Principles of Marketing Chapters 1-4 – Flashcards
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Commitment Selling
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A strategy that focuses on keeping and improving relationships with current customers
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Customer Value
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The relationship between benefits and the sacrifice necessary to obtain those benefits, when firms offer products that perform, attractive pricing, great service and after sale support, give the buyer facts and information, and Co create with customers
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Sales Orientation
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Marketing philosophy that focuses on "How can we sell more aggressively?", disregards consumers needs and wants, often cannot convince people to buy what is unwanted or unneeded
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Production Orientation
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Marketing philosophy that focuses on "What can we make or do best?", internal capabilities, the firm "knows" what's best for the customer, doesn't consider needs it wants
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Market Organization
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Marketing philosophy that focuses on "What do customers want and need?", provides customer value, focuses on customer satisfaction, and establishes customer relationships, obtain information, examine the information, develop a plan to deliver superior customer value and distinguish offerings from competitors, and implement those actions
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Customer Satisfaction
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The customer's evaluation of a good or service in terms of whether that good or service has met their needs or expectations
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Do research on its customers, determine how to deliver superior customer value, establish and maintain mutually satisfying relationship s with customers, and implement actions that provide value to customers
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A company that wants to implement a market orientation would need to
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Situation Analysis
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A study conducted by an organization to identify its internal strengths and weaknesses
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Stars, Cash Cows, Dogs, and Problem Children (question marks)
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Parts of the Boston Consulting Group portfolio
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The marketing mix, the target market strategy, situation analysis, the business mission statement
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Elements of the marketing plan
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Product Development
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Marketing strategy that creates new products for present markets
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Market Penetration
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Increasing market share for present products in existing markets
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Diversification
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Increasing sales by introducing new products into new markets
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Sustainable Advantage
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An advantage that cannot be copied by the competition
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Corporate Social Responsibility
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The concern of business for the long-range welfare of both the company and its relationships to the society within which it operates
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Sustainability
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The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time
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Ethics
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The moral principles or values that generally govern the conduct of an individual or a group
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Morals
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The rules people develop as a result of cultural values and norms
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Conventional Morality
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The stage of ethical development where loyalty and obedience to the organization or to society become paramount
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Postconventional Morality
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The stage of ethical development of the mature adult
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CSR can be a profitable
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An argument used to support Corporate Social Responsibility
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Social Factors
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Environmental factors that include our attitudes, values, and lifestyles
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Technology, economic conditions, the competition, political and legal factors
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External marketing factors
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Inflation
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The measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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Purchasing power
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Measured by comparing income to the relative cost of a set standard of goods and services in different geographical areas
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Recession
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A period of economic activity characterized by negative growth, which reduces demand for goods and services
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Demography
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The study of people's vital statistics, such as age and location
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Component Lifestyle
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The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle
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Marketing
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The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large
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What does marketing do?
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Increase demand
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Societal Orientation
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Satisfying customers needs and wants while enhancing individual and societal well-being, such as less toxic products, more durable products and products with reusable or recyclable materials
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Relationship Marketing
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Focuses on establishing, keeping and improving relationships with customers, effective strategies are effective training programs, empowered employees, teamwork, and customer-oriented employees
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Marketing Relationship Benefits
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Customer focus, more aware of changes in customer preferences, and encourages innovation and creativity, essential to compete, the customer is in the driver seat
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Technology
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Customers can ship from and location and shop smarter by doing research
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Focus of Sales Orientation
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Inward, selling goods and services to everyone for maximum sales volume and primarily uses promotion
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Focus of Marketing Organization
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Outward, satisfying needs and wants for a specific group of people for customer satisfaction through coordinated use of marketing activities
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Evolution of Marketing Management Philosophy
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Production to Sales to Marketing to Social Marketing
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Why study Marketing?
