Post-Midterm Flashcards
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
Shopping products
Speciality products
Unsought products
Industrial products
1) purchased less often and shoppers compare carefully based on quality and price.
2) buying a product based on unique characteristics
3) buying a product that the consumer doesn’t know of
4) used for further processing or for the use in conducting business
Why new products fail (8)
Overestimated market
Poor design
Incorrect positioning
Error in pricing
Poor marketing communication
Production-orientation
Cost overrun
Competition
Product and service decisions (requires 3 levels)
1) individual product decision
2) decisions about the product lines, or groups of products
3) company’s overall portfolio or product mix
Product and service attributes (7)
1) product quality
2) product features
3) style and design
4) packing and labeling
5) sustainable packaging
6) labelling
7) product support services
Product line
group of products that are close related because they function in a similar manner and are sold to the same customer groups
Services Marketing:
Service intangibility
Service variability
Service inseparability
Service perishability
1) they cannot be seen, tasted or smelled before they are bought
2) their quality may vary greatly, depending on who provides them
3) produced and consumed at the same time
4) they cannot be stored for later sale or use
The service profit chain (5 links)
- links service firm profits with employee and customer satisfaction links
1) internal service quality- superior employee selection
2) satisfied and productive service employees- more satisfied and loyal hard working employees
3) greater service value- more effective and efficient customer value creation
4) satisfied and loyal customers- satisfied customer who remain loyal
5) healthy service profits and growth- superior service firm performance
Internal marketing
orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction.
Stages in the product life cycle (4 stages)
1) Introduction stage- new product is launched.
2) Growth stage- If the new product satisfies the market, it will enter this stage in which sales begin to climb quickly. 3)Maturity stage- When the sales begin to slow down. 4)Decline stage- Products that will eventually decline and be replaced by new products
Brand equity
the dollar amount attributed to the value of the brand, based on all the intangible qualities that create that value.
Brand positioning
Brands are positioned based on product attributes.
Brand development (5)
1) Line extensions- extending an existing brand name to new forms of an existing product category.
2) Brand extensions- extend a current brand name to new or modified products in a new category.
3) Multi-brands- produces many different brands in a given product category.
4) New brands- deciding to adopt a new strategy
5) Ongoing brand management- most important role is brand manager.
Touchpoints
advertising, marketing communications, personal experience with the brand, word of mouth and anything else that brings a consumer into contact with a brand.
Ceiling for prices
Floor prices
1) customers perceptions of the product’s value
2) product’s cost
Cost-based pricing vs value-based pricing
Cost-based pricing- more product driven. Setting a price based on cost of making product.
Value-based pricing- company first asses the customers needs and value perceptions. Attaching value-added features and services to differentiate the product.
Good-value pricing
offering the right combination of quality and good service at a fair price.
(Price decisions)
Internal factors
External factors
1) overall marketing strategy, objectives, and marketing mix, as well as other organizational considerations.
2) include the nature of the market and the demand and other environmental factors.
Target costing
pricing that starts with an ideal selling price, and then targets costs that will ensure that the price is met.
Pricing in different types of markets (4)
Pure competition- many buyers and sellers trading in a uniform commodity.
Monopolistic competition- many buyers and sellers who trade over a range of prices rather than a single market price.
Oligopolistic competition-few sellers who are highly sensitive to each other’s pricing and marketing strategies.
Pure monopoly- the market only consists of one seller.
Price elasticity of demand
a measure of the sensitivity of demand to changes in price. Inelastic- demand hardly changes with a small change in price. Elastic- demand changes a lot when price changes.
Market-Skimming Pricing
Market-Penetration Pricing
Product Mix Pricing
Product Line Pricing
1) Setting a high price for a new product to skim maximum revenues
2) Setting a low initial price for a new product in order to attract a large number of buyers and a large market share.
3) product’s price often has to be changed. Looks for a set of prices that maximizes the profits on the total product mix.
4) Setting the price based on cost differences between the products, customer evaluations of different features, and competitors prices.
