Final Exam review- Weeks 9-10 Flashcards
Marketing
The activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for coustemers, clients, partners and society at large.
The process of marketing
begins with discovering unmet customer needs and continues with researching the potential market; producing a good or service capable of satisfying the targeted costumers; and promoting, pricing, and distributing that good or service
Utility
the power of a good/service to satisfy a want or need. The benefits recieved from the exchange.
What are the four types of Utility?
Form, Time, Place, and Posseting
What are the two basic steps of developing a market strategy?
Identify the target market and create a marketing mix
Identify a target market
A group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences.
Create a marketing mix
The marketing mix is a blend of the four elements of marketing strategy
What are the four elements of a marketing strategy?
Product, Place, Price, and Promotion
Market Research
The process of collecting and evaluating information to support marketing decision making
Primary data
Data collected through observation, surveys, and other forms of observational study
Secondary data
Previously published data from trade accociations, advertising agencies, marketing research firms and other sources
Data mining
Computer searches of customer data to detect patterns and relationships
Business intelligence
Activities and technologies for gathering, storing, and analyzing data to to make better competitive decisions
What are common bases of segmenting customer markets?
Geographical, demographic, psychological, and product related
Geographic segemntation
divides the market into homogeneous groups based on their locations
Demographic segregation
divides market on the basis of various demographic or socioeconomic characteristics: gender, income, age, occupation, household size, stage in family life cycle, education, and ethnic group
Psychographic segmentation
divides the consumer market into groups with similar psychological characteristics, values, and lifestyles
product-related segmentation
divides market based on buyer’s relationship to the good/service based on benefits sought by buyers, usage rates, and loyalty levels
consumer behavior
actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions
relationship marketing
developing and maintaining long-term, cost-effective exchange relationships with partners
What is the 80/20 rule?
80% of revenue comes from 20% of costumers
Product
A bundle of physical, service, and symbolic characteristics designed to satisfy customer wants
product line
A group of related products marked by physical similarities or intended for a similar market (e.g cereal)
product mix
an assortment of product lines and individual goods and services a firm offers to customers and business users
What are the four basic stages of the product life cycle?
Introduction, growth, maturity, and decline
What are the product development stages?
generating new ideas, screening, concept development & business analytics, product development, test marketing, and commercialization
Generating ideas
ideas come from many ideas: coustemer suggestions, suppliers, employees, & competative products
Screening
eliminates ideas that do not mesh w/ overall company objectives or can’t be developed given resources
Concept development and business analytics
further screening occurs, as well as assessment of potential sales, profits, growth rate, and competitive strengths
product development
functioning phototypes or detailed descriptions of product may be created
test marketing
into of new product supported by complete marketing campaign to a selected city or TV coverage area to examine both consumer responses to new offering & marketing effort used to support it
Commercialization
product is generally available to market
Why can products fail?
are not properly developed & tested, are poorly packaged, lack adequate promotional support, lack adequate distribution, or do not satisfy a customer’s want/need
Brand
Name, Term, sign, symbol, design or some combination that identifies the products of one of the firm and differentiates them
brand name
part of the brand that consists of words or letters included in a name used to identify and distinguish the firm’s offerings from competitors
trademark
brand that has been given legal protection
brand recognition
the consumer is aware of the brand but does not have a preference of it
brand preference
consumer chooses one brand over another
brand insistence
consumer will seek out preferred brand
brand equity
added value that a respected and successful name gives to a product based on brand awareness
distrabution channel
path through which products and legal ownership of them flow from producers to consumers
Integrated marketing communications
the coordination of all promotional activities- media advertising, direct mail, personal selling, sales promotion, and product relations- to produce a unified, customer-focused message
promotion
the function of informing, persuading, and influencing a purchase decision
product placement
marketers pay placement fees to have their products showcased in various media, ranging from newspapers to television
native advertising
online advertising method in which the advertiser attempts to gain attention by providing content in the context of the user’s experience
Guerilla advertising
involves innovative, low-cost marketing efforts designed to get consumer attention in a unusual way
product advertising
messages deigned to sell a particular good/service
institutional advertising
messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities
cause advertising
institutional messaging that promotes a specific viewpoint on a public issue as a way to influince public opinion and legislative process
Informative advertising
used to build initial demand for a product in introductory phase
persuasive advertising
attempts to improve the competitive status of a product or concept, usually in growth and maturity stages
comparative advertising
compares products directly with competitors either by name or inference
reminder-oriented advertising
appears in late maturity or declining stages to maintain awareness of the importance and usefulness of product
Outline Sales promotion
consists of forms of promotions like coupons, product samples, and rebates that support personal selling and advertising
sales process
the sales process typically follows a 7 step process, depending on the type of product that you are selling as well as customer
What is the break-even point equation?
break even point= fixed costs/(average cost per unit-average cost per unit)
skimming prices
Setting an intentionally high price to relative to the prices of competitors to distinguish product
penetration pricing
setting a low price as marketing weapon
