MKT Ch1,2,3,4 – Flashcards
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What is Marketing
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The process by which companies create value for customers and build customer relationships in order to capture value from customers in return
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• What are the five steps in the marketing process?
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1. Understanding the market place: customer needs, wants, and demands 2. Design a customer driven marketing strategy 3. Deliver marketing programs that have superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers in return
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Distinguish between Wants, Needs, Demands
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• Needs: " I need lunch." Self deprivation • Volvo are safe. Everyone needs safety. • Wants: they are different then needs but they come with a brand. "I want McDonalds." Wants are needs that take the shape of culture and personality • Demands: Demands are backed by buying power.
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Marketing Myopia
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Mistake of paying more attention to products vs the benefits or experiences a product produces
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Market
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Set of potential buyer • Target market has to share a particular want.
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Market Offerings
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Some combinations of product, service, or organization offered to a market to satisfy a need or want
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Value Chain
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• Intermediaries: wholesalers, retailers • Suppliers • Competitors
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Marketing Management
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the are and science of choosing target markets and building profitable relationships with them. Must ask two questions: Who is our customer? How can we best serve them?
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• Value Proposition vs Benefits
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o Benefits: A bundles of stuff that you get o Value Proposition: A more detailed unique benefit that differentiate you from other brands.
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Production concept
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Consumers will favor products that are available and highly affordable therefore the organization should focus on improving production and distribution efficiency. Ex. Walmart
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Product concept
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Consumers will favor products that offer the most quality, performance, and features, therefore the organization should devote its energy to making continuos product development. Ex. Apple
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selling concept
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consumers will not buy enough product unless the firm undertakes large selling and promotional efforts
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marketing concepts
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Achieving organization growth/goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.
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societal marketing concept
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idea that a company s marketing decisions should consider consumers wants, the companies requirements, consumers long run interest and societies long run interest.
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Customer relationship management (CRM)
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overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
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customer perceived value
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What the customer thinks the product/service is worth . Customers evaluation of the difference between benefits and all the cost of a offer relative to the competitors
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Customer satisfaction
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when customer expectations meet product perceived performance
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Customer Lifetime Value
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Value of the entire stream of purchases a customer makes over a lifetime of patronage. converts in to customer equity which is the total amount all consumers spend over a lifetime
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Share of customer
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Portion of the customers purchasing that a company gets in its product category.
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Not for profit marketing
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Marketing specifically for non profit organizations
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What is most likely to cause a variation in customer-perceived value?
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he customer's opinion of what constitutes value
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Why is good marketing management critical?
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to ensure that the company serves as many customers as it can and as well as it can
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Which of the following describes the current trend in businesses regarding relationships with customers?
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Hand-pick the most profitable customers and allow them more input
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Customer insight
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understanding of customers and the marketplace derived from marketing information tht becomes the basis for creating customer value and relationships
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Marketing Information System (MIS)
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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 insight. (ongoing)
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o Management by exception
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only pay attention to data that is not average
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o Data Mining
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looks for relationships with data to help make management decision. You will find spurious correlation which is data that happen at the same time but have nothing to do
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o Competitive marketing intelligence
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information publicly available to consumers about your brand, also relevant to brands you compete with. How your brand is perceived in comparison to your competitors and allows you to position yourself.
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Internal databases
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electronic collections of consumer and market information obtained from data sources with in the company's network
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competitive marketing intelligence
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systematic collection and analysis of publicly available information about consumers, competitions, and developments in the marketing environment
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Market Research
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(specific research) systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation
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The market research process
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1. defining the problem and research objectives 2. developing the research plan for collecting information 3. implementing the research plan - collecting and analyzing the data 4. interpreting and reporting the findings
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exploratory research
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marketing research used to gather preliminary information that will help define problems and solutions
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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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casual research
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used to test hypotheses about cause and effect relationships
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Primary data vs secondary data
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Primary data is data retrieved specifically for that purpose and is usually more expensive then secondary data which is data already retrieved. Once secondary data is retrieved researches must analyze it to make sure it is relevant, accurate, current, and impartial
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Research contact methods
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mail, telephone, interview, online
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Customer relationship management (CRM)
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used to analyze customer information and data. It integrates and applys data. Used to maximize customer loyalty
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sample
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a segment of the population used for market research to represent to the population
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online marketing research
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collecting primary data online through internet surveys, focus groups, web based experiments, and tracking consumers
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online focus groups/ focus groups
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gather a small group online to chat about products services and organizations. Gain qualitative insight about consumer attitudes. Also in person interviews with a moderator
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exploratory research
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gathering preliminary data by selecting matched groups of subjects, giving them different treatments, and controlling related factors, and checking for differences in group responses. (PRIMARY)
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survey research
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gathering primary data by asking people questions about their knowledge attitude preferences and buying behavior
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observational research
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gathering primary data by observing relevant people actions and situations
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Marketing environment
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The actors and forces outside marketing that affect marketing management ability to build and maintain relationships with target customers
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Micro environment
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Internal environmental affects such as the company, suppliers, customers, intermediaries
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Macro environment
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External environmental affect including demographics, economics, nature, cultural forces
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Marketing intermediaries
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firms that help the company to promote sell, and distribute its good to final buyer
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Public
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any group that has actual potential interest or impact on an organization ability to achieve its objectives General public: concerned about public image Internal public: the interest of employees, volunteers or any one associated
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Demography
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The study of human population in terms of size, occupation, race, and other stats
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Baby Boomers
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78 billion people born following World War 2
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Gen X, Millennialls
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Following baby boomers , 83 millions children following the baby boomers
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Environmental Sustainability
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strategies to create a world economy that the planet can support indefinitely
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• Sherman Anti trust legislation
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no monopoly, businesses have to "play fair"
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o Clayton Act:
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tie in agreements ( I will only sell you x if you buy y)
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o Wheeler Lee Act
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deceptive advertising, making claims that are untrue.
