Midterm Flashcards
What is the marketing process?
creating value for consumers, they turn in capture value from consumers in the form of sales, profits, and long-term customer equity.
Selling vs Marketing concept (Step 3 of marketing process)
selling- consumers will not buy the product unless it undertakes a large scale of selling and promotion effort marketing- delivering the desired satisfactions better than competitors do. Focusing on customer and value.
Marketing Mix (Step 3 of marketing process)
set of marketing tools the firm uses to implement its marketing strategy. Product- creating a satisfying marketing offering Price- deciding how much they will charge Place- how it will be available Promotion- how to communicate with customers and persuading
The production concept product concept (Step 3 of marketing process)
production- consumers will favour products that are available product- consumers will favour products that have the most quality, performance, and innovative features. Continuous improvement.
Marketing myopia (Step 1 of marketing process)
paying more attention to the specific products they offer and to the existing wants rather than focusing on the customer needs.
Customer relationship management Customer perceived value Customer engagement marketing
1) building and maintaining profitable customer relationships by delivering customer satisfaction. 2) Evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of the competing offers. 3) Making the brand a meaningful part of consumers conversations and lives by always involving customers in shaping brand conversations and expierences.
Consumer generated marketing Partner relationship management (Step 4 of marketing process)
1) Brand exchanges created by consumers themselves. 2) Working with other companies departments to bring better value to a customer.
Supply Chain (Step 4 of marketing process)
Raw materials to components to final products that are carried to final buyers.
Customer lifetime value (Step 5 of marketing process)
entire stream of purchases a customer makes over a lifetime of patronage.
Share of a customer (Step 5 of marketing process)
portion of the customers purchasing that a company gets in it’s product categories. ex) amazon’s recommendations
Customer equity (Step 5 of marketing process)
the total combined customer lifetime values of all the company’s current and potential customers.
Types of Customers Strangers Butterflies True Friends Barnacles (Step 5 of marketing process)
1) low profitability and little loyalty 2) potentially profitable but not loyal. 3) both profitable and loyal 4) highly loyal but not profitable
Market segmentation
dividing a market into distinct groups of buyers who have different needs or behaviours and who might require separate products or marketing programs.
Market targeting
evaluating each market segment’s attractiveness and selecting one or more segments to enter
Market nichers
specialize in serving customer segments that major competitors overlook or ignore.
Market differentiation and Positioning
company must decide on how it will differentiate it’s market offering for each targeted segment and what positions it wants to occupy in those segments.
Positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products.
Differentiation
differentiating the market offering to create superior customer value
SWOT analysis
-markerters should conduct a SWOT analysis to evaluate the companies overall strengths. S- strengths (internal and pos) W- weaknesses (external and neg) O and T- opportunities (external pos) and threats (internal and neg)
Marketing planning
The plan has summary that quickly reviews major assessments, goals and recommendations. SWOT analysis, potential threats and opportunities. Also major objectives for the brand.
Market Implementation
turning marketing plans into actions to accomplish strategic marketing objectives. Addresses who, where, when and how.
Market oganization
most common form is functional organization. Under this organization, different marketing activities are headed by a functional specialist. ex) sales manager
Marketing control (4 steps)
Measuring and evaluating the results of marketing strategies and plans. 1) setting specific marketing goals. 2) measures performance 3) evaluates the causes of differences between expected and actual performance. 4) corrective action
Microenvironment
the actors close to the company that affect its ability to serve its customers ex) companies suppliers.
Macro-environment
larger societal forces that affect the microenvironment- demographic, economic, natural and tech forces.
What affects the microenvironment?
1) the company- taking other company groups into account- finance and research 2) suppliers- provides resources needed by the company. 3) marketing intermediaries- What helps the company promote, sell, and distribute its product to final buyers. 4) competitors- Providing greater customer value and satisfaction than its competitors. 5) publics- Any group that has an actual potential interest in or impact on an organization’s ability to achieve its objectives.
Consumer market
individuals and households that buy goods and services for personal consumption.
Business market
buy goods and services for further processing or use
Government market
in order to produce public services or transfer goods and services to others.
