CHAPTER 1 Flashcards
are movements in the market that are new or different reactions, which eventually lead to change, either in a negative or positive way for business. Businesses can anticipate and analyze market trends to improve their practices, attract the right target audience, adjust budgets, focus their marketing efforts, and more.
MARKET TRENDS
can easily make or break a business. Catching the trend early and analyzing it could keep you ahead of the competition and protect your market share.
MARKET TRENDS
is occurring at an accelerating rate; today is not like yesterday, and tomorrow will be different from today. Continuing today’s strategy is risky; so is turning to a new strategy. Therefore, tomorrow’s successful companies will have to heed three certainties:
CHANGE
will continue to affect everyone’s business and personal life.
GLOBAL FORCES
will continue to advance and amaze us.
TECHNOLOGY
There will be a continuing push toward _____&of the economic sector.
DEREGULATION
Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “___”
meeting needs profitably.
is the conscious effort to achieve desired exchange outcomes with target markets. It is a process of controlling the marketing aspects, setting goals, organizing the plans step by step, taking decisions for the firm, and executing them to get maximum turnover by meeting the consumers’ demands.
MARKETING MANAGEMENT
5 Functions of Management:
PLANNING, ORGANIZING, LEADING, STAFFING, CONTROLLING
The process of choosing appropriate goals and actions to pursue and determining what strategies to use, what actions to take, and deciding what resources are needed to achieve the goals.
PLANNING
Establishing worker relationships that allow them to work together to achieve their organizational goals.
ORGANIZING
Articulating a vision, energizing employees, and motivating people using vision, influence, persuasion, and effective communication skills.
LEADING
Recruiting and selecting employees for positions within the company.
STAFFING
Evaluating how well goals are being achieved, improving performance, and establishing standards to help measure progress and make informed decisions.
CONTROLLING
5 Marketing Concepts
PRODUCTION CONCEPT, PRODUCT CONCEPT, SELLING CONCEPT, MARKETING CONCEPT, SOCIETAL MARKETING CONCEPT
Consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on high production efficiency, low costs, and mass distribution. This concept is used when a company wants to expand its market.
PRODUCTION CONCEPT
Holds that consumers favor products that offer the most quality, performance, or innovative features. Product-oriented companies often design their products with little or no customer input, focusing instead on making superior products.
PRODUCT CONCEPT
Assumes that consumers must be coaxed into buying through aggressive selling and promotion. This concept is often practiced with unsought goods (e.g., insurance). Many firms apply the selling concept when they have overcapacity and want to sell what they produce rather than what the market wants.
SELLING CONCEPT
Focuses on being more effective than competitors in creating, delivering, and communicating customer value to target markets. It rests on four pillars:
MARKETING CONCEPT
Carefully selecting target markets and preparing tailored marketing programs.
TARGET MARKET
Correctly understanding customers’ needs and wants. Customer needs can be classified as stated needs, real needs, unstated needs, delight needs, and secret needs.
CUSTOMER NEEDS
When all departments work together to serve customers’ interests.
INTEGRATED MARKETING
Achieving profit for private firms or attracting funds for nonprofits.
PROFITABILITY
Balances meeting the needs of target markets while also preserving or enhancing the well-being of individual consumers and society as a whole.
SOCIETAL MARKETING CONCEPT
Companies are adjusting in various ways to cope with changes in the environment:
REINGINEERING, OUTSOURCING, E-COMMERCE, BENCHMARKING, ALLIANCES, PARTNER-SUPPLIERS, MARKET-CENTERED, GLOBAL AND LOCAL, DECENTRALIZED
Focusing on key processes managed by multidisciplinary teams.
REINGINEERING
Buying more products from outside sources if they are cheaper and better.
OUTSOURCING
Making products available on the internet, with increasing business-to-business purchasing online.
E-COMMERCE
Adopting best practices from world-class performers.
BENCHMARKING
Forming partnerships with other firms.
ALLIANCES
Relying on fewer but more reliable suppliers who work closely with the company.
PARTNER-SUPPLIERS
Organizing by market segment.
MARKET-CENTERED
Being both global and local in business operations.
GLOBAL AND LOCAL
Encouraging entrepreneurship and initiative at local levels.q
DECENTRALIZED
As the environment changes, marketers are rethinking their philosophies, concepts, and tools:
MARKETER RESPONSES AND ADJUSTMENTS
Building long-term, profitable customer relationships.
RELATIONSHIP MARKETING
Managing customer lifetime value by offering recurring products at a lower price.
CUSTOMER LIFETIME VALUE
Building customer share by offering a larger variety of goods to existing customers and training employees in cross-selling and up-selling.
CUSTOMER SHARE
Serving well-defined target markets with specialized offerings.
TARGET MARKETING
Customizing messages and offers for individual customers.
INDIVIDUALIZATION
Building databases to track individual customers’ purchases, preferences, demographics, and profitability.
CUSTOMER DATABASE
Using several communication tools to deliver a consistent brand message.
INTEGRATED MARKETING COMMUNICATION
Treating intermediaries as partners in delivering value to customers.
CHANNELS AS PARTNERS
Recognizing that every employee contributes to customer satisfaction.
EVERY EMPLOYEE IS A MARKETER
Using data and models to make informed marketing decisions.
MODEL- BASED DECISION MAKING
- A societal process by which individuals and groups
obtain what they need and want through creating,
offering, and freely exchanging goods and services of
value with others. - Set of activities, set of institutions and processes for
creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners
and society at large. - An organizational function and a set of processes for
creating, communicating, delivering value for customers
and for managing customer relationships in ways that
benefit the organizations and its stakeholders. - The performance of business activities that directs the
flow of goods and services from producer to consumer or
user.
MARKETING ACCORDING TO PHILIP KOTLER
is the study, planning,
implementation and control of programs intended to form,
make and preserve equally beneficial exchanges and
relationships with the target markets for the reason of
reaching organizational objectives.
Generally, marketing management is the process of
planning, executing, and tracking the marketing strategy
of an organization. This includes the marketing plan,
campaigns, strategies and tactics used to create and
meet the demand of target customers to drive profitability
(Dickerson, 2022).
MARKETING MANAGEMENT
The virtual market where transactions are conducted
online
MARKET SPACE
The physical market where goods and services are
traditionally bought and sold.
MARKET PLACE
The group of consumers or organizations that is
interested in the product, has the resources to purchase
the product, and is permitted by the law to acquire the
product.
MARKET
- This is called B2B market that is business to business.
- A market where output of one form goes either as raw
material, or as processed goods, or as consumable
goods into another industry. - Buyers buy goods to resell at some point of time for profit
BUSINESS MARKET
It is also called B2C market that is business to consumer
market.
- It is the end consumers of various merchandise like
products that are purchased by the consumer for their
own or household usage that constitutes the consumer
market.
CONSUMER MARKET
- The purchase is done by institutions, organizations.
- However, it is not for profit making. It is not for reselling
to any third party.
INSTITUTIONAL MARKET
Three types of market
CONSUMER MARKET
BUSINESS MARKET
CONSUMER MARKET
- constitute the bulk of most countries’
production and marketing effort. - Particularly food, commodities, clothing, and housing
GOODS
- Include airlines, hotels, and maintenance and repair
people, as well as professionals such as accountants,
lawyers, engineers, and doctors.
SERVICES
By orchestrating several services and goods, one can
create, stage, and market experiences.
- Enchanted Kingdom is an experience; so is the
SkyRanch.
EXPERIENCE
Marketers promote time-based events, such as the
Olympics, trade shows, sports events, and artistic
performances.
EVENTS
Celebrity marketing has become a major business.
- Artists, musicians, CEOs, physicians, high-profile lawyers
and financiers, and other professionals draw help from
celebrity marketers.
PERSON
include economic development
specialists, real estate agents, commercial banks, local
business associations, and advertising and public
relations agencies.
PLACES
are bought and sold, and this occasions a
marketing effort by real estate agents (for real estate)
and investment companies and banks (for securities)
PROPERTIES
Universities, museums, and performing arts
organizations boost their public images to compete more
successfully for audiences and funds.
- Organizations actively work to build a strong, favorable
image in the mind of their publics.
ORGANIZATION
Among the marketers of ______ are schools and
universities; publishers of encyclopedias, nonfiction
books, and specialized magazines; makers of CDs; and
Internet Websites.
INFORMATION
Every market offering has a basic _____ at its core.
- In essence, products and services are platforms for
delivering some idea or benefit to satisfy a core need.
IDEAS
TEN TYPES OF ENTITIES THAT CAN BE MARKETED
GOODS
SERVICES
EXPERIENCE
EVENTS
PERSON
PLACES
PROPERTIES
ORGANIZATION
INFORMATION
IDEAS
Companies need to get the attention of customers
through marketing its goods or services.
CUSTOMER
Are the ones who produce the products or render the
service.
- Must have marketing knowledge to attract customers.
HUMAN RESOURCE
Manufacturing goods and providing services to
customers entails cost.
FINANCE
Without marketing items produced would not sell and
inventories may turn out yield less.
PRODUCTION
With marketing, company would be more noticeable and
customers would choose to the company than the rest of
its competitors
COMPETITION
Manufacturers find it easier and dependable to make use
of marketing to their advantage particularly on what to
manufacture or trade.
