1st Quarter Reviewer POM Flashcards
is a process by which “companies create value for customers” and “build strong customer relationships” to capture value from customers in return.
Marketing
States of “deprivation”
Needs
3 Kinds of Needs
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
—food, clothing, warmth, safety
• Physical
belonging and affection
Social
knowledge and self-expression
• Individual—
Exists when a person has an “unfulfilled need”, and he is aware of an object that will best satisfy that need.
Wants
Refers to the “total quantity” of a product or service that customers are “expected to buy at a given price level.”
Demand
THE 5 MARKETING PROCESS
- Understanding the marketplace and customer needs
- Designing a customer-driven marketing strategy
- Preparing an integrated marketing plan and program
- Building customer relationships
5.Capturing value from customers
are some “combination of products”, services, information, or experiences “offered to a market to satisfy a need or want”
• Market offerings
is “focusing only on existing wants” and losing sight of underlying consumer needs
• Marketing myopia
is the act of “obtaining a desired object from someone by “offering something in return.”
• Exchange
are the set of “actual and potential buyers of a product.”
• Markets
is the “art and science of choosing target markets” and building profitable relationships with them
• What customers will we serve?
• How can we best serve these customers?
Marketing management
2 Selecting customers to serve
Market Segmentation
Target Marketing
refers to “dividing the markets into segments” of customers.
Market segmentation
refers to “which segments to go after.”
Target marketing
set of “benefits or values a company promises to deliver” to customers to satisfy their needs.
Value proposition
5 Marketing Management Orientations
- Production Concept
- Product Concept
- Selling Concept
- Marketing Concept
- Societal Marketing Concept
is the idea that consumers will favor products that are “available or highly affordable.”
- Production concept
is the idea that consumers will favor products that offer the “most quality, performance, and features.” Organization should therefore devote its energy to making “continuous product improvements”.
- Product concept
is the idea that consumers will not buy enough of the firm’s products unless it undertakes a “large scale selling and promotion effort.”
- Selling concept
is the idea that “achieving organizational goals” depends on knowing the needs and wants of the target markets and delivering the “desired satisfactions better than competitors do.”
- Marketing concept
is the idea that a company should make” good marketing decisions by considering consumers’ wants”, the company’s requirements, consumers’ long-term interests, and “society’s long-run interests.”
- Societal marketing concept
“set of tools” (four ps) the firm uses to implement its marketing strategy. It includes “product, price, promotion, and place.”
The marketing mix
“comprehensive plan” that communicates and delivers the intended value to chosen customers.
Integrated marketing program
the “overall process of building and maintaining profitable customer relationships” by delivering superior customer value and satisfaction
Customer relationship management (CRM)
Relationship building blocks:
customer value and satisfaction
• It is the “value that a customer perceives” to “obtain by buying a product”. It is the difference between the total obtained benefits according to the customer perception and the “cost that he had to pay” for that.
Customer- perceived value
• The extent to which a “product’s perceived performance matches a buyer’s expectations”
Customer satisfaction
The changing nature of customer relationships
Customer-managed relationship
Partner relationship management
marketing relationships in which customers, “empowered by today’s new digital technologies”, interact with companies and with each other to shape their relationships with brands.
Customer-managed relationships
involves “working closely with partners in other company” departments and outside the company to jointly bring greater value to customers.
Partner relationship management
is the “value of the entire stream” of purchases that the customer would make over a “lifetime of patronage.”
Customer lifetime value
is the “portion of the customer’s purchasing” that a company gets in its product categories
Share of customer
is the “total combined customer lifetime values” of all of the company’s customers.
Customer equity
is the process of developing and “maintaining a strategic fit between the organization’s goals” and capabilities and its changing marketing opportunities.
Strategic planning
4 STEPS IN STRATEGIC PLANNING
- Defining the company mission
- Setting company goals and objectives
- Designing the business portfolio
- Planning market
is the organization’s purpose, what it “wants to accomplish in the larger environment.”
Mission statement-
defines the business in “terms of satisfying basic customer needs.”
Market-oriented mission statement
6 Steps on How to create a market-oriented mission statement?
A mission statement should:
• Not be myopic in product terms
• Meaningful and specific
• Motivating
• Emphasize the company’s strengths
• Contain specific workable guidelines
• Not be stated as making sales or profits
are “specific and measurable results” companies hope to maintain as their organization grows. It “acts as a compass” for the company, dictating how the organization “should allocate strengths, weaknesses and opportunities” that may be available.
Business objectives-
are a “brand’s define goals.” They “outline the intentions of marketing team”, provide clear direction for team members to follow, and offer information for executives to review and support. It is a “pivotal part of a marketing strategy.”
Marketing objectives
is the “collection of business and products” that make up the company.
Business portfolio
is a “major activity in strategic planning” whereby management “evaluates the products and businesses” that make up the company.
Portfolio analysis
4 CLASSIFICATION OF PRODUCT/MARKET EXPANSION GRID
- Market Penetration
- Market Development
- Product Development
- Diversification
is a growth strategy “increasing sales to current market” segments “without changing the product.”
Market penetration
is a growth strategy that “identifies and develop new market segments” for current products.
Market development
is a growth strategy that “offers new or modified products” to existing market segments.
Product development
is a growth strategy through “starting up or acquiring businesses outside the company’s” current products and market.
