ICORE Marketing – Flashcards
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Marketing
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Set of intructions and processes for creating communicating delivering and exchanging offerins that have value for customers
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Marketing Myopia
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Not focusing on the benefits of the product
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CRM
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Customer Relationship Management Overall process of building and maintaining profitable customer relatioships
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Customer Managed Relationship
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company generated interaction between consumer and a company
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Consumer Generated Marketing
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Consumer initiated brand exchanges, invited and uninvited
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CLV
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Customer Lifetime Value Revenue stream of q customer for 1 brand over time
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Share of Customer
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Portion of the customer's purchasing that a company gets in its product categories
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Customer Equity
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Total CLV from all customers
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Butterflies
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Profitable but not loyal
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Stangers
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Low potential and little projected loyalty
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True friends
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Profitable and loyal
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Barnacles
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High loyal but not very profitable
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4 perils of CRM
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1. Assuming more tech is better 2. Stalking customers 3. Impleminting CRM before having a strategy 4. Rolling out crm before changing your orginization
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CRM benefits
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Gather customer data swiftly Identify the msot valuable customers Increase customer loyalty
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What are products?
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Problem solving tools No commodities all products can be differnetiated
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Buyer Decision Process
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Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase
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Culture
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Learned from family church school peers colleagues Culture reflects basic values perceptions wants and behaviors
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Subculture
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Those who identify with one identity/shared value systems based on common life experiences and situations
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Social Class
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Ordered divsion in society Not determined by single factors
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Social
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Who is around us who we interact with
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Reference groups
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People we refer to groups that have a significant effect on an idividual's evaluations aspirations or behavior
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Opinion Leaders
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A person who influences others attitudes or behaviors
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Personal
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What you think and believe Age occupation economic situation lifestyle personality and self perception
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Age and Life cycle stage
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People change the goods they buy over their lifetimes
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Selective Attention
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tendency for people to screen out most of the information for which they are exposed - meaning marketers must work especially hard to attract the consumer's attention
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Selective Distortion
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tendency of people to interpret information in a way that will support what they already believe
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Selective Retention
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Consumers are likely to remember good points made about a brand they favor
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Drive
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Strong internal stimulus that calls for action
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Cue
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Minor stimuli that determine when where and how a person responds
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Belief
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descriptive thought that a perons holds about something
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Attitude
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A persons consitently favorable or unfavorable evaulations feelings and tendencis towards an object or idea
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Categories of Adopters
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Innovators Early Adopters Early Marjority Late Majority Laggard
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Common Myths
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o It costs less to serve a loyal customer o Loyal customers pay higher prices o Loyal customers market the company (brand)
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Turning friends into true belivers
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Do not overkill Reward customers for their loyalty
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Enjoy Butterflies
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Classic mistake- continueing to invest in them after activity drops off
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Smoothing barnacles
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Most problematic customer
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Strategic Planning
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o The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
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Market Penetraion
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Company growth by increasing sales of current products to current market segments without changing the product
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Market Development
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Company growth by identifying and developing new market segments for current company products
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Product Developmet
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Company growth by offering modified or new products
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Diversification
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Company growth though starting up or acquiring businesses outside the companys current product and markets
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Marketing Mix
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set of marketing tools the firm uses to implement its marketing strategy
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4 p's
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Product Place Promotion Place
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STDP
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Segment - target - differentiate - postion
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Segmentation
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Dividing a market into distinct groups of buyers who have different needs characteristics or behaviors
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What makes a good segment
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Can measure size and purchasing power Segment can be reached Segment is substantial in size Segment is differentiable
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Target Market
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Set of buyers sharing common needs or characteristics that the company decides to serve
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Undifferentiated marketing
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Market coverage stragey in which a firm decides to ignore market segment differences and go after the whole market
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Differentiated marketing
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A market coverage strategy in which a firm decides to target several market segments and designs seperate offer for each
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Concentrated Marketing
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Market coverage strategy in which a firm goes after a large share of one or a few segments