Optional-Product Pricing
Captive-Product Pricing
By-Product Pricing
Product Bundle Pricing
1)main product is sold at a low margin or near cost price, and the marketers focus on promoting the extras and upgrades 2)Setting a price for products that must be used along with a main product, such as blades for razor. 3)Setting a price for by-products to make the main product’s price more competitive. 4)Combining several products and offering the bundle at a reduced price.
Value delivery network
the network made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value.
What is a channel?
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business customer.
Specific functions channel partners can perform (9)
1) info gathering and distribution
2) promotion at point of purchase- handled by distributors and retailers
3) contact- channel members
4) matching and arranging
5) negotiation
6) physical distribution
7) financing
8) risk taking
9) after-sales support
Vertical marketing system
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
3 Types of vertical marketing system
1) Corporate VMS- successive stages of production and distribution under single ownership
2) Administered VMS-coordinates successive stages of production and distribution through the size and power of the parties
3) Contractural VMS- independent firms at different levels of production and distribution work together under contract.
Types of Franchises (3)
1) Manufacturer-sponsored retailer franchise system- For example) Ford and its network of independent franchised dealers.
2) Manufacturer-sponsored wholesaler franchise system- Coke licensed bottlers (wholesalers) in various markets that buy Coke syrup concentrate and then bottle and sell the finished product to retailers in local markets.
3) Service firm-sponsored retailer franchise system- running your own business with a franchise.
Horizontal marketing system
An arrangement in which two or more companies that operate at the same channel level join together to follow a new marketing opportunity.
Multichannel (Hybrid) Distribution Systems
A distribution system in which a single firm sets up two or more marketing channels to reach one or more market segments.
Channel conflict
disagreement among marketing channel members over goals, roles, and rewards.
Distribution channel strategy
1) intensive distribution- product is stocked in many places as possible
2) selective distribution- selects set of retailers that specialize in their product
3) exclusive distribution- gives the rights to distribute its products to only one retailer
Channel design decisions
- marketing channel design - analyzing customer needs - setting channel objectives - international distribution channels
The promotion mix (five major promotion tools)
1)Advertising- any paid form of nonpersonal presentation and promotion of ideas by an identified sponsor. 2)Sales promotion- short term incentives to encourage the purchase of a product 3)Personal selling- personal customer interactions by the firm’s sales force 4)Public relations- building good relations with the company’s various publics by obtaining favourable publicity 5))Direct and digital marketing- engaging directly with carefully targeted individual consumers
Promotion mix strategies (2)
1) push strategy- Using sales force and trade promotion to push the product through channels. 2)Pull strategy- Spending a lot on consumer advertising and promotion to include final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel.
Major Decisions in Advertising (3)
1) setting advertising objectives 2) setting the advertising budget 3) developing advertising strategy 4) Evaluating advertising effectiveness and the return on advertising investment
Consumer-generated content Selecting advertising media
1) Tapping consumers for marketing content, message ideas, or even actual ads. 2)Advertising messages are delivered to their intended audiences.
Determining reach, frequency, impact and engagement
Reach- percentage of people in the target market who are exposed to the ad campaign Frequency- how many times the average person in the target market is exposed to the message Media impact- qualitative value of message exposure through a given medium Engage- engaging consumers
Public relations (5)
1) Press relations or press agency- creating news that will attract attention from a person 2) product publicity- publicizing specific products 3) public affairs- building relationships 4) investor relations- maintaining relationships with shareholders and others in the financial community 5) development- working with donors or members of nonprofit to gain financial support
Personal selling
-Personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships. - represent the company to customers -represent customers to the company
Major steps in sales force management (6)
1) the sales force structure ex) sales force size and outside sales force 2) Recruiting and selecting sales people 3) training salespeople 4) compensating salespeople 5) supervising and motivating salespeople 6) evaluating salespeople and sales force performance
Steps in the PERSONAL SELLING process(7)
1) prospecting and qualifying 2) pre-approach 3) approach 4) presentation and demonstration 5) handling objections 6) closing 7) follow-up
Promotion clutter
given promotion runs the risk of being lost in a sea of other promotional, weakening its ability to trigger an immediate purchase.