Diversification
is the “reduction of the business portfolio by eliminating products “or business units that are nor profitable or that no longer fit the company’s overall strategy.
Downsizing
is a “series of departments” that carry out “value-creating activities to design, produce, and market, deliver,” and support a firm’s products.
Value chain-
is made up of the “company, suppliers, distributors, and ultimately customers” who partners with each other’s to “improve performance” of the entire system.
Value delivery network-
4 MARKETING STRATEGY
- Market Segmentation
- Market Segment
- Market Targeting
- Market Positioning
is the “division of a market into distinct groups of buyers” who have different needs, characteristics or behavior and who might require separate products or marketing mixes.
Market segmentation
is a “group of consumers who responds in a similar way” to a given set of marketing efforts.
Market segment-
is the process of “evaluating each market segment’s attractiveness” and selecting one or more segments to enter.
Market targeting
is the “arranging for a product to occupy a clear, distinctive, and desirable place” relative to competing products in the minds of the target consumer.
Market positioning
is the “set of controllable tactical marketing tools- products, price, place, and promotion”- that the firm blends to produce the response it wants in the target market.
Marketing mix
is a process that consists of “analyzing current situation and information about marketing opportunities, forecasting” and establishing planning premises, selecting target markets, determining marketing objectives, designing and developing marketing strategy.
Planning
is the process that “turns marketing plans into marketing actions” to accomplish strategic marketing objectives.
Implementing
is the “measurements and evaluation of results” and the “taking of corrective action” as needed to ensure the objectives are achieved’
Controlling
involves “checking ongoing performance against an annual plan” and taking corrective action as needed.
• Operating control
involves “looking at whether the company’s basic strategies are well matched to its opportunities.”
• Strategic control
is the “net return from marketing investment” divided by the cost of the marketing investment.
Marketing ROI (Return on Marketing Investment)
“provides a measurement of the profits generated” by investments in marketing activities.
Marketing ROI
is a “combination of internal and external environmental forces” and factors that influences the business operation of a business and its ability to serve its customers.
marketing environment
consists of the “actors close to the company that affect its ability to serve its customers”, the company, marketing intermediaries, customers markets, competitors, and publics.
Microenvironment
6 Actors in the Microenvironment
- The Company
- Suppliers
- Marketing Intermediaries
- Competitors
- Publics
- Customers
is a “legal entity formed by a group of individuals” to engage in and operate a business - commercial or industrial- enterprise
- The Company
The Company is composed of the following 6 departments:
• Top Management
• Finance
• R&D ( Research and Development)
• Purchasing
• Operations
• Accounting
is a “person or entity that provides the resources” to an entity for them to produce goods and services. It is treated as a “partner to provide customer value”.
- Suppliers
helps the company to “promote, sell and distribute its products to final buyers.”
- Marketing Intermediaries
• The figure at the right side explains how Coke delivers value for their marketing intermediaries.
• They understand each retailer partners business.
• They conduct consumer research and share with partners.
• They develop marketing programs and merchandising for partners.
Marketing Intermediaries
is a business that “provides similar products or services to your business.” Firms must gain strategic advantage by positioning their offers against “competitors’ offerings.”
- Competitors
refers to any “group that has an actual or potential interest” in or “impact on an organization’s ability to achieve its objectives”.
- Publics
7 Kinds/Examples of Publics
• Financial publics
• Media publics
• Government publics
• Citizen-action publics
• Local publics
• General public
• Internal publics
is an “individual or business that purchases another company’s good” and services. Customers are important because they drive revenues; without them, business cannot continue to exist.
- Customer
4 Classification of Customers
- Consumer market
- Business market
- Government market
- International market
is a “set external factors or forces, not controlled by the company,” which influences is development. It is mainly includes demographics, economics, natural, cultural, technological, legal or political elements.
Macroenvironment
6 Actors of Macroenvironment
- Demographic Environment
- Economic Environment
- Natural Environment
4.Technological Environment - Political Environment
is the “study of human populations- size, density,” locations, race, occupation, and other statistics like age, and gender.
Demography
involves “people, and people make up markets.” “Demographic trends shift in age, family structure”, geographic population, educational characteristics, and population diversity.
Demographic Environment
consist of “factors that affect consumer purchasing power” and spending patterns.
Economic Environment
offerings a “financially cautious buyers with greater value” by providing the right combination of quality and service at a fair price.
Value Marketing
includes “natural resources that are needed as inputs” by marketers of that are affected by marketing activities.
Natural Environment
4 Trends in Natural Environment
- Increased shortages of raw materials
- Increased pollution
- Increased government intervention
- Increased environmentally sustainable strategies
refers to the “state of science and technology in the country” and related aspects such as rate of technological progress, institutional arrangement for development and application of new technologies.
- Technological Environment
includes “laws, government agencies, and pressure groups” that influence or limit various organization and individuals in a given society.
Political Environment
consist of institutions and other forces that “affect a society’s basic values, perceptions, and behaviors”. “Cultural factors strongly affect people think and how they consume”. So marketers are keenly interested in the cultural.
Cultural Environment
are persistent and are “passed on from parents to children” and are reinforced by schools, churches, businesses, and government.
Core beliefs and values
are more “open to change and include people’s views of themselves”, others, organization, society, nature and the universe.
Secondary beliefs and values
