Final Flashcards
Marketing
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
4 Eras in the evolution of marketing in the US
- Production
- Sales
- Marketing Concept
- Customer Relationship
The Marketing Concept Era
Fierce competition during post war baby boom. Businesses recognized they needed to be responsive to consumers if they wanted their business. Had 3 parts:
- A customer orientation: find out what consumers want
- A service orientation: Customer satisfaction should be a total and integrated organizational effort
- A profit orientation: Focus on those goods and services that will earn the most profit
CRM
Customer Relationship Management: The process of learning as much about customers and doing everything you can to satisfy them—or even exceed their expectations—with goods and services
The Customer Relationship Era
1990s and early 2000s managers adopted CRM
The Marketing Mix
The ingredients that go into a marketing program.
- Product – designing a want-satisfying product
- Price – choose a price that gives you a good profit margin and choose a price that fits your target market
- Place – putting the product where people will buy it; includes physical distribution
- Promotion - jumpstarts consumer interest
Value
Good quality at a fair price. Benefits minus cost = benefits exceed the cost
Total Product Offer
Everything that consumers evaluate when deciding whether to buy something; AKA value package.
Product + value enhancers (see fig. 14.1)
A successful marketer must begin to think like a consumer and evaluate the total product offer as a collection of impressions created by all the factors listed in 14.1
Convenience Goods and Services
Products the consumer wants to purchase frequently and with a minimum of effort (e.g. candy, gum)
Shopping goods and services
Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers.
Specialty goods and services
Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them.
Unsought goods and services
Products that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem
Brand
A name, symbol, design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.
Brand equity
The value of the brand name and associated symbols
Brand loyalty
The degree to which customers are satisfied, like the brand and are committed to further purchases
Brand Awareness
How quickly or easily a given brand name comes to mind when a product category is mentioned
Sells products without effort or expenditure
Factors affecting the perception of quality:
- Price
- Appearance
- Reputation
Product Life Cycle
A theoretical model of what happens to sales and profits for a product class over time. 4 stages:
- Introduction
- Growth - profit peaks
- Maturity - competition causes profit margins to decrease
- Decline - can raise prices because of less competition and can spend less on advertising
The Traditional Promotion Mix
The combination of promotional tools an organization uses.
- Advertising
- Personal Selling
- Public relations
- Sales promotion
Promotion
All the techniques sellers use to inform people about and motivate them to buy their products or services. Includes:
In addition to the traditional promotion mix it includes publicity, word of mouth (viral marketing) and various sales promotion efforts such as coupons, rebates, samples and cents-off deals
IMC
Integrated Marketing Communication – a technique that combines the promotional tools into one comprehensive, unified promotional strategy
in other words: using the same theme again and again across all of the promotional tools
Advertising
Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message
Public Relations
The management function that evaluates public attitudes, changes policy and procedures in response to the publics’ requests, and executes a program of action and information to earn public understanding and acceptance
Publicity
The talking arm of PR. Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller