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Marketing Management > Session 1 > Flashcards

Session 1 Flashcards

1
Q

Elements of marketing strategy

A

Standard
1. Product/market selection: who will be served what?
2. Price: price for product and payment options
3. Distribution systems: channel between us & ultimate customer
4. Market commuications: Ads, telemarketing, influencers etc.
These form marketing mix

Optional:
1. Plant location; could determine physical boundaries of marnet
2. Brand strategy: family name/ specific product name

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2
Q

Definition of product

A

package of advantages & disadvantages obtained by customer upon purchase

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2
Q

perceived value

A

What customer thinks he will get

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2
Q

potential value

A

What the buyer could recognize through market communications

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3
Q

Market segmentation

A

Dividing market in smaller ‘segments’ of customers with characteristics more similar to other in that group than customers in any other group

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4
Q

product/ market selection criteria

A
  1. Serve markets where product will produce most value
  2. Long-term growth potential of market
  3. It’s financially attractive to commit resources to this
  4. Competitive position is positive: market leaders, first-mover
  5. Company-product: What’s the influence of new offering on existing product line?
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5
Q

Factors to consider for market segmentation

A
  1. Perceived value
  2. Use (frequency, type, etc.)
  3. Demography, geography, psychography
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6
Q

Influencers of price

A
  1. Supply and demand
  2. Cost factors
  3. Competition
  4. buyer bargaining power
  5. Product value
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7
Q

Cost factors in pricing

A

With high fixed costs, companies tend to choose volume over profit margin

With high variable costs, one wants higher margins

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8
Q

Influence of competition on pricing
Solutions?

A

More competition means more competitive prices. Solutions:
1. Product differentation: introducing unique features gives some pricing freedom
2. Decrease retail store resellers to avoid intrabrand competition
3. Price leeadership: Price setting by market leader

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9
Q

Buyer bargaining power

A

Power of buyer to push down price by buying product from competitors. If company is highly dependent buyers it will lower prices more quickly.

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10
Q

Different types of pricing tactics

A
  1. Skimming prices: Introduce product at high price, lower over time. Full benefit of consumer surplus
  2. Penetration pricing: Introduce product at low price to conquer market share quickly.
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11
Q

Disadvantages of penetration pricing

A
  1. Product has to be free of defect
  2. Distribution channels must have enough capacity
  3. Distribution channels have to be in place and operate efficiently
  4. Short testing periods
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12
Q

Elements of distribution system

A
  1. Sales reps/agents
  2. Distributors
  3. Retail outlets
  4. Internet
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13
Q

sales reps/ agents

A

People that stay in contact with distributors and retail outlets selling the company’s product.

Reps (in employ, fixed costs) vs agents (independents, variable costs)

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14
Q

Distributors

A

Organisations that ship product to retailers, where they will be made available for small-ticket sales.

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15
Q

Retail outlets

A

shops that sell products in small-ticket volume

16
Q

Internet

A

Online shopping reduces transaction costs. There are more security concerns.

17
Q

Effective distribution channel management

A
  1. Choose selective distribution to prevent intrabrand competition.
  2. Superior quality line & breath
  3. Build up interdependent relationships with distributors and retailers
  4. Keep an active salesforce at a local level
18
Q

Market communications

A

Everything the company tries to communicate to the market in the form of advertisements, posters, marketing efforts.

For effective communications, the decision making process and unit should be understood

19
Q

pull strategies

A

End-market strategy to pull customer through the door. This is often very costly, like marketing campaigns

20
Q

Factors in choosing communication channel

A

Communication channel depends on:
1. Cost
2. Conversion rates
3. Communication goal in connection to stage in decision making process.

21
Q

push strategies

A

Incentivizing retailers to sell your product in their stores. This is important when product presentation and after-sale service are important.

22
Q

Decision making unit

A

The people/ peoples making the purchasing decision (wife, husband, whole family, children)

23
Q

3 takeaways from marketing myopia

A
  1. Don’t assume your product wil experience infinite demand. Customer preferences and market will change
  2. Be customer-orientated. What do they actually want (latent needs). A faster horse or faster transportation?
  3. Be the frontrunner in innovations in your field. It’s better to render your own product line obsolete than letting someone else do it.
24
Q

Study three circles illustration

A

Do it now.

25
Q

What are the three circles about?

A

The three circles show that there is generally a small overlap between what the customer wants and you offer, that a lot of products you offer are not interesting to your customer and that there is a big pool of needs the customer has that are not fulfilled by anyone.

In the small area of needs that both you and the competition serve, the question is: Who serves customer needs better?

26
Q

What does effective communication do?

A

Effective communication focuses on emotions and reliability.

26
Q

Three reasons companies like Nike are successful and the underlying conclusion

A
  1. Taps into universal positive motive
  2. Sells benefits, not a product
  3. Profit is created through customer satisfaction

Success is about customer-focus

27
Q

What is marketing?

And what can be marketed?

A

Marketing is identifying and serving customer needs profitably.

Everything from goods, services, places, people, ideas, organizations, information etc. can be marketed.

28
Q

Product orientation

A

Focus is on designing superior products

28
Q

Production orientation

A

The internal focus is on cutting production costs by maximizing production efficiency

28
Q

Types of orientation towards marketplace

A
  1. product orientation
  2. Production orientation
  3. Selling orientation
  4. Marketing orientation
29
Q

What is a Selling orientation

A

Focus is on selling as much as you can, often done by an aggressive sales force

29
Q

Marketing focus

A

Focus is on meeting customer needs best.

30
Q

Different types of needs

A
  1. Stated needs
  2. Latent needs
  3. Emotional needs
  4. Functional needs
31
Q

Stated needs

A

Needs that are articulated by the customer

32
Q

Latent needs

A

Underlying motivation for stated needs

33
Q

Functional needs

A

Needs for products that are reliable, high-quality, good price, or convenient etc.

34
Q

Emotional needs

A

Need for products that make people feel cool/special/patriotic etc.

35
Q

What is customer value

A

The customer value is perceived benefits - perceived costs (cost of acquisition/use)

Emotional en experiental benefits are also perceived benefits.

Marketing Management (6 decks)

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