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Important to society, important to business and good career opportunities
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Strategic planning
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The managerial process of creating and maintaining a fit between the organization's resources and objectives and evolving market opportunities, ask Who are we? Where are we going? How are we reaching our goal?
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Strategic Planning Example
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Building a desk, what are you trying to build, what tools do you need to build it, and what steps must you complete to build it
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3 opportunity evaluation models
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Ansoff's Opportunity Matrix, Boston Consulting Group Portfolio Matrix and the GE Model
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Ansoff's Strategic Opportunity Matrix
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Evaluate based on whether the product and market is new or existing
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Boston Consulting Group Matrix
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Base on Market Growth High or Low and Market Share high or low
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Star
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Build. A fast growing market leader stars usually have large profits but need cash to finance growth. A marketing tactic is to protect market share by reinvesting earnings in product improvement, distribution, promotion, and production efficiency. Strive to capture new users as they enter the market
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Cash Cow
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Hold. Generates more cash than it needs to maintain market share. It's a low growth market, but the product has dominant share. The marketing strategy is to maintain market dominance by being the price leader and by marketing technological improvements. Allocate excess cash to Hugh growth
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Problem Child
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Hold/Build/Divest Shows rapid growth but poor profit margins. It has low market share in a high growth industry. It needs a great deal of cash to prevent conversion to dog status. Strategies are to invent to gain better market share, acquire competitors, or drop the SBU
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Dog
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Divest. A dog has low growth potential and a small market share. Most dogs leave the market. The strategy are to divest or harvest
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General Electric Model
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Based on How attractive the market is, low medium or high, positioning of firm to capitalize on opportunity, low medium or high
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Marketing Plan
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A written document that acts as a guidebook of marrying activities for the marketing major. The basis for all marketing strategies and decisions. Issues such as product lines, distribution channels, marketing communications, and pricing are all delineated
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Elements of a marketing plan
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Business mission statement, SWOT or situation analysis, objectives, target market strategy, marketing mix, (production distribution promotion price) and implementation evaluation control, budgets, implementation timetables, required marketing research efforts, elements of advanced strategic planning
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Business mission
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Why are we in business? And what business are we in?
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Situation Analysis
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Unless the world is ready you may not succeed, timing and conditions are important
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SWOT
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Strengths Weaknesses Opportunities Threats
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Competitive Advantage
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A set of unique features of a company perceived as significant and superior to those of the competition
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Cost Competitive Advantage
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The low cost competitor while maintaining satisfactory profit margins
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Product Service Differentiation Competitive Advantage
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Providing something unique and valuable
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Niche Competitive Advantage
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Serve a single segment of a market
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Marketing objectives
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A statement of what is to be accomplished through marketing activities, should be reasonable, measurable, time specific, and compared to a benchmark
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Target Market Selection
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Segment Analyze and Select the market
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The Marketing Mix
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Product Price Promotion and Place Strategies
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Product Strategy
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Adjust physical unit, packaging, warranty, service brand, image, value
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Place Strategy
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Distributing product where and when customers want it, all activities from supplying raw materials to deliver of finished products
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Promotion Strategy
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Integration of advertising, public relations, sales promotion, and personal selling, adjust the product's message, by informing, educating, entertaining, persuading, and reminding
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Price strategy
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Adjusting the cost of the product, competitive weapon, quickest to change
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Implementation
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Process that turns marketing plans into actions
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Evaluation Control
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Monitoring to ensure proper implementation
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Marketing Audit
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Formal review that determines if marketing results achieved the firm's goals, should be comprehensive, systematic, independent, and periodic
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Post Audit tasks
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Develop recommendations, communicate the recommendations, make someone accountable for implementation
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Deontology
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Do what the rules say
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Utilitarianism
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do what benefits the most people
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Casuist
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Do what was done in similar situations
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Moral relavists
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Do what is right at that moment
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Virtue Ethics
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Do what is good, right, or virtuous
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Preconventional Moraloty
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Based on rewards and punishments, concerned about yourself
