question

Marketing

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the ACTIVITY, SET OF INSTITUTIONS, and PROCESSES for creating (products/services), communicating (promotions), delivering (place), and exchanging (price) offerings that have value for customers, clients, partners, and society at large.

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Marketing Management

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The leading and managing of the facets of marketing to improve individual, unit, and organizational performance.

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Marketing Stakeholders

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Any person or entity inside or outside a firm with whom marketing interacts, impacts, and is impacted by. -internal: employees, other business units -external: customers, vendors, gov, labor unions

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Societal Marketing

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The concept that members of society at large can be viewed as marketing stakeholders. -green marketing -taking care of community -Corporate social responsibility

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Sustainability

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Business practices that meet humanity's needs without harming future generations. -maximize today, but also worry about future -helps incorporate social responsibility into business models

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Value (Core MKTG Concept)

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A ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. -benefits must exceed costs -exchange value for value

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Exchange (Core MKTG Concept)

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Giving up something of value for something else they desire to have. 1. there must be at least 2 parties 2. each person has something of value 3. each party is capable of communication and delivery 4. each party is free to accept or reject the exchange 5. each party believes is is appropriate or desirable to deal with other party

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History of Marketing

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-Pre-Industrial Revolution -Focus and Production and Products -Focus on Selling -Advent of the Marketing Concept -Post Marketing Concept

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Pre-Industrial Revolution

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-products came from England -wait time was too long, so began to make ourselves

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Focus and Production and Products

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-1909 - 1923 -Ford assembly line -Production orientation: The maximization of production capacity through improvement in products and production activities without much regard for what is going on the marketplace.

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Focus on Selling

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-Producing more and more -Door to door selling -Sales Orientation: to increase sales and production capacity utilization, salespeople need to push products into the hands of customers.

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Advent of Marketing Concept

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-Marketing Concept: Business philosophy that emphasizes an organization-wide customer orientation with the obj of achieving long run profits. -Find what customer wants and try to provide that -WWII - 90's -asking customers needs (basic, not features) for existing products, not necessary for entirely new products -Customer-centric

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Post Marketing Concepts

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1. Differentiation Orientation 2. Market Orientation 3. Relationship Orientation 4. One to one Marketing

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Differentiation Orientation

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What clearly distinguishes your products from those of competitors in the minds of customers. -Communicating and delivering value in different ways to different customer groups

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Market Orientation

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The implementation of the marketing concept, based on an understanding of customers and competitors. -The implementation of the marketing concept -Customer orientation-placing the customer at the core of all aspects of the enterprise

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Relationship Orientation

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Investing in keeping and cultivating profitable current customers instead of constantly having to invest in gaining new ones. -Related to CRM

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One-to-one Marketing

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Firms should direct energy and resources into establishing a learning relationship with each customer and them connect that knowledge with the firm;s production and service capabilities to fulfill that customer's needs in as custom a manner as possible. -Mass customization

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New MKTG Realities (Fred Wiersema)

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-Competitors proliferate (hypercompetition) -All secrets are open secrets -Innovations is universal -Info overwhelms and depreciates -Easy growth makes hard times -Customers have less time than ever -customer orientation is necessary for survival

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Big M Marketing

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Focuses on external forces that affect the org and services as the driver of business strategy. -Strategic marketing: The long-term, firm-level commitment to investment in marketing for the process of enhancing organizational performance. -supported at the highest organization level -the full process -big picture

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Little m marketing

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Focuses on functional or operational level of the org. -Tactical marketing: Marketing activities that take place at the functional or operational level of a firm. -nuts and bolts

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Marketing Metrics

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Designed to identify, track, evaluate, and provide key benchmarks for improvement. Why focus? -fuzzy field -can't be measured -CEO's and stockholders expect mktg accountability -expense or investment?

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Global Experience Learning Curve

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1. Indirect Foreign Marketing 2. Direct Foreign Marketing 3. International Marketing 4. Global Marketing

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Indirect Foreign Marketing

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Doing business with international customers through intermediaries or limited direct contact. -no formal channel relationships or global marketing strategy

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Direct Foreign Marketing

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A company develops local distribution and service representation in a foreign market

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International Marketing

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A company makes the commitment to produce products outside its domestic market.

