Marketing Exam 1 Flashcards
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What are the three Marketing Steps?
Engage Customers, Build Strong Relationships with Customers, and Create Customer Value
What is Marketing?
The process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.
What is a Need?
State of feeling deprived of something needed to live/ be fulfilled.
What is a Want?
Needs, but shaped by culture and individual tastes.
What are Demands?
Wants that are backed up by buying power.
What’s an example of a Need?
Shelter, Food, Clothing, Water
What’s an example of a Want?
Vacation House, Toy, Expensive Shoes, Electronics
What’s an example of a Demand?
Being able to buy a BMW or a specific type of phone (iPhone).
What are the 5 Marketing Concepts?
Production, Product, Selling, Marketing, and Societal Concept.
What is the Production Concept?
Make as many products as fast and as cheap as possible, and have them available all the time.
The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency.
What is the Product Concept?
Make your product the best of its kind, and keep improving on it.
The idea that consumers will favor products that offer the most quality, perfromance, and features; therefore, the organization should devote its energy to making continuous product imporvements.
What is the Selling Concept?
Have your product and tell everyone all about it so that they come buy it.
The idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort.
What is the Marketing Concept?
Understand what your customers want and give it to them.
What is the Societal Concept?
Consider consumers wants, long-run welfare, society’s long-run interests, and company requirements.
What are the 4 P’s of the Marketing Mix?
Product, Price, Place, and Promotion.
Define Product.
To satisfy customer needs.
Define Price.
How much the item/service will be.
Define Place.
Where and how the product will be available.
Define Promotion.
How will people find out about the product and come to want it.
What are the six important concepts for Customer Relationship Management?
- Draw in customers and keep them happy.
- Value and satisfaction keep customers coming back.
- Customer Satisfaction: perceived performance compared to buyer’s expectations.
- Not all relationships will be the same.
- Tools for relationship management.
- Customer Lifetime Value: The expected amount of revenue one customer is supposed to generate in their lifetime.
When it comes to the value and satisfaction aspect … what is Customer Perceived Value?
Is the benefit-to-cost analysis done by customers on competing offers.
What is an example of customer satisfaction?
If you buy a shirt and it rips after one wear, you will be very unsatisfied.
Describe why it is important that not all relationships will be the same.
Low-margin customers will have basic relationships, high-margin customers get personalized experiences/full partnerships.
What are examples of tools used for relationship management?
- Rewards programs: Starbucks App
- Frequency Marketing Programs- Kohl’s cash.
What are the important concepts of the Share of a Customer?
-Part of a customer’s purchasing that the company gets in its product categories.
-Only invest heavily in customers that look to have a lot of benefits.
What are the True Friends?
True friends are both profitable and loyal. There is a strong fit between their needs and the company’s offerings. The firm wants to make continuous relationship investments to delight these customers and engage, nurture, retain, and grow them. It wants to turn true friends into true believers, who come back regularly and tell others about their good experiences with the company.
Remember the Potential Profitability and Projected Loyalty Matrix. What are the Butterflies?
Butterflies are potentially profitable but not loyal. There is a good fit between the company’s offerings and their needs. However, like real butterflies, we can enjoy them for only a short while and then they’re gone. An example is stock market investors who trade shares often and in large amounts but who enjoy hunting out the best deals without building a regular relationship with any single brokerage company.
What are the Strangers?
Strangers show low potential profitability and little projected loyalty. There is little fit between the company’s offerings and their needs. The relationship management strategy for these customers is simple: Don’t invest anything in them; make money on every transaction.
What are Barnacles?
Barnacles are highly loyal but not very profitable. There is a limited fit between their needs and the company’s offerings. An example is smaller bank customers who bank regularly but do not generate enough returns to cover the costs of maintaining their accounts. Like barnacles on the hull of a ship, they create drag. Barnacles are perhaps the most problematic customers. The company might be able to improve their profitability by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be “fired.”
In Strategic Planning its imporatnt to develop and maintain a balance between company’s (1), (2), and it changing marketing (3).
(1)=goals
(2)=capabilities
(3)-opportunities
In strategic planning what is a mission statement?
What the company wants to accomplish overall.
In strategic planning what is a business portfolio?
What businesses/products that make up the whole company.
Remember the Product/ Market Expansion Grid. Draw the Ansoff Matrix.
-Existing products/New Products on x -axis (Left to Right)
-Existing markets/New Markets on y-axis (Bottom to Top)
-Market Penetration and Product Development on bottom.
-Market Development and Diversification on top.
Draw the BCG Growth Share Matrix
What are the important concepts in Partner Relationship Management?
-Internal departments make a VALUE CHAIN by working together
to create value by designing, producing, marketing, delivering,
and supporting the firm’s products.
