MKTG201 Flashcards
What is marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Value
Ratio of the benefits a customer recieves from an offering compared to the costs
Exchange
When people give something up of value to them for something else they desire.
Marketing management
Leading and managing the facets of marketing to improve individual unit, organisational performance
Value proposition
The firms communication of the unique value of its product to customers
Marketing planning
Ongoing process of developing and implementing market driven strategies for an organisation.
Situation analysis
Loooking at company, enviromental, market and competitive analysis to evaluate where the company is now
Mission statement
Organization’s purpose, what do they do and why
PESTEL analysis
Political,economic, socio cultural, technological,enviromental, legal
Competitive enviroment
Forced driving industry competition. (potential entrants, suppliers, buyers, substitues)
SWOT analysis
Strengths, weaknesses, opportunities, threats.
Summarise the situation analysis into this.
Customer Orientation
When a company understands it’s customers and listens to the market
Competitor Orientation
When a company uses competitor analysis as the primary driver for its strategies
Industry
Group of firms offering a product that are close substitutes for one another
Perfect competiton
Lots of producers, identical product, easy entry/exit, high competition, no control over price
Monopolistic competition
large no of producers, highly similar products, easy exit/entry, high competition, low control over price
Oligopoly
Few large producers, differentiated, high barriers to entry, competitors collaborate, high market power influencing price through collaboration
Monopoly
One producer, unique, no substitues, very high barriers to entry, no/low competition, complete control over price
Forward integration
When a producer gains control on the downstream of the supply chain, offers it directly to the end consumer.
Backward integration
Take over the upstream of their supply chain.
Market leader
largest market share, leads in price changes
Market follower
Willing to maintain market share
Market challenger
gain ground, or even overtake a leader, can attack a leader if they aren’t excelling
Consumer decision making process
problem recognition, search for information, evaluation of alternatives, product choice decision, post purchase decision
Market Nichers
leaders in small markets, avoid competing with large firms
Market segmentation
Dividing a market into submarkets based on common characteristics
Target marketing
Evaluating market segments, then making decisions about which one is most worthy to target.
Positioning
Communicating one or more sources of value in ways that connect needs and wants to what the product has to offer.
Types of segmentation
Geographic, demographic, psychographic, behavioural
Primary target markets
Most attractive segment, aligns with factors
Secondary target market
Have potential, not suitable for development immediately, no current products for them
Customer profiles
Customer jobs, customer pains, customer gains
Types of customer jobs
functional, social, personal/emotional, supporting
Three primary categories of competitive strategy
Cost leadership, Differentiation, Focus (or niche)
Cost leadership
low cost, removing costs of things that aren’t essential
Differentiation
Unique goods or services for which customers will pay a premium price, adopts strategy
Focus (or niche)
Narrow target, low cost, can differentiate themselves
Types of marketing strategies
Market penetration, Market development, Product development, Diversification
Market penetration
Existing products in existing markets. Increase sales products through promotion
Market development
Existing products in new markets. How can you make more markets aware of the product.
Product development
New products in existing markets. Create more growth
Diversification
New products in new markets.
Product value
Essential benefit, core product, enhanced product
Disruptive innovation
So innovative it create a fundamental change in the marketplace
Consumer goods, product classifications
Convenience goods, shopping goods, specialty goods, unsought goods
Sustaining innovation
Newer, faster, better versions of existing products or additions to existing product lines. (coke zero)
Positioning
Designing a companies offering and image, to occupy a distinctive place in the minds of the target market
Physical/tangible goods
Goods, such as manufactured products
Intangible
Products such as copyrights or services such as after sales assistance
Digital
Products such as music downloads or services such as online reccomendations
Financial
Products such as investment funds and insurances or services such as the financing of a purchase.
Pain relivers
Describe how your products/services alleviate customer pains.
Gain creators
Describe how your products and services create customer gains.
Problem solution fit
When you identify relevant customer jobs, pains, and gains you believe you can address with your value proposition
Product market fit
Occurs when customers positively react to your value proposition and gets traction in the market.
Branding
The process of promoting products and services with the power of a brand. Creating differences between products.
Customer Brand roles
Convey information and educate customers about the product. Reassure customers of there purchase decision.
Company Brand roles
Offers legal protection, differentiates the product, prices the product.
Competitor Brand Roles
Provide competitors with a benchmark for which to compete.