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Global Marketing

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A firm treats all world markets as a single market with many different segments. -Includes company's own domestic market

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CRM

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A comprehensive business model for increasing revenues and profits by focusing on customers. -Obj's: acquisition, retention, and profitability -provide value and satisfaction -key is emotional attachment -assists with mktg plan

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Customer Acquisition

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Acquire the right customers based on known or learned characteristics that will drive growth and increase margins.

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Customer Retention

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Low propensity among a firm's customer base to consider switching to other providers. -retain satisfied loyal customers that are profitable in the long run

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Customer Profitability

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Increase individual customer margins while offering the right products at the right time.

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Customer Satisfaction

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The level of liking an individual harbors for an offering.

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Customer Loyalty

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A customer's commitment to a company and its products and brands for the long run.

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Lifetime Value

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The measurement of the important business success factors related to long term relationships with customers.

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Return on Customer Investment

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(ROCI) A calculation that estimates the projected financial returns from a customer. -Useful strategic tool for deciding which customers deserve what levels of investment of various resources

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CRM Process

answer

1. Knowledge Discovery 2. MKTG Planning 3. Customer Interaction (implementation) 4. Analysis and Refinement

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Organizational Learning

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The analysis and refinement phase of the CRM process that is based on customer response to the firm's implementation strategies and programs.

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Touchpoint

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The intersection of a selling firm with a customer via a media channel.

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Mass Marketing

answer

Market share, individual sales, limited segmentation, huge campaigns, not cost-effective, single treatments, focus on transactions, number of relationships -Technologies: in-house, outsourced mailings, flat files/mailing lists, some packaged applications

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Target Marketing

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Segmented campaigning, small mass marketing, focus on products -Technologies: individual databases, application for projects, proprietary solutions, limited analysis

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Customer Marketing

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Customer share, lifetime value, model distribution, ongoing refinement, multiple treatments, focust on customer, breadth of relationships, even driven -Technologies: data warehouse, integrated data and applications, customer knowledge, modeling, analysis, and refinement process

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One-to-one Marketing

answer

Interactive segmentation, real time matching, interactive tv, active web pages, customer interaction, one-to-one relationships, real time marketing, prediction driven Technologies: integrated data warehouse, internet enabled, many touchpoints integrated, cross organization process, mgmt by interaction

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Customer-centric Culture

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Placing the customer at the core of the enterprise and focusing on investments in customers over the long term. -Adopting relationship or partnership business model -Redefine selling role to focus on customer business consultation and solutions -Increase formalization of customer analysis processes -Proactive leadership role in educating customers by forming relationship -Continuous improvement principles, stressing customer satisfaction and loyalty

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Relationship-based Enterprise

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A firm that strives to facilitate long term, win win relationships between buyers and sellers. -Central goal of CRM -Customers -Relationships -Managerial Decision Making

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Why CRM Fails

answer

-Flavor of the month club -Poor training -No allowances for organization change -Low level of employee buy-in -Business units silos (depts)

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Fixes?

answer

-Strong internal partnerships -Org members collect info -Employee and customer friendly -High tech as necessary -Reporting useful data

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Value Proposition

answer

The whole bundle of benefits a company promises to deliver to the customer, not just the benefits of the product itself.

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Utility

answer

The want-satisfying power of a good or service. -form utility(making of product) -time utitlity(get when you want it) -place utility(where you get product) -ownership utility(how long it will take to get/own product) -psychological utility(experience)

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Benefit

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The advantageous outcome from the advantage found in a product feature.

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Customer Satisfaction =

answer

Customer loyalty, customer retention, and low customer switching

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Customer Satisfaction

answer

The level of liking an individual harbors for an offering.

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Customer Loyalty

answer

A customer's commitment to a company and its products and brands for the long run.

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Customer Retention

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Low propensity among a firm's customer base to consider switching to other providers.

