Ch12 - Marketing Flashcards

1
Q

marketing def

A

an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

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2
Q

relationship marketing

A

building lasting relationships with customers and suppliers
-> can result in greater long-term satisfaction, customer loyalty, and customer retention

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3
Q

Customer relationship management

A

organized method that enterprises use to build better information connections with clients
-> better predictions on what customers will want to buy

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4
Q

Date warehousing and data mining

A

Date warehousing : Compiling and storing customers’ data -> provides the raw materials from which marketers can gather information that allows them to find new clients
Data mining : automates the massive analysis of data by using computers to sort and search for previously undiscovered clues about what customers look at and react to and how they might be influenced

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5
Q

marketing concept def

A

firm must get to know what customers really want and closely follow evolving tastes

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6
Q

marketing plan def

A

identifies the marketing objectives stating what marketing will accomplish in the future. It contains a strategy that identifies the specific activities and resources that will be used to meet the needs and desires of customers in the firm’s chosen target markets, so as to accomplish the marketing objectives

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7
Q

marketing strategy

A

Once it has clarified the marketing objectives, the team can develop a strategy
Marketing strategy : identifies the planned marketing programs, all the marketing activities that a business will use to achieve its marketing goals, and when those activities will occur
Often includes the 5 components of the marketing Mix -> people, product, pricing, place, and promotion

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8
Q

people (target market)

A

a group of potential customers who have similar wants and needs

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9
Q

product differentiation

A

creation of a feature or image that makes a product differ enough from existing products to attract customers

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10
Q

place (distribution)

A

Placing a product in the proper outlet requires decisions about several activities, all of which are concerned with getting the product from the producer to the consume (warehousing, inventory control)

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11
Q

promotion

A

techniques for communicating information about products. The most important promotional tools include advertising, personal selling, sales promotions, publicity/public relations, and direct or interactive marketing

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12
Q

Market segmentation (and target markets)

A

dividing a market into categories of customer types or “segments”
Not everyone will want all products -> target markets : groups of people or organizations with similar wants and needs who can be expected to show interest in the same products

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13
Q

product positioning

A

process of fixing, adapting, and communicating the nature of the product itself

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14
Q

How to segment the market

A

most important segmentation approaches: demographic, geographic, geo-demographic, psychographic, and behavioural

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15
Q

Demographic segmentation

A

identifying characteristics such as age, income, gender, ethnic background, marital status, race, religion, and social class (can be a single classification or combination)

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16
Q

Geographic and geo-demographic segmentation

A

geographical units, from countries to neighbourhoods
geo-demo : combination of geographic and demographic traits

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17
Q

psychographic segmentation

A

psychographic variable such as lifestyles, opinions, interests, and attitudes (differentiates demographically identical people)

18
Q

behavioural segmentation

A

dividing a market into groups based on consumer knowledge, use, or response to a product
variables include : benefits sought, user status (i.e., ex-users, current users), usage rate (ex. heavy users), loyalty status, and occasion for use (e.g., time of day, special occasion).

19
Q

marketing research

A

study of what customers need and want and how best to meet those needs and wants, is a powerful tool for gaining decision-making information

20
Q

role of marketing research

A

increase competitiveness by clarifying the interactions among a firm’s stakeholders (including customers), marketing variables, environmental factors, and marketing decisions

21
Q

study of human behaviour

A

study of the decision process by which people buy and consume products

22
Q

4 influences on customer behaviour

A

Psychological influences : an individual’s motivations, perceptions, ability to learn, and attitudes
Personal influences : lifestyle, personality, and economic status.
Social influences : family, opinion leaders (people whose opinions are sought by others), and reference groups ( friends, co-workers, and professional associates)
Cultural influences : culture (the way of living that distinguishes one large group from another), subculture (smaller groups with shared values), and social class (the cultural ranking of groups according to criteria such as background, occupation, and income).

