships

external companies/entities that gather information and sell it to others; ie. university, government, companies

1. Identify and Define the Problem: examine secondary research, identify need for more primary research; set research objectives; Evaluating Secondary Data... Source quality, data quality, data compatibility 2. Develop Research Approach: theory and hypothesis development Potential Methodological Approaches... Exploratory: gather preliminary info that will help define problems and suggest hypotheses Descriptive: better describe marketing problems, situation or markets Causal: test hypotheses about cause and effect relationships 3. Research Design Formulation: determine method and measurement procedures; data analysis plan 4. Data Collection: watching, asking, experimenting 5. Data Analysis: understanding the results, statistical analysis 6. Report Generation and Presentation: usable format to enhance decision making

gather preliminary info that will help define problems and suggest hypotheses

marketing research used to better describe marketing problems, situations, or markets

marketing research used to test hypotheses about cause -and-effect relationships

a segment of the population selected for marketing research to represent the population as a whole

Qualitative: concerned with understanding a phenomenon and all its different aspects; assumes that the phenomenon can and will change; participant observation, interviews, mixed methods; data analysis emerges within informal descriptions; reported in the "language" the informants use Quantitative: concerned with discovering facts and causal linkages within phenomenon; assumes that the phenomenon is static; measuring, conducting experiments, statistical inferences; data reported through statistical analyses, usually in the "language" of the company

Product Development Organizational Development/Training Sales Marketing Communications Campaign Planning Board Room Level Decision Making Customer Relationship Management

1. Problem Recognition: perceiving need 2. Information Search: seeking value 3. Alternative Evaluation: assessing value 4. Purchase Decision: buying value 5. Postpurchase Behavior: determining value

o Straight rebuy - a business situation in which the buyer routinely reorders something without any modifications o Modified rebuy - a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers o New task- a business buying situation in which the buyer purchases a product or service for the first time o Systems selling (or solution selling)- buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

A business situation in which the buyer routinely reorders something without any modifications

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

a business buying situation in which the buyer purchases a product or service for the first time

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

all the individuals and units that play a role in the purchase decision-making process

1. Marketing Mix influences- 4ps 2. Psychological Influences-motivation, personality, perception, learning, beliefs/attitudes, lifestyle 3. Sociocultural Influences-personal (age, life-cycle, occupation, economic situation), reference groups, family, culture, subculture (a group of people with shared value systems based on common life experiences and situations), social class (relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors) 4. Situational Influences- purchase task, social surroundings, physical surroundings, temporal effects, antecedent states

High- High personal relevance, high risk, trying to reduce risk -Awareness → Extensive Information Search → Attitude/Intention → Trial/Experimentation → Long Run Behavior Low- Low risk, low price, past experience with brand/product -Awareness → Short Internal Information Search → Trial/Experimentation → Attitude/Future Intentions → Long Run Behavior

1. Problem Recognition 2. General Need Description 3. Product Specification 4. Supplier Search 5. Proposal Solicitation 6. Supplier Selection 7. Order-Routine Specification 8. Performance Review

Personality: trait theory (habitual patterns); eg. pleasure seekers, conformists, conservatives, success seekers, etc. Perception: selection of what gets through, organization into meaningful experiences and interpretation or assigned meaning to stimuli Learning: people are active learners vs. are socialized into doing things Attitudes: cognitive (knowledge and beliefs), affective (emotions), conative (disposition to behave in a certain way) Environmental Factors: culture, subculture, etc. but also other random things such as time of day, weather, etc.

The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics

o Segmentation - the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics o Demographics - statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation, and family structure o Generational marketing- marketing to members of a generation, who tend to share the same outlook and priorities o Geodemography- a segmentation technique that combines geography with demographics o Geocoding- customizing web advertising so that people who log on in different places will see ad banners for local businesses o Psychographics- the use of psychological, sociological and anthropological factors to constrict market segments o VALS (values and lifestyle)- a psychographic system that divides the entire U.S. population into eight segments o Behavioral segmentation- a technique that divides consumers into segments on the basis of how they act toward, feel about, or use a good or service o 80/20 rule- a marketing rule of thumb that 20% of purchasers account for 80% of a product's sales o Long tail - a new approach to segmentation based on the idea that companies can make money selling small amounts of items that only a few people want, provided they sell enough different items o Usage occasions- an indicator used in behavioral market segmentation based on when consumers use a product most

a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers

1. Evaluate Market 2. Develop segment profiles 3. Choose a targeting Strategy

• Undifferentiated target strategy - appealing to a broad spectrum of people • Differentiated targeting strategy- developing one or more products for each or several distinct customer groups and making sure these offerings are kept separate in the marketplace • Concentrated targeting strategy- focusing a firm's efforts on offering one or more products to a single segment • Targeting strategy- marketers must decide on a targeting strategy. Should the company go after one total market, one or several market segments or even target customers individually • Custom marketing strategy- an approach that tailors specific products and the messages about them to individual customers • Mass customization- an approach that modifies a basic good or service to meet the needs of an individual • Positioning- develop marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition

appealing to a broad spectrum of people

Developing one or more products for each or several distinct customer groups and making sure these offerings are kept separate in the marketplace

focusing a firm's efforts on offering one or more products to a single segment

marketers must decide on a targeting strategy. Should the company go after one total market, one or several market segments or even target customers individually

an approach that tailors specific products and the messages about them to individual customers

an approach that modifies a basic good or service to meet the needs of an individual

developing a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition

redoing a product's position to respond to marketplace changes

A distinctive image that captures a good's or service's character and benefits

consumers typically asses products based on the most important product attributes; communicating the unique benefits is key Positional Maps: a visual representation of how brands are perceived; usually done with an X and Y axis where different brands fit along two different scales; brands look to occupy "unused space;" most common is price vs. quality

