Chapters 11, 12, 15, 16 Flashcards
Marketing
-A group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods
-Creates value
-Important part of a firm’s overall strategy
Marketing (NOT)
-Manipulation of consumers
-just advertising/selling
Exchange
-Each participant must be willing to give up something of value to receive something held by the other
-The act of giving up one thing in return for something else
Marketing Concept
The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals
Market Orientation
An approach requiring organizations to gather information about customer needs, share that information throughout the firm, and use that information to help build long-term relationships with customers (21st century/customer perspective)
Marketing Strategy
A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers
Market
A group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas
Target Market
A specific group of consumers on whose needs and wants a company focuses its marketing effort
Market Segmentation
A strategy whereby a firm divides the total market into groups of people who have relatively similar product needs
Total-Market Approach
An approach whereby a firm tries to appeal to everyone and assumes that all buyers have similar needs (Agricultural products)
Concentration Approach
A market segmentation approach whereby a company develops one marketing strategy for a single market segment (Porche)
Multisegment Approach
A market segmentation approach whereby the marketer aims its effort at two or more segments, developing a marketing strategy for each (Ford different types of vehichles)
Marketing Mix
The four marketing activities-product, price, promotion, and distribution that the firm can control to achieve specific goals within a dynamic marketing environment
Price
-A value placed on an object exchanged between a buyer and a seller
-Can be changed quickly to stimulate demand or respond to competitors (most flexible)
Distribution/Place
-Making products available to customers in the quantities desired
-Least Flexible
Product
- A complete mix of tangible and intangible attributes that provide satisfaction and benefits
Promotion
-A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups, and organizations to accept goods, services, and ideas
-Very flexible many options
Marketing Research
A systematic, objective process of getting information about potential customers to guide marketing decisions
External Forces Influencing Marketing Strategy
Political, Legal, regulatory, social, technological, competitive, and economic
6 Steps of Product Development
Idea development, New idea screening, Business analysis, Product development, Test marketing, and Commercialization
Convenience Products
Bought frequently without a lengthy search and often for immediate consumption. Spend no time and usually buy any brand (beverages, food, gasoline, batteries)
Shopping Products
Purchased after the consumer has compared competitive products and shopped around. Price, features, quality, style, service, and image influence decision (computers, phone, clothes)
Specialty Products
Require even greater research and shopping effort. Consumers know what they want and go out of their way to find it. Not willing to accept substitute (Motorcycle, designer clothes, art, concert)
Product Line
A group of closely related products that are treated as a unit because of similar marketing strategy, production, or end use considerations
Product Mix
All the products offered by an organization
Introductory Stage
Consumer awareness and acceptance of the product are limited, sales are zero, and profits are negative
Growth Stage
-Sales increase rapidly
-profits peak, then start to decline (Competition enters)
Maturity Stage
-Sales continue to increase at the beginning
-sales curve peaks and start to decline
-profits continue to decline (Sales peak)
Decline Stage
-Sales fall rapidly
-profits decline and can turn into losses
-leading to the elimination in certain products
Skimming Pricing
Charging the highest possible price that buyers who want the product will pay
Penetration Price
A low price designed to help a product enter the market and gain market share rapidly
Psychological Pricing
Encouraging purchases based on emotional rather than rational responses to the price
Discounts
Temporary price reductions, often employed to boost sales
Intensive Distribution
A form of market coverage whereby a product is made available in as many outlets as possible (Bread/eggs)
Selective Distribution
Only a small number of all available outlets are used to expose products (Polo clothes)
Exclusive distribution
The awarding by a manufacture to an intermediary of the sole right to sell a product in a defined geographic territory
Integrated Marketing Communications
Coordinating the promotion mix elements and synchronizing promotion as a unified effort
Promotion Mix
-Advertising
-Personal selling
-Publicity
-Sales promotion
Advertising
A paid form of nonpersonal communication transmitted through a mass medium, such as tv commercials
Personal selling
Direct, two way communication with buyers and potential buyers
Publicity
Nonpersonal communication transmitted through the mass media but not paid for directly by the firm
Sales promotion
Direct inducements offering added value or some other incentive for buyers to enter into an exchange
Push Strategy
An attempt to motivate intermediaries to push the product down to their costumers
Pull Strategy
The use of promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it
Discipline of Finance
The study of how money is managed
Characteristics of Money
Acceptability, divisibility, portability, stability, durability
Different types of Money
CDs, Money markets, credit cards, debit, checking/saving account,
Federal Reserve System
Create a stable and economic environment
FDIC (Federal Deposit Insurance Company)
Ensures your checking account up to 250k
Banking Institution
-Accept money deposits
-Commercial banks, savings/loans, credit unions, Mutual
Non Banking Institution
-offer loans or investments but do not accept deposits
-Insurance companies, Investment bankers, pension funds, mutual funds, finance companies
Capital Budgeting
Processe of analyzing the needs of the business and selecting assets that will maximize the value
Equity Financing
Process of raising capital through the sale of shares
Debt Financing
The company raises money by selling debt instruments to investors
NYSE
Floor trade market (largest)
NASDAQ
electronic market
DIJA
Made up of a group of 30 companies
Prestige Pricing
Setting prices very high to promote quality