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Micro marketing
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Tailoring products to the needs and want of specific individuals and loyal customer segmmetns
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Positioning Map = Perceptual Map
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Measurement on a positioning map refers to product attributes and benefits
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Positioning
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The way a product is defined by consumers on important attributes
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Horizontal Differentiation
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Variety at the same price point EX Coke Diet Coke Coke Zero
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Vertical Differentiaion
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Variety at different price points ex gas, premium gas, ultra premium gas
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Levels of a product
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Core Benefit(inner) Actual Product(middle) Augmented Product (Outer)
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Core Benefit
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Basic benefits
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Actual Product
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Feature package brand quality appearance
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Augmented Product
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Warranty repair maintenance
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Conveience
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Product that customers usually buy frequently immediately and with minimal comparison and buying effort Low price
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Shopping
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Consumer product that the customer in the process of selecting and purchasing usually compares on such attributes as suitability quality price and style
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Specialty
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Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
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Unsought
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product that the consumer either does not know about or knows about but does not normally consider buying
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Product/Brand can be
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Organization People Ideas Place
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What is a brand
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That which identifies the product of one marketer to be distinguished from another
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Product Line
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Closely related One brand name One Category EX Excedrin
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Product mix
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Set of all product lines and items that a particular seller offers for sale
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Product Line Stretching
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Occurs when a company lengthens its product line beyond its current range
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4 characteristics of services
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Intangible Inseparable Variable Perishable
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Intangible
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Service cannot be seen tasted felt heard or smelled before purchase
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Inseparable
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Service cannot be separated from providers
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Variable
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Quality of service depends on who provides them and when where and how
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Perishable
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Service cannot be stored for later use
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Brand Equity
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Differential effect that knowing the brand name has on customer respone
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Licensing
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One firm sells another the right to use a brand name for a specific purpose and a specific time period
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Co-branding
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Two or more brand names on one package
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Line Extension
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Extending an existing brand name to new forms colors sizes ingredients or flavor Horizontal stretching
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Brand Extension
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Extending an existing brand name to new product categories
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Multibrands
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one company several brands different categories
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Product Development Flow Chart
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Idea Generation- Idea Screening- Concept Development Testing- Marketing strategy development- business analysis- product development- test marketing- commercilization
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Idea Generation
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coming up with new ideas Internal - only 14% of ideas come from traditional R&D External- Customers Suppliers Crowd Sourcing - inviting broad communites of people to come up with ideas
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Idea Screening
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Screening reducing the number of ideas and dropping poor ones
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Concept Development/Testing
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Detailed Version of the new product
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Marketing Strategy Development
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Designing an initial marketing strategy for a new product based on the product concept
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Business Analysis
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A review of the sales costs and profit projection for anew product
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Product Development
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Developing the product
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Test markting
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test to see if it will sell
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Commercilization
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introducing anew product into the market
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Managing New Product Development (NPD)
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o Customer Centered - Is there a real customer need for the product? o Team Based - Does the organization have the scientific and technological ability to develop the product? o Systematic - Is the potential for such a product large enough to offer the promise of profitability
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Product Lifestyle
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Introduction Growth Maturity Decline
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Mature Stage - Extending product life
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o Modify the market = market development o Increase use among current customers = penetration o Modify the product = product development o Modify the marketing mix (service, price, distribution, promotion)
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Penetration Strategy
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Preventing decline Same customers increasing frequency of use
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Market Development Strategy
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Preventing Decline NEW customers increase number of users
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Increase Distribution
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Preventing Decline EX a regional beer going national
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Finding new use of product
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Preventing Decline EX Aspirin to prevent hear attacks
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Product Development strategy
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prevent decline Change packaging labels and qualtiy
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Introductory
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Low sales High Costs Profits Loss Customers Innovators Compeitors few or none
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Growth
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Rapid sales Lower Cost Increasing Profits Customers are early adopters competitors growing
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Maturity
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Peak Sales Very low costs Peak profits mid majority customers Peak competitors
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Decline
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Declining sales Very low costs eroding profits customers are the laggards competitors decling
