Principles of Marketing Test #1

The Marketing Mix
The four p’s: product, price, promotion and place. Tool used to promote marketing strategy.
Marketing
Process by which companies create value for customers and build strong customer relationships.
The Marketing Process
Understand consumers -> create customer value -> construct an integrated marketing process that does that -> build strong customer relationships -> capture values from customers to create customer equity
Marketing Offering
Some combination of products, services, info, or experiences offered to a market to satisfy a need to want.
Marketing Myopia
The mistake of paying more attention to the specific product a company offers than to the benefits produced by these products.
Marketing Management
The art and science of choosing target markets and building profitable relationships with them.
Customer Managed Relationships
Marketing relationship in which customer interact with companies and with each other to shape their relationship with brands through technology. (Can be a great but also dangerous thing!)
Customer Relationship Groups
Consumer-Generated Marketing
Brand exchanges created by consumers themselves – both invited and uninvited – by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers.
Customer Lifetime Value
The values of the entire stream of purchase a customer makes over a lifetime of patronage (lose the customer once, you lose them for life)
Customer Equity
The total combined customer lifetime values of all the company’s customers.
Growth-Share Matrix
A portfolio planing method that evaluates a company’s strategic business units (SBUs) in terms of market growth and relative market share.
Strategic Planning Process
Defining the company mission -> setting company objectives and goals -> designing the business portfolio -> planning marketing and other functional strategies
Product/Market Expansion Grid
Boston Consulting Group Approach
Boston Consulting Group Approach
A kind of growth-share matrix
Marketing Segmentation
Is the division of distinct groups in a market who have different needs, characteristics or behaviors and who might require separate products or marketing programs.
Marketing Segment
Consists of consumers who respond in a similar way to a given set of marketing efforts.
Target Marketing
Evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Needs, Wants, Demands
Needs = States of felt deprivation
Wants = Human needs shaped by culture and individual personality
Demands = Human wants that are backed by buying power
Market Penetration
Company growth by increasing sales of current products to current market segments without changing the product.
SWOT Analysis
(S)trength (W)eakness (O)pportunities (T)hreats
Diversification
Company growth through starting up or acquiring business outside the company’s current products and markets.
Value Proposition
Is the set of benefits or values it promises to deliver to consumers to satisfy their needs.
Marketing Department Organizations
Functional, geographic, product management, market and customer management.
CRM
Customer Relationship Management = The overall process of building and maintaining profitable customer relationships by delivering superior customer values and satisfaction.
CRM Touch Points
Customer Purchases, Sales Force contacts, Service and Support Calls, Web and Social media sites, Marketing Research Studies, Credit and payment interactions, satisfaction Surveys
Customer Insights
Fresh understanding of customers and the marketplace derived from marketing information that become the basis for creating customer values and relationships.
Marketing Information System (MIS)
People and procedures dedicated to assessing information needs, developing the needed info, and helping decision makers to use the info to generate and validate actionable customer and market insights.
Internal Databases
Electronic collections of consumer and market information obtained from data sources with the company network.
Competitive Marketing Intelligence
The systematic collection and analysis of publicly available info about consumers, competitors and development in the marketing environment.
Marketing Research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Marketing Research Process
Exploratory Research
Marketing research to gather preliminary info that will help define problems and suggest hypothesis
Descriptive Research
Research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers.
Casual Research
Marketing Research to test hypotheses about cause-and-effect relationship.
Secondary Data
Info that already exists somewhere, having been collected for another purpose.
Primary Data
Info collected for the specific purpose at hand.
Observational Research
Gathering Primary data by observing relevant people, actions and situations.
PRM
Partner Relationship Management = Involves working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
Ethnographic Research
A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environment.”
Survey Research
Gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior.
Experimental Research
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Focus Group Interviewing
Personal interviewing that involves inviting 6-10 people to gather for a few hours with a trained interviewer to talk about a product. service, to organization. The interviewer “focuses” the group discussion on important issues.
Online Marketing Research
Collection primary data online though internet surveys, online focus groups, Web-based experiments, or tracking consumers’ online behavior.
Sample
A segment of the population selected for marketing research to represent the population as a whole.

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