Chapter 9 Flashcards
Marketing
a set of processes for creating, communicating, and delivering value to customers and for improving customer relationships. It includes everything that organizations do to satisfy customers’ needs.
Marketing Concept
The philosophy of satisfying customers’ needs while meeting organizational profit goals
Market Strategy does two things:
selects a target market and then implements strategies for creating, pricing, promoting, and distributing products that satisfy customers’ needs.
Four market segment dividing factors:
Demographics
Geographics
Behavior
Psychographics
Four P’s of Marketing
product
price
place
promotion
Methods for collecting Primary Data:
surveys, personal interviews, and focus groups.
Private Branding
the maker sells a product to a retailer who resells it under its own name.
Generic Branding
a no-brand product contains no identification except for a description of the contents.
Manufacture Branding
a company sells products under its own brand names.
Brand Equity
When consumers have a favorable experience with a product
Skimming Approach
starting off with the highest price that keenly interested customers are willing to pay. This approach yields early profits but invites competition.
Cost-Based Pricing
a company determines the cost of making a product and then sets a price by adding a profit to the cost.
Penetration Approach
marketers begin by charging a low price, both to keep out competition and to grab as much market share as possible.
Demand-Based Pricing
marketers set the price that they think consumers will pay
Target Costing
figuring out how much consumers are willing to pay and then subtract a reasonable profit from this price to determine the amount that can be spent to make the product.
Prestige Pricing
capitalizing on the common association of high price and quality, setting an artificially high price to substantiate the impression of high quality.
Odd-Even Pricing
companies set prices at such figures as $9.99 (an odd amount), counting on the common impression that it sounds cheaper than $10 (an even amount).
Advertising
paid, nonpersonal communication designed to create awareness of a product or company.
Personal Selling
one-on-one communication with existing and potential customers
Sales Promotion
provide potential customers with direct incentives to buy.
Publicity
involves getting the name of the company or its products mentioned in print or broadcast media.
Permission Marketing
Companies that ask customers if they can contact them
Interruption Marketing
interrupts people to get their attention (with the hope they will listen to the ad).
Social Media Marketing
the practice of including social media as part of a company’s marketing program.
Challenge of using social media:
it can be very time consuming to stay in touch with your customers and potential customers.
Product Life Cycle
The stages of development and decline that products go through over their lives
Stages of Product Life Cycle:
Introduction
Growth
Maturity
Decline
External Marketing Environment
includes regulatory and political activity, economic conditions, competitive forces, changes in technology, and social and cultural influences.
Consumer Behavior
the decision process that individuals go through when purchasing or using products.
Marketing Positions
advertising brand and product management marketing research supply chain and logistics management retailing sales
