marketing Flashcards
1
Q
mission statement
A
a statement of the orgs. purpose, what it wants to accomplish in the larger environment. ( It should be market oriented, realistic, specific, motivating, and illustrative of distinctive characteristics.
2
Q
characteristics of a mission statement
A
- What is our business?
- Who is the customer? What do they value?
- What are our core competencies
- What should our business be?
3
Q
Steps in the strategy process
A
- Defining company mission
- Setting company objectives and goals (corporate)
- Designing the business portfolio
- Planning marketing strategies (business unit, product, and market level)
4
Q
Company objectives and goals
A
mission should be detailed supported objectives for each level of mgmt (to build profitable customer relationships
5
Q
business portfolio
A
combination of businesses that has the potential of reach objectives
- Which busniess to enter
- which to exit?
- How much to invest
6
Q
Businesses may also be called…
A
Strategic Business Units (SBUs) divisions, markets, product lines
7
Q
BCG matrix
A
portfolio-planning method that evaluates a companys SBUs in terms of its market growth rate and relative market share
8
Q
criticisms of BCG matrix
A
- limited number of variables used
- ignores interrelationships between businesses (Disney; movies are a small part of it)
- placement of a business in the matrix is highly dependent on definition of market
9
Q
Stars
A
high growth, high share business ( need big investments, but growth will slow down eventually)
10
Q
Cash cows
A
low growth, high share business (established and successful SBUs need small investment, but produce a lot of cash)
11
Q
Question marks
A
low share business, high growth markets (require a lot of money, mgmt decides which question marks to pursue or not)
12
Q
dogs
A
low growth, low share business (may create cash to maintain itself, but no long term success)
13
Q
variables of product/ market expansion grid
A
market penetration, product development, market development, and diversification
14
Q
market penetration
A
strategy of increasing sales to current customers w/o changing the products being sold
15
Q
market deveolpment
A
identifying new market segments for current company products
16
Q
product development
A
offering modified/ new products to current markets
17
Q
diversification
A
starting up/buying businesses outside of current products/markets
18
Q
Strategy formulation (what we know)
A
company decides which customers it will serve (segmentation and targeting) and how (differentation and positioning)
19
Q
Strategy formulation (what do we want to accomplish)
A
goal is to create value for customers and build profitable relationships
20
Q
Strategy formulation (how will we do it)
A
company designs a marketing program-the four P’s-that delivers the intended value to targeted consumers
21
Q
implementation
A
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
22
Q
What does a company need to have successful implementation of marketing strategies
A
- company’s culture
- employees shared beliefs and values
- organizational structure
- reward systems
23
Q
control
A
measuring & evaluating the results of marketing strategies and plans and taking corrective action to ensure the objectives are achieved
24
Q
how to evaluate results of marketing strategies
A
- set marketing goals
- measure actual vs. expected performance on goals
- take corrective action to close goals between goals and performance
25
Steps in segmentation
1. market segmentation
2. target marketing
3. market positioning
26
segmentation
dividing a market into smaller groups that (1) have distinct needs/behaviors, (2) respond differently to marketing efforts, and (3) might require their own products and marketing (4 P's)
27
variables of segmentation
geographic, demographic, psychographic, behavioral, and intermarket
28
psychographic
dividing a market based on social class, lifestyle, and personality
29
behavioral
dividing a market into segments based on behaviors such as: benefits sought, usage occasion, user status, usage rate and loyalty status (consumer knowledge, attitudes, uses, or responses to a product)
30
intermarket
segments of consumers who have similar needs and buying behavior even though they are located in different countries
31
requirements for effective segmentation
1. measurable- can be identified and measured
2. accessible- can be reached and served
3. substantial- large and profitable enough
4. differentiable- separate from other segments
5. actionable- can be marketed by our company
32
targeting
choosing the segment that is most attractive to your org
33
evaluating market segments
Internal- does the segment fit our objectives and resources?
External- How big is the segment? What is its growth? Are there substitute products? How much power do suppliers and customers hold
34
variables for Target marketing strategies
Undifferentiated (mass), Differentiated (segmented), Concentrated (Niche), Micromarketing (Local/Individual)
35
Dffierentiated (segmented) marketing
store that sells a variety of different products (GAP)
36
concentrated (niche) marketing
targets a large share of one or a few small segments (fish food)
37
micromarketing
tailoring products and marketing programs to suit the tastes of the area where the business is
(family clothesline)
38
local marketing (micromarketing)
tailoring brands and promotions to the needs/wants of local customer segments
39
individual marketing (micromarketing)
tailoring products and marketing programs to the needs/preferences of individual customers (mass customization with M&Ms)
40
positioning
key concept to be communicated to the target consumer- the place the product occupies in the consumer's mind relative to competing products
41
competitive advantage
differentiate your brand based on: 1. product 2. services 3. channels 4. people 5. image
42
types of differentiation (horizontal vs. vertical)
vertical- one product is clearly better
| horizontal- "better" is an opinion
43
positioning statement
- statement that summarizes company or brand positioning
| - slogans are based on positioning
44
product
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want/need
45
Total product concept
Core benefits/values....actual product...augmented product
46
variables for Types of products
convenience, shopping, specialty, unsought
47
convenience
consumer product that customers usually buy frequently with minimum comparison (paper towels, toothpaste)
48
shopping
people take more time to buy these, they try them on or check other brands (north face)
49
specialty
exclusive and expensive products (bens, rolex)
50
unsought
you have to be persuaded to buy the product (blood drive)
51
other types of products
industrial, organizational, people (persons), places, ideas
52
industrial product
product bought by individuals in orgs. for further processing or for use in business
53
organizations
for profit (businesses) and nonprofit (schools, churches)
54
people (persons)
politicians, entertainers, pro athletes, doctors lawyers, etc.
