Part 1 Flashcards
mission statement
the description of its reason for existence
this defines the direction in which the org is heading and how it will reach its desired goals
mission statement should be:
focused on markets rather than products, achievable and motivational
organizational strategies
involves choice of major directions organizations will take in pursuing its objectives
market development
ex: in n out going to different part of the country
existing product to new market
market penetration
ex: selling OJ to consumers who regularly drink it in the morning
existing product to existing market
diversification
new product to new customers
org strategies based on competitive advantage
southwest: low fares/simple service
BMW: more sporty luxury brand
Ritz Carlton: great service and luxury
industry attractiveness
market growth, rate, market size, demand variability, industry profitability, industry rivalry
business unit strength
market share, brand equity, profit margins relative to competitors, production capacity
marketing management process
distribution of goods, services, and ideas to satisfy customers and achieve organizational objectives and the process of planning and executing the conception, pricing, promotion
market segmentation
process of dividing market into similar consumers
demographic variable: gender, age, income, etc
geographic variables: north, south, east, west
psychographic variables: beliefs, values, lifestyles
behavioral variables:
product development
new product to existing market
target market
market segment that a company selects to focus on
things to consider when selecting target market: segment/size potential, segment structural attractiveness, marketing objectives/company resources
undifferentiated (mass) marketing
ex: Coke classic, for all the people
differentiated (segmented) marketing
choose multiple segments as target market
ex: Toyota has Prius, Corolla, Camry for different segments
concentrated (niche) marketing
one product
ex: whole foods (upper class)
positioning
placing a product in consumers minds relative to competing products
ex: nike gets consumers to think that nike is different from others, better than reebok
how to position
product/service features. benefits and attributes. price and value. specific usage occasion (ex OJ in the morning). against a competitor
repositioning
altering/ revising a products positioning
qualitative date vs quantitative data
qual- focus groups, topics can be about ads
when topic is sensitive, don’t use focus groups but rather use long interviews
quant- servers research, experimental research, observational research
regression analysis
find relationship between dependent and independent variables
primary vs secondary data
primary- yours
secondary- previously collected, usually collect first
culture vs subculture
culture- a set of beliefs, attitudes, and behaviors shared my group
subculture
social class
every society has its status groupings largely based on similarities in income, education and occupation
reference group
groups that individuals look to when forming attitudes and opinions
aspiration groups
groups that you aspire to be like, you want what they have
the family
has great influence on attitude towards specific brands and stores
self concept
consumers tend to choose brands with personalities that match their self concept
lifestyles
broad patterns of activities, interests and opinions and the behaviors the result
perception
perception- process of interpreting information, its subjective
selectivity
customers pick and choose only selected pieces of information and ignore the rest
memory limitations
even though consumers select information, they remember only a small portion of it
attitude
a positive or negative feeling about something
tri component theory
attitude is based one behavioral, cognitive and affective factors
