Final Flashcards
the activity for creating, communicating, delivering and exchanging offerings that benefit he organization, it’s stakeholders and society at large
marketing
For marketing to occur, at least four factors are required
Two or more parties (individuals or organizations) with unsatisfied needs
A desire and ability on their part to be satisfied
A way for the parties to communicate
Something to exchange
You with a need for technology-related information and your bookstore owner, needing someone to buy a copy of computer world
Two or more parties (individuals or organizations) with unsatisfied needs
You have the money to buy the item and the time to get to the bookstore and the stores owner has the desire to sell but also the ability to do so since it is stocked on the shelves
A desire and ability on their part to be satisfied
When you receive a free sample in the mail or see the magazine on display in the bookstore, the communication barrier between you and your bookstore is overcome
A way for the parties to communicate
You exchange your money for the bookstore’s magazine and both have gained something and also given up something
Something to exchange
people with the desire and ability to buy a specific product
market
marketing designed to influence the behaviour of individuals in which the benefits of the behaviour accrue to those individuals or to the society in general and not to the marketer
social marketing
Anti smoking campaigns
social marketing
people who use the goods and services purchased for a household
ultimate consumers
those manufacturers, wholesalers, retailers and government agencies that buy goods and services for their own use or for resale
organizational buyers
one or more specific groups of potential customers toward which an organization directs it’s marketing program
target market
create value by developing a variety of offerings, including goods, services and ideas, to satisfy customer needs
product
everything a buyer gives up in exchange for the product. The key to determining it is to figure out how much customers are wiling to pay and assess whether a profit can be made at that point
price
communication by a marketer that informs, persuades and reminds potential buyers about a product or service to influence their opinions or elicit a response
promotion
all activities necessary to get the product to the right customer when the customer wants it
place
the marketing managers controllable factors: the marketing actions of product, price, promotion and place that he or she can take to create, communicate and deliver value
marketing mix
a plan that integrates the marketing mix to provide a good, service or idea to prospective buyers
marketing program
Six different orientations in the history of North American business
Production era → 1840s -1930s
Sales era → 1920s - 1960s
Marketing concept era → 1950s - 1990s
Market orientation era → 1990s on
Customer experience management era → 2000s on
Social media marketing era → 2010s on
Customers resist nonessential goods and services
Personal selling and advertisings task is to convince them to buy: sell, sell, sell
Rebates, 0% finance, ‘free’ stuff
sales era
Company wide consumer orientation
Objective is long run success
Satisfying customer needs
marketing concept era and marketing orientation era
the idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve the organizations goals
marketing concept
the unique combination of benefits received by the customer that include quality, price, convenience, on-time delivery and both before-sale and after-sale service
customer value
the match between customer expectations of the product and the products actual performance
customer satisfaction
the process of building and developing long term relationships with customers by delivering customer value and satisfaction
customer relationship management (CRM)
the profit generated by the customers purchase of an organizations product or service over the customers lifetime
customer lifetime value (CLV)
a web centric, personalized approach to managing long term customer relationships electronically
eCRM
involves two way buyer seller electronic communication in which the buyer can control the kind and amount of information received from the seller
interactive marketing
managing the customers interactions with the organization at all levels and at all tough points (direct and indirect contacts of the customer with an organization) so that the customer has a positive impression of the organization, is satisfied with the experience, and will remain loyal to the organization
customer service management (CEM)
the customer is the focus and the company’s brands, products and services, finances, leaders and marketers are in tune and in time with the customers needs, expectations, aspirations and budgets
customer centric marketing organization
consumer generated online marketing efforts to promote brands and companies for which they are fans (or conversely, negatively promoting brands and companies for which they are non fans), and the use by marketers of online tools and platforms to promote their brands or organizations
social media marketing
the use of social media to enable organizations to engage customers in collaborative conversations for mutually beneficial value
social CRM
the moral principles and values that govern the actions and decisions of an individual or group
ethics
individuals and organizations are part of a larger society and are accountable to that society for their actions
social responsibility
the view that an organization should discover and satisfy the needs of its consumers in a way that also provides for society’s well being
social marketing concept
the aggregate flow of a nations goods and services to benefit society. Addresses such broad issues as whether marketing costs too much, whether advertising is wasteful and what resource scarcities and pollution side effects result from the marketing system
macroeconomics
how an individual organization directs it’s marketing activities and allocates its resources to benefit it’s customers
micromarketing
the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit
international marketing
simple exchanges
transaction-based marketing
convert new customers to advocates, lifetime value of customer and identify best customers and increase their loyalty
relationship/value marketing
a legal entity of people who share a common mission
organization
privately owned organization that serves its customers in order to earn a profit
business firm
the money left after a business firms total expenses are subtracted from its total revenue; the reward for the risk it undertakes in marketing its offerings
profit
an organizations long term course of action designed to deliver a unique customer experience while achieving its goals
strategy
Three organizational levels whose strategy is linked to marketing
corporate level
strategic business unit level
functional level
level at which top management directs overall strategy for the entire organization