International markets
buyers in other countries
Demographic environment
the study of human populations in terms of size, density, location,age, gender,race, occupation and other statistics. Marketers need to focus on trends and development.
Economic environment
Consists of economic factors that affect consumer purchasing power and spending patterns.
Industrial economies Subsistence economies Developing economies
1) rich markets for many different kinds of goods 2)consume most of their own agricultural and industrial output 3)offer outstanding marketing opportunities for the right kinds of products
Value marketing
marketers in all industries are looking for ways to offer today’s more financially frugal buyers greater value
Natural environment
Involves the physical environment and the natural resources that are needed as inputs by marketers.
Growing shortages of raw materials Increased Pollution Increased government intervention Environment sustainability
1) firms making products that require these scarce resources face large cost increases, even if the resources remain available. 2)industries will almost always damage the quality of the natural environment. 3)promoting a clean environment. 4)an effort to create a world economy that the planet can support indefinitely.
Technological environment
create new technologies, creating new product and market opportunities.
Political environment
consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
Public policy
guide commerce (set of laws)
Protecting businesses Protecting consumers Protecting the interests of society
1) laws are passed to define and prevent unfair competition 2)from unfair business practices 3)unrestrained business behaviour.
Cause-related marketing
companies are now linking themselves to worldwide causes. It also has become a primary form of corporate giving
Cultural environment
Consists of institutions and other forces that affect society’s basic values, perceptions, preferences and behaviours
Factors that affect marketing decision making
-The persistence of cultural values -Shifts in secondary cultural values -People’s views of themselves -People’s view on others -People’s view of organizations -People’s views of society -People’s view of nature -People’s view on the universe
Customer insights
understanding customer and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships
Marketing info system (MIS)
people and procedures dedicated to assessing info needs, developing the needed info, and helping decision makers use the info to generate and validate actionable customer and market insights
Internal data
-electronic collections of consumer and market information obtained from data sources -negative- some info could be incorrect
Competitive marketing intelligence
information about consumers, competitors, and developments in the marketing environment. Objective is improve strategic decision making by understanding the consumer environment, assessing and tracking competitors’ actions.
Marketing Research (4 steps)
1) Defining the Problem and Research Objectives- the hardest part and marketer must research. 2) Developing the Research Plan- should cover the management problems addressed and the research objectives. 3) Research approaches- gathering primary data including observations and surveys. 4) Implementing the research plan-Collecting, processing, and analyzing info
Exploratory research
gather preliminary information that will help define the problem and suggest hypotheses
Descriptive research
market potential for a product
Casual research
to test hypotheses about cause and effect relationships
Secondary data
info that already exists somewhere. Can be also obtained more quickly and at a lower cost.
Primary data
consist of info collected for the specific purpose at hand.
Different types of research approaches 1) Observational research 2) Ethnographic research 3) Netnography research 4) Survey research 5) Experimental research
1) observing relevant people and interacting with consumers 2) trained observers to watch and interact with consumers 3) observing consumers in a natural context on the internet 4) most widely used method 5) gathering casual info
Different types of contact methods
1) mail questionnaires 2) telephone interviewing 3) individual interviewing 4) group interviews
Behavioural marketing
using online consumer tracking data to target advertisements and marketing offers to specific consumers.
Sampling plan
segment of the population selected for marketing research to represent the population as a whole
Research instruments vs mechanical instruments
1) Questionnaires- common and flexible. Using open ended questions. 2) Used to monitor consumer behaviour. ex) neuromarketing- measuring brain activity to learn how consumers feel and respond.
Factors Influencing Consumer Behaviour
1) Culture ex) subculture and social class 2) Social factors ex) groups and social networks, family and online social networks. 3) Personal factors ex) occupation, lifestyle and economic situation. 4) Psychological factors- ex) motivation and learning.
Buyer Decision Process
1) Need Recognition- The buyer recognizes a problem or need. 2 Information Search- If not enough info about the product, the consumer will research. 3) Evaluation of Alternatives- Marketers need to know about alternative evaluation where consumers process info to choose among other brands. 4)Purchase Decision- Buying the most preferred brand 5)Post Purchase Behaviour- Whether the consumer is satisfied or not.