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Customer Switching

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A customer changes from purchasing one product to purchasing another competing product.

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Porter's Value Chain

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Primary: inbound logistics, operations, outbound logistics, marketing and sales, service Support: firm infrastructure, human resource mgmt, tech development, procurement -primary activities generate revenues

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Everyone in an organization must understand and support _______________.

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the concept of customer orientation

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All internal organizational processes and systems must be aligned around __________.

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The customer

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__________ should be the outcome of a good strategy.

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Value

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Marketing Planning

answer

The ongoing process of developing and implementing market-driven strategies for an organization.

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Marketing Plan

answer

The resulting document that records the marketing planning process in a useful framework. -start at the corporate/CMO level

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Market-driven Strategic Planning

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The process at the corporate or SBU level of a firm that acts to marshal the various resource and functional areas toward a central purpose around the customer.

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Corporate-level Strategic Planning

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An umbrella plan for the overall direction of the corporation developed above the SBU level.

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SBU-level Strategic Planning

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Planning that occurs within each of the firm's SBU's designed to meet individual performance requirements and contribute satisfactorily to the overall corporate plan.

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Portfolio Analysis

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Views SBU'S and even product lines as a series of investments from which it expects maximization

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BCG Matrix

answer

-Stars: high share, high growth -Cash Cows: high share, low growth -Dogs: low share, low growth -Problem Children: low share, high growth -done at corporate level -invest in stars, divest in dogs, milk cows

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GE Business Screen

answer

-Your business position -invest/grow -selective investment -harvest/divest

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Functional-level Plans

answer

Plans for each business function that makes up one of the firm's SBU's.

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Generic Strategy

answer

An overall directional strategy at the business level.

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Generic Business Strategies

answer

-Growth -Concentration -Diversification -Stability -Retrenchment

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Growth

answer

May be in the form of sales, market share, assets, profits, or some combo of these and other factors. -Concentration: vertical or horizontal integration -Diversification: concentric or conglomerate means

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Stability

answer

Continue current activities with little significant change in direction. -can be useful in short term but potentially dangerous in the long term

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Retrenchment

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Pulling assets out of underperforming parts of the business and reinvesting in aspects of the business with greater future performance potential.

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Competitive Strategy

answer

An organization-wide strategy designed to increase a firm's performance within the marketplace in terms of its competitors.

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Competitive Strategy Options

answer

-Cost Leadership -Cost Focus -Differentiation -Focus Differentitation

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Cost Leadership

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Organization strives to have the lowest costs in its industry and produces goods and services for a broad customer base. -emphasis on COST, not prices

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Differentiation

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Organization competes on the basis of providing unique goods or services with features that customers value, perceive as different, and for which they are willing to pay a premium.

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Focus (niche)

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Organization pursues either a cost of differentiation advantage, but in a limited or narrow customer group. -concentrates on serving a specific market niche

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Core Competencies

answer

The activities a firm can do exceedingly well.

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Distinctive Competencies

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A firm's core competencies that are superior to those of their competitors.

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Sustainable Competitive Advantage

answer

The resulting advantage a firm has when it invests in distinctive competencies.

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Situation Analysis

answer

An analysis of the macro and micro level environment within which a firm's marketing plan is being developed.

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Macro-level External Environment

answer

-Political, legal, ethical -Socio-cultural/demographic -Technological -Economic -Natural

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Competitive Analysis

answer

Porter's 5 forces -Potential Entrants: threat of mobility -Supplier: supplier power -Buyers: buyer power -Substitutes: threat of substitutes -Industry Competitors: segment rivalry

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Competitive Scenario Analysis

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Analyzing competitors using various scenarios to predict competitor behavior. -Strategies -Resources -Culture -Corporate obj's and goals -Strengths and weaknesses -Benchmarking

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Internal Environmental Factors

answer

-Firm structure and systems -Firm culture -Firm leadership -Firm resources

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5 W Model

answer

-Who are the customers and future customers -What do customers do with the product -Where do they purchase the product -When do they purchase the product -Why or why not do customers buy the product

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SWOT Analysis

answer

A convenient way to summarize key findings into a matrix of strengths, weaknesses, opportunities, and threats. -internal analysis reveals strengths and weaknesses -external analysis points to potential opportunities and threats

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Product Market Combinations

answer

-Market penetration -Product development -Market development -Diversification -not serving in mkt = new market -brand extension = new product

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Market Penetration Strategies

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Investing in existing customers to gain additional usage of existing products

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Product Development Strategies

answer

Recognize the opportunity to invest in new products that will increase usage from the current customer base.

