EXAM 1 Flashcards
ama definition of marketing
the activity, set of institutions and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
what are the five steps of the marketing process
1) understand the marketplace and customer needs and wants
2) design a customer value driven marketing strategy
3) construct an integrated marketing program that delivers superior value
4) engage customers, build profitable relationships, and create customer delight
5) capture value from customers to crate profits and customer equity
marketing management
The art and science of choosing target markets and building profitable relationships with them
marketing myopia
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
what are the five marketing management orientations
production concept: consumers will favor a product that is available and highly affordable
product concept: consumers will favor products with the most quality, performance, and features
selling concept: firm must undertake a large scale selling and promotion effort
marketing concept: must know the needs and wants of target and delivering satisfactions better than competitors do
societal marketing concept: marketing decisions should consider consumer’s wants, company’s requirements, consumers & society’s long-run interests
how to produce customer delight
promise only what you can deliver, and deliver more than you promise
customer relationship management
building and maintaining profitable customer relationships by delivering superior customers value and satisfaction
different customer relationship groups
strangers: low potential profitability, little projected loyalty
butterflies: high potential profitability, little projected loyalty
true friends: profitable and loyal
barnacles: low potential profitability, high loyalty
share of customer
the portion of a customer’s purchasing that a company gets in its product categories
digital/social media marketing
using websites, social media, mobile apps and ads, online video, email and blogs to engage consumers everywhere
extends customer engagement and gets people talking about a brand
strategic planning
developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
market oriented mission statements
a statement of the organization’s purpose-what it wants to accomplish in the larger environment; defines the business in terms of satisfying basic customer needs; realistic, specific, consistent
portfolio analysis & bcg
Evaluating the products and businesses making up a company (SBUs-strategic business units); evaluate based on SBU attractiveness in market and strength of market position
stars: high growth market, high share product
cash cows: low growth market, high share
question marks: high growth market, low share
dogs: low growth market, low share product
value delivery network
network of company, suppliers, distributors, and customers who pair to improve performance of the entire system in delivering customer value
growth strategies/ market expansion grid
market penetration: more sales to current customers with same product
market development: identifying and developing new markets for penetration
product development: new product to current market
diversification: starting or buying businesses outside of current products and markets
segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing mixes or strategies. segments respond in a similar way to a set of efforts
positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
functions of managing the marketing process
analysis (swot- strengths, weaknesses, opportunities, threats), planning, implementation & organization, control
marketing planning and implementation
swot objectives and the marketing strategy (target markets, positioning, mix and expenditure); implementation turns market strategies and plans into marketing actions to accomplish strategic marketing objectives & addresses the who, when where, how
marketing dashboards
meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance
marketing control
measuring/evaluating the results of marketing strategies/plans and taking corrective action to ensure the objectives are met.
operating control: monthly checking of the ongoing performance vs the annual plan and taking corrective action
strategic control: making sure the strategies are matched to its opportunities
microenvironment
the actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markets, competitors & publics
macroenvironment
some factors unpredictable & uncontrollable; demographic, economic, natural, technological, political, cultural
marketing intermediary
help the company promote, sell and distribute its products to final buyers
demographics
studying the human population in terms of size, density, location, age, gender, race, occupation; changing age structure, changing American family, geographic shifts, better educated, increasing diversity
generational marketing
rather than risk turning off one generation in favor of another, marketers need to form precise age-specific segments within each group; may be more useful to segment by psychographics (lifestyle, life stage, common values)
geographic population shifts
Americans have been moving from rural to metropolitan areas and now more micropolitan areas
natural environment
growing shortage of raw materials
increased population
increased government intervention
companies developing strategies & practices that support environmental sustainability (practices that create a world economy that the planet can support indefinitely)
income distribution
rich richer, shrunken middle class, poor remain poor- leads to a tiered market
socially responsible behavior
protect the long run interests of their consumers and the environment- social and ethical issues (privacy) arising now with the digital market
cultural values