Purchase decision comes from two factors
Attitude of others- being influenced by others. Unexpected situational factors- buying a product with certain intention and then something changing in order to disrupt that.
The Adoption Process (5 steps)
Awareness: Aware of new product but lacks info. Interest: Seeks info about new products. Evaluation: Considers whether the new product makes sense. Trial: Tries the product. Adoption: Decides to use product.
Individual Differences in Innovativeness
Innovators- trying new ideas at some risk. Early adopters- opinion leaders in their communities and adopt new ideas early but carefully. Early mainstream- rarely leaders, they adopt new ideas before the average person. Late mainstream- adopt new ideas only after the majority of people have tried it. Lagging adopters- traditional.
Business buyer behaviour
buying behaviour of the organizations that buy goods and services for use in the production of other products and services that are sold
Supplier development
Networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products
Types of Buying Situations
Straight rebuy- Buyer routinely reorders something without any modifications. Modified rebuy- Buyer wants to modify the product New task- Buyer purchases a product for the first time.
System selling
Buying a packaged solution to a problem from a single seller
Influences on Business Buyer Behaviour
1) Economic environment- level of demand 2) Supply- the amount of key materials 3) Organizational factors- each buying organization runs differently
Stages of the business buying process (8)
1) Problem recognition 2) General need description 3) Product value analysis 4) Supplier search 5) Proposal solicitation 6) Supplier selection 7) Order routine specification 8) Performance review
Geographic segmentation
Dividing a market into different geographical units, such as global regions, countries
Demographic segmentation
Diving the market based on age, gender, family size, life cycle, household income, occupation and generation.
Psychographic segmentation
Dividing a market based on social class, lifestyle, or personality characteristics.
Behavioural segmentation
Dividing a market based on consumer knowledge, attitudes, uses and responses to a product. ex) occasion and user status
Intermarket segmentation
Consumers who have similar needs and buying behaviours even though they are located in different countries
Requirements for successful segmentation
-Measurable -Accessible -Substantial -Differentiable
Structural factors that affect long-run segment attractiveness
-Competitors New entrants- How easy it is for the company to start up and start doing it? Substitute products Power of buyers Power of suppliers
Target market
set of buyers sharing common needs or characteristics that the company decides to serve.
-Undifferentiated marketing (mass marketing) -Differentiated marketing (segmented marketing) -Concentrated marketing -Micromarketing -Individual marketing (mass customization)
1) Focuses on the common needs of consumers rather than on what is different. 2) target several market segments and designs separate offers for each 3) large share of one or a few segments or niches. 4) tailoring products and marketing programs to suit the tastes of specific individuals and locations 5) customized for individual consumers.
Product position
the way the product is defined by consumers compared to competitors
Choosing a Differentiation and Positioning Strategy
-Identifying a set of differentiating competitive advantages upon which to build a position -Choosing the right competitive advantages -Selecting an overall positioning strategy
Service differentiation Channel differentiation People differentiation Image differentiation
1) speedy delivery 2) the way they design their channel’s coverage 3) hiring and training people who are better 4) the brand’s image.
The differences to promote
-Important- The difference delivers a highly valued benefit to target buyers. -Distinctive -Superior -Communicable -Pre-emptive (cannot copy easily) -Affordable -Profitable
Positioning statement
summarizes company or brand positioning.
Positioning maps
shows consumers perceptions of their brands versus competing products on important buying dimensions.The position of each circle on the map indicates the brand’s perceived positioning on two dimensions- price and orientation.
What is the marketing process?
1) understanding the market place and customer 2) designing a customer driven marketing strategy 3) construct an integrated marketing program that delivers superior value 4) building customer relationships 5) capturing value from customers
Organization marketing Person marketing Place marketing
1) create, maintain, or change the attitudes and behaviour of customers and the general public toward an organization. 2)maintain or change attitudes or behaviour toward particular people. 3)change attitudes or behaviour toward particular places.
3 levels of a product
1) Core customer value- defining the core problem- solving benefits 2) Actual product- the product’s features and associated brand name 3) Augmented product- additional services and benefits that go with the product
Deciding on the Global Marketing organization
-export department -internation division -global organization
