Maketing – Flashcard
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Marketing
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The activity, set of institutions, and processes for creating, capturing, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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Marketing Plan
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A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P's, action programs, and projected or pro forma income (and other financial) statements.
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Exchange
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The trade of things of value between the buyer and the seller so that each is better off as a result.
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What are The 4 P's?
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Product, Price, Place, Promotion
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What is another name for Marketing Mix?
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The 4 p's
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Marketing Mix definition
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The controllable set of activities that a firm uses to respond to the wants of its target markets.
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Product
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Marketing's fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
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Price
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Price doesn't always have to be monetary. It is everything the buyer gives up — money, time, and/or energy— in exchange for the product.
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Place
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Place represents all the activities necessary to get the product to the right customer when that customer wants it.
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Supply Chain Management
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The set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers.
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Another name for supply chain management?
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retailing and marketing channel management
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Promotion
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it is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response. This can usually enhance a product's or service's value.
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The stages of Marketing Evolution?
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Production-Oriented Era, Sales Oriented Era, Market Oriented Era, Value Base Marketing Era
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When did the consumer become king?
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Market oriented era
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Value Cocreation
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Customers act as collaborators with a manufacturer or retailer to create the product or service. This is a creative way to provide value to customers.
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Customer relationship management CRM
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A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers. This is the process that the relationship approach uses.
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Why is Marketing important?
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Expands Firms' Global Presence It is Pervasive across Marketing Channel members Enriches Society It can Entrepreneurial
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Marketing Strategy
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It outlines the specific actions a firm intends to implement to appeal to potential customers. This identifies (1) a firm's target market/s, (2) a related marketing mix (its four P's), and (3) the bases on which the firm plans to build sustainable competitive advantage.
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Marketing Plan:
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This provides a blueprint for implementing the marketing strategy. This is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro-form income (and other financial) statements. It provides a reference point for evaluating whether or not the firm met its objectives.
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Sustainable Competitive advantage
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An advantage over the competition that is not easily copied and can be maintained over a long period of time. It acts like a wall that the firm has built around its position in a market. This wall makes it hard for outside competitors to contact customers inside— otherwise known as the marketer's target market.
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Macro Strategies for developing customer value?
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Customer Excellence Operational excellence Product Excellence Locational excellence
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Customer Excellence
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Focuses on retaining loyal customers and excellent customer service
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Operational excellence
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Achieved through efficient operation and excellent supply chain and human resource management
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Product Excellence
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Having products with high perceived value and effective branding and positioning.
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Locational excellence
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Having a good physical location and internet presence.
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Phases of the Marketing Plan?
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Planning Implementation Control
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Planning Phase
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The part of the strategic marketing planning process when marketing executives, in conjunction with other top managers (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
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Implementation Phase
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The part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning and (2) implement the marketing mix using the four Ps
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Control Phase
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The part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
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Situation Analysis
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Second step in a marketing plan; uses a SWOT analysis both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. During this analysis, it should also asses the opportunities and uncertainties of the marketplace due to changer in Cultural, Demographic, Social, Technological, Economic, and Political forces (CDSTEP).
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SWOT analysis
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A method of conducting a situation analysis within a marketing plan in which both the internal environment with regard to its Strengths and Weaknesses and the external environment in term of its Opportunities and Threats are examined.
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What does STP stand for?
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Segmentation, Targeting, Positioning
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STP
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Firms use these processes to identify and evaluate opportunities for increasing sales and profits. With this, the firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets.
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Market Segment
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A group of consumers who respond similarly to a firm's marketing efforts.
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Market Segmentation
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The process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefor might appreciate products or services geared especially for them.
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Target Marketing
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The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
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Market Positioning
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The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
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Portfolio Analysis
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Management evaluates the firm's various products and business - its "portfolio"—and allocates resources according to which products are expected to be the most profitable for the firm in the future. This Analysis is usually performed at the strategic business unit (SBU): A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives. OR Product line
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Product Line
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Groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
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Market Share
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The percentage of a market accounted for by a specific entity, and is used to establish the product's strength in a particular market. Usually discussed in units, revenue, or sales.
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Relative market share
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This is a special type of market share metric. A measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry. It is used in this application because it provides managers with a product's relative strength, compared with that of the largest firm in the industry.
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Metric
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A measuring system that quantifies a trend, dynamic, or characteristic. They are used to explain why things happened and also project the future.
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Market growth rate:
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The annual rate of growth of the specific market in which the product competes. It measures how attractive a particular market is.
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Stars
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BCG Matrix Upper left quadrant. These occur in high growth markets and are high market share products. Stars often require heavy resource investment in such things as promotions to fuel their rapid growth. When their growth has slowed down they move down to cash cows.
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Cash Cows
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BCG Matrix Lower left quadrant. These are low-growth markets but are high market share products. Because these products have already received heavy investments to develop their high market share, they have excess resources that can be spun off to those products that need it.
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Question Marks
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Problem children? Upper right quadrant. These are in high growth market but have relatively low market shares; thus, they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share.
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Dogs
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Lower right quadrant. These are in low growth markets and have relatively low market shares. They should be phased out unless they are needed to complement or boost the sales of another product or for competitive purposes.
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Growth strategies?
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Market penetration strategy Market development strategy Product development strategy Diversification strategy
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Market penetration strategy
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A growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers. This is achieved by attracting new consumers to the firm's current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit. This requires great marketing efforts.
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Market development strategy
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A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.
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Product development strategy
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A growth strategy that offers a new product or service to a firm's current target market.
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Diversification strategy
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Two types are Related diversification and Unrelated diversification A growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
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Related diversification
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A growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.
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Unrelated diversification
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A growth strategy whereby a new business lacks any common elements with the present business.
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Steps of the ethical decision making framework?
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Identify Issues Gather information and identify stakeholders Brainstorm and evaluate alternatives Choose a course of action
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Who are the stakeholders?
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A growth strategy whereby a new business lacks any common elements with the present business.
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What are the aspects of the marketing environment?
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Consumers in the center, then immediate environment, then macro environment
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The Immediate Environment
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This consists of the outer triangle that surrounds the consumers. 1. Company Capabilities- 2. Competition 3. Corporate partners
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Macroenvironmental factors
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Aspects of the external environment that affect a company's business, such as the culture, demographics, social trends, technological advances, economic situation, and political/regulatory environment.
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Green Marketing
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involves a strategic effort by firms to supply customers with environmentally friendly merchandise
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Greenwashing
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is exploiting a consumer by disingenuously marketing products or services as environmentally friendly, with the goal of gaining public approval and sales.
