Marketing ALL – Flashcards
Unlock all answers in this set
Unlock answersquestion
Value Delivery Network
answer
network of company, suppliers, distributors and customers joining with each other to improve the performance of the entire system.
question
Marketing channel
answer
Set of interdependent organisations in the process of making a product/service available for the consumer or business user
question
Marketing channels exist to
answer
create utility for customers (availability)
question
Marketing Channels 3 Utilities
answer
slide 4
question
s
answer
slide 5
question
All members of the channels are connected by
answer
flows All me
question
A distribution channel consists of
answer
firms that have banded together for a common good
question
A channel is
answer
-dependent on each other -successful if each member is successful -made up of specialised members
question
Channel Conflicts (2)
answer
*Horizontal Conflict* occurs among firms at the same level channel (betweens retailers) *Vertical Conflict* occurs among firms at different channel levels (Producer vs. Retailer)
question
Horizontal Marketing system
answer
when 2 or more companies at 1 level join together for new marketing opportunities. Companies + financial/ production/marketing resources to accomplish more than one company alone. A bank in a mall to make sure people have money on them to buy stuff
question
Channel management Decisions Include
answer
-Analysing consumer needs -setting channel objectives -managing and motivating channel members -evaluation of channel members
question
Analysing consumer needs it to design
answer
channel convenience, the desired level of service and product characteristics.
question
Setting channels objective to
answer
target levels of cusomter service balance consumer needs, to figure out the costs of meeting their needs, figuring out if they can meet the needs but also regarding customer price preferences.
question
Managing and motivating channel members helps to
answer
maintain long term partnerships
question
evaluation of channel members is the
answer
checking the performance against set standards
question
Price
answer
Amount of money charged for a product or service. Sum of all value that consumer gives up to gain the benefits of having or using the product/service
question
Price in the Marketing mix
answer
is the only element that produces revenue All others are costs
question
Price and the Product life cycle:
answer
*Introduction* Cost plus pricing *Growth* Price to penetrate market *Maturity* Price to match or beat the competition *Decline* Cut price to get more people to buy
question
Customer value based pricing
answer
How much value consumers place on benefits of the product --> The price = the value
question
Price ceiling
answer
max price , no demand above this price
question
Internal and external considerations when setting price
answer
marketing strategy / objectives / mix nature of the market and demand d competitors strategies and rpices
question
Price Floor
answer
no profits below this price minimum price
question
External factors affecting pricing decisions
answer
Competition Economic conditions Other PESTEL Factors market demand
question
Price elasticity of demand
answer
% change in quantity demand / % change in price
question
For different items in it's product line, a company sets a
answer
pricing structure
question
What is a pricing structure set, instead of a fixed price?
answer
The pricing structure changes over time as the product moves through it's life cycle
question
The product prices are adjusted to reflect
answer
changes in costs and demands variations in buyers and situations
question
2 New Product Pricing Strategies
answer
*market Skimming Pricing* High price for a new product for max revenue from those who are willing to pay. fewer but more profitable sales *Market penetration pricing* low prices for new product to attract many buyers = large market share
question
Product mix pricing strategies
answer
*Product line Pricing* cost differences between products in the line, customer evaluation and competitors prices *Optional product pricing* optional / accessory products with main product *Captive product pricing* products that must be used along with the main product (razor + razor head) *By product pricing* products with little or no value produced as a result of the main product. little/ no profit other than cost to cover storage/ delivery *Product bundle pricing* several different products and offers them at a reduced price
question
Price Adjustment Strategies
answer
*Discount and Allowance Pricing* reduces price to reward customer --> paying early/ help promote the product (Discounts and Allowances) *Segmented Pricing * a company sells a product at two or more prices even though the difference is not based on cost Theater tickets -> Location based segmented pricing holiday season price = time based Europa park entrance ticket = customer based segmented (age) *Psychological prices* psychology of prices (9.99, sales, using reference prices) *Promotional pricing* prices are temporarily priced below list price to increase demand. Loss leader. Special event pricing. Cash Rebates. Low interest financing. Langer warrantees. Free Maintaiance
question
Reference Prices
answer
Prices that buyers carry in their minds and refer to when looking at a given product -note current price, remember past price, assessing buying situations
question
Example of promotional pricing
answer
Being a loss leader. Special event pricing. Cash Rebates. Low interest financing. Langer warrantees. Free Maintaiance
question
Lists of promotional pricing
answer
Too frequently and too reliably, then customers wait for promotions to avoid buying at real price creates price wars!
