marketing Flashcards
What is a want?
A want is a desire for a particular product to satisf a need in specific ways thta depends on an individuals’s frame or refrence which includes history, learning experience and cultural environment.
Definition of marketing
Marketing is the activity, set of the institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners, and society at large.
Marketing information system
Process that determines what information marketing managers need than gathers, sorts, analyses, stores and distributes relevant and timely information to users.
The production era
(until 1930)
Production orientation
-seller’s markt( demand greater than supply)
-most efficient ways to produces products.
The selling era
(1920-64)
Selling orientation company-centered
Move products not meet needs/wants
Availability of products exceed demand
“Hard selling”
The consumers era
(1957-98)
Consumer orientation is customer-centered approach
Find out what customers want and offer that
Promotion
Set of activities to communicate the product or service information to consumers, educate them, attract them and finally encourage them to buy the product
Communicate with the customer about the product and its benefits in order to create awareness, increase demand and possibly, create brand loyalty.
Integrated marketing communication
Process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication over time to targeted audiences.
IMC
Creates single unified voice
Begins with customer
Seeks to develop relationships with customers
Involves two-way communication
Focusses on stakeholders, not just customers
Generates continuous stream of communication
Measures results based upon feedback
Media types
Television
Radio
Newspapers
Magazines
Directories
Out-of-home media
Place-based media
Internet advertising
Public Relations (PR)
Communications function seeking to build good relationships with an organizations public
Consumers, stockholders, legislators & stakeholders
Objectives
Introduce new products
Influence government legislation
Enhance image
Crisis management
Call attention to “good doing”
Sales promotion
Programmes that marketers design to build interest in or encourage purchase of product or service during a specified time period
Sales management
Process of planning, implementing and controlling the personal selling function
Managing the sales force (staff)
Setting Sales force objectives
Create sales force strategy
Recruit, train and reward sales force
Evaluate sales force
Innovation
Anything that customers perceive as new and different
Target marketing strategy
Target marketing strategy: divide total market into different segments based on characteristics
Segmentation
Process of dividing a larger market into smaller pieces based on meaningful, shared characteristics
Generally three types of segmentation
Demographics (including Geographic)
Psychographics
Behaviour
Differentiated marketing
One or more products for each of several customer groups with different needs
Concentrated marketing
Focus efforts on offering one ore more products to a single segment
Focus efforts on offering one ore more products to a single segment
Process that determines what information marketing managers need than gathers, sorts, analyses, stores and distributes relevant and timely information to users
4 types of data
1- Internal company data
Results of sales and marketing activity
Which customers buy which products, how often, in what quantities, and where
Intranet: internal corporate communication network
2- Marketing intelligence
Information about marketing environment
Web often used for this
Scenario planning
3- Marketing research
Gather information about customer, competitor and business environment
Syndicated research (regularly executed) or custom research
4- Acquired databases
Government databases
Customer databases of non competing firms
Privacy issues may apply
Data mining
Process in which analysist sift through data to identify unique patterns of behavior among customer groups
Ethics in marketing
Ethical relativism- what is ethical in one culture is not necessarily ethical in another culture, it is relative to the norms within a culture
Business ethics – ethical values of a company which influences the production of a product, marketing strategies and other decisions which are made in the company
Code of ethics - document written in a company for the ethical values
Industry structures
Monopoly – one seller controls market
Oligopoly – small number of sellers each with substantial share of market
Monopolistic competition – many compete for buyerseach with slightly different product & small marketshare
Perfect competition – many small sellers each offering the same product.
Substitute products:
products appear to be different but can satisfy same need as another product
Strategic business units (SBUs) :
individual units representing different areas of business within firm
different enough to have own mission, business objectives, resources, managers and competitors
Characteristics of services
Intangibility Cannot see, touch or smell a service
PerishabilityImpossible to store for later sale or consumption
VariabilitySame service performed by same individual for the same customer can vary
InseparabilityProduction and consumption cannot be separate
Business market
Marketing of goods/services that businesses buy for purposes other than personal consumption/use
Manufacturers, wholesalers, retailers
The new era: make money and act ethically
new era orientation building long-term bonds & acknowledging the role of business within society
Customer Relationship management (CRM)
Track preferences and behaviors over time
Tailor made value proposition for each individual
Corporate social responsibility: Social marketing & Green marketing, business ethics
Three levels of planning
Strategic planning-Planning done by top-level corporate management
Match resources with capabilities
Define purpose and specify goals for next 5 years
Functional planning-Planning done by top functional-level management such as the firm’s marketing director
Walk the walk: focus on marketing aspects: 4ps and customer value and relationships
Operational planning-Best plan is useless if it does not get used
Operational plans focus on day-to-day execution of the marketing plan
Cover shorter period of time (1-2 months)
Include detailed directions, Action plans to implement marketing plan
Marketing metrics to monitor how plan is working
Buying centre or decision making unit (DMU)
Initiator: begins buying process; recognize the need
User: actually uses the product
Gatekeeper: controls the flow of information
Influencer: affects buying decision by advice/expertise
Decider: makes final decision, greatest power of DMU
Buyer: executes the purchase, negotiating
Types of business-to-business
ProducersPurchase for production of other goods to make profit
Resellers (Wholesalers & Retailers) Buy finished goods and make them available to customers
Organisations Governments may be only customer (Tornado fighter jet)Non-for-profit institutions : more advice and assistance needed often
Determine research design
Exploratory (qualitative) research
Come up with new insights
E.g.: Consumer interview, focus group, projective techniques,…
Usually non-numeric and detailed verbal or visual information about attitudes, feelings and consumer behaviours
Descriptive (quantitative) research
Generalizing from a sample
E.g.: descriptive research, cross-sectional design, longitudinal design
Causal research
Understand cause-and-effect relationships
E.g.: experiments: similar supermarkets and change in one the place of product in store
Choose method for collecting data
Survey methods
Questionnaires (mail, telephone interviews, face-to-face interviews, online) with different advantages and disadvantages
Observational methods
Simply record behavior of consumers
