MKTG 3832 - Exam 1 Flashcards
5 marketing eras
Production era Sales era Marketing era Relationship Social era
Production Orientation
Quality products and then tried to find people to purchase them
Consumer Orientation
The focus is on satisfying the needs and wants of consumers rather than simply producing and selling products
Sales Orientation
A belief that creative advertising and personal selling will persuade consumers to buy
Relationship Marketing
Refers to the development, growth, and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit
6 Categories of Marketing
Product Place Cause Person Event Organization
Place Marketing
Marketing efforts designed to attract visitors to a particular area; improve consumer images of a city, state, or nation; and/or attract new business.
Ex. California: “Find Yourself Here.”
Cause Marketing
Identification and marketing of a social issue, cause, or idea to selected target markets
Ex. “Click it or Ticket.”
Person Marketing
Marketing efforts designed to cultivate the attention and preference of a target market toward a person
Ex. Athlete, Payton Manning
Event Marketing
Marketing of sporting, cultural, and charitable activities to selected target markets
Ex. Tokyo 2020 Summer Olympics
Organization Marketing
Marketing efforts of mutual-benefit organizations, service organizations, and government organizations that seek to influence others to accept their goals, receive their services, or contribute to them in some way
Ex. American Red Cross, “Together we can save a lift.”
Marketing Mix Variables
"The 4 P's of Marketing" Product Price Place (distribution) Promotion
Planning
The overall process of anticipating conditions and determining the best way to achieve organizational objectives
Marketing Planning
The process devoted specifically to achieving marketing objectives
Strategic Planning
The process of determining an organization’s long-term primary objectives and adopting courses of action that will achieve these objectives. Total budget.
Top Managers, like CEO or CFO
Tactical Planning
Defines how activities specified in the strategic plan will be implemented. Shorter-term objectives that need to be completed for its long-term. Swift decision making/actions. Quarterly, semi-annual plans. Business unit budget. Divisional policies.
Middle level managers; GMs and department directors
Operational Planning
Where managers develop specific programs to meet goals in their area of responsibility. Daily and weekly plans, unit budgets, departmental rules. Supervisory management, regional sales manager and supervisory. Tactical planning is basis for.
Porter’s 5 Forces
Five competitive forces that influence planning strategies.
Threat of new competitors Supplier power Buyer power Threat of substitutes Competitive rivalry
Threat of new competitors
The degree to which new competitors may easily enter the industry and disrupt established firms.
If high, lower prices, reducing industry profitability
Supplier Power
The amount of bargaining power a supplier exerts on its customers and other channel members.
If high, industry profitability reduces because of their higher prices.
Buyer Power
The amount of bargaining power a customer (either consumer or business-to-business buyer) exerts on its suppliers and other channel members.
If high, industry profitability reduces because they demand lower prices, etc.
Threat of Substitutes
A substitute threat occurs when a product or service can be replaced with goods and services from a competing firm or industry.
If high, industry profitability reduced because of competition
Competitive Rivalry
The intensity of competition among industry participants, usually a direct result of the four previous forces
If high, profitability reduced.
SWOT Analysis
Analyzes the internal and external environment to assess: Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)
Leverage
Matching an internal strength with an external opportunity, enabling a company to seize an advantage over its competition.
Boston Consulting Group Matrix (BCG)
Portfolio analysis framework that enables managers to plot the relative position of each business unit, brand, or product on the basis of industry growth rate and relative market share (what a firm currently controls).
Stars
Cash Cows
Question Marks
Dogs
Stars
Industry Growth Rate: High
Relative Market Share: High
Invest more!
Cash Cows
Industry Growth Rate: Low
Relative Market Share: High
Milk it! To bring more cash into starts and question marks.
Question Marks
Industry Growth: High
Relative Market Share: Low
Don’t know! Invest or don’t
Dogs
Industry Growth: Low
Relative Market Share: Low
Withdraw!
(some companies build around buying these dogs from others)
Marketing Environment Components
Competitive Political-Legal Economic Technological Socio-Cultural
Competitive Environment
Where marketers of directly competitive products and marketers of substitute products compete for consumer purchases
Direct - Marathon vs. Shell
Indirect - Starbucks vs. tea at home
Political-Legal Environment
The component of the marketing environment consisting of laws and regulations to maintain competitive conditions and protect consumer rights
Economic Environment
Consists of factors that influence consumer buying power and marketing strategies.
Business cycle, inflation/deflation, unemployment, income.
Gross domestic product (GDP)
Technological Environment
The application of knowledge based on discoveries in science, inventions, and innovations.
Socio-Cultural Environment
The relationship between marketing, society, and culture
Demographic shifts, changing values, consumerism
Regulatory Forces
Political-Legal Environment
Regulatory agencies
Public/private consumer interest groups
Self-regulatory organizations
Stages of the Business Cycle
Expansion
Peak
Contraction
Trough
Recession: economic contraction lasting 6 months or more.