Brand equity
A set of assets linked to a brand’s name and symbol that adds to the value provided by a product or service to a firm.
Brand awareness
Signals a familarity and potential commitment to the brand.
Brand loyalty
The strongest form of brand equity, reflects a commitment to repeat purchases.
Perceived quality
Brands convey a perception of quality that is either negative or positive. Companies use positive perceived quality to differentiate the product.
Brand association
Emotional, psychological and performance associations with a brand.
Brand assets
trademarks and patents that represent a significant competitive advantage.
Brand Mantra
three to five word articulation of the brand’s heart and soul
Point of parity
attributes are mandatory for a brand to be considered a competitor
Points of difference
Attributes that consumers strongly associate with a brand and believe they could not find to the same extent with a competitive brand.
Brand centrality
brands representativeness within a product category
Brand distinctiveness
Degree to which a brand stands out from others
Aspirational brands
highly differentiated but also have wide appeal
Mainstream brands
The first that comes to mind when consumers think of the category
Peripheral brands
Have little to distinguish them, first choice for most consumers.
Unconventional brands
Those with unique characteristics that distinguish them, from traditional products in the category.
Stand alone branding
Seperate the company from the brand, which insulates the company if their is a problem with the brand. Expensive and can associate multiple brands with one company.
Family branding
Brings synergy amongst members of the brand family. Disadvantage is multiple products under same name, could result in all products getting tainted.
National brands
Sold around the country under the same brand
Store brands
When large retailers create a store brand to market their own products.
Line extension
Variations of an existing product
Multi brand
Company owning different brands in the same product category
Brand extension
Uses the name of an existing brand into new product categories
New Brand
Developing a new product in a different category in which a firm decides to use a new brand name
Licensing
Companies can also extend their brand by licensing, offering other manufacturers the right to use the brand in exchange for a set fee.
Co branding
Combines two or more well known brands in a common product.
Reach awareness co-branding
Enables the involved brands to rapidly increase awareness of their brands through exposure to their partner’s customer base.
Complementary competence co-branding
two powerful and complementary brands combine to produce a product with an element of both of them, requires each partners core skills.
Ingredient co-branding
Creation of a brand value through materials, parts involved in the product. A brand is considered a ingredient when it becomes necessary for another brand to get its finished product through to consumers.
Brand touchpoints
All of the points where consumers come into contact with the brand from the start of the customer journey up to consumption of the product/service and post purchase.
Value
A ratio of the bundle of benefits a customer recieved for an offering compared to its costs
Price
Key determinant of perceieved value
Penetration Pricing
Set price low initally to fend off competition, then increase over time.
Price skimming
Entering market at relatively high price point. Then slowly lower it to reach each market.
Profit maximisation and target ROI
When pricing objective is to maximise profit or achieve a certain ROI
Value pricing
Considers the role of price as a reflection of the bundle of benefits sought by the customer.
Competitor based pricing
At the competitors price or slightly above or below.
Pricing line
opportunity to develop rational prices across complete line of related items.
Captive pricing
Also called complementary pricing (e.g. razors and blades)
Price bundling
Purchasing package deals at reduced price compared to what individual components cost
Reference pricing
Type of comparative price when considering product purchase
Decoy pricing
Meant to “force” customer choice. When customers make a purchase they must often choose between products with different prices.
Odd/even pricing
Odd price expressed in whole dollars ($1.99)
Prestige pricing
Attaches quality attributions to higher priced goods.
One price strategy
The price marked on the good is what it typically sells for.
What is the customer journey map
Top: Awareness, Evaluation, Purchase, Delivery, Post-purchase. Side: Customer actions, thoughts and emotions, touch points, pain points
Intensive distribution
Objective is to obtain maximum product exposure throughout channel
Selective Distribution
For shopping goods with limited search activities by consumer
Exclusive Distribution
Built on prestige, scarcity and premium pricing
Advantages and disadvantages of e-commerce
Advantages: extensive selection, info avaliable, individual experiences. Disadvantages: Can walk away easily, reduced ability, security of personal data
Buyer persona
A detailed description of someone who represents your target market
Goals for promotion
- to inform, 2. to persuade, 3. to remind
3 different types of appeals
Rational, emotional, moral
Marketing promotion plan
Identify targets for promotion, establish goals for promotion, select the promotion mix, develop the message, select media for use in promotion
Statement of value
Assess an action based on it’s inherent value