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Market Development Strategies

answer

Allow for expansion of the firm's product line into heretofore untapped markets, often internationally.

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Diversification Strategies

answer

Seize on opportunities to serve new markets with new products.

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Market Information System (MIS)

answer

A continuing process of identifying, collecting, analyzing, accumulating and dispensing critical information to marketing decision makers. -used to answer broad questions -research process to identify, collect, analyze, and disseminate information

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Internal Sources

answer

-Customers sources -Customer payments -Marketing plans -Salesperson information systems -Customer inquiries

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Marketing Intelligence

answer

Collecting, analyzing, and storing data from the macro environment on a continuous basis.

question

External Sources

answer

-PEST -Demographic: population of interest, ethnic groups, geographic changes -Natural world -Competition

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Market Research

answer

The methodical identification, collection, analysis, and distribution of data related to discovering then solving marketing problems or opportunities and enhancing good decision making.

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Marketing Research Process

answer

1. Define the research problem 2. Establish research design 3. Search secondary sources 4. Collect the data 5. Analyze the data 6. Report the findings

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Exploratory Research

answer

Research geared toward discovery that can either answer the research question or identify another research variable for further study. -focus groups, in depth interviews

question

Descriptive Research

answer

Research designed to explain or illustrate some phenomenon. -numbers: means, medians, std dev's -surveys, behavioral data- observations

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Causal Research

answer

Descriptive research designed to identify associations between variables. -experiments

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Sources

answer

-Company website -Government sources -Business publications -Search engines -Salespeople -Customers

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Consumer goes through 5 step process =

answer

Influence: -4P's -External Influence -Internal Influence -Environmental Influences

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Personal Characteristics (internal)

answer

-Life Cycle -Occupation -Lifestyle -Gender Roles

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Psychological Attributes (internal)

answer

-Attitude -Perception -Learning -Personality -Motivation

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Attitude

answer

Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. -learned, can be changed over time -influenced by value system, beliefs

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Perception

answer

A system to select, organize, and interpret info to create a useful, informative picture of the world. -selective retention, selective distortion, selective awareness

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Motivation

answer

The stimulating power that induces and then directs an individual's behavior.

question

McClelland's Achievement Motivation Theory

answer

There are 3 categories of needs and people differ in the degree in which the various needs influence their behavior. 1. Need for Achievement 2. Need for Power 3. Need for Affiliation -all needs can be fulfilled with products, consumption

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Maslow's Hierarchy of Needs Theory

answer

Humans have wants and needs that influence their behavior. People advance only to the next level if the lower needs are meet. 1. Physiological 2. Safety 3. Love/Social 4. Self-Esteem 5. Self-Actualization

question

Cultural Factors (external)

answer

Shared values, morals, beliefs, customs -Language -Subculture -Values

question

Subculture

answer

A group within a culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography.

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Situational Factors (external)

answer

-Physical Surroundings -Personal Circumstances -Time

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Social Factors (external)

answer

-Family -Social Class -Opinion Leaders -Reference Groups

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Social Class

answer

A ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation.

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Opinion Leader

answer

Individuals with expertise in certain products or technologies who classify, explain, and then bestow info to a broader audience.

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Market Maven

answer

Individuals who have info about many kinds of products, places to shop, and other facets of marketers, and initiate discussions with consumers and respond to requests from consumers for market info.