corporate level
a subsidiary division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers
strategic business unit level
the level in an organization where groups of specialists actually create value for the organization
functional level
the responsibility for the systematic management of marketing resources and processes to achieve measurable gains in return on marketing investment and increased marketing efficiency, while maintaining quality and increasing the value of the corporation
marketing accountability
a business unit level where managers set a more specific strategic direction for their businesses to exploit value creating opportunities
strategic business unit level
the level in an organization where groups of specialists actually create value for the organization
functional level
a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals
cross functional teams
core values
mission (vision)
organizational culture
organizational foundation (why)
the fundamental, passionate and enduring principles that guide its conduct over time
core values
a statement of the organizations function in society, often identifying its customers, markets, products and technologies
mission
a set of values, ideas, attitudes and norms of behaviour that is learned and shared among the members of an organization
organizational culture
business
long and short term goals (objectives)
organizational direction (what)
the clear, broad, underlying industry or market sector of an organizations offering
business
statements of an accomplishment of a task to be achieved, often by a specific time
goals
Corporate, strategic business unit or functional level
Product, service, idea or experience offering
organizational strategies (how)
the strategies an organization develops to provide value to the customer it serves
business model
Useful criteria for writing effective goals
specific
measurable
attainable
relevant
time based
be a precise description of what is to be achieved
specific
be a quantitative value to show attainment
measurable
be achievable, but challenging
attainable
be pertinent to the organizations mission
relevant
have a deadline for completion
time based
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
market share
an organizations special capabilities, including skills, technologies and resources, that distinguish it from other organizations and provide value to its customers
competencies
a unique strength relative to competitors, often based on quality, time, cost, innovation, customer intimacy or customer experience management
competitive advantage
those features and characteristics of a product that influence its ability to satisfy customer needs
quality
discovering how others do something better than your own firm so that you can imitate or leapfrog competition
benchmarking
uses quantified performance measures and growth targets to analyze a firms business units as though they were a collection of separate investments
business portfolio analysis
Provides a measure of market attractiveness based on the annual rate of growth of the SBU’s industry
business portfolio analysis vertical axis
market growth rate
Serves as a measure of the organizations strength in the market
business portfolio analysis horizontal axis
relative market share
The growth share matrix reveals four types of SBUs
cash cows
stars
question marks
dogs
low growth, high share businesses that require less investment to maintain market share → they generate large amounts of cash that cover the organizations overhead and to invest in SBUs
cash cows
high growth, high share businesses that require heavy investment to finance their rapid growth. When their growth slows, they are likely to become cash cows
stars
low share businesses in high growth markets that require major investments to hold share, and even more investment to increase it. management needs to make decisions about which question marks to build into stars and which ones to phase out or eliminate
question marks
low growth, low share businesses. They may generate enough cash to maintain themselves but do not hold promise to become real winners for the organization
dogs
Market-product strategies (4)
market penetration
market development
product development
diversification
selling more products in existing markets
market penetration
selling existing products in new markets (either geographic or new segments)
market development
selling new products in existing markets
product development
selling a new product in new markets
diversification
when new products and new markets have something in common with the firms existing operations
related diversification
the new products and new markets have nothing in common with existing operations
unrelated diversification
a measure of the quantitative value or trend of a marketing activity or results
marketing metric
the strategic marketing process (6)
Planning phase
Step 1 → situation (SWOT) analysis
Step 2 → market-product focus and goal setting
Step 3 → marketing program
implementation phase
evaluation phase
Identify industry trends
Analyze competitors
Assess own company
Research customer
situation (SWOT) analysis
Set market and product goals
Select target markets
Find points of difference
Position the product
market-product focus and goal setting
Develop the programs marketing mix
Develop the budget, by estimating revenues, expenses and profits
marketing program
Obtain resources
Design marketing organization
Develop schedules
Execute marketing program
implementation phase
Compare results with plans to identify deviations
Act to correct negative deviations; exploit positive ones
evaluation phase
process whereby an organization allocates its marketing mix resources to reach its target markets
strategic marketing process
a road map for the marketing activities of an organization for a specified future period of time, such as one year or five years
marketing plan
taking stock of where the firm or product has been recently, where it is now and where it is headed in terms of the organizations plans and the external factors and trends affecting it
situational analysis
an acronym describing an organizations appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats
SWOT analysis
aggregating prospective buyers into groups or segments that have common needs and will respond similarly to a marketing action
market segmentation
characteristics of a product that make it superior to competitive substitutes
points of difference
the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
marketing strategy
detailed day to day operational decisions essential to the overall success of marketing strategies
marketing tactics
Relative advantage
Superior quality
Observable, compatible and user friendly
product excellence
Competing with intangibles
Deep understanding of customer expectations
Ability to create a memorable customer experience
consumer excellence
Market by location
Ability to target impulse buying behaviour
High visibility
locational excellence