55
places
tourism, country of origin, immigration
56
ideas (social marketing)
public health campaigns, environmental campaigns, family planning, human rights
57
product decisions
Product attributes, branding, packaging, labeling, product support services
58
product lines
length, stretching, filling (group of products that are closely related bc they function in a similar matter
59
length
number of items in a product line
60
adjust length by
stretching-lengthens line above current range
| filing-adding more items within the present range
61
product mix
length-# of items in a line
width- # of different product lines carried
depth- # of versions offered of a product in a line
consistency- how closely related various lines are
62
branding
marker of identification for a product, a promise to the customer, brand identity and brand consistency lead to feelings of closure
63
brand equity
differential effect that knowing the brand name has on customer response to the products of its marketing
64
high brand equity provides
- greater awareness and loyalty
- basis for strong, profitable customer relationships
- willingness to buy over competitors and/or willingness to pay a premium for the brand
65
brand positioning
based on attributes (weakest), benefits (middle), beliefs, and values (strongest)
66
brand name selection (desirable qualities)
- suggests product benefits and qualities
- easy to remember and distinctive
- extendable, not limited to one product
- translates easily to foreign language
- capable of being registered and legally protected
67
protect brand names
- genericization voids trademark's legal protection
| - must include the word brand and include the registered trademark symbol
68
law of shape
ideal shape for a logo is horizontal
69
law of the word
brand should strive to own a word in the mind of the consumer
70
brand sponsorship (licensing, co-branding)
licensing-rather then creating their own brand name, some companies license names or symbols previously created by other companies
co-branding- practice of using the established brand names of two different companies on the same product
71
brand development strategies
line extension, brand extension, multibranding, new brands
72
line extension
intro of additional items with current product category under the same brand name
73
brand extension
using a successful brand name to launch a product in a new category
74
multibranding
multiple brands by the same company in the same product category
75
new brands
used when existing brand names are either unsuitable for brand extension or the company doesn't want to dilute them
76
New product development (NDP)
- new products are crucial for the health of the enterprise
- rejuvenate
- tied to higher stock values and internal motivation for employees
77
NDP process
Idea generation (internal & external), idea screening, concept development & testing, marketing strategy development, business analysis, product development, test marketing, commercialization
78
NDP idea generation
-systematic search for new product ideas
Internal sources: company employees at all levels
External sources: customers, competitors, distributors, suppliers, outsourcing partners
79
idea screening
screening process to reduce # of bad ideas
- describe product, target market, competition
- estimate market size, product price, development time, costs, manufacturing coasts, rate of return
- evaluate against a set of company criteria for new products
80
concept development
tranlsate idea into a detailed concept stated in meaningful consumer terms (what will consumers get from product)
81
concept testing
test concept with a group of target consumers to find level of appeal
82
marketing strategy development
initial marketing strategy designed for the new product consisting of:
-target market and initial objectives (goals for sales, market share, planned product positioning)
-launch tactics (price, distribution)
long term objectives (long run sales & profit goals)
83
business analysis
review of sales, costs, projections, asses risk
84
product development
develop from concept to product,
| investment increases, product testing
85
test marketing
- product & marketing program introduced in a limited setting
- can be expensive and time consuming, and shows your plan to competitors
86
commercialization
must decide when and where to initially introduce the product...must develop a market rollout plan
87
Customer-centered NDP (sequential)
focus on finding ways to solve customer problems and create more customer satisfying experiences
88
team-based NDP (simultaneous)
cross-functional teams work through overlapping steps to save time and increase effectiveness
89
Product life-Cycle
course of a product's sales and profits over its lifetime
90
(PLC) stages Product life-cycle
introduction, growth, maturity, decline
91
PLC Introduction
-product launched
-cost of informing & acquiring customers is high, and sales are usually slow
-Objective: create product awareness and trial
Ex. Beats
92
PLC Growth stage
-if products gains traction, sales go up
-higher unit sales lead to lower average costs per unit sold, and profitability can be achieved
-Objective: Maximize market share. The growth in sales will lead to a number of competitors entering the market, fighting over initial customers
Ex. ipad
93
PLC Maturity stage
-sales level off
-many ppl already have product, some re-buy/upgrade
-production costs are usually low, so those with high market share can make profits
-Objective: defend market share. Try to get customers to switch to your product
Ex. coke
94
ways to grow during maturity
- modify the market
- target new segments/increase usage among current users
- modify the product and make it better
- modify the rest of the 4 P's (cut prices, change distribution, change promotion)
95
Decline stage
-sales fall, unit sales and prices fall, hard to remain profitable despite low productions costs
-some niche products may do well when competitors exit the market
Objective: reduce expenses to stay profitable, milk the product and invest elsewhere. If able to "restar" PLC otherwise look for a way out
Ex. VCR
96
Problems with the PLC model
- reality is never as "clean" and clear as the PLC curve
- it can be hard to even identify which stage of the PLC a product is really in
- hard to forecast the length of each stage
97
Styles, Fads, Fashion
styles- baisc but distinctive mode of expression (formalwear vs. casualwear)
fashion- popular style in a given field (ugg boots)
fad- fashion that enters quickly, but declines fast