-External partnerships with companies, suppliers, distributors,
and customers make a VALUE DELIVERY NETWORK that improves
the entire system’s performance on delivering customer value.
What are the 5 Concepts in Marketing Strategy?
Marketing segmentation, Segment, Market Targeting, Positioning, and Differentiation.
What is Market Segmentation?
Dividing a market into separate groups of customers with
different needs, characteristics, or behaviors which requires separate marketing strategies.
What is a Segment?
A group of consumers who respond similarly to certain marketing efforts.
What is Market Targeting?
Evaluating different segments’ attractiveness and selecting one or
more to serve
What is Positioning?
Setting up your product to occupy a clear space inside the target segment(s) head.
What is Differentiation?
Making your product distinct from other similar offerings to
create superior customer value.
Remember SWOT Analysis. What does SWOT stand for?
SWOT is the overall analysis of a company’s situation. Strengths, Weaknesses, Opportunities, and Threats.
Describe Strengths in SWOT.
Strengths: Internal capabilities that may help a company reach its objectives. (positive)
Describe Weaknesses in SWOT.
Weaknesses: Internal limitations that may interfere with a company’s ability to achieve its objectives. (negative)
Describe Opportunities in SWOT.
External factors that the company may be able to exploit to its advantage. (positive)
Describe Threats in SWOT.
Threats: Current and emerging factors that may challenge the company’s performance. (negative)
External
What is the Marketing Environment?
The actors and forces that affect a firm’s ability to build and
maintain successful relationships with customers.
What are the aspects of the marketing environment?
Microenvironment and Macroenvironment
What are the Microenvironment Factors?
The company, suppliers, customer markets, competitors, publics, and market intermediaries.
Define the Company factor for the Microenvironment.
Departments within the company impact marketing planning.
Define the Supplies factor for the Microenvironment?
Help create and deliver customer value (treat as partners).
Define the Customers Market factor of the Microenvironment.
Consumer, business, government, reseller, and international.
Define the Competitors factor of the Microenvironment.
Successful companies provide better customer value. Ex: Size and industry position help determine appropriate strategy.
Define the Publics factor in the Microenvironment.
Financial investors, local, media, government, general, internal, customers, citizen action. Ex: UNL students, alumni, professors, NE taxpayers, etc.
Define the Marketing Intermediaries factor in a Microenvironment.
Help sell, promote, and distribute goods (take many forms).
How do we define the Competition in the Microenvironment?
The alternative from which the target market can choose.
What is the Level 1 Competition in the Microenvironment?
Competition for DISCRETIONARY INCOME (income left over after paying for necessities)
What is the Level 2 Competition in the Microenvironment?
PRODUCT competition in which different products attempt to satisfy the same needs or wants.
What is Level 3 Competition in the Microenvironment?
BRAND competition in which competitors offering similar products compete for consumer choice.
What are the six Macroenvironment Factors?
Demographic, Economic, Natural, Technological, Political, and Cultural.
What is the Demographic Factor in the Macroenvironment?
Factors related to the population. Ex: Population growth, size, density, gender, aging, and race.
What is the Economic Factor in the Macroenvironment?
Factors that affect consumer purchasing power and spending patterns. Ex: Economic/business cycle, currency fluctuation.
What is the Natural Factor in the Macroenvironment?
Factors related to the natural environment. Ex: Raw shortage materials, increased pollution, sustainability, etc.
What is the Technological Factor in the Macroenvironment?
Factors relate to the development of tech over time. Ex: Eye tracking.
What is the Political Factor in the Macroenvironment?
Influence form the government agencies and pressure groups. Ex: Law changes, ethical behavior, and societal responsibility.
What is the Cultural Factor in a Macroenvironment?
Forces that affect. society’s basic values, perception, preferences, and behaviors. Ex: View of oneself, other, organizations, and society.
What are the two concepts related to Reacting to the Marketing Environment?
Reactive and Proactive.
Define Reactive.
A passive acceptance and adaption. Ex: Companies avoid design strategies that avoid threats and capitalize upon opportunities.
Define Proactive.
Environmental Management. Ex: Use of lobbyists, PR, advertorials, lawsuits, complaints, and contractual agreements to influence environmental forces.
Describe the four important concepts in Cost-Benefit Analysis.
-“DISCOVER THE MEANINGFUL DATA AND INSIGHTS THAT CAN LEAD TO ACTIONABLE?PROFITABLE DECISIONS”
-Not all information is valuable or feasible to attain.
-Organizations have an abundance of information and must filter out what applies to them.
-information systems are expensive-we must determine if there is value before spending money.
What are the important concepts of Bid Data/Data Analytics?
