Exam Study Flashcards
Define marketing.
Satisfying needs and wants of a target market for a price while building customer relationships.
Define a marketeer.
A marketeer is someone who seeks a response, attention, purchase, donation from another party called the prospect.
Do marketeers create need?
No. Society and the environment create needs.
Marketeers fulfil those needs with wants and demands.
When is a customer satisfied?
When expectations are met.
When is value created for a customer.
That depends on the level of satisfaction. When expectations are exceeded.
What is meant by quality in a marketing sense?
The amount of features/attributes of a product with the ability to satisfy
Define “marketing management”.
Choosing a target market and getting, keeping and growing markets/customer base by creating, delivering and communicating superior customer value.
What does successful marketing do?
- builds demand for products
- builds strong brands and customer loyalty, intangible assets that contribute to the value of the firm
Explain needs, wants and demands.
- need = basic human requirements, air, food, water, shelter
- want = specific objects that may satisfy the need (based on culture) - demands = want for specific product backed by buying power
What are the 4 elements in modern marketing management?
- People
- Process
- Programs
- Performance
What are the marketing management tasks?
- developing market strategies and plans
- capturing marketing insights
- connecting with (potential) customers
- building strong brands - create value
- delivering value
- communicating value
- creating successful long-term growth
What is marketed?
- goods
- services
- events
- experiences - persons
- places
- information - organisations
- ideas
What are the core marketing concepts?
- Segmentation
- Target marketing
- Positioning
- Supply chain
- Competition
Define “supply chain”.
a channel stretches from raw materials to components to finished products carried to final buyers.
What are the 3 new marketing realities?
- Technology
- Globalisation
- Social responsibility
What are the effects of the new marketing realities on the consumer and the company?
- New consumer abilities
- search, communicate and purchase on the go
- share opinions on social media and express loyalty - New company abilities
- use internet as information and sales channel
- collect fuller info about markets, consumers, prospects, competitors
- can reach customers quickly and efficiently via social media
- can improve purchasing, recruiting and training
Define competition.
All the actual and potential rival offerings and substitutes a buyer might consider.
What is needed to create efficient marketing channels?
- Analyse customer needs
- Setting channel objectives
- regularly check channel performance
What are upstream and downstream partners?
Upstream partners = expertise to create a product or service (raw materials, suppliers, components)
Downstream partners = marketing/distribution channels that look toward the customers
Define “demand chain view”.
‘sense and respond’ planning starts with the needs of the target consumer. The firm responds to these needs by organising a chain of resources and activities in order to create customer value.
What is a”value delivery network?”
A network composed of everyone, company , suppliers, distributors, customers improving performance of the entire system in delivering customer value.
What are intermediairies?
A channel partner that offers greater efficiency in making goods available to target markets. Through their contacts, experience, specialisation, intermediaries usually offer the firm more than it can achieve on its own.
Marketing channels consist of …
firms that have partnered for their common good, with each member playing a specialised role.
What is channel conflict?
Disagreement among marketing channel members on goals, roles and rewards.
What types of channel conflict are there?
- Horizontal conflict (refers to firms that offer same type of products and services)
- Vertical conflict (members on a different level)
What are conventional distribution channels?
consists of one or more independent producers, wholesalers and retailers. Each have a separate business seeking to maximise its own profits even at the expense of profits of the whole system.
How can channel members add value?
- From an economic view, intermediaries transform the assortment of products into assortments wanted by consumer.
- By bridging the major time and possession gaps that separate goods/services from those who would use them.
How can channel members add value?
- From an economic view, intermediaries transform the assortment of products into assortments wanted by consumer.
- By bridging the major time and possession gaps that separate goods/services from those who would use them.
- Distributors reduce the number of channel transactions
When should you use different channels?
The customer decides how they want their product. The customer buying direct, knows exactly what they want. When you get to the retailer, someone wants advice/guidance. In case of a wholesaler, they may have more information on the retail market.
What are vertical marketing systems?
A unified systems that provide channel leadership and consist of producers, wholesalers and retailers.
What are the 3 types of vertical marketing systems
- Corporate marketing systems
- Contractual marketing systems
- Administered marketing systems
What is a horizontal marketing system?
When two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production or marketing resources to accomplish more than any one company could alone.
What is disintermediation?
Disintermediation occurs when product/service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones. Removing intermediaries because efficiency is no longer there.
What decisions need to be taken in order to design your channel?
- analysing consumer needs
- setting channel objectives
- identifying major channel alternatives
- evaluation
How do you evaluate what channel alternatives to use?
Each alternative should be evaluated against:
- economic criteria
- control
- adaptability
What is a multi-channel distribution system?
Multichannel distribution systems are when a single firm sets up two or more marketing channels to reach one or more customer segments.
What channel objectives should be set?
- Targeted levels of customer service
- What segments to serve
- Best channels to use
- Minimising the cost of meeting customer service requirements.
Define “marketing logistics”.
Planning, implementing and controlling physical flow of goods from producer to the end consumer. (physical distribution)
What is supply chain management?
Supply chain management is the process of managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers.
What is “integrated logistics management”?
The recognition that providing customer service and trimming distribution costs requires teamwork internally and externally.
What is “Third-party logistics”
The outsourcing of logistics to third-party logistics providers (3PLs).
What are some types and causes of channel conflict?