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Economies that constitute rich markets for many different kinds of goods are referred to as which of the following?
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industrial economies
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Which of the following is true with respect to members of the baby boomer generation?
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Baby boomers view themselves to be younger than they actually are.
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Which government agency is responsible for the creation and enforcement of pollution standards?
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EPA
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The linking of business practices to worthwhile causes is known as which of the following?
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socially responsible behavior
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Which of the following is true about core beliefs of an individual?
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Core beliefs shape specific attitudes that affect everyday life
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A company that takes aggressive action to affect the publics and forces in its marketing environment is known as taking what kind of stance toward the marketing environment?
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proactive
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Which of the following is the primary purpose of an advertorial?
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to shape public opinion on a topic
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How does the macroenvironment of a company differ from its microenvironment?
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The macroenvironment deals with societal forces, and the microenvironment deals with creating value.
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How does the macroenvironment of a company differ from its microenvironment?
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The macroenvironment deals with societal forces, and the microenvironment deals with creating value.
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Strategic Planning
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The process of developing and maintaining a strategic fit between organization goals and capabilities and its changing marketing opportunities
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Four steps of company wide strategic planning
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1. define the company mission 2. setting company objectives and goals 3. designing the business portfolio 4. Planning marketing and other functional strategies
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Mission statement
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A statement of the organizations purpose what it wants to accomplish in the larger environment. Market orientated mission statements are better. Ex. Chipotles Food with integrity. mission statements serves a market not a specific product.
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Business Portfolio
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The collection of business and the products that make up the company. It best fits the companies strengths and weaknesses to opportunities in the environment. To create a successful portfolio you must analyze your current portfolio, and then create for the future.
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Growth share matrix
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A portfolio planning method that evaluated companies products in terms of growth rate and market share. Four types of SBUs: 1. Stares : High growth, high share, most investment 2. Cash cows: Low growth, high shre, less investments Produce a lot of cash which is use to pay bills 3. Question marks: Low share, high growth, require a lot of cash to increase shares 4. Dogs: low growth low shar: generate enough cash to maintain but do not promise large sources of money
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Market penetration
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company growth by increasing sales of current products to current market segments with changing products (existing product/market)
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Market development
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growth by identifying and developing new market segments for current company product (existing product/ new market)
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Product development
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new products to old market
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diversification
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New market/ new product
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Value chain
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internal departments who create value through the production and selling system
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Marketing strategy
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Marketing logic in which business hope to create customer value ad achieve profitable customer relationships
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Market segmentation and segments
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dividing customers into specific markets who have similar characteristic and require the same product or service. Segments also respond in the similar way to given market efforts
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Market targeting
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evaluating the market segments and deciding which ones is best to enter
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Positioning/ Differentiation
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Arranging for a product to occupy a clear distinctive and desirable place relative to competing products. Effective positioning begins with differentiation which is actually differentiating offering to create superior customer value.
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Marketing Mix
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Includes the four Ps or Cs of producing the response it wants to receive Product- Customer solution Place- Connivence Price-Customer Cost Promotion- Communication
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SWOT Analysis
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Strength / Weaknesses/ Opportunities/ Threats
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Return on marketing investment
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Net return from investment divided by the cost of the marketing investment
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A marketing dashboard is used to do which of the following?
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measure the return of investment for a marketing strategy
