Rutgers Marketing Midterm 1 – Flashcards
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Marketing
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process by which companies create Value for customers and capture Value in return.
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Marketing Process
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Analysis-decisions-outcomes
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5 C's of Marketing Analysis
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Customer Company Competitors Collaborators Context
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Wants
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Needs shaped by culture and individual personality; Objects
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Needs
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State of felt deprivation; part of being human
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Demands
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Wants backed by buying power
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Market Offerings
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Fulfill customer needs and wants
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Marketing Myopia
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Focus on company's needs instead of customers' needs and wants
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Customer Value
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The value of an offering is its perceived benefits minus its perceived costs.
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Customer Satisfaction
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How well a market offering meets or surpasses customer expectations
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Satisfied Customer
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Satisfied customers buy again and spread the word; experience>=expectaion
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Dissatisfied Customer
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Dissatisfied customers switch to competitors and criticize the product to others. Expectation>Experience
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Exchange
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the act of obtaining a desired object from someone by offering something in return.
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Market
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is the set of actual and potential buyers of a product or service.
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Marketing Management Orientations
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The philosophy the company applies while targeting a market.; Production, Product, Selling, Marketing, Societal
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Production Concept
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Approach: Inside Out Orientation: Highly available & affordable products Focus: production & distribution efficiency Lean and Focused
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Product Concept
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Approach: Inside Out Orientation: Best quality, performance, features Focus: continuous product improvements Build a Better Mousetrap
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Selling Concept
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Approach: Inside Out Orientation: Customers won't buy unless pushed Focus: large-scale selling and promotion Make and Sell
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Marketing Concept
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Approach: Outside In Orientation: Needs and wants of target markets Focus: delivering customer needs and value Sense and Respond
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Societal Concept
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Approach: Outside In Orientation: Short-term customer wants & long-term welfare Focus: improving customer and society well- being Values Driven
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LTV (Lifetime Value)
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the value of the entire stream of purchases a customer makes over a lifetime of patronage
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Share of Customer
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the % a company gets of the customer's purchasing in their product categories = Loyalty
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Market Share
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Brand's share of total revenue spent in the market = $
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Customer Equity
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the total combined LTVs of the all the company's current & potential customers
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Customer Relationship Management
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(Look at Chart- Butterflies)
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Strategic Planning
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helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities. Current State to desired state
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Mission Statement
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Customer oriented, purposeful, emphasizes strengths, aspirational, clarifies whats in and whats out
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Company Goals
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Short- term milestones that build toward objectives
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Company Objectives
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Long-term strategic state you want to achieve
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Business Portfolio
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a collection of businesses and products that make up the company
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dog
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low market share; low profitability
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Problems with Growth-Share Matrix
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Difficult, time consuming, and costly to implement, Difficult to define SBUs and measure market share and growth, Only focus is current business, presumes market is predictable
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Identifying Future Opportunities
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Product Market Expansion Grid
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Downsizing
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Reduces the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy
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Reason for downsizing
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Rapid growth of the company - Lack of experience in a market - Change in market environment - Decline of a particular product
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Marketing Plan
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Executive Summary Current Marketing Situation Threats and Opportunities Analysis Objectives and Issues Marketing Strategy Action Programs Budgets Controls
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Executive Summary
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Brief summary of the main goals and recommendations
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Current Marketing Situation
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Gives the market description and the product, competition, and distribution review
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Threats and Opportunities Analysis
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Helps management to anticipate important positive or negative developments
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Objectives and Issues
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States and discusses marketing objectives and key issues
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Marketing Strategy
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Outlines the broad marketing logic and the specifics of target markets, positioning, marketing expenditure levels, and strategies for each marketing mix element
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Action Programs
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Spells out how marketing strategies will be turned into specific action programs
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Budgets
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Details a supporting marketing budget that is a projected profit-and-loss statement
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Controls
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Outlines the controls that will be used to monitor progress, allow management to review implementation results, and spot products that are not meeting their goals
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Financial ROI
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Net return from a marketing investment divided by the costs of the marketing investment
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Marketing ROI
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Standard marketing performance measures Customer-centered measures
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Microenvironment
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Close to the company: Company, Customers, Collaborators, Competitors
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Macroenvironment
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Demographic, Economic, Natural,Technological, Political, Cultural
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Demography
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Study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
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Demographic Environment
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An aging population
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Baby Boomers
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1946-64
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Gen x
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1965-76
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Gen y
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1977-2000
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Gen z
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2000+
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Economic Environment
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Type of Economy, Differences in Income, Changes in consumer spending
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Natural Environment
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Physical environment and natural resources needed as inputs by marketers or affected by marketing activities
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Technological Environment
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Most Influential environmnent New Tech creates new markets and opportunities
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Political Environment
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Laws, Government Agencies, and pressure groups
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Cultural Environment
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Core Beliefs- persistent, passed down Secondary Beliefs - Cultural Swings
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Customer Insight
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fresh understandings of customers and the marketplace, derived from marketing information.
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Marketing Information systems
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represent people and procedures for: 1. Assessing information needs 2. Developing needed information 3. Analyzing and using information
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Internal Data
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Consumer and market info obtained from data sources within the company network
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Marketing Intelligence
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Collection & analysis of publicly available info about consumers, competitors & developments in the marketplace
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Marketing Research
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Design, collection, analysis & reporting of data relevant to a specific marketing situation facing an organization
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Exploratory Research
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Gather preliminary info to help define problem and suggest hypotheses.
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Descriptive Research
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Describe things, such as the market potential for a product or the demographics / attitudes of customers who buy it.
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Causal Research
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Test hypothesis about cause and effect relationships.
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Observational Research
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Gathering primary data by observing relevant people, actions, and situations
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Ethnographic Research
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Sending trained observers to watch and interact with consumers in their natural environments
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Survey Research
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Asking people questions about their knowledge, attitudes, preferences, and buying behavior
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Experimental Research
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Selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
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Sample
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a segment of the population selected to represent the population as a whole.
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Questionnaires
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can be administered in person, by phone, by email, or online
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Mechanical Instruments
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- Neuromarketing - Checkout scanners - Smart Shelves
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Responsibilities of the market researcher:
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- Interpret findings - Draw conclusions - Report findings to management
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Responsibilities of marketing managers:
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- Work closely with researchers to interpret research results - Share responsibility for the research process and resulting decisions
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cash cow
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high market share; low growth rate
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star
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high market share; high growth rate
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question mark
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high growth rate; low market share