core values (passed on & reinforced) vs secondary values (more open to change); peoples views of: themselves, others, organizations, society, nature, universe
responding to the marketing environment
react and adapt, proactive- create and shape new industries, aggressive actions to shape publics (lobbyists, media)
customer insights
fresh marketing information based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships
characteristics of a good marketing information system
balances what users would like to have vs what they need and is feasible`
what is marketing research
systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization
research objectives
exploratory, descriptive, causal
exploratory research
gather preliminary information to help define problems and support hypotheses
descriptive research
describes the marketing problem, situations, or markets
causal research
tests hypotheses about cause and effect relationships
ethnographic research
sending trained observers to watch/interact with consumers in their natural henvironment
observational research
observing people, actions and situations
focus groups
inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization
online marketing research
collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities; well suited for quantitative
marketing research process
defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings
subcultures
groups of people with shared value systems based on common life experiences and situations
hispanic: deeply family oriented, older are brand loyal and younger are price sensitive
African American: price conscious, motivated by quality and selection, brand important
asian: most affluent, brand conscious and loyal, frequent shoppers
total market strategy
integrating ethnic themes and cross cultural perspectives within a brands mainstream marketing, appealing to consumer similarities across subcultural segments (rather than differences)
social classes
relatively permanent/ordered divisions in a society whose member share similar interests, values, and behavior; not determined by a single factor but a combination of occupation, income, education, wealth
lifestyle
a person’s pattern of living expressed in their psychographics, involving AIO dimensions (activities, interests, opinions)
self concept
concept that peoples possessions contribute to and reflect their identities (we are what we consume)
what is perception
the process by which people select, organize, and interpret information to form a meaningful picture of the world
selective attention
tendency to screen out most of the information to which you have been exposed
selective distortion
tendency to distort information in a way to support what they already believe
selective retention
remember good points about a favored brand and forget good points about competing brands
attitude
relatively consistent evaluations, feelings, and tendencies towards an object or idea-difficult to change
types of buying behavior
complex (high involvement and brand difference), dissonance-reducing (high involvement and little brand difference), habitual (low involvement and brand difference), variety-seeking (low involvement and high brand difference)
habitual buying behavior
low involvement and low brand difference- acts out of habit instead of brand loyalty; marketers can use price and sales promotions to promote buying
post purchase behavior
the stage in which consumers take further action based on satisfaction or dissatisfaction: expectations vs. perceived performance
cognitive dissonance: discomfort caused by postpurchase conflict
stages of the buyer decision process (5)
need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior
stages of adoption process
awareness, interests, evaluation, trial, adoption
brand personality
specific mix of human traits that may be attributed to a particular brand:
sincerity, excitement, competence, sophistication, and ruggedness
market targeting
evaluation of each market segment’s attractiveness and selecting one or more segments to serve
four major steps in designing a customer value-driven marketing strategy
market segmentation, market targeting, differentiation, positioning
positioning
arranging for a market offering to occupy a clear, distinctive, desirable place relative to competing products in the minds of target consumers
psychographic segmentation
dividing a market into different segments based on life style, personality, or social class characteristics
occasion segmentation
dividing the market based on occasions when buyers actually get the idea to buy, actually make their purchase, or use the purchased item (ie. seasonal)
benefit segmentation
dividing the market into segments according to the different benefits consumers seek from a product
loyalty status
buyers grouped according to degree of loyalty- to brands, stores, companies; can utilize highly loyal customers
requirements for effective segmentation
measurable (size, purchase power, profit)
accessible
substantial
differentiable (respond differently to mix elements)
actionable (effective)
multivariable segmentation
merge geographic, demographic, lifestyle, behavioral data to help segment markets down to zip codes, neighborhoods, and households
intermarket segmentation
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
value proposition
how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments
important attributes of company differences to promote
important distinctive superior communicable preemptive affordable profitable
4 Ps of the marketing mix, and 4 Cs from buyers perspective
price, place, product, promotion
customer solution, customer cost, convenience, communication
4 major factors that influence consumer buying behavior
cultural factors, social factors, personal factors, psychological factors
5 types of customer markets
consumer, business, reseller, government, international
