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125 Cards in this Set

  • Front
  • Back
mission statement
direction for short-term and long-term, market-(not product)oriented
relative market share
market share compared to market leader
Boston consulting group growth-share matrix
top right-most want to promote
industry growth |
|
|
-----------------------------
rel. market |
share |
|
marketing plans
1.summary
2.market analysis
3.SWOT analysis
SWOT analysis
strengths opportunities
x
weakness threats

(see sheet)
SBU
strategic business unit
post hoc segmentation
sell product, analyze, change product
a priori segmentation
make changes first, then sell
benefits sought
what public wants from product
perceptual map
map of consumer perception
psychographic testing
hard to use b/c difficult to measure and compare attributes
seller's market
demand exceeds supply
buyer's market
supply exceeds demand
Customer relationship management (also called CRM)
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
lifetime value of the customer
It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied.
4 types of utility
ownership, place, time, form
Form Utility
Transformation of raw materials and/or labor into a finished good and/or service that the consumer desires.
Place Utility
Availability of a good and/or service where the consumer wants or needs it.
Ownership Utility
Transferring title of a good and/or service from producer to consumer.
Time Utility
Availability of a good and/or service when consumer wants/needs it.
Marketing as an Exchange Process
Process by which one or more parties give something of value to each other to satisfy perceived needs.
marketing mix
Product,Place
(Distribution), Promotion, Price
Product
Refers to goods, services, people, places and ideas
Household consumers
Business-to-business customers
Place
(Distribution)
the network of organizations that create time, place and ownership utilities for household consumers and business customers.
Integrated Marketing Communication (IMC)
System of management and integration of marketing communication elements

Advertising, publicity, sales promotion, personal selling, sponsorship marketing, and point-of-purchase communications
Price
based on: Customer demand, costs, information availability, competition, profit motives, product considerations, and legal considerations
Strategic planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Fundamentals of Strategic Planning
1.Establishing the Organizational Mission
2. Defining Strategic Business Units
3. Specifying Organizational Objectives
4. Analyzing Strategic Business Unit Performance
5. Assessing Organizational Growth Opportunities
6. Developing Marketing Plans
Strategic Business Units (SBU's)
smaller divisions, to facilitate planning and general operations
setup within a company to provide independent entities for strategic evaluation.
Well developed organizational objectives should be SMART
Specific
Measurable
Achievable
Relevant
Time-bound
Analyzing Strategic Business Unit Performance
high ind. growth & high rel. market share: star
high ind. growth & low rel. market share: problem child
Low ind. growth rate & high rel. market share: cash cow
Low in. growth & low rel. market share: dog
Problem Child
Low market share
Poor profit margins

Strategy: Either invest to earn market share or consider disinvesting.
Star
High market share
High market growth
Generates substantial cash flows
Requires large investment
Strategy: Invest profits for future growth
Cash Cow
High market share
Low market growth
Generates profits and cash flows
Maintains superiority
Strategy: Use profits to finance new products and growth elsewhere.
Dog
Low market share
Low market growth
Generates little profits
Strategy:
Focus on one segment or
Harvest the product or
Divest the product or
Eliminate the product
Intensive Growth Strategies aka product/market expansion grid
Market penetration—sell more of existing products to existing markets
Market development—find new markets for existing products
Product development—develop new products for existing markets
Product diversification—develop new products for new markets
Situational Analysis
Internal Analysis

organization’s
strengths and
weaknesses
External Analysis

opportunities and threats that confront a brand at a point in time.
Consumer behavior
the process by which individuals or groups select, use, or dispose of goods, services, ideas, or experiences to satisfy needs and wants.
Users
consumers who are concerned about product features and how successfully the product can be used.
Payers
consumers who pay for a product and are concerned with the price of the product and the inherent financial considerations.
Buyers
consumers who are focused on the logistics of purchasing the product.
Factors Affecting the Consumer Buying Decision Process
1. cultural
2. social
3. personal
4. psychological
reference groups
All the formal and informal groups that affect a consumer’s purchase decision
Three types:
Membership groups
Aspirational groups
Dissociative groups
Membership groups-
groups to which the consumer belongs.
Aspirational groups-
groups that a consumer wants to belong to.
Dissociative groups-
groups that consumers do not want to be associated with.
Psychological Bases of Consumer Behavior
Perception
Learning
Motivation
Attitude
Psychographics
Perception
the process by which an individual senses, organizes, and interprets the information he or she receives from the environment.
Learning
is a change in the content of long-term memory.
Motivation
the state of drive or arousal that drives behavior toward a goal-object.

