Marketing Flashcards
It is about planning and executing the
development, pricing, distribution, and promotion of
products and services to satisfy the needs of your
customers
Marketing
- “foundation of its business and what keeps it in
existence” - “Marketing and innovation produce results, all the
rest are costs.”
Drucker, 1954
buyer or product or services
Customers
offered to the market for
consumption
Products
a forum for transactions
Market
planning, design, and development
of manufactured and service products
Marketing
a customer-centric
organizational marketing philosophy
Market Orientation
a particular group of
consumers at which a product or service is aimed
Target Market
Refers to the collective of individual customers’ or
organizations’ wants or needs for a product which
have:
- The ability or authority to purchase that
product.
-Can obtain that product legally.
Market
individual consumer or organization wants or needs a product
POTENTIAL MARKET
those in the potential market who can afford to buy the product.
AVAILABLE MARKET
those in the available market that can legally obtain the desired product
QUALIFIED AVAILABLE MARKET
those individuals in the qualified available market that the business wants to supply its product
TARGET MARKET
those who have purchased the product
PENETRATED MARKET
The percentage of the qualified available market that a single organization serves
Market Share
Market share can do three things:
- Grow market share
- Maintain current market share
- Drop out of the market altogether
when a business grows through expanded sales of its existing products in existing markets.
MARKET PENETRATION
when a business grows through the sale of new products in existing markets.
PRODUCT DEVELOPMENT
when a business grows through expanded sales of existing products in new markets
MARKET DEVELOPMENT
when a business grows through expanded sales of new products in new markets
MARKET DIVERSIFICATION
To bring this product to a new market at
a price that customers will pay requires
having the following information:
MARKET ENTRY
An alternative way of considering the target
markets.
Market Segmentation
The process of splitting the known market for a product into separate parts.
Market Segmentation
Customers within segments may be categorized in a variety of ways, such as:
- by age
- social class
- lifestyle
- setting
- geography
- vocation
- purchasing habits.
- It can lead to a position where the marketing effort
is focused on a portion of the population to the
neglect of other portions. - Potential for redundancy
and increased costs.
DRAWBACKS
- One of two options for resolving financial stability
- Cutting down products or services that do not give you profit in order to potentially free resources to be reinvested in a company’s more profitable products
MARKETING RETRENCHMENT
The target market for a specific product or service
Niche Market
The ability to influence consumer perception
Market Positioning
The goal is to generate sales higher than the competitors
Market Leader
This is all about studying the behavior of customers, needs, and trends to create changes for your organization to be successful
Innovator
This method is designed around customer needs and interests.
Customer-Centric
refers to the variables that a business can
actively manage to satisfy the needs of
target markets
Marketing Mix
7ps of marketing mix
product, price, promotion, place, physical evidence, processes, people
all of the products an organization
offers for consumption
Product Mix
goal achievement strategies ——> product mix
Product Portfolio Analysis
monitoring current products
* market performance
* changing strategy
* changing products
Product Management
If management considers all product strategies in conjunction with one another, the company is more likely to benefit than if individual product decisions are made independently.
Product Diversification
Opportunities that must be bypassed in order to pursue one business strategy rather than another
Opportunity Cost
A unique image for the
product in the minds of
target market members
Product Positioning
Commitment to providing customers with products of maximum standards
Quality
an element of quality & an essential element in
designing health care products
Safety
Product Positioning is composed of
Quality
Safety
Technical Leadership
Customer Service
the fairly predictable way that sales and profitability of products change over time
Product Life Cycle
Low sales, high expenses, and financial losses
Introduction Stage
Introduction Stage composed of:
- High Profile Marketing
- Preemptive Penetration
- Selective Penetration
- Low Profile Marketing
Large-scale promotion; expected extensive competition
High Profile Marketing
Heavy promotion + low price; Substantial competition
Preemptive Penetration
Moderate Promotion; high price
Selective Penetration
Small-scale promotion; low price
Low Profile Marketing
the amount a customer must pay in money, time,
inconvenience, and so on and the mechanisms used to justify the amount
Price
Cost-based pricing is composed of:
- Markup Pricing
- Cost-plus pricing
- Target return pricing
- Payback period pricing
A fixed percentage marks up products over cost
Markup Pricing
Summing up the cost to develop, produce, market and sell services and products + arbitrary margin of pofit
Cost-plus Pricing
Target return percentage+sum of the costs
Target return pricing
Looks ahead to when the return on investment will be at a desirable level
Payback period pricing
Taste and Expectations
Targeted Customers
Mission
Organization
It includes the various methods used to inform the public about the product and sell it. It also involves communicating with the general public and previous and current customers.
Promotion
Communication Options
- Advertising
- Direct Marketing
- Personal Selling
- Public Relations
- Sales Promotion
All the businesses paid for means of promoting itself
and its products, including websites
Advertising
mail, phone, and electronic communications
directed to a target market
Direct Marketing
face-to-face communication with potential,
current, and past customers
Personal Selling
all free information distributed by others about
the business and its products
Public Relations
Time-limited incentives associated with the
purchase of product
Sales promotion
A combination of communication tools and it is based on the strategic marketing plan
to promote the product(s), an integrated
combination of this communication
methods are selected
Communication Mix
Promotional Program:
- Product awareness
- Product knowledge
- Product differentiation from alternative products
- Support comparisons that favorably represent the promoted product
- Form a product preference based on steps 1–4
- Act on this preference by purchasing the preferred product
Marketing Ethics - health
care marketing should:
- Put patient welfare first
- Avoid unnecessary services
- Maintain high standards of honesty and accuracy
- Be accountable to the public
Customers need other forms of _________ to
help them judge if they are about to or have bought a high-quality product and if it will be effective in meeting their needs
Physical Evidence
It refers to the way business activities flow and
are coordinated. Specific operations of importance to
customers include ease of setting appointments,
timeliness of communications, and diligence in
pursuing accurate information from third-party payers.
Processes
It includes all members of a business. All the
members of a business a customer sees and hears can influence their perception of quality.
People
It starts with a potential or actual customer’s first contact with the business. Customer attention is on the essential observable and experiential elements like:
Customer service
One of the hardest characteristics to demonstrate to healthcare customers because it is hard for them to evaluate.
Technical Leadership
It can be characterized by management’s success in developing a high-performing staff, and providing the best technical equipment and appropriate settings.
Technical Leadership