Inflation
Rising prices caused by some combination of excess demand and the increasing cost of raw materials, labor, and/or other factors of production
Discretionary Competition
the amount of money people have to spend after buying necessities such as food, clothing, and housing
Ethical Issues in Product and Promotion
Planned obsolescence (limited lifespan).
Deceptive packaging
Pricing - most regulated, illegal
Distribution - purchase supplies from parent organization, don’t build retail in low-income areas
Promotion - truth in advertising, beer hats promoting underage drinking
Social Responsibility
accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being in evaluating a firm’s performance
Economic bottom
Legal
Ethical
Philanthropic top
Digital Marketing Opportunities
Global Reach
Personalization
Interactive marketing (push notifications on location, event triggers)
Right-Time Marketing
Integrated Marketing (coordinated online and offline, Coke with same logo)
Extranets
secure networks used for e-business and accessible through the firm’s website by external customers, suppliers, or other authorized users.
Selected outsiders access to internal info.
Ad agency authorizes client for progress tracking.
Intranets
secure internal networks that help companies share information among employees, no matter the number or location.
Employee flexible scheduling
Private Exchange
a secure website where a company and its suppliers share all types of data, from product design through order delivery
Integrates extranet and intranet.
Walmart’s Retail Link; Walmart employees access, suppliers access inventory logistics.
Channel Conflicts
conflicts between producers, wholesalers, and retailers
Mattel, Walmart and Target selling toys
E-Commerce Success
Primarily by traffic (how many ppl visit site) and conversions (how many of those visitors buy something).
User experience
Product offering
Checkout process
Revenue maximization
Revenue Maximization
website strategies designed to increase the size of each customer transaction and encourage repeat visits by the customer
Designed to: increase the size of each customer transaction and encourage repeat visits
Measuring the Effectiveness of E-Commerce Site
Unique visitors (each, different person)
Engagement (time spent and pages visited)
Conversion Rate (purchase; # of purchases / # of visitors to site)
Click-through-Rate (% click on ad, the higher the better; Ad clicks / Ad impressions) [impression is any time the ad is shown to user]
Conversion Cost (most important, total cost of each sale; lower the better; Cost-per-Click / Conversion Rate) [CPC is you pay each time a customer clicks on ad]
Social Media Platforms
the home base for an online community.
Social Networking Sites
Social Bookmarking Sites
Blogging Sites and Forums
Social Networking Sites
Users create communities using profile pages or groups, enabling them to share content and exchange messages.
Relationship-building
Rapid dissemination of information
Keywords can bring users directly to a company web
Facebook, Pinterest, Snapchat, LinkedIn
Social Bookmarking Sites
Users can save, organize, and manage links to Internet resources – then share those links publicly.
Way to organically distribute messages to interested and influential users.
StumbleUpon; Pinterest
Blogging Sites and Forums
Users facilitate conversations by posting articles and messages.
Sharing of content and ongoing communication via company-controlled site.
Can be effective for generating traffic to company site.
WordPress, Twitter (microblogging).
Ethics in Social Media
Respect privacy
Be honest
Be accountable
Social Media Marketing (SMM)
is developing a conversation with current and potential customers on social media platforms
Increase brand awareness, generate leads Increase revenue - sponsored ads Improve customer service Manage a crisis Market research and customer feedback
Content Marketing
creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action
Creating effective social media content
Strong brand focus
Focus on audience
Targeted keywords
Relevant information
Shareworthy text and images (lens filter snapchat)
Invitations to generate content via posts, shares, discussions via Q and A’s
Discount promotions
Measure Social Media Marketing Results
Measures of activity
Measures of engagement
Measures of conversion
Measures of activity
Total likes, followers, subscribers
New likes, followers, subscribers
Impressions for social media content, # of people who received your message
Measures of engagement
Good word-of-mouth, likely to purchase.
Likes/comments on social media content
Re-tweets/shares more powerful than likes or comments, endorsement
Click-through rate takes them to your company controlled site
Measures of conversion
Repeat customers
Consumer behavior
the process through which the ultimate buyer or household consumer makes purchase decisions
Social factors
Psychological factors
Situational factors
Social Factors
external influences; culture, social class, reference groups, family, and leaders.
Psychological factors
internal influences; needs and motives, perceptions, attitudes, learning, and self-concept. Maslow’s Hierarchy of Needs
Situational Factors
external influences under which a purchase is made. Purchase occasion
Physical surroundings
Social Surroundings
Purchase reason
Buyer’s mood and condition
Maslow’s Hierarchy of Needs
Physiological
Safety
Belongingness
Esteem
Self-Actualization
Involvement
the degree of interest an individual has in the product, as well as how important that product is to them
Routinized: every day, low involvement, shampoo, short time
Limited: less frequent, medium involvement, clothes or cookware or personal electronics, medium time
Extended problem solving: least frequent, high involvement, cars or college, long time
Consumer Decision Process
Problem/Opportunity Recognition
Information Search (evoked set)
Evaluation of Alternatives
Purchase Decision and Purchase Act
Post-Purchase Evaluation