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Reference Group

answer

A group of individuals whose beliefs, attitudes, and behavior influence the beliefs, attitudes, and behavior of an individual.

question

Consumer Decision Making Process

answer

1. Problem Recognition 2. Search for Information 3. Evaluation of Alternatives 4. Product Choice Decision 5. Post-purchase Evaluation

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Involvement

answer

A significant outcome of an individual's motivation that mediated the product choice decision. -high: extended decision making process -low: habitual -factors: time, learning, interest, cost, risk, background and psychological profile, aspirational focus, environment at time of purchase

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Problem Recognition

answer

-Real State: perceived reality of present time. -Preferred State: desires that reflect how he/she would like to feel or live in the present time.

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Information Sources

answer

-Internal search: memory, accessed by individual -External search: independent groups, personal associations (friends, family), marketer created info (brochure, ads), experiences

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Defining Alternatives

answer

-Complete set -Awareness set -Consideration/evokes set

question

Complete Set

answer

The very large set of possible alternatives a consumer considers during the initial search for information.

question

Awareness Set

answer

A reduced set of possible alternatives a consumer considers after eliminating available options based on gathered information and personal preference.

question

Consideration/Evoked Set

answer

A refined list that encompasses he strongest options an individual considers in a purchase decision once he/she has obtained additional information and carried out an evaluation.

question

Evaluation of Alternatives

answer

-Emotional Choice -Attitude-based Choice -Attribute-based Choice

question

Emotional Choice

answer

A product choice based more on emotional attitudes about a product rather than rational thought.

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Attitude-based Choice

answer

A product choice that relies on an individual's beliefs and values to direct his/her assessment.

question

Attribute-based Choice

answer

A product choice based on the premise that product choices are made by comparing brands across a defined set of attributes.

question

Post-purchase Assessment

answer

-Dissonance -Use/Non-use -Disposal -Satisfaction/Dissatisfaction

question

Dissonance

answer

A feeling of doubt or anxiety following a recent purchase, generally attributed with high-involvement, large purchases.

question

Instrumental Performance

answer

The actual performance features of the product in terms of what it was promised to do.

question

Symbolic Performance

answer

The image-building aspects of the product in terms of how it makes the consumer feel after purchase.

question

Market Segmentation

answer

Dividing a market into meaningful smaller markets or submarkets based on common characteristics.

question

Target Segmentation

answer

Evaluating market segments and making a decision about which among them shows the most promise for development.

question

Positioning

answer

The communication of sources of value to customers so they can easily make the connection between their needs and wants and what the product has to offer.

question

Segmentation Criteria

answer

-Sufficient size -Readily identifiable and measurable -Clearly differentiated on one or more dimensions -Can be reached in order to deliver value -Should improve bottom line and meet needs

question

Ways to Segment

answer

-Geographic -Demographic -Psychographic -Behavior

question

Geographic Segmentation

answer

-by region -by density of population -by size of population -by growth in population -by climate

question

Demographic Segmentation

answer

-Age -Income -Generational group -Occupation -Gender -Education -Family/household -Social Class -Race and ethnicity -Geodemographic

question

Psychographic Segmentation

answer

Dividing consumer groups based on variables such as personality and AIO's (activities, interests, and opinions).

question

VALS

answer

a psychographic instrument that divides adults into groups based on their primary motivation and resources. -Primary motivators: ideals (thinkers, believers), achievement (achievers, strivers), self expression (experiencers, makers) -Innovators, survivors based on resources and innovation level

question

Behavior Segmentation

answer

-Benefits Sought -Usage Patterns

question

Target Marketing

answer

-Analyze market segments: segment size and growth potential, segment competitive forces, strategic fit of segment -Selecting a target market

question

Undifferentiated Target Marketing

answer

(mass market) The broadcast approach to target marketing that involves offering a product or service that can be perceived as valuable to a very generalized group of consumer.

question

Differentiated Target Marketing

answer

The target marketing approach that involves developing different value offerings for different targeted segments.

question

Concentrated Target Marketing

answer

(focus/niche) The target marketing approach that involves targeting a large portion of a small market.

question

Customized Target Marketing

answer

(one-to-one) A marketing strategy that involves directing energy and resources into establishing a learning relationship with each customer to increase the firm's customer knowledge.