question
What is a new product?
answer
original products products that have been improved modified products new brands
question
A firm can obtain new products through
answer
acquisition new product development
question
Why do so many products fail?
answer
Market size over estimated poor product design incorrectly positioned products faulty pricing or communication strategy competitive activity ethnocentrism (me me me me)
question
to create successful new products, a company must...
answer
understand its consumers, markets, competitors, and develop products that deliver superior value to customers
question
New Product Development Process
answer
1. Idea Generation 2. Idea Screening 3. Concept development + testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialisation
question
Stage 1: Idea Generation
answer
Internal sources: R&D External Sources: Customers, Competitors, Distributors, Suppliers
question
Stage 2: Idea Screening
answer
Used to spot good ideas and drop poor ideas before they get $$$ Screening criteria: - Fit to company mission? Marketing strategy? -enough resources to develop? -competitive advantage ? -can it be easily distributed/ promoted ?
question
Stage 3: Concept Development and Testing
answer
*Concept Development* developing product ideas into alternative product concepts to find out how attractive it is to consumers *Concept testing* testing the concept with a group of target consumers to determine if they have strong consumer appeal (important to test before to turn them into actual products)
question
Product Idea
answer
an idea for a possible product for the market
question
Product concept
answer
a detailed version of the new product idea stated in meaningful consumer terms
question
Product image
answer
the way consumers perceive an actual or potential product (result of the concept test)
question
Stage 4: Marketing strategy development
answer
Description of the target market value proposition sales and profit goals + Short term + for the first year + Long term + Marketing mix strategy
question
Stage 5: Business Analysis
answer
Review of sales, cost and profit projections for a new product ---> will it satisfy the company objectives? BCG Matrix Anylsis (will the '?' turn into a Star, Cash cow or dog?)
question
Stage 6: Product Development
answer
Creation and testing of one or more physical versions by the R&D or engineering departments Shows if product idea = workable product INVESTMENTS!!
question
Stage 7: Test Marketing
answer
Product introduced into a more realistic marketing setting Not all products are test marketed It can be costly, but not doing it could be even more costly does not guarantee success
question
Stage 8: Commercialisation
answer
Product introduced into the market. Company decisions: when to launch where to launch planned market roll out
question
Product Life Cycle: key note:
answer
Through good marketing, can the cycle be extended (nivea) Some enter the decline stage but are then cycled back into the growth stage through strong promotion or repositioning. Some products die quickly.
question
Product life cycle: Introduction stage
answer
Slow sales growth little or not profit high distribution and promotion expense
question
Product life cycle: Growth stage
answer
sales and profits increase new competitors enter the market price to increase volume and market share invest in consumer education promotion and manufacturing costs gain economies of scale
question
Product life cycle: maturity Stage
answer
slow does in sales substitute products emerge number of competitors begins to decline increased promotion needed to support sales and profits product modification or repositioning may be required
question
Product Life Cycle: Decline Stage strategies
answer
Maintain the product harvest the product drop the product
question
Strategic options for the mature phase on the PLC
answer
when sales slows down, they can.. *Market modifications*: -New users and market segments -Increased usage among present customers -brand repositioning *Product modification* -Change product characteristics or features -Quality improvements -Style improvements Marketing mix modifications
question
Explain how marketing or the promotional strategies may change throughout the product life cycle?
answer
KNOW THIS!!!!
question
Product
answer
Anything offered to a market for attention, acquisition , use or consumption that might satisfy a need or want
question
Service
answer
a form of a product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible no ownership go anything
question
Experiences
answer
what buy the product/ service will do for the customer on an emotional/ experiential level.