Types of channel conflict: - Vertical level conflict - Horizontal level conflict - Inter-type level conflict - Multi-channel level conflict
Causes of channel conflict : - role ambiguity - incompatible goals - marketing or strategic misalignment - different market perception - change resistant - improper geographic or demographic distribution
What determines shelf-spacing and stocking considerations?
- product turnover
- promotional allowances
- sales force support
- co-op advertising allowance
What are the different types of digital marketing channel strategies?
Email Marketing Pay-Per-Click Advertising (PPC) Search Engine Optimization (SEO) Display Advertising Social Media Marketing (SMM) Content Marketing Affiliate Marketing Online Public Relations
What are some growth strategies?
- Building your market share
- Developing committed customers and stakeholders ]
- Branding
- Innovating new products - International expansion
- Acquisition and mergers - Building outstanding reputation for social responsibility
- Partnering with government and NGOs
How can you grow the core of a brand?
- Make the core of the brand as distinctive as possible (differentiate)
- Drive distribution through both existing and new channels (channel management)
- Offer the core product in new formats or versions (product portfolio)
What are the competitive strategies for market leaders?
- Expand total market demand
- Protecting market share
- Increasing market share
How can a market leader expand the total market demand?
- create new customers
- create more usage
How can market leaders protect their market share?
- Proactive marketing: responsive anticipation, creative anticipation
- Innovation
What are the implications for increasing market share through acquisition?
- Possibility of provoking antitrust actions
- economic cost
- pursuing wrong marketing activities
- Increased market share effect on quality (high/low)
What is meant by “optimal market share”
That’s the point where market share and profitability are their highest.
In what two ways can a business grow?
- organically
- acquisition
How do you market in a slow-growth economy?
- Explore upside of increasing investment (ROI)
- Get closer to customers - Review budget allocations
- Put forth compelling value proposition (this is what I do better)
- Fine-tune brand and product offerings
Which marketing strategies do you use in the growth, maturity and decline stages of the product life cycle?
Growth:
- Prices remain stable or decrease slightly
Maturity:
- modify the market (increase consumption)
- modify the product (quality, features, style, packaging)
- modify marketing mix
Decline:
- maintain brand & hope competitors will leave
- harvest (reduce various costs)
- drop the product
What is a brand?
- A brand is a name, term, sign, symbol or design or a combination intended to identify the goods or services of one seller of group of sellers and to differentiate them from competitors
- Branding is an identity
What is the role of branding for consumers?
- Set and fulfil expectations
- Reduce risk
- Simplify decision making - Take on personal meaning
- Become part of identity
What is the role of branding for firms?
- Simplify product handling - Organise inventory & accounting - Offer legal protection - Create brand loyalty - Secure competitive advantage
What is brand equity?
- Brand equity = added value endowed to products by consumers because of the brand
- If share value goes up, brand equity goes up and margins can be larger
What is branding?
The process of endowing products and services with the power of a brand
What is meant by customer-based brand equity?
The differential effect brand knowledge has on
consumer response to the marketing of that brand
What is internal branding?
Activities and processes that help inform/inspire employees about brands
What is customer equity?
- The sum of lifetime values of all customers (ownership of customer to get their cashflow)
- Affected by customer acquisition, retention and cross-selling
What types of advertising messages are there & what do they communicate?
- Primary (creates awareness and stimulates primary demand)
- Benefits (emphasise benefits to consumer)
- Comparison (compare with competitor) - Reminder (maintain awareness and stimulate repurchase)
How can an advertising budget be determined?
- Consider your share of voice (total amount of budget in the market)
- If awareness is high relative to the competition, does it make sense to move this money from this type of advertising to a different from of promotion?
What is a brand extension?
Introducing a host of new products under a firm’s strongest brand names
What are the 5 stages of the buyer decision process?
- Problem recognition
- Information search
- Evaluation of alternatives 4. Purchase decision
- Post-purchase behavior
What are the sets (of products) involved in decision-making?
- Total sets
- Awareness set
- Consideration set
- Choice set
- Decision
What some intervening factors on purchase decisions?
- Attitude of others
2. Unanticipated situational factors
What are the 3 post-purchase behaviours?
- Post-purchase satisfaction
- Post-purchase actions
- Post-purchase uses and disposal
What are the reasons for not retaining your customers?
- They are not satisfied
- you’re not paying attention to their preferences - Changes in the industry
What does MASDA stand for?
- measurable - substantial - accessible - differentiable - actionable
it is a method to determine effective segmentation criteria.
What are the steps of the product adoption process?
- Awareness (advertising)
- Interest (based on consumer preferences)
- Evaluation
- Trial - Adoption
What is reference pricing?
Reference pricing is when you develop your pricing strategy as to compare yourself with something.
What considerations are there when selecting a pricing method?
- Costs = price floor.
- Competitor’s price = orienting point
- Customer assessment of unique features = price ceiling
What responses are there to price changes by competitors?
- Price cuts
- when there is excess plant capacity
- when you dominate the market
What are the price-cutting traps?
- price concessions
- low quality (lowering attributes)
- fragile market share
- shallow pockets
- starting a price war
How can an organisation see that they are efficient with their chosen market?
- inventory turnover ratio?
- asset turnover ratio
What is target costing?
The price – desired profit margin = target costing
What is positioning analysis?
A process of analysing how a company’s current brand is perceived by the marketplace. When identifying target market opportunities, a company needs to compare the way its brand is perceived with the needs of the targeted market.
How can you reduce price sensitivity?
- have a unique product (unique features)
- use advertising to switch focus on benefits
