Chapters 1-5 Flashcards
Marketing
process of creating, pricing, etc. goods, services and ideas
Target Market
specific group of customers: demographics and psychographics
4 P’s
Product, Place, Promotion, Price
Product
goods, services, ideas
Place
make products available in desired quantities
Promotion
activities used to inform individuals about products
Purpose of promotion
- increase public and target market
- educate customers
- urge people to take a stance
- help sustain interest
Price
critical component of marketing mix
Value
customer benefits - customer costs
Stakeholders
customers, investors, government, etc
Marketing Environment
- competitive
- economic
- political
- legal
- technological
- sociocultural
Production Orientation
Second half of 19th Century. Industrial Revolution changed efficiency
Sales Orientation
First half of 20th Century. New focus: sell product to buyers
Marketing Orientation
Mid 20th Century. Develop strategic focus for new products
Customer Relationship Management
using information about customers to create marketing strategies
Relationship Marketing
long-term mutually beneficial relationships
Customer lifetime value
predicts the net value for future relationships with a customer
Strategic Marketing Management
process of planning, implementing and evaluating the performance of marketing activities
Strategic planning
process of establishing a mission and creating goals
Corporate Identity
unique symbols and personalities
Levels of strategic planning
Mission statement > corporate strategy > business-unit strategy > marketing strategy > marketing mix
Corporate strategy
concerned with corporate culture, diversification, etc
Strategic business unit (SBU)
a division, product line, etc. within a parent company
Market share matrix
product’s market growth rate and its market share are important
Stars
product with dominant share of the marketing and good growth
Cash cows
dominant share in market, low prospects for growth
Dogs
decent share in market and low growth
Question Marks
small share of growing market and require lots of cash to build market share
Market opportunity
combination of circumstances that permit an organization to take action to reach a target market
SWOT Analysis
Strengths, weaknesses, opportunities, threats
First mover advantage
when a company is the first to obtain a product in the market
Late mover advantage
when a company enters the market late, achieving long-term advantages
Marketing OBJECTIVE
Statement of what is to be accomplished through activities
Sales Analysis
uses sales figures to evaluate performance
Marketing PLAN
Written document that specifies what activities will be performed
Environmental Scanning
Process of collecting information in marketing environment
Environmental Analysis
information gathered through scanning
Monopoly
when a company has virtually no competition
Oligopoly
when few sellers control the supply of a large proportion of a product
Monopolistic competition
when a firm has many competitors
Pure competition
large number of sellers, none able to influence price or supply
-doesn’t exist
Business cycle
Prosperity, recession, depression, recovery
Prosperity
low unemployment, high income
Recession
unemployment rises, buying power declines
Depression
unemployment is extremely high, wages are low
Recovery
economy moves back to prosperity
Buying power
resources, that can be traded in an exchange
Disposable income
after-tax income
Discretionary income
income available for spending and saving one has purchased basic necessity
Political forces
- enactment of legislation
- legal decisions interpreted by courts through cases
Federal Trade Commission
Agency that regulates:
- false advertising
- misleading prices
- deceptive packaging
Better Business Bureau
nongovernment, independent agencies supported by local businesses
National Advertising Review Board
self-regulatory unit that considers challenges to issues raised about ads
Sociocultural forces
culture, diversity
Demographic Characteristics
- increasing market of retired baby boomers
- Gen Y
- growing hispanic/latino market
Social Responsibility Pyramid
Economic, Legal, Ethical, Philanthropic
Cause-related marketing
linking products to a social cause
Strategic philanthropy
use of organizational core competencies to achieve organizational and social benefits
Sustainability
potential for long-term well-being of the natural environment
Consumerism
Efforts to protect the rights of the consumer
Product ethical issues
marketers fail to disclose risks with a product
Promotion ethical issues
false ads
Pricing ethical issues
price fixing
Distribution ethical issues
manipulating product availability
ETHICS
Relates to individuals and group decisions
SOCIAL RESPONSIBILITY
relates to total effects of marketing decisions on society
Marketing research
design, collection and reporting of information to help marketers solve issues
Types of research
Qualitative and Quantitative
Exploratory research
conducted to gather more information
Conclusive research
help make a final decision
Descriptive Research
used to clarify characteristics
Experimental research
allows marketers to make casual inferences about relationships
Five steps of marketing research process
1: Locate problems of research
2: design the product
3: collect data
4: interpret findings
5: report findings