question
Consumer products
answer
products/ services for personal consumption
question
Consumer products are classified by
answer
how consumer buys them -convenience products -shopping products -speciality products -unsought products
question
Industrial Products
answer
products for further processing for use in conducting a business
question
Industrial products are
answer
material and parts capital raw materials
question
Convenience products
answer
consumer products/services that is frequently, immediately with minimum comparison bought newspaper candy fastfood
question
shopping products are
answer
consumer products/services compares suitability, quality, price, style cars, furniture appliances
question
specialty products
answer
consumer/service with unique characteristics / brand identification // special purchase effort to get it medical services designer clothes high end electronics
question
unsought products
answer
consumer products that they dont know about . or doesn't normally buy until we need it. put it off life insurance funeral services blood donations
question
*Price* distribution between convenience, shopping, specialty , and unsought product
answer
*convenience* low *shopping* higher *specialty* high *unsought* varies
question
*Promotion* between convenience, shopping, specialty , and unsought product
answer
*convenience* mass *shopping* ad. and personal selling *specialty* carefully targeted *unsought* aggressive advertising
question
Person being a product
answer
Stars
question
Elements of products and services
answer
attributes branding packaging labeling product support
question
Product attributes
answer
benefits of the product or service quality features style / design
question
Packaging
answer
designing / producing the container or wrapper for a product
question
labels
answer
the product or brand, describe attributes , provide promotion
question
Product line
answer
a group of products that are closely related because they function in a similar manner sold to samecustoemr groups market through same type of outlets / within given price ranges
question
Product line length
answer
number of times in the product line
question
Product line stretching
answer
adding products that are higher or lower priced than the existing line
question
Product line filling
answer
adding more products within the present price range (different soup flavours.)
question
Product mix
answer
product assortment -all product lines + Items company must divide Width, length, depth
question
Brand
answer
name , symbol , sign, combination of these that identify/ differentiates the goods/service of 1 manufacturers/ seller Brand name/ mark/logo, trademark
question
Can you trademark sound?
answer
yes, benz, sound
question
Brand advantages for consumers
answer
tells something about quality insures quality is constant faciliate purchase decisions
question
Brand advantage for company
answer
-Legal protection for unique product features -promotes consumer awareness/loyalty -provides leverage -mroe easily launch line -price competition protection
question
Brand equity
answer
the positive (/negative) effect that the brand has on consumer behaviour toward measure of the brands ability to capture consumer preference and loyalty. (apple freaks)
question
A brands identity provides
answer
direction purpose meaning what are my core values? what do i stand for? how do i want to be percieved? what personality traits do i want to project? what are the important relationships in my life?
question
brand personality
answer
strengthen a brand by providing self expressive benefits for the consumer
question
Brand image -; Brand identity -; brand position
answer
how the brand is now perceived -; how marketing strategists want the brand to be percieved -; brand identity and value proposition to be communicated to the target
question
Brand's value proposition
answer
statement of the functional , emotional, self expressive benefits delivered by the brand that provide value to the customer. effective value prop= lead to brand custoemr relationship + drive purchase decisions
question
Brand development and expansion strategy (4)
answer
Line extension multibrands brand extension new brands
question
Brand development and expansion strategy: *Line extension*
answer
Brand name: existing Product category: existing
question
Brand development and expansion strategy: *Brand extension*
answer
Brand name: existing Product category: new
question
Brand development and expansion strategy: *multibrands*
answer
Brand name: new Product category: existing
question
Brand development and expansion strategy: *new brands*
answer
Brand name: new Product category: new
question
Experiences
answer
what buy the product/ service will do for the customer on an emotional/ experiential lebel.
question
Steps in the Target Marketing Process
answer
*Select a customer to serve* Segmentation (divide total market into smaller segments) Targeting (Select the segment or segements to enter. *Decide on a value proposition* Differentiation (Differentiate the market offering to create superior customer value) Positioning (position the market offering in the minds of target customer)
question
Market Segmentation
answer
divide market into smaller groups of buyers, with distinct needs, characteristics or behaviours that might require separate products of marketing mixes
question
Multiple segmentation
answer
identify smaller, better defined target groups
question
competitive advantage through market segmentation
answer
companies divide large heterogeneous markets into smaller segments, for EFFECTIVE and EFFICIENT products. ---> Toothbrushes. age segmentation!
question
Segmentation Variable (4)
answer
*Demographic* (age, gender, family siez +life cycle, income occupation, education, religion, race, generation, nationality) *Geographic* nations, regions, states, countries, cities *Psychographic* social class, lifestyle,e personality traits *Behavioural* knowledge, attitudes, uses, responses to a product. ->Occasion, benefits, user status, usage rate, loyalty status
question
Income segmentation
answer
affluent middle income low income consumers
question
Age / Life cycle state segmentation
answer
offering different products or using different marketing approaches for different age and life-cycle groups
question
Effective Market Segmentation Requirements
answer
Measurable Accessible Substantial Differentiable Actionable
question
target market
answer
a set of buyers who share common needs or characteristics that the company decides to serve
question
choosing target market depends on
answer
company resources product variability product life cycle stage market variability competitors marketing strategy
question
Markets choose TM by evaluating market segments:
answer
segment size and growth segment structural attractiveness company objectives and resources
question
Which segments should the company target?