Future Attractiveness: (should we serve?) size and potential growth, profitability, competition, PEST analysis Compliance with Resources: (can we serve?) technological needs, investments required, labor pool Compliance with Strategy: (want to serve?) mission and vision, managerial attitudes

Name, term, unique way of to add value -Brand building and protection = #1 marketing priority

the additional sum of money a customer is willing to pay 1. Brand Name Awareness 2. Brand Loyalty 3. Perceived Quality 4. Brand Associations

o Introduction stage - no profits because the company is recovering R&D costs o Growth stage- profit increase and peak o Maturity stage- sales peak o Decline stage- market shrinks: sales fall, profits fall

the total set of all products a firm offers for sale

the number of different product lines the firm produces

a firm's total product offering designed to satisfy a single need or desire of target customers

determined by the number of separate items within the same category

introducing new product in the top range (eg. better quality, higher price)

Downward Line Stretching: introducing new product in the bottom range (eg. more affordable option)

a network composed of the company, suppliers, distributors, and ultimately customers who partner to help the entire system deliver better customer value

a set of interdependent organizations that help to make a product or service available for use or consumption by the consumer or business

a harmonized combination of multiple resources and skills that distinguish a firm in a marketplace

1. Information (market research) 2. Promotion 3. Contact (finding prospective buyers) 4. Matching (modifying offering, assembly, expertise, consulting) 5. Negotiation (can be costly, especially in B2B) 6. Physical Distribution (moving and storing goods) 7. Financing 8. Risk Taking

1. Analyzing Consumer Needs 2. Setting Channel Objectives 3. Identifying Alternatives 4. Evaluating Alternatives

a channel consisting consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

a channel structure in which producers, wholesalers, and retailers act as a unified system; one channel member owns the others, has contracts with them, or has so much power that they all cooperate

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity Channel Conflict: disagreements among marketing channel members on goals, roles and rewards- who should do what and for what rewards

1. Develop Pricing Options: profit objectives, competitive effect objectives, market share, sales, customer satisfaction objectives, image enhancement objectives 2. Estimate demand 3. Determine costs 4. Evaluate the pricing environment: economy, competition, consumer trends, technology, international, government 5. Choose a pricing strategy: competition, strategies based on consumer needs, new product pricing 6. Develop pricing tactics: for individual products, for multiple products, distribution based tactics, discounting for channel member

Cost-Plus Pricing: a method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price Demand-Based Pricing: a price-setting method based on estimates of demand at different times Target Costing: a process in which firms identify the quality and functionality needed to satisfy customers and what price they are willing to pay before the product is designed; the product is manufactured only if the firm can control costs to meet the required price Yield Management Pricing: a practice of charging different prices to different customers in order to manage capacity while maximizing revenues Price Leadership: a price strategy in which one firm first sets its price and other firms in the industry follow the same or very similar prices Value Pricing or Everyday Low Pricing: a pricing strategy in which a firm sets prices that provide ultimate value to customers New Product Pricing Skimming Price: a very high, premium price that a firm charges for it's new, highly desirable product Penetration Pricing: a pricing strategy in which a firm introduces a new product at a very low price to encourage more customers to purchase it Trial Pricing: pricing a new product low for a limited period of time in order to lower the risk for a customer Dynamic Pricing: a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace Pricing Tactics... Price Bundling: selling two or more goods or services as a single package for one price Captive Pricing: a pricing tactic for two items that must be used together; one item is priced very low, and the firm makes it profit on another, high-margin item essential to the operation of the first item F.O.B. Origin Pricing: a pricing tactic in which the cost of transporting the product from the factor to the customer's location is the responsibility of the customer F.O.B. Delivered Pricing: a pricing tactic in which the cost of loading and transporting the product to the customer is included in the selling price and is paid by the manufacturer Basing-Point Pricing: a pricing tactic in which customers pay shipping charges from set basing-point locations, whether the goods are actually shipped from these points or not Uniform Delivering Pricing: a pricing tactic in which a firm adds a standard shipping charge to the price for all customers regardless of location Freight Absorption Pricing: a pricing tactic in which the seller absorbs the total cost of transportation

the concept and process of strategically managing audience-focused, channel-centered, and results-driven brand communication programs over time

1. Marketers becoming better buyers of advertising (ie. more price conscious) 2. Marketing becoming more "strategic" 3. Desire to measure marketing returns 4. Globalization of markets 5. Fragmenting audiences and media 6. "Consumers integrate our messages anyway?

1. Consistency of Communications 2. Strategic Control of Communications 3. Media Neutrality 4. Constant Optimization of Media and Channel Portfolios and Synergy Seeking 5. Measuring and Connecting to Sales and Customer Relationships (through IT

1. Identify target audiences 2. Establish communication objectives 3. Determine and allocate the communication budget (determine total promotional budget, decide on a push and pull strategy, allocate the budget to specific promotion mix) 4. Design the promotion mix 5. Evaluate the effectiveness of the communication program

communicating with specific audiences; aside from giving information, differentiate or (re)position brands, reinforce brand messages, inform and persuade

1. Sales Model: only concerned with short-term boost on sales; heavy emphasis on measurability 2. Persuasion Model: assumes consumer rationality, predictive outcomes, information; consumer is taken through "steps" 3. Involvement Model: people are "drawn into" an advertising story; the goal is to get an emotional response; the brand is part of the compelling story of the ad and thus creates relevance 4. Salience Model: advertising works if it stands out; the goal is to be different in the product class

advertising that is placed and bought by the marketer (TV, newspapers, website)

communication about a brand that is not managed by the marketer (word of mouth, reviews, news coverage)

branded communication that makes a direct connection between brand and consumer (coupons, email communications, packaging)