CHAPTER 3 Flashcards
is the long-term planning and direction-setting process that helps a business achieve its overall objectives
STRATEGIC MARKETING
focuses on identifying market opportunities, understanding consumer needs, analyzing competition, and positioning the brand effectively
STRATEGIC MARKETING
refers to the short-term actions and strategies businesses use to implement their marketing plans. It includes specific activities like advertising campaigns, social media promotions, pricing strategies, and sales initiatives aimed at achieving immediate business objectives
TACTICAL MARKETING
2 THINGS TO CONSIDER IN TACTICAL MARKETING
- Know Your Customers
- Marketing Channels
2 MARKETING ENVIRONMENT
- Micro (internal) environment
- Macro (national) environment
consists of the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
Micro (internal) environment
consists of the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces
Macro (national) environment
6 TYPES OF MICRO-ENVIRONMENT
- COMPANY
- SUPPLIERS
- MARKETING INTERMEDIARIES
- COMPETITORS
- PUBLICS
- CUSTOMERS
aspect of micro-environment refers to the internal environment of the company. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting. Each of these departments influences marketing decision
COMPANY
They provide the resources needed by the company to produce its goods and services
SUPPLIERS
A company’s suppliers are responsible for
DELIVERING RESOURCES NEEDED FOR PRODUCTION
help the company promote, sell, and distribute its products to final buyers
MARKETING INTERMEDIARIES
4 TYPES OF MARKETING INTERMEDIARIES
- Resellers
- Physical distribution firms
- Marketing services agencies
- Financial intermediaries
firms that help the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise
Resellers
help the company stock and move goods from their points of origin to their destinations
Physical distribution firms
are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets
Marketing services agencies
include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods
Financial intermediaries
are also a factor in the microenvironment and include companies with similar offerings for goods and services
COMPETITORS
is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives
PUBLICS
7 TYPES OF PUBLICS
- Financial publics
- Media publics
- Government publics
- Citizen - action publics
- Local publics
- General public
- Internal publics
This group influences the company’s ability to obtain funds
Banks, investment analysts, and stockholders
Financial publics
This group carries news, features, and editorial opinion
newspapers, magazines, television stations, and blogs and Internet
Media publics
Management must take government developments into account
Government publics
company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others
Citizen - action publics
This group includes neighborhood residents and community organizations. Large companies usually create departments and programs that deal with local community issues and provide community supports
Local publics
A company needs to be concerned about the general public’s attitude toward its products and activities. The public’s image of the company affects its buying
General public
This group includes workers, managers, volunteers, and the board of directors
Internal publics
are the most important actors in the company’s microenvironment. The aim of the entire value delivery network is to serve target customers and create strong relationships with them
CUSTOMERS
4 TYPES OF CUSTOMERS
- Consumer markets
- Business markets
- Government markets
- International markets
consist of individuals and households that buy goods and services for personal consumption
Consumer markets
buy goods and services for further processing or use in their production processes, whereas reseller markets buy goods and services to resell at a profit
Business markets
consist of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them
Government markets
consist of these buyers in other countries, including consumers, producers, resellers, and governments. Each market type has special characteristics that call for careful study by the seller
International markets
refers to all forces that are part of the larger society and affect the micro-environment
MACRO-ENVIRONMENT
6 TYPES OF MACRO-ENVIRONMENT
- DEMOGRAPHIC ENVIRONMENT
- ECONOMIC ENVIRONMENT
- NATURAL ENVIRONMENT
- TECHNOLOGICAL ENVIRONMENT
- POLITICAL ENVIRONMENT
- CULTURAL ENVIRONMENT
Factors affecting organization in Macro environment are known as
P - POLITICAL
E - ECONOMIC
S- SOCIAL
T - TECHNOLOGICAL
E - ENVIRONMENTAL
L - LEGAL
is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics
DEMOGRAPHIC ENVIRONMENT
Characteristics: Hardworking, loyal, and value stability.
Consumer Behavior: Brand loyal, prefer in-store shopping, and prioritize quality.
Key Interests: Health, retirement planning, and experiences over material possessions.
(1946-1964)
Baby Boomers
Characteristics: Independent, resourceful, and skeptical of authority.
Consumer Behavior: Value work-life balance, brand quality, and convenience.
Key Interests: Family, financial security, and practical purchases.
(1965-1980)
Generation X
Characteristics: Tech-savvy, socially conscious, and value experiences over materialism.
Consumer Behavior: Prefer online shopping, influenced by reviews and social media.
Key Interests: Sustainability, innovation, and personalization.
(1981-1996)
Millennials
refers to the external economic factors and conditions that influence a business’s operations, performance, and decision-making. These factors shape market demand, consumer purchasing power, and overall economic activity, impacting how businesses grow, compete, and sustain profitability.
ECONOMIC ENVIRONMENT
4 FACTORS THAT AFFECTS ECONOMIC ENVIRONMENT
- Economic Growth
- Inflation and Deflation
- Employment Levels
- Consumer Income and Purchasing Power
is increasingly impacted by marketing activities and the resources marketers use. Over the past three decades, concerns about air and water pollution, global warming, and waste have grown.
