MARKETING Flashcards
What are the marketing process?
- THE SITUATION ANALYSIS
- MARKETING STRATEGY FORMULATION
- MARKETING MIX DECISION
- IMPLEMAENTATION AND CONTROL
What are the three product level?
CORE PRODUCT,
ACTUAL PRODUCT, AND
AUGMENTED PRODUCT
- Not tangible physical product
- It is the Benefit of the product that makes it valuable to you.
CORE PRODUCT
- A tangible physical product
- You can get some use out of it.
- Is what the average person would think of under the generic banner of product
ACTUAL PRODUCT
- The non-physical part of the product
- Consists of lots of added value
- Warranty and any after-sale service
AUGEMENTED PRODUCT
What are the classification of Products/Goods?
- ACCORDING TO USE
- ACCORDING TO DIFFERENTATION
- ACCORDING TO DURABILITY
- ACCORDING TO TYPES
Two classification of products/goods according to use
CONSUMER GOODS AND INDUSTRIAL GOODS
Goods that are purchased for personal consumption and/or household use.
CONSUMER GOODS
Examples of Consumer goods
NOODLES, BISCUITS, MILK, DETERGENT SOAP, SHAMPOO and other similar items
- Purchased in order to make other goods.
- To serve as raw material or input in the production of other goods.
INDUSTRIAL GOODS
Examples of industrial goods
ALUMINUM AND ELECTRONIC AND CABLE WIRES
Two types of products/goods according to differentation
UNDIFFERENTIATED AND DIFFERENTIATED GOODS
Goods whose physical characteristics are so identical, that it would be difficult to distinguished one purchased from one person to another.
UNDIFFERENTIATED GOODS
Example of undifferentiated goods
ROCK SALT, FLOUR, FRUITS AND VEGETABLES
Goods varied in their characteristics and features that make them distinguishable from one another.
DIFFERENTIATED GOODS
The ability of manufacturers to successfully distinguish their products from other competitors is called ______.
BRANDING
Provides a product or service a unique distinguishing name, logo, symbol or image which is used to differentiate it from other similar products and services.
BRANDING
The brand appreciation in a brand’s value from the point of view of customers.
BRAND EQUITY
What are the three types of classification of products/goods according to Durability?
CONSUMABLE, SEMI-DURABLE, AND DURABLE GOODS
A product whose benefit can only be used by a consumer for a short period of time, sometimes only few minutes.
CONSUMABLE
Provide benefits to the consumer for a longer period of time, usually, spanning several months.
SEMI-DURABLE
Products that are manufactured to last a long time. They are capable of providing consumer years of beneficial use.
DURABLES
What are the classification of products/goods according to type
CONVENIENCE GOODS, SHOPPING GOODS, SPECIALTY GOODS, UNSOUGHT GOODS
Are products that are purchased frequently, are usually inexpensive, and do not require much purchase effort and evaluation.
CONVENIENCE GOODS
Are purchased less frequently than convenience goods, are relatively more expensive, and require some amount of information search and evaluation prior to purchase.
SHOPPING GOODS
Are goods that require an unusually large effort on the part of consumers to acquire. Consumers are usually willing to travel great distances to where these goods can be purchased.
SPECIALTY GOODS
Examples of specialty goods
BRANDED LUXURY MERCHANDISE, WORKS OF ART, AUTOMOBILES, AND HOMES
Are goods that consumers seldom actively look for, and are usually purchased for extraordinary reasons, such as fear or diversity, rather than desire
UNSOUGHT GOODS
Is a form of marketing developed from direct response marketing campaigns that emphasizes customer retention and satisfaction rather than sales transactions
RELATIONSHIP MARKETING
Is a person or organization that transacts with a businessperson or business organization to buy goods or services for monetary or other valuable considerations
CUSTOMER
Is the process of ensuring customer satisfaction with a product or service
CUSTOMER SERVICE
is all of the activities, strategies and technologies that companies use to manage their interactions with their current and potential customers
CUSTOMER RELATIOSHIP MANAGEMENT (CRM)
Is the forecasted sales or profits that a company can derive from the entire span of its future relationship with a particular customer.
CUSTOMER LIFETIME VALUE (CVL)
CVL formula
CVL = (PV) (RP) (RT)
Seeks to establish a clear and concerted direction for all marketing activities of an organization. It includes plans to reach specific goals/objectives
STRATEGIC MARKETING PROCESS
What are the steps in Strategic Marketing Process?
- MISSION IDENTIFICATION
- SITUATION ANALYSIS
- OBJECTIVE SETTING
- MARKETING STRATEGIC DEVELOPMENT
This is a strategy primarily for achieving low cost leadership among industry competitors
COST LEADERSHIP
Seeks to achieve superior product attributes and features that are different from industry competitors. This results in pronounced consumer preferences for the company’s products.
DIFFERENTATION
Efforts are concentrated on a relatively small but profitable market. The development of products and services primarily ensures that the needs and want of this addressed and that satisfaction is provided.
FOCUSED
Sub-categories of Strategies
- FORWARD INTEGRATION
- BACKWARD INTEGRATION
- HORIZONTAL INTEGRATION
- MARKET PENETRATION
- MARKET DEVELOPMENT
- PRODUCT DEVELOPMENT
- RELATED DIVERSIFICATION
- UNRELATED DIVERSIFICATION
- RETRENCHMENT
- DIVESTITURE
- LIQUIDATION
This involves gaining ownership or increased control over distributors or retailers
FORWARD INTEGRATION
This involves gaining ownership or increased control over suppliers.
BACKWARD INTEGRATION
This involves purchase of or increased control over competitors.
HORIZONTAL INTGRATION
To increase market share of current products or services in current markets through greater and more intensive marketing efforts.
MARKET PENETRATION
This strategy involves the introduction of existing products or services into a new geographical area or market
MARKET DEVELOPMENT
This strategy involves the improvement of current products or services or the development of new products with the purpose of increasing sales.
PRODUCT DEVELOPMENT
This involves introducing new but related products or services.
RELATED DIVERSIFICATION
This involves introducing new but unrelated products or services.
UNRELATED DIVERSIFICATION
This involves halting or reversing declining sales and profits through cost or asset reduction
RETRENCHMENT
This involves selling a division or part of an organization.
DIVESTITURE
This involves selling all of a company’s assets, in parts or as a whole, for their tangible worth.
LIQUIDATION
Determines the means or tactics to implement the strategies
TACTICAL MARKETING PROCESS
Includes forces that are internal to the company or those that are relevant to its operation.
MICRO-ENVIRONMENT
Marketing may be the “lifeblood” of an organization, but it cannot exist independently of other organizational functions
COMPANY
Provide raw materials, utilities, labor, capital, and equipment. The availability and prices of these supplies should be monitored.
SUPPLIERS
Are channels that link the organization to its customers. Most products
are delivered and distributed to customers through ___
MARKET INTERMEDIARIES
Knowing a competitor is critical to the success of the firm
COMPETITION
Create the demand for products and services. They can either be customers or end-users, businesses, or organizations
CUSTOMERS
May include any individual or entity with an actual or potential interest in company and its products or services
PUBLIC
What compose of Micro-environment?
- COMPANY
- SUPPLIERS
- CUSTOMERS
- MARKET INTERMEDIARIES
- PUBLIC
- COMPETITION
includes factors that are external to the organization. Essentially, these can neither be influenced nor threats; which the company must avoid.
MACRO-ENVIRONMENT
What are factors of macro-environment?
- ECONOMIC
- POLITICO-LEGAL
- SOCIOCULTURAL
- DEMOGRAPHIC
- TECHNOLOGICAL
- NATURAL