answer
only those segments in which it can offer superior value and gain advantages over competitors
question
Undifferentiated Marketing
answer
Targets the whole market with one offer -> Mass marketing -> Focuses on common needs rather than what's different charities -; green peace
question
Differentiated marketing
answer
targets several different markets segments and designs separate offers for each -goal is to achieve higher sales and stronger position -more expensive than undifferentiated.
question
Concentrated (niche) marketing targets
answer
a small share of a large market limited company resources knowledge of the market more effective and efficient
question
micromarketing
answer
tailoring products and marketing programs to suit the tastes of specific individuals and location (local marketing, individual marketing -; mymuesli)
question
socially responsible target marketing
answer
*disadvantaged + vulnerable can be targeted * children/ elderly/ poor being targeted is bad. children shouldn't be advertised alcohol. *many potential abuses on the internet* they get kids on the internet to want something. but they can't actually afford it- parent needs to buy it. in america, guns can be bought online. being socially responsible means segmenting, in interest of company and targeted. -; Societal marketing concept
question
what is societal marketing concept?
answer
The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
question
Value Proposition
answer
full mix of benefits upon which a brand is positioned More for more ($+Q) more for the same more for less the same for less (Aldi) less for much less
question
Positioning for competitive advantage
answer
once a company decides on which segments it wants to enter, it must decide what position it wants to occupy in those segments
question
a product's position is...
answer
the way the product is defined by consumers on important attributes the place the product occupies in consumers' minds relative to competing products -perceptions -impressions -feelings
question
a good positioning statement answers :
answer
Who are the customers? what is the set of needs that the product fulfils ? why is the product the best option to satisfy those needs?
question
Positioning statement
answer
summaries the company or brand position to target segment our brand . a concept that point out our USP
question
what to be able to do with positioning statement?
answer
identify what can of segmentation is happening
question
Position focuses
answer
on consumer on price product attribute
question
Consumer buying behaviour
answer
Final consumer behaviour (individuals and households who buy goods/services for personal consumption)
question
Consumer Market
answer
individuals and households who buy/acquire goods+services for personal consumption
question
Model of Buyer Behaviour
answer
*The environment* 4P's -; Marketing Stimuli. + Economic, Tech, Social, Cultural. *Buyers Black Box* Buyers decision process/ characteristics (unknown) *Buyer responses* buying attitudes/preference. Purchase behaviour: what the buyer buys, when where and how much. Brand and company relationship behaviour
question
Influence on Consumer Purchasing Decision Process
answer
Marketing Mix Psychological Influences Sociocultural influences Situational influences
question
Psychological Influences
answer
Motivation, Personality, Perception, Learning, Values, Beliefs, Lifestyle
question
Sociocultural Influences
answer
Personal Influences reference groups family culture subculture
question
Situational Influences
answer
Purchase tast Social Surroundings Physical surroundings Temporal effects Antecedent states
question
consumer purchase decision process
answer
Problem recognition Alternative Evaluation Purchase decision Post purchase behaviour
question
Cultural factors affecting consumer behaviour
answer
religion language aesthetics law/politics technology /material culture social org. education values attitudes
question
Subcultures
answer
groups of people within a culture with shared value systems based on common life experiences and situations (In Germany: Mainstream german, Immigrants, Youth, Elderly, usw.)
question
Social Classes
answer
society's relatively permanent and ordered divisions whose members share similar values, interests and behaviours. (Measure by: occupation, income, education, wealth, usw.)
question
Types of "groups"
answer
Membership group (where I am) Aspirational group (where i want to be) Reference group (a reference when forming attitudes)
question
Opinion Leaders
answer
people within a reference group ho exert social influence on others Brand ambassadors celebrity endorsers
question
Buzz marketing
answer
Word of mouth -Through opinion leaders you spread the word.
