Final Exam Flashcards
Marketing
the activitiy, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Market segments
relatively homogeneous groups of prospective buyers that 1) have common needs and 2) will respond similarly to a marketing action
target market
one or more specific groups of potential customers toward which an organization directs its marketing program
Marketing Mix
Product: good, service, or idea designed to satisfy customers’ needs
Price: what is exchanged for the product - usually money
Place: distribution channel used to get the product to the customer
Promotion: communication between the seller and buyer – including advertising, public relations, sales promotions, and personal selling
customer lifetime value
a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship
customer value
the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
Product
bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
difference between intangible and tangible product
tangible: physical
intangible: isn’t physical (ex: patents, copyrights)
difference between durable vs nondurable good
durable: can be used multiple times
nondurable: used a couple of time or one time use
need
feeling deprived of a basic necessity such as food, clothing, or shelter
want
need that is shaped by a person’s knowledge, culture, and personality
strategy
an organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
organization
legal entity that consists of people who share a common mission
Three types of organizations
for-profit business firms
nonprofit: Nongovernmental organization that serves its customers but does not have profit as an organizational goal.
government agencies: Federal, state, or local unit that provides a specific service to its constituents
organizational culture
the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
core values
the fundamental, passionate, and enduring principles of an organization that guide its conduct over time
mission
a statement of the organization’s function in society that often identifies its customers, markets, products, and technologies
Business Portfolio Analysis
A technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments
Four Quadrants
Question marks: SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it.
Stars: SBU with a high market share in a high-growth market.
- They may need extra cash to finance their rapid future growth.
- When their growth slows, they are likely to become cash cows.
Cash cows: a dominant share in a slow-growth market.
- It generates large amounts of cash. Far more than it can use.
- Cash cows provide funds to cover the organization’s overhead, and to invest in other SBUs.
Dogs:
Diversification Analysis: Market Penetration
Current products in current markets
- promotional campaigns
- price changes
Diversification Analysis: Diversification
New products in new markets
- internal expansion
- joint ventures
- mergers/acquistions
SWOT
strengths, weaknesses, opportunities, threats
build, correct, exploit, avoid
Environmental forces
the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces
What are the five environmental forces
Social, economic, technological, competitive, regulatory
social forces
the demographic and its cultural characteristics of the population
demographics
describing a population on characteristics such as age, gender, ethnicity, income, and occupation
culture
the set of values, ideas, and attitudes that are learned and shared among the members of a group
Three types of income
Gross income: the total amount of money made in one year by a person or household
Disposable income: the money a consumer has left after paying taxes to use for necessities
Discretionary income: the money a consumer has after paying for taxes and necessities to put towards savings and to purchase luxuries
Alternative Forms of Competition
- Pure Competition: many sellers with similar products
- Monopolistic competition: many sellers with substitutable products in a price range
- Oligopoly: few sellers control the majority of sales
- Pure monopoly: only one seller
Social responsibility
the idea that organizations are part of a larger society and are accountable to that society for their actions
Triple bottom line
the recognition of the need for organization to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
Societal marketing concept
The view that holds an organization should satisfy the needs of consumers in a way that also provides for society’s well being
Green marketing
marketing efforts to produce, promote, and reclaim environmentally sensitive products
Cause Marketing
Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
Consumer Problem-Solving Variations
Extended Problem Solving: high-involvement purchase situations; Considerable time and effort are devoted to the search for external information
Limited Problem Solving: used for purchases that do not require a great deal of time or effort; consumers typically seek some information or rely on a friend to help them evaluate alternatives.
Routine Problem Solving: consumers may spend little to no time seeking external information and evaluating alternatives; virtually a habit and typifies low-involvement decision making.
Consumer Journey Maps
All of the touchpoint a consumer before during and after a purchase
problem recognition - information search - alternative evaluation - purchase decision - post purchase behavior
brand loyalty
A favorable attitude toward and consistent purchase of a single brand over time
psychographics
the analysis of consumer lifestyles
- provides insights into consumer needs and wants
- useful in segmenting and targeting consumers for new and existing products
Four Types of Opinion leadership
Opinion leaders: Individuals who exert direct or indirect social influence over others.
Influencer marketing: The recruitment of individuals to advocate for products and brands rather than focusing exclusively on prospective buyers.
Word of mouth: Influencing of people during conversations.
Buzz: Popularity created by consumer word of mouth.
Marketing Research
the process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions
Data
facts and figures related to the project
secondary data
facts and figures recorded PRIOR to the project
Primary data
facts and figures NEWLY collected for the project
observational data
Facts and figures obtained by watching how people behave, using personal observation, mechanical methods, or neuromarketing techniques.
open-ended questions
questions that allow respondents to express opinions and ideas or describe behaviors in their own words
closed-end (or fixed alternative questions)
Questions that require respondents to select one or more response options from a set of predetermined choices.
Dichotomous questions: typically “yes” or “no”
Semantic differential questions: measure the perceptions associated with a concept using pairs of opposing adjectives
Likert scale questions:measure respondents’ attitudes, opinions, or perceptions by asking them to rate statements on a scale from “Strongly Agree” to “Strongly Disagree”.
sales forecast
the total sales of a product that a firm expects during a specified time period under specified conditions and its own marketing efforts
direct forecast
Type of forecast that involves estimating the value to be forecast without intervening steps
lost-horse forecast
A forecast made by starting with the last known value of the item, listing the factors that could cause changes in that value, estimating the degree of impact that each of those factors would have, and adjusting the base level to arrive at the final amount
market segmentation
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
product differentiation
A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products
Bases of Segmentation for Consumer Markets
Geography—where prospective customers live or work.
Demographics—physical characteristics, measurable characteristics, and other classification attributes of individuals and households.
Psychographics—subjective mental or emotional attributes of prospective customers.
Behaviors—observable actions. ( Usage rates, 80/20 Rule)