DECISION
The changes in marketing go along with the fast
transformation in tastes and preferences of consumers
IDEA
“Nothing happens in our country until somebody sells
something”. If the marketing function would not be
pressured, the economy would become weak.
ECONOMY
FUNCTIONS OF MARKETING
CUSTOMER
HUMAN RESOURCE
FINANCE
PRODUCTION
COMPETITION
DECISION
IDEA
ECONOMY
SCOPE OF MARKETING
1.A consumer wants and
needs
2.Consumer Behavior
3.Product Planning and
Development
4.Branding
5.Packaging
6.Channels of Distribution
7.Pricing Policies
8.Sales Management
9.Promotion
10.Finance
11.After-sales service
Marketing creates value for the customers. Therefore, a
marketer must have a clear concept of customers’ needs,
wants and market conditions.
NEEDS, WANTS, AND DEMAND
Human needs are states of felt deprivation.
NEEDS
Any need of customers which is
short-term and is readily obtainable is known as existing
need
EXISTING NEED
A need of a customer which is there but
has not manifested itself because such a product has not
been launched.
LATENT NEED
A type of need which people want but
there is no product to satisfy the need.
INCIPIENT NEED
TYPES OF NEED
EXISTING NEED
LATENT NEED
INCIPIENT NEED
are form of human needs influenced by culture
and individual personality. Are the choices to gratify a particular need. Every
need can be satisfied by using different options.
WANTS
is want for particular products that are supported by the
ability andwillingness or readiness to buy them
DEMAND
Demand could be in these nature:
NEGATIVE
NO DEMAND
LATENT DEMAND
DECLINING DEMAND
IRREGULAR DEMAND
FULL DEMAND
OVERFULL DEMAND
UNWHOLESOME DEMAND
the product may be helpful but the
customer does not like it.
NEGATIVE
customers are unaware or uninterested in
the product.
NO DEMAND
demand which the customer realizes
later. While buying the product, he/she might not want
some features. Later on, he/she may reflect on those
features and purchase the product.
LATENT DEMAND
there is still a demand for the
product but decreases over a period of time
DECLINING DEMAND
demand which is not steady. These
products sell occasionally and sell more during peak
season while exceedingly low during non-season.
IRREGULAR DEMAND
market are pleased with the products and
people feel like buying from the same company.
FULL DEMAND
occur when the companies
manufacturing capacity is inadequate but the demand is
above the supply.
OVERFULL DEMAND
a demand in which customers
should not be using the product, yet the customers
desires the product badly.
UNWHOLESOME DEMAND
an overall ability of a product to gratify need and want.
- It is a guiding concept to select the product.
- The power of product to satisfy a particular need.
UTILITY
is the difference between the customer gains from
owning a product and using a product and the cost of
obtaining the product.
CUSTOMER VALUE
means the price of the product or the monetary value of a
product.
- The charges a customer has to pay to avail certain
services can be said as a ____
COST
refers to what a customer wants in a product or service.
DESIRED VALUE
is the benefit that a customer believes he received from a
product after it was purchased.
PERCEIVED VALUE
person’s feeling of delight or displeasure as a result of
comparing a products perceived performance in relation
to his or her expectation.
SATISFACTION
It is the duty of the conversional marketing to create a
plan to cause demand to rise from negative to positive
and eventually equal the positive supply level
CONVENTIONAL MARKETING
No demand state of a product exists when people are
indifferent to such product.
- Therefore, marketing must look for ways to connect the
benefits of products with the people’s natural needs and
interests.
SIMULATIONAL MARKETING
Process of effectively transforming latent demand into an
actual demand.
- Marketer must discover the features people might be
seeking later and promote them to the customer.
DEVELOPMENTAL MARKETING
A marketer’s job in this situation is to think for ways to
revitalize the products so that the demand would no
longer be declining.
REMARKETING
When a product’s current timing pattern of demand is
marked by seasonal or volatile fluctuations the marketing
tasks of synchromarketing is necessary to bring the
movement of supply and demand into better
synchronization.
SYNCHROMARKETING
The marketing dispute in this type of demand is to
continue the same intensity of interest in the product in
the company
MAINTENANCE MARKETING
is reducing the demand.
- Overfull demand exists when demand for a product
begins to outpace the supply substantially.
- If the company keeps marketing but not able to supply
the material, the company may be badly endured in
terms of brand equity.
DEMARKETING
Involves advertising techniques which try to reduce the
demand for a product being used.
- _____ typically uses negative messages to
stop people from using a product.
COUNTER-MARKETING
Marketing Management Tasks
CONVENTIONAL MARKETING
SIMULTATIONAL MARKETING
DEVELOPMENTAL MARKETING
SYNCHROMARKETING
MAINTENANCE MARKETING
DEMARKETING
COUNTER-MARKETING