question

Product

answer

Anything that delivers value to satisfy a need or want and includes physical goods, services, events, people, places, organizations, information, and ideas.

question

Essential Benefit

answer

The fundamental need met by a product.

question

Core Product

answer

The physical, tangible elements that make up a product's essential benefit.

question

Enhancd Product

answer

Additional features, designs, or innovations that extend beyond the core product to exceed customer expectations.

question

Product Classifications

answer

-Tangibilty -Durability -Consumer Goods

question

Consumer Goods

answer

-Convenience Goods -Shopping Goods -Specialty Goods -Unsought Goods

question

Convenienve Goods

answer

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new info about or considering other product options.

question

Shopping Goods

answer

Products that require consumers to do research and compare across product dimensions like color, size, features, and price.

question

Specialty Goods

answer

Unique products in which consumers' purchase decision is based on a defining characteristic.

question

Unsought Goods

answer

Products that consumers do not seek out and often would rather not purchase at all.

question

Differentition

answer

-Form -Durability -Features -Reliability -Performance Quality -Repairability -Conformance Quality -Style

question

Product Line

answer

A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction. -Windows Vista, Windows XP, Windows 7....

question

Product Mix

answer

The combination of all the products offered by a firm. -Windows, Office, Search Engine...

question

Product Life Cyle

answer

The life of a product as identified in 4 stages: introduction, growth, maturity, and decline.

question

Introduction

answer

Goal: Awareness -innovators, early adopters -promote info w/ PR and advertising -start with fewer places

question

Growth

answer

Goal: Differentiation -early majority -prices are still high -promoting differences with ads -more outlets (places)

question

Maturity

answer

Goal: Stability -late majority -price still high -promotions are short term reductions (sales, coupons) -peak places, max number

question

Decline

answer

Goal: What do we do with the product? -laggards -price low -hardly, if any, promotion -reducing outlets, esp ones not doing well

question

Brand

answer

A name, term, sign, symbol, or design, or a combination of these elements, intended to identify the goods or services of one seller or groups of sellers and to differentiate them form those competitors. -identity: a summary of unique qualities attributed to a brand. -differentiates

question

Customer Brand Roles

answer

-conveys info -educates the customer -helps reassure the customer

question

Brand Equity

answer

A set of assets and liabilities linked to a brand's name and symbol that adds to or subtracts from the value provided by a product or services to a firm or that firm's customers. -Brand Awareness -Brand Loyalty -Perceived Quality -Brand Association -Brand Assets (trademarks)

question

Brand Awareness

answer

The most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships.

question

Brand Loyalty

answer

The strongest form of a brand equity and reflects a commitment to repeat purchases.

question

Perceived Quality

answer

The conveys perception of quality of a brand that is either positive or negative.

question

Brand Associations

answer

When customers develop a number of emotional, psychological, and performance associations with a brand. -primary purchase driver, particularly with brand loyal users

question

Brand Assets

answer

Other assets brands possess such as trademarks and patents that represent a significant competitive advantage.

question

Brand Equity =

answer

Value + Assets Value - Liabilities (store/generic brand)

question

Benefits of Brand Equity

answer

-perceived quality customers -brand connections customers -brand loyalty

question

Brand Extenstions??

answer

-Stand alone branding -Family branding -National/Store brands -Licensing -Co-branding

question

Stand Alone Branding

answer

Brands created to be separate from a company brand that can insulate the company if there is a problem with the brand. -Lexus

question

Family Branding

answer

The creation of brands that have synergy between them in terms of the overall company brand. -Toyota Camry, Toyota Carolla, Toyota Highlander....

question

Store Brand

answer

Brands created by retailers for sale only in their store locations.

question

National Brand

answer

Products created, manufactured, and marketed by a company and sold to retailers around the country and the world.

question

Licensing

answer

When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales.

question

Co-branding

answer

Joins two or more brands in a common product or takes two brands and markets them in partnership. -Microsoft and Intel

question

Packaging Obj's

answer

-Protect -Promote usage -Communicate

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