question
Online Social Network
answer
Online communities where people socialise or exchange information/ opinions Blogs, Social network sites (FB) , virtual worlds (second life)
question
Social Facors (2)
answer
*Family* most important consumer- buying org in society (nivea) *Social roles and status* the groups, family, clubs, org, that a person belongs to that can define role and social status
question
Characteristics Affecting Consumer Behaviour: *Personal Factors - Life cycle*
answer
Youth: 0-18 getting started: 18-35 builders: 35-50 Accumulators: 50-60 Preservers: Over 60
question
Characteristics Affecting Consumer Behaviour: *Personal Factors*
answer
Occupation: affects the goods and services bought by consumers Economic situation: Includes personal income, savings, interest rates
question
Characteristics Affecting Consumer Behaviour: *Personal Factors- Personality and self concept: *
answer
the basic idea is that people's possessions contribute to and reflect their identities
question
Characteristics Affecting Consumer Behaviour: *Personal Factors- Lifestyle*
answer
a person's pattern of living as expressed in his or her psychographics
question
SRI's VALS Values and Lifestyle Model
answer
based on current personality research-; Link between values (personality) and consumer behaviour used by advertisers to segment markets according to purchase motivation- design creative message accordingly
question
VALS Segments
answer
Innovators (successful, new idea) Thinkers (career, educated) Achievers (career/family orient) Experiences (impulsive, young) Believer (conservative, slow change) Strivers (trendy, achievers) Makers (practicality, self sufficient. Family) Strugglers (primary motivation, powerless)
question
How is VALS used?
answer
What product appeal to consumers? what activities to sell locations what types of accessories in background? what should the headline be? what ads should be shown to who?
question
Motive
answer
need that is sufficeintly pressing to direct the person to seek satisfaction
question
Motivation research
answer
Qualitative research designed to probe consumers' hidden, subconscious motivations
question
Maslows Hierarchy of Needs
answer
Self actuation needs Esteem Needs Social Needs Safety Needs Physiological needs
question
Characteristics Affecting Consumer Behaviour: *Psychological Factors- Perception*
answer
process by which people select, organise and interpret information to form a menaingful pic of the world from -selective:* attention, distortion, retention *
question
Characteristics Affecting Consumer Behaviour: *Psychological Factors-Selective attention*
answer
screening out mot of the information to which they are exposed to
question
Characteristics Affecting Consumer Behaviour: *Psychological Factors- selective distortion*
answer
tendency for people to interpret information in a way that will support what they already believe apple - fran
question
Characteristics Affecting Consumer Behaviour: *Psychological Factors-selevtive retention*
answer
tendency to remember good points made about a brand they favour, forget good points about competing brands apple fran.
question
Learning is
answer
the change in an individuals behaviour arising from experience and occurs through interplay of: Drives Stimuli Cues Responses Reinforcement
question
Belief
answer
a descriptive thought that a person has about something based on -Knowledge -Opinion -Faith
question
Attitudes
answer
describes a person's relatively consistent evaluations, feelings and tendencies toward an object or idea.
question
Changing attitudes?
answer
Bayer: it is too strong for women. this ad tries to change this Got Milk?: less people drank milk because sales were down as people thought milk is for kids McDo; Heidi Klum in ad.
question
Types of buying decision behaviour (4 Types)
answer
*Complex buying behaviour:* High involvement, sig diff between brands *variety seeking buying behaviour* low involvement, sig difference between brands * Dissonance reducing buying behaviour* high involvement, few diff between brands *Habitual buying behaviour* low involvement, few differences between brands
question
Strategic planning
answer
process of developing and maintaining a strategic fit between the organisation's goals and capabilities und it's changing marketing opportunity
question
Why is Nike so successful?
answer
Customers don't just wear their Nikes, they "experienced" them. customers= emotionally involved -Methodically assess new market opportunities -Make strategic investment decisions -Develop new product lines + markets
question
Market Oriented Mission
answer
defines the business in terms of satisfying basic customer needs
question
Mission Statement
answer
A statement of the organisation's purpose- what it wants to accomplish - Acts as an "invisible hand" to guide people in the organisation
question
Mission statement key criteria
answer
Not too narrow / broad Realistic, specific and fit the market motivating market oriented
question
Business objektives (exp.)
answer
-Build profitable customer relationships -invest in research -improve profits
question
Marketing objectives (exp.)
