Chapter 2 Flashcards
Marketing management process
The process of 1. planning marketing activities
- directing the implementation of the plans
- controlling these plans
strategic (management) planning
The managerial process of developing and maintaining a match between an organization’s resources and its market opportunities
Marketing strategy
Specifies a target market and a related marketing mix
It is a big picture of what a firm will do in some market
Target market
A fairly homogeneous (similar) group of customers to whom a company wishes to appeal
Marketing mix
The controllable variables the company puts together to satisfy the target group
Target marketing
Says that a marketing mix is tailored to fit some specific target customers
Mass marketing
The typical production-oriented approach - vaguely aims at “everyone” with the same marketing mix
Assumes everyone is the same - considers everyone to be a potential customer
Target marketing is the __________ approach
Mass marketing is the ___________ approach
rifle
shotgun
Mass marketing vs. mass marketers
Mass marketing - sell to everyone
mass marketers - like Kraft and Walmart are aiming at clearly defined target markets
It is useful to reduce all the variables in the marketing mix to 4 basic ones:
Product
Place
Promotion
Price
Channel of distribution
Any series of girms (or individuals) that participate in the flow of products from producer to final user or consumer
Personal selling
Involves direct spoken communication between sellers and potential customers
May happen face-to-face, over the telephone, or required after the sale
Customer service
A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase - a key to builidng repeat business
This effort has to be blended with mass selling and sales promotion
Mass selling
Communicating with large numbers of customers at the same time
main form is advertising
Advertising
Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
___________ is the main form of mass selling
advertising
Publicity
Any unpaid form of nonpersonal presentation of ideas, goods, or services
Another important form of mass selling
Sales promotion
Refers to those promotion activities - other than advertising, publicity, and personal selling - that stimulate interest, trial, or purchase by final customers or others in the channel
We develop a product to:
satisfy the target customers
We find a way to reach our target customers’ ________
place
We use ___________ to tell the target customers about the product that has been designed for them
Promotion
We set a ________ after estimating expected customer reaction to the total offering and the costs of getting to them
Price
Marketing plan
A written statement of a markting strategy and the time-related details for carrying out the strategy
should describe: 1. what marketing mix will be offered and for how long
- what company resources will be needed at what rate
- what results are expected
Implementation
Putting marketing plans into operation
Operational decisions
Short-run decisions to help implement strategies may be needed
Marketing program
Blends all of the firm’s marketing plans into one “big” plan
Customer equity
The expected earnings stream (profitability) of a firm’s current and prospective customers over some period of time
Top management expects marketing strategy planners to help identify:
opportunities that will lead to an increase in the firm’s customer equity
Onetime strategy decisions
The decisions that decide what business the company is in and the strategies it will follow
Usually determine sucess or failure
Breakthrough opportunities
Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time
Competitive advantage
A firm has a marketing mix that the target market sees as better than a competitor’s mix
Differentiation
Means that the marketing mix is distinct from and better than what is available from a competitor
S.W.O.T. Analysis
Identifies and lists the firm’s strengths and weaknesses and its opportunites and threats
Market penetration
Trying to increase sales of a firm’s present products in its present markets - probably through a more aggressive marketing mix
*the firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors’ customers or current nonusers
Market development
Trying to increase sales by selling present products in new markets
Product development
Offering new or improved products for present markets
Diversification
Means moving into totally different lines of business - perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system
4 Basic Types of Opportunities
Market penetration
Market development
Product development
Diversification
Present products - Present markets
Market penetration
Present products - New markets
Market development
New products - New markets
DIversification
New products - Present markets
Product development
