Intro To Marketing Chapter 2 – Flashcards
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Business Plan VS Marketing Plan
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Business Plan: Includes the decisions that guide the entire organization Marketing Plan: A document that outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy.
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Strategic Planning
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A managerial decision process that matches an organizations resources and capabilities to its market opportunities for long-term growth and survival
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3 Levels of Planning
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Strategic Planning Functional Planning Operational Planning
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Strategic Planning
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Planning done by top-level corporate management (Define mission, Evaluate the internal and external environment, set organization or SBU objectives, establish business portfolio, and develop growth strategies.
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Functional Planning
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Planning done by to functional level management such as the firms chief marketing officer (CMO)- Perform situation analysis, set marketing objectives, implement marketing strategies, and monitor and control marketing strategies. Concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organizations long term strategy.
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Operational Planning
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Planning done by supervisory managers (Develop action plans to implement the marketing plan, use marketing metrics to monitor how the plan is working) Developing day to day activities that carry out an organizations functional plans.
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SBUS
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Strategic Business Units: Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers and competitors
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Strategic Planing Process
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Step 1: Define the Mission Step 2: Evaluate the Internal and External Environment Step 3: Set organizational or SBU objectives Step 4: Establish the Business Portfolio Step 5: Develop Growth Strategies
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Mission Statement
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A formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products and resources
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Situation Analysis
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An assessment of a firm's internal and external environments
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Internal Environment
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The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
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External Environment
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The uncontrollable elements outside an organization that may affect its performance either negatively or positively
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SWOT Analysis
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An analysis of an organizations strengths and weaknesses and the opportunities and threats in its external environment
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Business Portfolio
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The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
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Portfolio Analysis
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A management tool for evaluation a firm's business mix and assessing the potential of an organization's strategic business units
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BCG Growth-Market share matrix
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A portfolio analysis developed by the Boston Consulting Group that assesses the potential of a successful products to generate cash that a firm can use to invest in new products
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Stars
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SBUs with products that have a dominant market share in high-growth markets (Hannah Montana Show)
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Cash Cows
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SBUs with a dominant market share in a low growth potential market (Disney Theme Park)
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Question Marks
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SBUs with low market shares in fast-growth markets (Brick and mortar disney stores)
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Dogs
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SBUs with a small share of a slow growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly. (Mirimax film theatre)
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Market Penetration Strategies
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Growth Strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
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Market Development Strategies
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Growth Strategies that introduce existing products to new markets
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Product development strategies
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Growth strategies that focus on selling new products in existing markets
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Diversification Strategies
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Growth strategies that emphasize both new products and new markets
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Steps in Marketing Planning
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1- Perform a situation analysis 2- Set Marketing objectives 3- Develop Marketing strategies 4- Implement and control the marketing plan
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Control
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A process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
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ROMI
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Return on marketing investment: Quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise
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Action Plans
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Individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. They are sometimes referred to as "marketing programs"
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Operational Plans
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Plans that focus on the dat to day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks
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Marketing Environment
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The actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers
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Microenvironment
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The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
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Macroenvironment
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The larger societal forces that affect the micro-environments-demographic, economic, natural, technological, political, and cultural forces
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Marketing Intermediaries
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Firms that help the company to promote, sell, and distribute its goods to final buyers
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Publics
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Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives (Financial, media, government, citizen-action, local, general, internal)
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Demography
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The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
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Baby Boomers
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The 78 Million people born during the years following WW2 and lasting until 1964. Wealthiest generation in US history.
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Generation X
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The 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boomers, less materialistic. Prefer Quality. Virginia for Lovers campaign.
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Generation Y (Millenials)
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The 83 million children of the baby boomers born between 1977 and 2000. Most financially strapped, facing higher unemployment rate. Comfort with technology. Keds Campaign
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Natural Environment
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Natural Resources that are needed as inputs by marketers or that are affected by marketing activities
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Environmental Sustainability
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Developing strategies and practices that create a world economy that the planet can support indefinitely
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Technological Environment
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Forces that create new technologies, creating new product and market opportunities (RFID to track products)
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Political Environment
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Laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society
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Cultural Environment
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Instituations and other forces that affect societies basic values, perceptions, preferences, and behaviors
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Customer Insights
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Fresh understandings of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships.
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MIS - Marketing Information Services
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People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. it BEGINS AND ENDS WITH USERS
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Internal Databases
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Electronic collections of consumer and market information obtained from data sources within the company network
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Marketing Research
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The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
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Exploratory Research
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Marketing research used to gather preliminary information that will help define problems and suggest hypothesis
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Descriptive Research
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Marketing research used to better describe marketing problems, situations, or markets
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Causal Research
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Marketing research used to test hypotheses about cause and effect relationships
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Secondary Data
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Information that already exists somewhere, having been collected to another purpose
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Primary Data
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Information collected for the specific purpose at hand
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Observational Research
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Gathering primary data by observing relevant people, actions, and situations
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Ethnographic Research
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A form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments
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Focus group interviewing
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Personal interviewing that involved inviting 6-10 people over to talk about a product
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Customer Relationship Management (CRM)
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Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
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Search Engine Optimization (SEO)
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A systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business
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Search Engine Marketing (SEM)
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Search marketers strategy in which marketers pay for ads or better positioning
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Sponsored search ads
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Paid ads that appear at the top of beside the internet search engine results
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Behavioral targeting
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The marketing practice by which marketers deliver advertisements for products a consumer is looking for by watching what the consumer does online
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Cognitive Dissonance
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The anxiety or regret a consumer feels after choosing from among several similar attractive services
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Evaluative Criteria
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The dimensions consumers use to compare competing product alternatives
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Perception
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The process by which people select, organize and interpret information from the outside world.
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Exposure
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The extent to which a stimulus is capable of being registered by a persons sensory receptors
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Subliminal Advertising
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Supposedly hidden messages in marketers communications
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Attitude
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A learned predisposition to respond favorably or unfavorably to stimuli on the basis of relatively enduring evaluations of people, objects, and issues
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Cognition
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The knowing component of attitudes refers to the beliefs or knowledge a person has about a product and its important characteristics
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Behavior
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The doing component of attitudes, involves a consumers intention to do something, such as the intention ti purchase or use a certain product
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Personality
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The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment
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Self-Concept
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An individuals self-image that is composed of a mixture of beliefs, observation, feelings and personal attributes
