CHAPTER 2 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
- is occurring at an accelerating rate; today is not like yesterday, and tomorrow will be different from today.
CHANGE
_________deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is ____________
MARKETING
“meeting needs profitably.”
- is a process of controlling the marketing aspects, setting the goals of a company, organizing the plans step by step, taking decisions for the firm, and executing them to get the maximum turn over by meeting the consumers’ demands.
MARKETING MANAGEMENT
5 FUNCTIONS MANAGEMENT
1.) PLANNING
2.) ORGANIZING
3.) LEADING
4.) STAFFING
5.) CONTROLLING
When you think of ________ in a management role, think about it as the process of choosing appropriate goals and actions to pursue and then determining what strategies to use, what actions to take, and deciding what resources are needed to achieve the goals.
PLANNING
-This process of establishing worker relationships allows workers to work together to achieve their organizational goals.
ORGANIZING
-This function involves articulating a vision, energizing employees, inspiring and motivating people using vision, influence, persuasion, and effective communication skills.
LEADING
Recruiting and selecting employees for positions within the company (within teams and departments).
STAFFING
MARKETING CONCEPT
THE PRODUCTION CONCEPT
THE PRODUCT CONCEPT
THE SELLING CONCEPT
THE MARKETING CONCEPT
THE SOCIETAL MARKETING CONCEPT
- The _____________’ one of the oldest in business, holds that consumers prefer products that are widely available and inexpensive.
THE PRODUCTION CONCEPT
- Other businesses are guided by the __________, which holds that consumers favor those products that offer the most quality, performance, or innovative features.
THE PRODUCT CONCEPT
- The organization must, therefore, undertake an aggressive selling and promotion effort.
THE SELLING CONCEPT
- The ______________ holds that the key to achieving organizational goals consists of the company being more effective than its competitors in creating, delivering, and communicating customer value to its chosen target markets.
THE MARKETING CONCEPT
The marketing concept rests on four pillars:
target market
customer needs
integrated marketing
profitability.
- Companies do best when they choose their________ arefully and prepare tailored marketing programs.
TARGET MARKET
- The ultimate purpose of the marketing concept is to help organizations achieve their objectives. In the case of private firms, the major objective is profit; in the case of nonprofit and public organizations, it is surviving and attracting enough funds to perform useful work.
PROFITABILITY
- A company can carefully define its target market yet fail to correctly understand the customers’ needs.
CUSTOMER NEEDS
- When all of the company’s departments work together to serve the customers’ interests, the result is integrated marketing. Integrated marketing takes place on two levels.
INTEGRATED MARKETING
- is marketing directed at people outside the company.
EXTERNAL MARKETING
- is the task of hiring, training, and motivating able employees who want to serve customers well.
INTERNAL MARKETING
-Given these changes, companies are doing a lot of soul-searching, and many highly respected firms are adjusting in a number of ways.
Company Responses and Adjustments
Here are some current trends
Reengineering
Outsourcing
E-commerce
Benchmarking
Alliance
Partner
Market
Global and local
Decentralized
- From focusing on functional departments to reorganizing by key processes, each managed by multidiscipline teams.
Reengineering
- From making everything inside the company to buying more products from outside if they can be obtained cheaper and better.
Outsourcing
- From attracting customers to stores and having salespeople call on offices to making virtually all products available on the Internet
E-commerce
- From relying on self-improvement to studying world-class performers and adopting best practices.
Benchmarking
- From trying to win alone to forming networks of partner firms.
Alliances
Suppliers-From using many suppliers to using fewer but more reliable suppliers who work closely in a “partnership” relationship with the company.
Partner
. -centered - From organizing by products to organizing by market segment.
Market
- From being local to being both global and local.
Global and local
- From being managed from the top to encouraging more initiative and “entrepreneurship” at the local level.
Decentralized
the environment changes and companies adjust, marketers also are rethinking their philosophies, concepts, and tools. Here are the major marketing themes at the start of the new millennium:
Marketer Responses and Adjustments
- From focusing on transactions to building long-term, profitable customer relationships. Companies focus on their most profitable customers, products, and channels.
Relationship marketing
- From making a profit on each sale to making profits by managing customer lifetime value. Some companies offer to deliver a constantly needed product on a regular basis at a lower price per unit because they will enjoy the customer’s business for a longer period.
Customer lifetime value
- From a focus on gaining market share to a focus on building customer share. Companies build customer share by offering a larger variety of goods to their existing customers and by training employees in cross-selling and up-selling.
Customer share
- From selling to everyone to trying to be the best firm serving well- defined ______ ____
Target marketing
- From selling the same offer in the same way to everyone in the target market to individualizing and customizing messages and offerings.
Individualization
- From collecting sales data to building a data warehouse of information about individual customers’ purchases, preferences, demographics, and profitability.
Customer database
- From reliance on one communication tool such as advertising to blending several tools to deliver a consistent brand image to customers at every brand contact.
Integrated marketing communications
- From thinking of intermediaries as customers to treating them as partners in delivering value to final customers.
Channels as partners
- From thinking that marketing is done only by marketing, sales, and customer support personnel to recognizing that every employee must be customer-focused.
Every employee is a marketer
- From making decisions on intuition or slim data to basing decisions on models and facts on how the marketplace works.
Model-based decision making