answer
-increase market share -create local partnerships -increase promotion
question
Business portfolio
answer
collection of businesses + products that make up the company
question
portfolio analysis
answer
a major activity in strategic planning. management evaluates products + businesses
question
Business Portfolio (BCG)
answer
Market growth rate vs. Relative market share (circle= sales volume)
question
Problems with the Matrix Approach
answer
difficult to measure: market share growth How to define SBU's Time consuming Expensive Focus on current businesses , not future planning
question
SBU
answer
Strategic business units
question
Marketing situation analysis for strategic portfolio
answer
helps identifies alternative market opportunities for existing product lines in current or new markets
question
Marketing opportunities
answer
areas where there are favourable trends, where companies customer needs are not satisfied where to compete effectivelyt
question
Growth markets
answer
marketing opportunities defined by lifestyle changes / trends
question
Competitive advantage is critical in
answer
capitalising on market opportunities
question
competitive advantage achieved through
answer
trategic brand management - product differentiation - Brand equity
question
Market Opportunity Analysis
answer
Political Economical Social Technology Environmental Legal
question
Macro environmental / cultural shifts
answer
- Increasing health awareness -environmental concerns - Internet/ communication tech -changing fam structures -Religion -Political awareness -Mobility
question
Resulting growth markets
answer
-Sports products -Energy efficient trends -Hybrid cars -Travel offers -Packaging sizes/material -slow food/ fast food -Technological products -educational offers
question
Marketing must
answer
identify, evaluate and select market opportunities and lay down strategies for capturing them
question
Product/ Market Expansion Grid
answer
Market penetration Market development (2) Diversification
question
Why is BCG vs. "product+market expansion grid" good?
answer
*BCG:*for analysing current business *Product/market expansion grid:*useful for analysing opportunities for future growth
question
Downsizing
answer
Prune, harvest oor divest businesses that are unprofitable or no longer fitting the strategy Nivea= 1/5 of products bye bye - doesn't fit our image
question
Marketing mix is
answer
set of controllable tactical marketing tools that firm blends to produce the response it want in the target market
question
Managing the Marketing Effort
answer
We analysis planning (strategic plans- develop marketing plans), implementation (carry out the plans) , control(measure results, evaluate results, make corrective action)
question
What is marketing
answer
a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. ..... satisfying customer needs profitably
question
Levels of the Marketplace
answer
1. Consumer needs, wants, demands 2. Marketing offering 3. Value and Satisfaction 4. Exchange transaction and relationships ===; Market
question
Customer needs
answer
basic physical needs social needs individual needs.
question
Customer wants
answer
human needs shaped by *culture* and *individual* personality.
question
Customer demands
answer
Wants become demands, when backed by buying power.
question
Needs vs. Wants (desert)
answer
stranded in a desert, what do you need? Food + Drink but what do you want? culture shaped - burger vs. chicken teriyaki
question
Maslow's Pyramid levels
answer
*Self actualisation*: achieving one's full potential (creative) *Esteem needs*: prestige and feeling accomplished *Belonging need*: Intimate relationships, friends *Safety needs*: security safety *Physiological needs*: food, water, warmth
question
Basic needs/ Psychological needs/ Self fulfilment needs
answer
*Basic needs*: Safety/Physiological *Psychological needs*: Belonging and Esteem needs *Self fulfilment needs*: self actualisation
question
Market offerings
answer
combination of products, services, information, or experiences offered to a market to satisfy a need or want
question
Marketing myopia
answer
focusing only on *existing wants* and *losing sight of underlying consumer needs*
question
example of a marketing myopia
answer
Kodak ----> the need was not for film cameras, the need was to have pictures. sooooo when digital cameras came out they didn't see that the demand was changing
question
Perceived Value
answer
We place value on things differently. what is important for me is different to what is important for you. is it worth the money for me? Customers often do not judge values and costs accurately or objectively-; we know its over priced, so why do we buy it?
question
Customer Satisfaction
answer
Products' perceived performance relative to customers' expectations
question
Buying a sweater, based on Maslow
answer
A might buy a sweater at Primark due to physiological needs -pays less B might buy an expensive sweater because it satisfies their esteem needs
question
Customer Value and Satisfaction Expectations
answer
marketers need to be careful when setting level of expectation if marketers set the expectations too high, then the customers are disappointed and they are disappointments if they set the price to low then the consumers are confused as to why its so cheap! also negative
question
value=
answer
benefit/ cost it is defined by the customer
question
Customer value and satisfaction are key building blocks
answer
for developing customer relationships.
question
Developing customer relationships is key to
answer
marketing
question
Marketing occurs when
answer
people decide to satisfy needs and wants through exchange relationships
question
Exchange
answer
is the act of obtaining a desired object from someone by offering something in return (does not always include money)
question
Market
answer
The set of actual and potential buyers of a product.