Quality at an affordable price, targeting middle class
Efficiency and ability to maintain quality
Lower waste to minimum
operational excellence
SWOT analysis vertical axis
External origin → attribute of the environment
Internal origin → attribute of the organization
SWOT analysis horizontal axis
Helpful → to achieving the objective
Harmful → to achieving the objective
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
environmental scanning
Environmental forces (5)
social
economic
technological
competitive
regulatory
forces of the environment that include the demographic characteristics of the population and its values
Demographic shifts
Cultural changes
social
pertains to the income expenditures and resources that affect the cost of running a business and household
Macroeconomic conditions
Consumer income
economic
inventions or innovations from applied science or engineering research
Changing technology
Technology’s impact in customer value
Electronic business technologies
technological
alternative firms that could provide a product to satisfy a specific markets needs
Alternative forms of competition
Small businesses
competitive
restrictions that provincial and federal laws place on business with regard to the conduct of its activities
Laws protecting competition
Laws affecting marketing mix actions
Self regulation
regulatory
the study of the characteristics of a human population. These characteristics include population size, growth rate, gender, marital status, ethnicity, income and so forth
demographics
the generation of those born between 1946 and 1964
baby boomers
the population of those born between 1965 and 1967
generation x
those born between 1977 and 1994
generation y (millennials)
combinations of the marketing mix that reflect the unique attitudes, race or ancestry, communication preferences, and lifestyles of ethnic Canadians
ethnic marketing
the set of values, ideas and attitudes that are learned and shared among the members of a group
culture
the concern for obtaining the best quality, features and performance of a product or service for a given price
value consciousness
the total amount of money made in one year by a person, household or family unit
gross income
the money a consumer has left after paying taxes to use for such necessities as good, shelter, clothing and transportation
disposable income
the money that remains after paying for taxes and necessities
discretionary income
an Internet/web based network used within the boundaries of an organization
intranet
an internet based technology that permits communication between a company and its suppliers, distributors and other partners
extranet
an information and communication based electronic exchange environment
marketspace
all electronic based company activities both within and outside the company
e business
specific buying and selling processes on the Internet
e commerce
also called online marketing, the marketing component of e commerce
e marketing
four basic forms of competition
pure competition
monopolistic competition
oligopoly
monopoly
every company has a similar product
pure competition
many sellers compete with their products on a substitutable basis
monopolistic competition
when a few companies control the majority of industry sales
oligopoly
when only one firm sells the product or service
monopoly
Factors that drive competition
entry
bargaining power of buyers and suppliers
existing rivalries
substitution possibilities
business practices or conditions that make it difficult for new firms to enter a market
barriers to entry
few in number, low switching costs, product represents a significant share of the buyers total costs
powerful buyers
competition is more heated for any possible gains in market share
slow growth settings
the key legislation designed to protect competition and consumers in Canada
competition act
an alternative to government control where an industry attempts to police itself
self regulation
a grassroots movement started in the 1960s to increase the influence, power and rifts of consumers in dealing with institutions
consumerism
Porters 5 competitive forces
Competitive rivalry within an industry
Bargaining power of suppliers
Bargaining power of customers
Threat of new entrants
Threat of substitute products
High entry barriers = low threat of new entrants
Suppliers and buyers have weak positions
Few threats from substitute products
Moderate rivalry among competitors
attractive industry
Low entry barriers
Suppliers and buyers have strong positions
Strong threats from substitute products
Intense rivalry among competitors
unattractive industry
the relatively homogeneous groups of prospective buyers that result from the market segmentation process
marketing segments
strategy that involves a firm using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different from and better than competing products
product differentiation
a framework to relate the market segments of potential buyers to products offered or potential actions by the firm
market-product grid
targeting strategies (4)
One product and multiple market segments
Multiple products and multiple market segments
One product and one market segment
Segments of one: mass customization
the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently
organizational synergy
new products or new chain stealing customers and sales from the older, existing ones
cannibalization
The five key steps in segmenting and targeting markets
Group potential buyers into segments
Group products to be sold into categories
Develop a market-product grid and estimate size of markets
Select target markets
Take marketing actions to reach target markets
Criteria to use in forming segments (5)
Potential for increased profit
Similarity of needs of potential buyers within a segment
Difference of needs of buyers among segments
Potential of a marketing action to reach a segment
Simplicity and cost of assigning potential buyers to segments
Ways to segment consumer markets (4)
geographic
demographic
psychographic
behavioural
where are the customers?
geographic segmentation
what kind of customers?
demographic segmentation
who are the customers?
psychographic segmentation
how customers spend/use
behavioural segmentation
quantity consumed or patronage - store visits - during a specific period; varies significantly among different customer groups
usage rate
a concept that suggests 80 percent of a firms sales are obtained from 20 percent of its customers
80/20 rule
Targeting criteria (5)
market size
expected growth
competitive growth
cost or reaching the segment
compatibility with the organizations objectives and resources
the place an offering occupies in consumers minds on important attributes relative to competitive products
product positioning
changing the place an offering occupies in a consumers mind relative to competitive products
product repositioning
competing directly with competitors on similar product attributes in the same target market
head to head positioning
Dollar competes directly with Avis and Hertz
head to head positioning
