Chapter 2 Flashcards
New marketing challenges
Information technology Nonprofit Globalization Changing world economy- privatization, liberal export and import policies, growing middle class, and emerging economies Target marketing
Customer relationship management
Must be concerned with the lifetime value of the customer.
Takes more time to attract new customer than to keep a current customer satisfied.
Key is to attract retain and grow customers.
Strategic planning process
Involves developing an overall company strategy for long-run survival and growth
Process involves
Defining a mission
Setting company objectives
Designing a business portfolio
Planning functional strategies
Market growth
The demand for a product
Market share
Sales for specific companies brand in the market
Industry attractiveness is similar to
Growth rate
Business strength is similar to
Market share
Industry attractiveness factors
Market size, growth rate, competition, profit margins and technology
Business strength factors
Market share, product quality, brand factors, opportunities and threats
Market penetration
Trying to grow their sales with existing products and customers.
— aggressive promotion, price cut, selling to more places, improving product without developing new one
Product development
Develop new products for exsist ing customers
— newer phones, new cars, new version of word
Market development
Grow existing products to new customers/markets
—moving disney to Japan
Diversification
Brand new products and new customers.
— sony
Functions of marketing
Buying, selling, storing, financing, standardization/grading, risk taking, transporting, market information
Marketing concept
Customer satisfaction and profit
— group of doctors set up group practice so that at least one is available for emergencies
— ATM placed in airport terminals
Mission statement
What the organization wants to accomplish
Business portfolio
The collection of businesses and products that make up the company.
— one that best fits the companies strengths and weaknesses
Portfolios analysis
By which management evaluates the products and businesses that make up the company
Value chain
The series of internal departments that carry out value-creating activities to design,produce, market,deliver and support a firms products
Marketing mix
Product, price, promotion and place
Positioning
Kind of image you want your customers to perceive product versus too competition
Product
Descions about product design, features, branding, packaging and positioning
Pricing
Determining price level and discounts, price relationship compared to other products?
Promotion
Advertising, sales promotion, publicity, personal selling
Place (distribution)
Retailing, channels of distribution, logistics
Direct channels
Just you the company
Indirect channels
Having others sell your product too
Marketing audit
Evaluation of the company’s marketing assets, good for reviewing strategies
Environmental strategy, systems, organizations and productivity
