Marketing Flashcards
marketing
marketing is 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
exchange process
When two or more parties benefit from trading things of value.
utility
The ability of a good or service to satisfy the wants and needs of customers is called utility.
form utility
It involves the development of a product that meets the format, size, shape and scope that customers need.
time utility
Time utility is created by making a good or service available when customers want and need to purchase it. In some industries, fast delivery drives the value proposition, which is the customer’s perception of the mix of benefits provided by a particular solution.
place utility
Place utility is created by making a product available in a location convenient for customers to purchase.
ownership/possession utility
Ownership utility (also called possession utility) refers to an orderly transfer of goods and services from the seller to the buyer.
information utility
Information utility is the communication that companies engage in with customers to trigger buying activity and to manage purchasing processes. Companies use promotional messages delivered through advertising and public relations to share company, product or service information. The goal is to attract interested buyers.
4 P’s of Marketing
Product, Price, Promotion, Place
marketing concept
Refers to a company-wide customer orientation with the objective of achieving long-run success. A company should analyze each customer’s needs and then work backward to offer products that fulfill them.
person marketing
Efforts designed to attract the attention, interest, and preference of a target market toward a person.
place marketing
Attempts to attract people to a particular area, such as a city, state, or nation. It may involve appealing to consumers as a tourist destination or to businesses as a desirable business location. A strategy for place marketing often includes advertising.
event marketing
Marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances is known as event marketing.
cause marketing
Marketing that promotes awareness of, or raises money for, a cause or social issue, such as drug abuse prevention or childhood hunger is cause marketing. Cause marketing seeks to educate the public and may or may not attempt to directly raise funds.
organization marketing
Influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization.
Environmental scanning
analysis of external environmental factors by marketers to understand how they impact business and marketing decisions.
marketing strategy
2 step process: 1) study and analyze potential target markets and choose among them; 2) create a marketing mix to satisfy chosen market.
Consumer products
often known as business-to-consumer (B2C) products—are goods and services, such as GPS systems, tomato sauce, and a haircut, that are purchased by end users.
Business products
or business-to-business (B2B) products—are goods and services purchased to be used, either directly or indirectly, in the production of other goods for resale, for example, an espresso machine at a coffee café or a printing press at a printer.
target market
group of potential customers towards whom the organization directs its marketing efforts.
marketing mix
blends the 4 strategies (4 P’s) to fit the needs and preferences of a specific target market - success depends on unique combo of the 4.
Product strategy
involves more than just designing a good or service with needed attributes. It also includes decisions about package design, brand names, trademarks, warranties, product image, new-product development, and customer service.
Distribution strategy (Place)
ensures that customers receive their purchases in the proper quantities at the right times and locations.
Promotional strategy
effectively blends advertising, personal selling, sales promotion, and public relations to achieve its goals of informing, persuading, and influencing purchase decisions.
Pricing strategy
is also one of the most difficult areas of marketing decision making in setting profitable and justifiable prices for the company’s product offerings.
marketing research
process of collecting and evaluating information to help marketers gain insight in order to make effective decisions
Market segmentation
process of defining and subdividing a large homogeneous market into specific and identifiable segments or groups whose characteristics, needs, and wants are similar. Geographic, demographic, psychographic, product-related, end-use.
relationship marketing
developing and maintaining long-term, cost-effective exchange relationship with partners.
frequency marketing programs
reward purchasers with cash, rebates, merchandise, or other premiums.
affinity program
marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities.
Convenience products
items the consumer seeks to purchase frequently, immediately, and with little effort.
Shopping products
items typically purchased only after the buyer has compared competing products in competing stores.
Specialty products
items a purchaser is willing to make a special effort to obtain, considers it to have no reasonable substitute.
Unsought products
goods/services that consumers either don’t know about or know about but don’t think of buying until a need arises.
Business products
goods and services used in operating an organization; also includes tools/property/components used to produce other items for resale. Classified based on how they’re used and their characteristics.
Capital items
products that are long-lived and relatively expensive.
Expense items
products that are lest-costly and consumed within a year.
B2B Products Categories
installations, accessory equipment, component parts and materials, raw materials, and supplies.
Product line
group of related products marked by physical similarities or intended for a similar market.
Product mix
assortment of product lines and indiv. goods/services that a company offers to consumers and business users.
Product life cycle
introduction, growth, maturity, decline
6 Stages of New Product Development
1) idea generation, 2) idea screening, 3) business analysis, 4) development, 5) test marketing, 6) commercialization / product launch.
Brand
east to pronounce, recognize, and remember; should convey the right image to buyer; be legally protected.
Brand Loyalty stages
brand recognition, brand preference, and brand insistence
Brand recognition
brand acceptance strong enough that the consumer is aware of the brand but not strong enough to cause a preference over other brands - ads, free samples, and discount coupons are common ways to increase recognition.
Brand preference
when a consumer chooses one company’s brand over a competitor’s.
Brand insistence
ultimate degree of brand loyalty, in which the consumer will look for it at another outlet, special-order it from a dealer, order by mail, or search the Internet.
Brand equity
added value that a respected and successful name gives to a product.
Brand manager
marketer plans and implements the balance of promotional, pricing, distribution, and product arrangements that leads to strong brand equity.
Category manager
oversees an entire group of products, has profit responsibility for their product group.
distribution strategy
deals with the marketing activities and institutions involved in getting the right good or service to the company’s customers.
Distribution channels
paths that products—and legal ownership of them—follow from producer to consumer or business user. They are the means by which all organizations distribute their goods and services. Direct distribution channel and marketing intermediary (wholesalers and retailers).
Physical distribution
actual movement of products from producer to consumers or business users.
wholesaler
distribution channel member that sells primarily to retailers, other wholesalers, or business users
Retailers
distribution channel members that sell goods and services, typically in small quantities, to individuals for their personal use rather than for resale.
Retailer marketing strategy
(1) identify target market, (2) product strategy, (3) shaping a customer service strategy, (4) pricing strategy, (5) choose location, (6) build a promotion strategy, (7) create a store atmosphere.
Distribution intensity
the number of intermediaries/outlets through which a manufacturer distributes its goods. 3 different intensity levels: intensive, selective, exclusive.
Supply chain
the complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.
Logistics
process of coordinating the flow of goods, services, and information among members of the supply chain.