Sales promotion objectives
1) consumer promotions- urge short-term customer buying 2) trade promotions- getting retailers to carry out new items and more inventory, buy ahed to promote company’s products 3) business promotions- stimulate purchases
Major sales promotion tools (4)
1) price packs- offer consumer savings off the regular price 2) premiums- low cost as an incentive to buy product 3)Point-of-purchase promotions- displays to take place at the point of sale 4) trade promotions- used to persuade resellers to carry a brand and promote advertising
Developing the sales promotion program
1) Size of incentive- minimum incentive is necessary if the promotion is to succeed 2)Conditions for participation- offered to selective groups. 3)Promote and distribute the promotion program- campaign concept. 4)Length of the promotion- if the sales promotion is too short, many prospects will miss it. 5)Evaluation- comparing sales before and after the promotion.
Internet penetration
is the percentage of a region’s population who use the Internet
E-business (4 categories)
1) E-tailing- selling of retail goods on the internet. 2)Business-to-Business transactions 3)Electronic data interchanges 4)Email 5)The gathering and the use of demographic, product, and other info through Web contacts.
Digital marketing capabilities (5)
1)Global reach- The ability to reach anyone 2)Personalization 3)Interactive marketing- Buyer-seller communications 4)Right-time marketing- The ability to provide a product at the exact time needed. 5)Integrated marketing- Coordination of all promotional activities
Challenges in digital marketing
-safety of online payments -privacy issues -frauds and scams -site design and customer service -channel conflicts and copyright disputes
(Promotions on the web)
Widgets
Search marketing
1) tiny applications that users can copy and add their social networking pages or personal websites 2) search marketing- most effective form. paying search engines, to have their website come up.
Questions to consider in developing a website
1) establishing goals 2) implementation and interest 3) pricing and maintenance 4) assessing site effectiveness 5) social media platforms
Social media marketing (SMM
the use of social media portals to create a positive influence on consumers or business consumers or business customers toward an organization’s brand, products, public image or website
social media contains 3 essential features
1) creates a buzz. 2) customers to engage in conversations with each other 3) customers to promote the firms’ messages themselves
Social media marketing plan-
A formal document that identifies and describes goals and strategies, targeted audience, budget, and implementation methods, as well as tactics for monitoring, measuring, and managing the SMM effort.
Social Media Marketing Plan contains
1) an executive summary 2) brief overview 3) analysis of the competition 4) body of the plan
Targeting the audience (SMM)
-demographics -what the group needs or wants -which firms’ products and social media will meet the needs and wants of a particular group of people
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.
Monitoring, Measuring, and Managing the SMM Campaign
1)Social media monitoring- The process of tracking, measuring, and evaluating a firm’s social media marketing initiatives. 2)Social media analytics- Tools that help marketers trace, measure, and interpret data related to social media marketing initiatives.
Sustainable marketing
Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.
Marketing’s impact on consumes (4)
1) high prices 2) high costs of distribution 3) high adverting and promotion costs 4) excessive markups
Deceptive practices (3)
1)Deceptive pricing- practices such as falsely advertising factory 2)Deceptive promotion- misrepresenting the product’s features or performance 3)Deceptive packaging- exaggerating package contents through subtle design, using misleading labelling
Planned obsolescence Perceived obsolescence
1)causing their products to become obsolete before they actually need replacement. 2)changing consumer congestion.
Consumer activism
Environmentalism
Environmental sustainability
1) organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. 2)protect and improve people’s current and future living environment. 3)a management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Sustainable marketing principles (4)
1)Consumer-Oriented Marketing- company should view and organize its marketing activities from the consumer’s point of view. 2)Consumer-Value Marketing- a company should put most of its resources into customer-value-building marketing investment. 3)Innovative Marketing- requires that a company seek real product and marketing improvements. 4)Sense-of-mission marketing- company should define its mission in broad social terms
Societal marketing
Company should make marketing decisions by considering consumers’ wants, the company’s requirements.
Deficient products Pleasing products Salutary products Desirable products
-products that don’t have immediate appeal -high immediate satisfaction but may hurt consumers in the long run -low appeal but will benefit consumers in the long run -high immediate satisfaction with long run benefits
Global firm
by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Indirection exporting Direct exporting
1) working through independent international marketing intermediaries 2) handling their own exports
Joint venturing
Joining with foreign companies to produce or market products or services.