NATURAL ENVIRONMENT
Key environmental trends include:
3
- Shortages of Raw Materials
- Increased Pollution
- Government Intervention
The _ has prompted companies to go beyond regulations, adopting environmentally sustainable practices. Companies like GE and PepsiCo are developing cleaner technologies, recyclable packaging, and energy-efficient operations to meet consumer demand for eco-friendly products.
GREEN MOVEMENT
- is rapidly shaping our world, offering both remarkable innovations and potential dangers
- like antibiotics, smartphones, and the internet have transformed life, while others, such as nuclear weapons and assault rifles, have created threats
TECHNOLOGICAL ENVIRONMENT
New tech presents exciting opportunities for marketers, such as tracking products with tiny transmitters, allowing for personalized shopping experiences and convenience.
TECHNOLOGICAL ENVIRONMENT
Marketing decisions are heavily influenced by the _ which includes laws, regulations, and government agencies that affect businesses
POLITICAL ENVIRONMENT
- is shaped by the beliefs and values of a society
- core beliefs, which are passed down and difficult to change, influence long-term marketing strategies, while secondary beliefs are easier to adapt to
CULTURAL ENVIRONMENT
is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
MARKETING RESEARCH
It gives marketers insights into customer motivations, purchase behavior, and satisfaction. It can help them to assess market potential and market share or measure the effectiveness of pricing, product, distribution, and promotion activities
MARKETING RESEARCH
The process of defining the problem and setting research objectives is critical in guiding the entire marketing research project
most challenging
MARKETING RESEARCH PROCESS
3 CATEGORIES OF MARKETING RESEARCH PROCESS
- Exploratory Research
- Descriptive Research
- Causal Research
Aimed at gathering preliminary data to define the problem and generate hypotheses
Exploratory Research
Focuses on describing market characteristics, such as the target audience’s demographics and behaviors, or the potential of a product in the market
Descriptive Research
Tests specific hypotheses to understand cause-and-effect relationships, such as the impact of price changes on sales
Causal Research
involves determining the specific information needed, creating a strategy to gather it efficiently, and presenting it to management. The plan outlines data sources, research approaches, contact methods, sampling strategies, and data collection tools
DEVELOPING THE RESEARCH PLAN
Translating research objectives into specific information requirements.
Defining Information Needs
2 TYPES OF DATA SOURCES
- SECONDARY
- PRIMARY
Existing information collected for other purposes
Secondary Data
New information gathered for the current research
Primary Data
Selecting methods such as surveys, experiments, or observational studies.
Research Approaches
3 TYPES OF Research Approaches
- Observational Research
- Survey Research
- Experimental Research
Choosing communication channels, like face-to-face interviews, telephone calls, emails, or online surveys.
Contact Methods
4 TYPES OF Contact Methods
- Mail questionnaires** (LARGE DATA)**
- Telephone interviewing** (BEST METHOD)**
- Personal interviewing
- roup interviewing (6 - 10)
Determining the target audience, sample size, and sampling technique (random, quota, etc.)
Sampling Plan
A _ is a segment of the population selected for marketing research to represent the population as a whole
SAMPLE
Each member of the population has an equal chance of being selected
PROBABILITY SAMPLING (RANDOM SELECTION)
3
- Simple Random Sampling
- Stratified Random Sampling
- Cluster Sampling
Every individual is chosen purely by chance, like drawing names from a hat.
Simple Random Sampling
The population is divided into subgroups (strata), and samples are taken from each subgroup proportionally
Stratified Random Sampling
The population is divided into clusters, and entire clusters are randomly selected for study
Cluster Sampling
Not all members of the population have an equal chance of being selected
NON-PROBABILITY SAMPLING (NON-RANDOM SELECTION)
3
- Convenience Sampling
- Judgmental/Purposive Sampling
- Quota Sampling
Selecting participants who are easiest to reach (e.g., surveying shoppers in a mall).
Convenience Sampling
Researchers choose participants based on their expertise or judgment (e.g., industry experts).
Judgmental/Purposive Sampling
Ensures specific proportions of subgroups are included, similar to stratified sampling but without random selection.
Quota Sampling
Selecting tools for data collection, such as questionnaires or technological devices.
Research Instruments
Typically, a written proposal is created, especially for large projects, detailing objectives, methods, costs, and how results will support decision-making.
Presentation of Plan
This phase involves putting the research plan into action by gathering, processing, and analyzing data. Researchers ensure the correct execution of data collection, monitoring respondent interactions and interviewer performance to avoid errors. Once data is collected, it is verified for accuracy, coded, and analyzed to uncover relevant insights.
IMPLEMENTING THE RESEARCH PLAN
After analyzing the data, researchers interpret the results, draw meaningful conclusions, and present findings to management. The goal is to highlight actionable insights without overwhelming managers with excessive data or complex statistics. Collaboration between researchers and managers ensures balanced interpretations, helping businesses make well-informed decisions based on the research.
INTERPRETING AND REPORTING FINDINGS