23
Q

5 key stages of the customer buying process

A

1) problem/need recognition
2) information seeking
3) evaluation of alternatives
4) purchase decision
5) post-purchase evaluation

24
Q

B2B meaning

A

business-to-business

25
Q

Business marketing

A

involves organizational or commercial markets that fall into three B2B categories: industrial, reseller, and government/institutional markets. Taken together, B2B markets account for more than two times the sales amount of the consumer market

26
Q

industrial market

A

businesses that buy goods to be converted into other products or that are used up during production. It includes farmers, manufacturers, and some retailers

27
Q

reseller market

A

Before products reach consumers, they pass through a reseller market consisting of intermediaries, including wholesalers and retailers that buy and resell finished goods.

28
Q

Government and institutional market

A

Federal, provincial, and municipal governments are very important, not only for the laws they create and maintain but also for their economic spending power. The Canadian federal government, for example, spent an estimated $303.6 billion in 2020

29
Q

B2B buying behaviour

A

very different consumer buying practices
Consumer–seller relationships : impersonal, short-lived, one-time interactions
B2B situations : frequent and long-term buyer–seller relationships
-> large quantities and are professional, specialized, and well informed
-> decisions based on rational motives (relative performance, cost, efficiency, and maintenance costs)

30
Q

product features

A

qualities, tangible and intangible, that a company builds into its products. However, as we discussed earlier, to attract buyers, features must also provide benefits.

31
Q

consumer vs organizational products

A

Organizational buying is driven by the need to support the organization’s operations, enhance efficiency, and achieve specific business objectives, whereas consumer buying is driven by personal needs, preferences, and desires

32
Q

3 types of consumer products

A

convenience G&S : consumed rapidly and regularly, inexpensive
shopping G&S : purchased less often, more expensive, ppl may shop around and compare products
specialty G&S : purchased infrequently, expensive, ppl spend a good deal of time choosing the “perfect” item

33
Q

3 types of organizational products

A

production items : used directly in the production process
expense items : consumed within a year by firm (legal services, oil and electricity)
capital items : permanent (expensive and long-lasting) g&s, purchased infrequently

34
Q

product mix

A

group of products that a company makes available for sale, whether consumer, industrial, or both

35
Q

product line

A

A group of products that are closely related because they function in a similar manner (e.g., flavoured coffees) or are sold to the same customer group (e.g., stop-in coffee drinkers) who will use them in similar ways

36
Q

product life cycle

A

series of stages through which it passes during its commercial life (after it reached the market) Depending on the product’s ability to attract and keep customers, its PLC may be a matter of months, years, or decades

37
Q

4 stages of the product life cycle

A

1- introduction : product reaches marketplace, marketers focus on awareness of the product, profits nonexistent
2- growth : if product attracts and satisfies enough consumers, sales begin to climb rapidly, begin to show profit, other firms in industry move to make their own versions
3- maturity : sale growth starts to slow, highest profit, increased competition forces price-cutting, end of stage - sales start to fall
4- decline : sale + profit continue to fall as new products are introduced, firms end of reduce promo

38
Q

3 ways to extend product life

A

1 - Marketed globally : international product extensions
2 - product adaptation : product modified for greater appeal in different countries. 3 - Reintroduction : reviving in new markets products that are becoming obsolete in older markets

39
Q

Branding def

A

use of symbols to communicate the qualities of a product made by a producer (ex. coca-cola)

40
Q

brand equity def

A

added value a brand name provides to a product beyond its basic functional benefits. Widely known and admired brands are valuable because of their power to attract customers

41
Q

3 ways to gain brand awareness

A

1 - product placement : brand exposure from TV, film, music, magazine, video game
2 - buzz marketing : word of mouth to spread “buzz”
3 - Viral marketing and social networking : social networks to spread info like a “virus”

42
Q

3 types of brand names

A

1 - national brands : produced and distributed by the manufacturer across an entire country
2 - private brands : carry the retailer’s own brand name, even though they are manufactured by another firm (ex. president’s choice and loblaws)
3 - generic brands