Deciding on the global marketing program (2)
1)Standardized global marketing- using the same marketing strategy approaches and marketing mix worldwide. 2)Adapted global marketing- adjusting the marketing strategy and mix elements to each target market.
Deciding on the Global Marketing organization
-export department -internation division -global organization
buzz marketing
Cultivating opinion leaders & getting them to spread info about a product/service to others in their communities
What are the 3 Cs of marketing?
Consumerism, Clean Up, Conservation
Factors to consider when entering international markets?
Marketing objectives
Volume of foreign sales
How many countries
Types of countries to enter
Deciding on a global marketing mix: standardized marketing mix or adapted marketing mix?
Act global where possible, act local when you have no choice; Standardize where possible, adapt where necessary (GLOCAL)
Sustainable Marketing Principles
1) Consumer-Oriented Marketing- organizing marketing activities from the consumers point of view
2) Consumer-Value Marketing- putting most ressources into customer-building marketing investments.
3) Innovative marketing-marketing improvements.
4) Sense-of-Mission marketing-define it’s mission in broad social terms
5) Societal Marketing-marketing decisions based on the consumers wants.
Traditional Buyers’ Rights
-Not buy a product that is offered for sale
- Expect the product to be safe
- Expect the product to perform as claimed
Traditional Sellers’ Rights
-Introduce any product in any size and style
- Charge any price for the product
- Spend any amount to promote the producto Use any product message
-Use any buying incentive schemes
Marketing’s Impact on Other Businesses
(what can harm other companies and reduce competition)
1) Acquisition and shrinking of competitors
2) Creating barriers to entry
3) Unfair practices such as predatory pricing
Sustainable Marketing;
Marketing concept
Societal marketing concept
Strategic planning concept
Marketing concept – focuses on S/T sales, growth, and profit needs by giving what the customers want now.
Societal marketing concept – future welfare of consumers.
Strategic planning concept – future needs of the company.
Deciding on the Global Marketing Organization
Companies manage their international marketing activities in at least three different ways:
- Most companies first organize an export department,
- then create an international division,
- and finally become a global organization.
Standardized global marketing
Using the same marketing strategy approaches and marketing mix worldwide.
Adapted global marketing
Adapted global marketing
Adjusting the marketing strategy and mix elements to each target market; involves higher costs with the goal of producing a larger market share and return
Marketing communication strategies to a global market (4)
1) Product
2) Promotion-Companies can either adopt the same communication strategy they use in the home market or change it for each local market.
3) Price- domestic prices will always be higher than foreigh (transportation cost)
4) Distribution Channels- international channels that take into account the entire global supply chain & marketing channel
Joint Venture (4)
Licensing – entering foreign markets through developing an agreement with a licensee in the foreign market
Contract Manufacturing-company contracts with manufacturers in a foreign market to produce its product/provide its service
Management Contracting – which a firm legally obtains the operation control on behalf of another company
Joint Ownership – company creates local business with investors in a foreign market, who share ownership and control
Indirect vs Direct
Indirect – working through independent international marketing intermediaries.
Direct – handling their own exports.
Horizontal conflict
among firms that perform the same function at the same level of the channel.
Vertical conflict
conflict between different levels of the same channel, is even more common.
5 stages of technology life cycle
1) Innovators- first individuals to adopt an innovation. Willing to take risks
2) Early adopters-More discrete in adoption
3) Early majority- innovation after a varying degree of time.
4) Late majority-after the average member of the society.
5) Laggards- last to adopt an innovation
Major stages in New-Product Development
1) Idea generation
2) Idea screening
3) Concept development and testing
4) Marketing strategy development
5) Business analysis
6) Product development
7) Test marketing
8) Commercialization
Brand Strategy (4)
1) Brand positioning
2) Brand name selection
3) Brand sponsorship
4) Brand development
Decisions in international marketing
1) deciding wheter to go global
2) deciding which markets to enter
3) deciding on how to enter a market- joint venturing
4) deciding on the global marketing program- standardized global marketing or adapted global marketing