- INFORMATION TECHNOLOGY
- APPLICATIONS
What is Information Technology in Big Data/ Data Analytics? And what is Data mining?
-How do we make data useful?
-Can data be visualized?
-Data Mining: Finding predictive information in data.
What are the five things that are associated with Applications in Big Data/Data Analysis?
-Segmentation
-Acquisition
-Retention
-Abandonment
-Market Based Analysis
Where can Internal Data be found?
Customer databases, financial records, and operation reports.
What are the advantages of Internal Data?
-Easy access
-No barrier to entry
What are the disadvantages of Internal Data?
-Incompleteness
-Inappropriateness of data
What is Marketing Intelligence?
Systemic collection/analysis of PUBLICLY available information about competitors/trends.
Why has Marketing Intelligence grown recently?
Because of internal employees, competitor employees, trade shows, digital garbage, benchmarking, published info, customers, etc.
Is Marketing Intelligence the same as Marketing Research?
No
What is Marketing Research?
Systemic design, collection, analysis, and reporting of data relevant to a SPECIFIC MARKETING SITUATION.
What are the three steps involved in Marketing Research?
- Define (what info is needed/how do we get it?)
- Develop
- Maintain Quality
What are the important concepts to remember about Step 1: Define Objectives/Research Needs in Marketing Research?
-What information is needed and how can we get it?
-What is the purpose of the research i.e. why are you wanting to do it?
-Symptoms of a problem are not necessarily the causes of said problem.
-3 types of research methods. (Exploratory, Descriptive, Casual/Experimental).
In step 1: Define Objectives/Research Needs for Marketing Research what does SMAA stand for.
S: Specific
M:Measurable
A: Achievable
A:Actionable
What are Exploratory Methods?
Gathering preliminary information to define the problem and suggest hypothesis.
What are examples of Exploratory Methods?
-In-Depth Interviews
-Focus Groups
-Digital/Social Media
-Observation
What is Descriptive Research?
-it utilizes a large sample of participants as base.
-Provides quantitative data.
-Major elements is survey data.
-Provides valuable insight, but does not determine a cause and effect relationship.
What is Casual/Experimental Research?
-Attempts to define cause and effect.
-This involves Independent and Dependent variables.
-Test Markets are used to evaluate marketing decisions.
What is an Independent Variable?
What may cause a change. It stands alone and isn’t changed and isn’t changed by other variables.
Ex: The amount of water you put into plants.
What is an Dependent Variable?
What is affected.
Ex: Size of Plant, Number of Leaves, Dead or Alive?
What are the important concepts in Step 2: Develop the Research Plan in Marketing Research.
-Research objectives guid what information is needed.
-Primary Data.
-Secondary Data.
Define Primary Data in Step 2: Develop the Research Plan.
-New information directly gathered by an organization. Collected to provide answers to specific questions.
-Observation, survey, experiment.
-Ex: Focus Groups, In-Depth interviews, Social Media Monitoring, Surveys.
Define Secondary Data in Step 2: Develop the Research Plan.
-Information previously gathered by a separate entity.
-Ex: Company Websites, Government statistics, Industry Associations, Published Market Research Reports, and Trade Publications.
What is Syndicated Data?
Secondary Data collected and compiled on a regular basis to be sold.
What the five Sampling types?
Sample, Representative Sample, Sampling Unit, Sample Size, and Sampling Procedure.
Define Sample.
Segment of the population that represents the population as a a whole.
Define Representative Sample.
A sample that accurately represents the characteristics of the population.
Define Sampling Unit.
The people to be studied.
Define Sample Size.
Number of people to be studied.
Define Sampling Procedure.
How the sample is generated.
In Sampling Procedures, what are the two methods that we use in Marketing?
PROBABILITY AND NON-PROBABILITY METHODS.
Name the types of Probability Methods.
-Simple Random: Names in a hat.
-Systemic Random: Random, but with a system. “Every third person”, “Every 30 minutes”.
-Stratified: Group based on characteristics, then sample from “strata” or groups
-Cluster/era: Sort population into clusters, then select whole clusters to be in the sample.
Name the types of Non-Probability Methods.
-CONVENIENCE: Easiest for researcher to access.
-JUDGMENT: Sample is selected based on prior knowledge.
-QUOTA: Groups are formed, and the researcher selects a certian number from each group. Ex: 200 women, 100 men.
Picture the difference between a structured and unstructured Survey/ Questionaire Research model.
Look at shampoo study on slide.
What are the important concepts in Step 3: Data Collection & Quality in Marketing Research/
-Validity, Reliability, and Representativeness.
What is Validity?
Does the data measure what is was intended to?
What is Reliability?
Was research conducted without error? (could it be reproduced)
What is Representativeness?
How well does the data represent the population as a whole?
