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58 Cards in this Set
- Front
- Back
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marketing strategy
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1) select appropriate target markets
2) specify marketing Mix 3) attract and retain customers |
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Business enterprise has two basic functions
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1) marketing
2) innovation |
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marketing objective
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create value for cusutomers
-attract and keep the right customers~> drives profitability |
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Five Cs
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Customer needs
Company Skills Competition Collaborators Context |
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Marketing Mix
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Product and Service
Price/Channels Promotion Price |
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segmentation
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describe and differentiate customers
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product line breadth
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how many different lines company offers
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product line length
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how many items in a line
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product line depth
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how many types of a given product
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Marketing Channel
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set of mechanisms of the network via which a firm goes to market
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dual distribution
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different systems used to reach each market segment efficiently and effectively
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channel design
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how to distribute product: direct, indirect, dual
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channel breadth
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how intense should firm's presence be in a market area
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Six M's of planning communication
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Market
Mission Message Media Measurement |
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DMU
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decision making unit
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consumer promotions
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used by manufacturer and addressed to end consumer
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trade promotions
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used by manufacturer and addressed to trade
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retail promotions
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used by trade and addressed to end consumer
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public relations
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non-paid communication efforts; not controllable
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push strategy
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market situation
- focus is on inducing intermediaries, such as retailer, to sell product at retail |
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pull strategy
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-marketing situation
- end consumer develops such an insistence on product that consumer "pulls" it through the channel of distribution, and the retailer's role is merely to make the product conveniently available |
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role of pricing
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value for company to fund future value-creation efforts
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skim strategy
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focus on those customers of high value
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penetration pricing
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firm sets a lower price to generate lots of sales quickly; designed to preempt competition and gain significant number of customers early on
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price customization
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-develop product line
-control availability of lower prices -vary prices based on buy characteristics of new buyers and of transactions |
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5 buying roles
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initiator, decider, influencer, purchaser, user
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5 C's analysis
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Customers
Company- company strength/weakness Competitive Analysis Collaborator Analysis Context Analysis- marketing strategy |
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fixed costs
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costs remain at the same level regardless of the amount of the product produced or sold
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variable costs
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cots that change depending on amount produced or sold
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unit margin, margin, or contribution
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difference between per unit revenue and variable cost per unit
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percent margin
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unit margin/revenue
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marketing managers
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accountable for the impact of their actions on profits
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programmed costs
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result form attempts to generate sales volume (advertising, sales salaries)
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Committed costs
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costs required to maintain organization:
rent administration clerical salaries |
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COGS
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for manufacturer-- materials, labor
wholesaler/retailer--merchandise |
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expenses
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sales commissions
discounts deilvery |
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Total Contribution formulas
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(Price-Unit VC)*V
unit contribution*V Total Revenue-Total VC |
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Total Contribution
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amount available to the firm to cover (or contribute to) fixed costs and profit after variable cost has been deducted from total revenue
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How is value created
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by meeting customer's functional and emotional needs
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marketing
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creates value for firm's chosen needs
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10 Determinants of Service quality
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Access, Tangibles, Security, Responsiveness, Reliability, Competence, Credibility, Communication, Courtesy, Knowledge of Customer
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SWOT Analysis
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Strengths & Weaknesses= internal
Opportunities & Threats=external |
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6 Right's of market strategy
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1. right product
2. right message 3. right customer 4. right time 5. right place 6. right Price |
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where does competitive advantage come from
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superior knowledge of customer
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buying center
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buyer
influencer decider user gatekeeper |
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consumer market
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purchasers who intend to benefit from purchase, not for profit
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Process of Consumer Behavior
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Problem Recognition
Information Search Evaluation of Alternatives Purchase Post-purchase evaluation |
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Determinants of Problem Recognition
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perceived discrepancy=consumer's current and desired state
Current state= no enough stuff, decrease/increase in finances desired state= need/want, variety seeking |
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Problem-sovling
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routine- frequently purchased, inexpensive, not much info
limited extensive- expensive, not frequently purchased, lots of info |
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evaluation
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multivariable- believed value*actual
value analysis- heart not mind |
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post-purchase evaluation
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delight: perception>expectation
satisfied when p=e dissatisfied when p<e |
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how to market in a downturn
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no two downturns the same
-need to understand evolving consumption patterns and change strategies accordingly |
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market boring stuff
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works when we connect distinctive product features with right human emotions
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what should i target?
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1) has needs to fix
2) under-served (competition) 3) profitable |
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segment attractiveness
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market fit
competitive intensity market profitability |
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ways to target
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biggest size
cheapest to sell receptiveness to message ability to please most profitable |
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how to position
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position the product in the mind of the prospect
what can brand help customer achieve and how its unique distinct and valued place in target customers' mind |
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strong position
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differentiates competition, resonates with customers, motivates employees
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