Chapter 1 Flashcards
Commoditization
A Consequence of mature industries.
Slowing innovation, extensive product assortment, excess supply and frugal consumers force margins down.
Today’s Economy: Marketing Challenges and Opportunities
- Power Shift to Customers
- Massive increase in product selection
- Power Shift to Customers
- Audience and media fragmentation
- Changing Value Propositions
- Shifting Demand Patterns
- Privacy, security and ethic concerns
- Unclear Legal Jurisdiction
- Audience and media fragmentation
*A Market
A collection of buyers and sellers
A group of individuals or institutions that have similar needs
*A Marketspace
Electronic Marketplace unbound by time or space
*A Metamarket
A cluster of closely related goods and services that center around a specific consumption activity
*A Metamediary
Provides a single access point where buyers can locate and contact many different sellers in the metamarket
*An Exchange
A process of obtaining something of value by offering something in return; typically obtaining products for money
*Five Conditions of an Exchange
- At least 2 parties
- Each party has something of value to the other party
- Each party must be capable of communication and delivery
- Each party must be free to accept or reject the exchange
- Each party believes it is desirable to exchange with the other party
*A Product
Something that can be acquired via exchange to satisfy a need or want
Types of Products
Goods Services Ideas Information Digital Products People Places Experiences and Events Real or Financial Property Organizations
*Utility
The ability of a product to satisfy a customer’s needs or wants.
*Five Types of Utility
- Form Utility
- Time Utility
- Place Utility
- Possession Utility
- Psychological Utility
*Form Utility
Attributes or features that set the product apart
*Time Utility
Products available when customers want them
*Place Utility
Products available where customers want them
*Possession Utility
Transfer of ownership or title; ease of acquisition
*Psychological Utility
Positive experiential attributes that customer find satisfying
Strategy
The Organizations Game Plan for Success
Tactical Planning
Specific Markets/Segments and the marketing programs that will meet customers needs and wants
Marketing Plan
the outline of the marketing program
how to combine product, pricing, distribution, and promotion to create an offering customers find attractive
Internal Analysis
Analyzing the firm’s current strategy and performance
Competitive Intelligence
Analyzing competing businesses capabilities, vulnerabilities and intentions
Environmental Scanning
Analyzing the external environment
Economic, political, legal, technological and cultural
Situation Analysis
Combination of all Internal Analysis, Competitive Intelligence, and Environmental Scanning
Competitive Advantage
Something the firms does better than competing firms
SWOT Analysis
Strength, Weakness, Opportunity and Threats
Marketing Strategy Decisions
Market Segmentation and Target Marketing
Marketing Mix
Branding and Positioning
Social Responsibility
Maximizing positive impact on society, while minimizing negative impact
Types of Customer Relationship in Marketing
Transactional Marketing
Relationship Marketing
*Relationship Marketing
Develop and maintain long term, mutually satisfying arrangements.
Both buyer and seller focus on value obtained from the relationship
Transactional Marketing
Complete a large number of discrete exchanges with individual customers
Marketing Implementation
The process of executing the marketing strategy
The “how” of marketing planning
Product Positioning
A mental image, or position, of the product offering relative to competing offerings in the minds of target buyers
Marketing Goal
To connect the organization to its customers
Integrated Marketing Communication (IMC)
Coordination of all promotional activities to produce a unified, customer focused message
Market Mix
- Product
- Price
- Distribution
- Promotion