question
Marketing
answer
managing markets to bring about profitable customer relationships
question
Marketing is
answer
satisfying customer needs. A process of companies create value for customers and build strong customer relationships in order to capture value from customers in return.
question
Marketing management
answer
the art and science of choosing target markets and building profitable relationships with them What customers do we serve? - Customer relationship management -; Marketers select customers that can be served Profitably How do we do it best? We define a value proposition -set of benefits or values a company promises to deliver to consumers to satisfy their needs
question
Selecting Customers to Serve through
answer
Market segmentation (dividing the markets into segments of customers) Target marketing (to which segments to serve)
question
Market segmentation
answer
Divide the markets into segments of customers
question
Target marketing
answer
to which segments to serve
question
Brand's Value Proposition
answer
the set of benefits or values a company promises to deliver to customers to satisfy their needs
question
What is the value proposition? (Porsche ad vs. Nasonex)
answer
They show what we get from them, what they can offer us. The Porsche is a higher needs in the hierarchy. its not so obvious, you need to think a second. The Nasonex is a basic need. It is straight forward
question
The 5 Marketing Management Orientations
answer
*Production concept* (if i produce a cheap product, then the customers will come just cause of my good price) Black Model T Ford- first assembly line car *Product concept* what product can we produce the best (Kodak)-Marketing Myopia . They only concentrate on the product, and don't think if it fulfil the needs *Selling concept* If I push my product into the market place, lots of advertisement, they will buy. i don't care what you need, you should just buy it. *marketing concept* Modern marketing *Societal concept* it looks at the consumer wants + interests long term.
question
selling
answer
Starts at the factory , what do we have, what can we do . We focus on the existing products. Through selling and promoting. Profit due to large sales volume
question
Marketing concept
answer
Starts in the market due and managed through customer needs. Profits due to customer satisfaction
question
Societal Marketing
answer
make good marketing decisions by considering consumers wants and long term interests as well as the company requirements and society's long run interests CSR!
question
Societal Marketing concept
answer
Underlying premises of societal marketing: -Consumers wants clash with consumer long run interests/ societal long term interests (Cigarettes/Alcohol)-;adult okay, children bad -Consumers increasingly favour socially aware organisations -Organizations should satisfy wants AND be long term socially beneficial
question
Customer Relationship Management (CRM)
answer
Process of building and maintaining profitable customer relationships through superior customer value and satisfaction. Acquiring, deeping and growing customers. Most important concept of modern marketing.
question
What is the most important concept of modern marketing
answer
Customer Relationship Management!
question
Relationship Building Blocks
answer
Customer Value and Satisfaction
question
Relationship Building Blocks: Customer Value
answer
Difference between total customer value and total customer cost
question
Relationship Building Blocks: Satisfaction
answer
The extent to which a product's perceived performance matches a buyer's expectations
question
Why Customer Relationship Management?
answer
Highly satisfied customers make repeat purchases and tell other people about it (it costs 5-10 times as much to get a lost customers back than to satisfy current customers) customer loyalty and retention = customer lifetime vlaue
question
Customer lifetime value
answer
value of customer loyalty and retention
question
Customer equity
answer
the combined discounted customer lifetime values of all the company's current and potential customers. (Putting a value on all current and future purchases of a customer)
question
Can customer equity be a better measure of a company's performance than current sales or market share? If so, why? cadillac example
answer
Customer equity may be a better measure of a firm's performance than current sales of market share. Whereas sales and market share reflect past performance, customer equity suggests future potential. cadillac had a high market share - but it's consumers were all a bit older! they bought their cars and thats it. their future potential was low because they weren't getting a new consumers und thus a low customer equity
question
Building Customer Equity
answer
Good relationships with the right customers involves treating customers as assets that need to be managed and maximised - Different types of customers require different relationship management strategies
question
Customer Managed Relationships
answer
Customers, empowered by today's new digital technologies, interact with companies and each other to shape their relationships with brands.
question
Partner relationship management
answer
Working closely with partners inside and outside the company to jointly bring greater value to customers Marketers connect with their suppliers, channel partners, and competitors by developing partnerships
question
Supply chain
answer
a channel that stretches from raw materials to components to final products to final buyers -value-delivery network
question
Questions when designing a winning marketing strategy
answer
• What customers will we serve (what's our target market)? • How can we serve these customers best (what's our value proposition)? • What can we offer our customers that the competition can't (positioning for competitive advantage)
