Intro to Marketing Exam 1 – Rutgers Fall 2017 – Flashcards
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Marketing
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Process by which companies create value for customers and capture value in return.
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Value
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Perceived benefits minus its perceived costs
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Marketing Myopia
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Focus on company's needs instead of customers' needs and wants
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Customer Satisfaction
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How well a market offering meets or surpasses customer expectations
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Market
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The set of actual and potential buyers of a product or service
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LTV (Customer Lifetime Value)
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The value of the entire stream or purchases a customer makes over a lifetime of patronage
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Share of Customer
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The % they get of the customer's purchasing in their product categories
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Customer Equity
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The total combined LTV's of the company's current and potential customers
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Butterflies vs. True Friends vs. Strangers vs. Barnacles
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Butterflies- potential profit but short-term value, capture the moment but not loyal True Friends- Both profitable and loyal Strangers- Low profitability, low loyalty Barnacles- High loyalty but not very profitable
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Marketing Process
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1) Understand the marketplace and customer needs and wants 2) Design a customer-driven marketing strategy 3) Conduct an integrated marketing program that delivers superior value 4) Build profitable relationships and create customer delight 5) Capture value from customers to create profits and customer equity
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The 5 C's
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Customers, Company, Competitors, Collaborators, Context
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The 4 P's
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Product, Place, Promotion, Price
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Strategic Planning
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Helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities
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Mission/Objectives/Goals
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Mission- Why we exist Objectives- Long-term strategic state you want to achieve Goals- Short-term milestones that build toward objectives
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SMART
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Specific, Measurable, Attainable, Realistic, Timely
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BCG Growth-Share Matrix
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Star- High growth rate, high market share Question Mark- High growth rate, low market share Cash Cow- Low growth rate, high market share Dog- Low growth rate, low market share
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Product/Market Expansion Grid
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Market Penetration- Existing products, existing markets Product Development- New products, existing markets Market Development- Existing products, new markets Diversification- New products, new markets
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Downsizing
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Reduces the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy
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SWOT Analysis
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Strengths- internal capabilities that may help a company reach its objectives Weaknesses- internal limitations that may interfere with a company's ability to achieve its objectives Opportunities- External factors that the company may be able to exploit to its advantage Threats- Current and emerging external factors that may challenge the company's performance
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Financial ROI
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Net return from a marketing investment divided by the costs of the marketing investment
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Company Microenvironment
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Actors close to the company that affect the its ability to serve its customers
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Company Macro-environment
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Larger societal forces that affect the microenvironment
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Demography Environment
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Study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics
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Generations: Baby Boomers, X, Y, Z
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Baby Boomers- 35% of population, born in 1946-1964, and wealthiest generation X- 15% of population, born in 1965-1976, most educated and seek success Y- 41% of population, born in 1977-2000, digital generation Z- 20%+ of population, born after 2000 and born in technology
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Economic Environment
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Economic factors that affect consumer purchasing power and spending patterns
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Factors that affect Consumer Purchasing Power
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-Type of economy -Differences in income distribution -Change in consumer spending
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Natural Environment
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Physical environment and natural resources needed as inputs by marketers or affected by marketing activities
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Technological Environment
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Most influential force, creates new markets and opportunities
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Political Environment
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Forces that influence and limit various organizations and individuals in a society
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Cultural Environment
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Institutions and other forces affect shape our basic beliefs, values, perceptions, preferences, and behaviors
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Core beliefs vs. Secondary Beliefs
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Core- Persistent, passed down through institutions and generations Secondary- Cultural swings cause beliefs and values to change over time
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Customer Insights
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Fresh understandings of customers and the marketplace, derived from marketing information. Used to create more value for customers and difficult to obtain.
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Marketing Information Systems (MIS)
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Represent people and procedures for: 1) Accessing information needs 2) Developing needed information 3) Analyzing and using information
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Big Data
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Huge, complex data sets generated by our sophisticated info generation, collection, storage, and analysis technologies
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Internal Data
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Consumer and market info obtained from data sources within the company network
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Marketing Intelligence
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Collection and analysis of publicly available info about consumers, competitors and developments in the marketplace
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Marketing Research
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Design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization
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Primary Date
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Gathering info for the specific purpose at hand
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Secondary Data
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Collecting info that already exists somewhere; collected for a prior purpose
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Observational Research
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Gathering primary data by observing relevant people, actions, and situations
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Survey Research
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Asking people questions about their knowledge, attitudes, preferences, and buying behavior
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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 responses
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Sample
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A segment of the population selected to represent the population as a whole
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Rational Purchase Decision Process
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Trigger->Know->Feel->Do
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Self-Expressive Decision Process
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Trigger->Feel->Do->(Know)
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Low-Involvement Decision Process
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Trigger->Know->Do->(Feel)
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Business Buying
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Purchased goods/services used in production of other products/services that are sold, rented, or supplied to others
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Business Markets
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Huge markets that are different than consumer marketings in terms of: -Market structure -Buying Unit -Decision Process
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Straight Rebuy
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Buyer routinely reorders something without any modifications
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Modified Rebuy
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Buyer modifies product specifications, prices, terms, or suppliers
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Systems Selling
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Buying a packaged solution from a single seller
