Chapter 12 Flashcards
What is marketing
an organizational function and a set of processes for creating, communicating and delivering VALUE to customers and for managing relationships in ways that benefit the organization and its stakeholders
Marketing strategies focus on what
increasing value for customers
-Performance, price, convenience, customization, newness, brand, education
form utility
value that can be created
the value given to a product by virtue of the fact that the materials and components which comprise it have been combined to make the finished product.
companies can reduce potentially purchasing barriers by making it clear that consumers will receive feature-complete products that don’t add the complexity of self-assembly.
time utility
considering the hours and days of the week a company might choose to make its services available. For example, a store may open on weekends if customers typically shop for a certain product at that time
- sales of boots and gloves spike in the winter, while ice cream sees greater demand during the summer
utility
how a product can be useful to customers in a way that convinces them to make a purchase.
place utility
can be used to draw customers to a product or service as well because it associates a specific place to the product or service
- availability of water and other drinks near sports venues or other sporting events
possession utility
act of product possession — such as consumers driving a new car off the lot or having furniture delivered to their home. It also highlights the connection between possession and purpose.
economic effects on marketing environment
inflation
- effects when to launch campaigns
technological effects on marketing environment
artificial intelligence, IoT, new production processes, and machine learning.
political legal effects on marketing environment
current political party in power, the degree of politicization of trade and industry, the efficiency of the current government, government policies, current legal framework, the public attitude towards the economy
socio-cultural marketing environment
trends, demand for certain products, demand around healthy eating or convenience
Competitive marketing environment
local, national, global competitors
- knowing substitutes for products (same products and similar products)
Marketing plan
making marketing objectives -> developing marketing strategy (Product, place, promotion, place)
Market segmentation
dividing a market into categories of customer types or “segments”
- demographic, geographic, demo-geographic, psychographic, behavioural
geo-demographic segmentation
area and age
psychographic
lifestyle and opinion
- starbucks non - coffee drinks for people who still want to socialize but don’t like coffee
behavioural
for certain things people need
- anti dandriff shampoo (only certain people need)
Market research methods
observation, survey, focus group and experimentation
consumer buying process
- Problem / Need recognition
- Information seeking
- Evaluation of alternatives
- Purchase decision
- Post-Purchase Evaluation
Influences on consumer behaviour
psychological influences - motivation, perception, learning, beliefs and attitudes: attitude towards something (loyalty towards certain brand)
personal influences - age and life-cycle stage, occupation, economic circumstances, lifestyle, personality and self concept
Social influences - reference groups, family, roles and status
cultural influences - culture, subculture, social class system).
Product development process
Product ideas
Screening
Concept testing
Business analysis (sales forecast, breakeven analysis)
Prototype development
Product testing and marketing
Commercialization
Product life cycle
Introduction
Growth
Maturity
Decline
