Marketing 3000 Exam 1 – Joel Poor – Flashcards
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What is marketing?
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the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services in exchanges that satisfy individual and organizational objectives.
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What is the scope of marketing/to what situations can marketing be applied?
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To make $$
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What is marketings first task?
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Discover customer needs
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What is marketings second task?
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Satisfying customer needs
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What is the marketing mix/What are the four P's?
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Product, Prices, Promotion, Place
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What are some benefit categories?
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Functional, Social, Personal, Experiential
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What is a functional benefit and give an example of a product that has functional benefit?
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can get something done with it, is a useful tool, ex: hammer, gas, car, toothbrush, house. For Marketing 3000 the functional benefit is the course credit you will receive, and the knowledge about marketing you will obtain
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What is a social benefit and give an example of a product that has social benefit?
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connects you to others or helps you be more acceptable in others eyes, ex: cell phone, facebook, bars, twitter, greeting cards, skype, colone, in Marketing 3000 the social benefit is that you could meet new friends in the class
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What is an experiential benefit and what is an example of a product that had experiential benefits?
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it's about being there and in the moment, ex: football game, concert, golden girls, mascots, souveneirs, food, traveling, amusement parks, movies
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What is a personal benefit and what is an example of a product that has personal benefits?
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helps with self-esteem, feel better as a person, ex: exercise, mirror, make up, showers, massages, shopping, in marketing 3000 the personal benefit is you feel good about learning or doing well
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What are some examples of types of costs?
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Monetary, Temporal, Psychologicaal, Behavioral
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What is a monetary cost?
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what you pay, example: tuition
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What is a temporal cost?
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the time spent where you could be doing something else, ex: time spent in class, studying
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What is a psychological cost?
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the psychological toll it has on you as a person, ex: stress from class, studying
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What is a behavioral cost?
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the toll it has on you physically, ex: energy walking to class, getting sick from class products that have behavioral costs are cigarettes, alcohol drugs
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What is the immediate environment factors of the marketing framework?
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1. the company 2. the competition 3. the corporate partners
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What are the macroenvironmental factors of the marketing framework?
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Culture Political/Legal Economic Demographics Social Trends Technology
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What are the three phases of a strategic marketing plan
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1.Mission 2. Environmental Analysis (SWOT) 3. Segmentation, Targeting, Positioning
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What is the first step of a strategic marketing plan?
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Defining a mission or a vision
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What is Proters Five Forces Model?
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Is is a corporate strategy that determines what industry will be profitable by looking at: 1. Industry competitveness 2. Availability of substitutes 3. Potential Entrants(threat of new competition) 4.Supplier Power 5. Buyer Power
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What does Indusrty Competitiveness depend on?
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Industry intensity; if low intensity then high profitability. Itensity is determined by how many firms are competing so less firms equls lower intensity and therefore more profit.
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What is an example of a market with low intensity?
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The Aircraft market - not very many people make airplanes, basically just Boeing, Airbus, maybe a few others
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What is a substutue?
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A product people use in replacement of another. Few substitues=higher profitability.ex:gas, drugs. many substitue examples are techonological products, vegtables, grocery stores, fast food
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What are barriers to entry?
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When it is hard for a new company to get started in a specific industry. High barriers to entry=high profitability
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When are there high barriers to entry?
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high capital reuirements, economies of scale are present, high product differentiation (wristwatch industry), network externalities(technolocial or learning curve-aka software)
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What is an example of an industry that has high barriers to entry?
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The automobile industry(high capital requirements, economies of scale), Word Processing Software(network externalities)
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What is supplier/buyer power?
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The amount of bargaining power each group has.
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When is there low bargaining power?
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When there is a high number of potential buyers/suppliers, when there is low information
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Example of low supplier power
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Computer Industry (hard disk drives), tire makers
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Example of low buyer power
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Medical Services (Patients)-hard to find quality and money information about the medical field
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Under the Boston Consulting Group growth-share matrix, what is a star?
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High growth rate and high market share
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Under the Boston Consulting Group growth-share matrix, what is a question mark?
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High growth rate and low market share
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Under the Boston Consulting Group growth-share matrix, what is a dog?
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Low growth rate and low market share
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What is an example of a star?
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Apple products such as the Ipad
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Under the Boston Consulting Group growth-share matrix, what is a cash cow?
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Low growth rate and high market share
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What is an example of a cash cow?
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Budweiser
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What is an example of a dog?
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King Cobra
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What are the Macro Strategies for Developing Customer Value?
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Product Excellence, Operational Excellence, and Customer Excellence
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Give an example of a firm with Product Excellence?
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Apple, Virgin, Abercrombie and Fitch
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Give an example of a firm with Operational Excellence?
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McDonalds, Chipotle, UPS
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Give an example of a firm with Customer Excellence?
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Zappos
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What is step two in a Strategic Marketing Plan
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Conduct a Situation Analysis-SWOT
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What does SWOT stand for?
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Strengths (positive, internal), Weaknesses (negative, internal), Opportunities (positive, external), Threats (negative, external)
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According to Ansoff's Product Market Expansion Grid, What is Market Penetration?
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Intensive growth strategy for existing products in existing markets
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According to Ansoff's Product Market Expansion Grid, What is Market Development?
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Intensive growth strategy for existing products in new markets
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According to Ansoff's Product Market Expansion Grid, What is Product Development?
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Intensive growth strategy for new products in existing markets (Iphone 5)
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According to Ansoff's Product Market Expansion Grid, What is Diversification?
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Intensive growth strategy for new products in new markets
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Market Leader
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Trying to: expand market, defend market share, expand market share
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Market Challenger
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Trying to: attack leader and the status quo
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Market Follower
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Trying to: imitate others in market
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Market Nicher
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Trying to: specialize within the market
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What is step 3 of a Strategic Marketing Plan?
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Segmentation, Targeting and Positioning
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What is market segmentation?
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the process of dividing the total market for a good or service into several smaller, internally homogenous groups
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Why segment?
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Allows to visualize prospective customers in designing marketing mix (aka 4 ps!) AND allows to concentrate resourses on only one or a few market segments
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What is the segmentation process?
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1. Identify current and potential needs/wants within a market (consumer behavior, market research) 2. Identify distinguishing characteristics among segments 3.Determine the potential for the segment and how well they are being satisfied (forecast demand and potential market share)
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Types of Market Segmentation
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Demographic, Geographic, Psychographic, Purchase Behavior, Benefit
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What are the different types of usage behavior?
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Usage (light, medium or heavy users), Loyalty (brand loyal or variety seeker), User Status (users v. nonusers, former users)
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Guidelines to Segmentation
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1. Buying behavior is rarely traceable to a single characteristic (always segment on more than one variable) 2. Segmentation characteristic chosen should provide clearest and most distinct market division (gender) 3. Be aware of interrelationships among segmentation characteristics (correlation b/w age & income)
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What are some Target Marketing Approaches
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Mass Marketing, Niche Marketing, Differentiated Marketing, Individualized(customized) Marketing
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What's mass marketing?
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NO segmentation, one product for all customers, doesn't really exist anymore
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What is niche marketing?
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one product for one segment (shot bar, hot box cookies)
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What is differentiated marketing?
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Multiple products for multiple segments (general mills - trix, cheerios, wheaties, etc.) (pepsi makes pop and Naked juice) (GAP - baby gap, banana republic, old navy, etc.)
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What is Individualized (Customized) Marketing?
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Customizing product/service for individuals (Nike tennis shoes, Cars, Subway, etc.)
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What are the effective segmentation and targeting characteristics that lead to profitability?
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Identifiable, Substantial, Reachable, Responsive
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How many US nonprofit organizations are there?
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Over 1 million, that generate 1.1 trillion in revenue each year and account for about 7% of all employment
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What are some main types of nonprofit organizations?
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Arts/Culture/Humanities, Education, Religious, Cause-Based Groups
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What is the food bank strategy?
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-provide multiple reasons to give -communicate efficiency of serving constituency -use partnerships-use publicity
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Who/What are nonprofits targeting?
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1. Mission based 2. Consumers of nonprofit products/services 3. Multiple constituencies (ex: University must target students, parents, legislature, employers) 4. Those they are Serving 5. Donors
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Segmentation of non-profit: Donor Profiles
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Communitarian (26%, local charity givers to improve community), devout( 21%, religous/moral obligation), Investors (15%, rather support nonprofit then govt), Socialites (11%, arts, education, religious giving because of entry to group), Repayers (10%, loyalty to give back- education)
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What are non profit donor benefits?
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personal(feel good), social(belong to donor group, special event invites), functional(reduce future costs, tax break), experiential(fundraising events, enjoyable volunteer experience)
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effective segmentation and targeting characteristics that lead to profitability: IDENTIFIABLE
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Who is in the market? (can we identify users, non-users and former users?) are the segments unique? does each segment require a unique marketing mimx?
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effective segmentation and targeting characteristics that lead to profitability: SUBSTANTIAL
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size matters, too small and it is insignificant, not profitable.
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effective segmentation and targeting characteristics that lead to profitability: REACHABLE
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persuasive communication and distribution -people without computers (target through other markets such as TV ads) -ways to reach college students (twitter, FB, youtube, ESPN, the add sheet)
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effective segmentation and targeting characteristics that lead to profitability: RESPONSIVE
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customers must: -react positively to a firms offering -move toward the firms products/services -accept the firms value proposition
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Responsive example (Sorority Grades)
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AXΩ wants the highest grades, gpa cuts during rush, however the house is always crazy and loud so nobody can study (might as well not target)
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Effective segmentation and targeting leads to profitability
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Identifiable + Substantial + Reachable + Responsive = Profitable
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Competitive - Based Positioning
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categories - hierarchical order of categories category membership - statement of membership important (for new products to show that brand belongs) EX: becca's burgers compares itself to McDonalds and BK - they state their claim/how they are different
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Correlational inferences
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AVOUD AT ALL COST! EX: KIA "we are the cheapest and best quality" -people won't believe both claims. -when positioning only stress ONE benefit of product
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Brand Essence: Laddering Up
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Dove - true colors campaign (sincerity, no false promises, natural/clean, basic, simple. **Huge success for Dove!
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Brand Essence: Laddering Down
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Ford F-150 - tough/rugged - powerful engine
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What is brand essence?
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Abstracted benefits that relate to consumer goals -Laddering up/down
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What are the 5 general personalities to match when goal positioning?
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sophistication, ruggedness, confidence, sincerity, excitement.
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How are Apple's products competitively positioned in general?
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Innovative Quality - State of the art design - people want the best
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Which firm poses the greatest threat to apple today? in 5 years?
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Samsung & Google!