Two components:
Drive or arousal
A goal-object
Attitude
Consumers evaluate products in terms of various attributes of the competing brands.
Attitudes are learned.
Attitudes are predispositions.
Attitudes cause consistent response.
Fishbein Model
n
Ao = Σ wj* boj
j=1

Where: Ao = overall attitude toward object/brand o
Wj = weight of attribute j
Boj = belief that object/brand o is satisfactory on attribute j
n = number of attributes evaluated
lifestyle
The way we live
Lifestyle is a function of:
Activities
Interests
Opinions
Three Primary Motivations
Ideals: guided by knowledge and principles
Achievement: guided by products that demonstrate success to peers
3. Self-Expression: guided by desire for social or physical activity, variety, and risk
Resources Innovation
(vertical dimension)
A person’s tendency to consumer products extends beyond age, income, and education. Energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, and vanity play a critical role.
Consumer profile: Thinkers
Motivated by ideals
Mature, satisfied, comfortable, and reflective
Well educated and informed
Open to new ideas
Customer profile: Achievers
Desire for achievement
Goal-oriented lifestyles
Deep commitment to career and family
Respect authority, and favor the status quo
Image is important
Experiencers
Motivated by self-expression
Young, enthusiastic, and impulsive consumers
Seek variety and excitement
Sports, outdoor recreation, and social activities are important
Believers
Motivated by ideals
conservative, conventional people with traditional values
Brand loyal
Favor American-made products
Strivers
Trendy and fun loving
Motivated by achievement
Concerned about opinions and approval of others
Shopping is a social activity
Makers
Motivated by self-expression
Self-sufficient group
Practical with little interest in most material possessions
Buy basic products
Innovators
Successful, sophisticated, take-charge people with high self-esteem
Receptive to new ideas and technologies
Image is an important expression of innovativeness
Survivors
Narrowly focused lives
Few resources
Believe the world is changing too quickly
Cautious consumers who are brand loyal
Problem recognition
occurs when consumers realize that they need to do something to get back to a normal state of comfort.
Needs
unsatisfactory conditions of the consumer that prompt him or her to an action that will make the condition better.
Wants
desires to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.
Brands:awareness set
consists of brands of which a consumer is aware.
Brands:evoked set
consists of the brands in a product category that the consumer remembers at the time of decision making.
Brands:consideration set.
Of the brands in the evoked set, those considered unfit are eliminated right away. remaining brands
choice models:
The process and steps involved in evaluating products
Compensatory
the consumer arrives at a choice by considering all of the attributes of a product and mentally trading off the alternative’s perceived weakness on one or more attributes for its perceived strength on other attributes.
Noncompensatory
the consumer arrives at a choice by considering only some of the attributes of a product and does not trade-off some attributes for others.
Cognitive dissonance-
the doubt and regret the buyer may feel about the purchase choice.
Market
Individuals or organizations who:
Are willing, able, and capable of purchasing a firm’s product
Segmentation is critical because demand is often heterogeneous
Target Marketing (pros and cons)
Advantages
Tailoring of products to market
Assessment of demand potential
Identify competing products
Increased sales effectiveness and cost efficiencies
Product positioning and easy identification of opportunities
Disadvantages
Increased marketing costs
Personalization can become burdensome to manage
Segmentation may be viewed cynically
Narrow segmentation can impact brand loyalty
Ethics and stereotyping issues
Undifferentiated targeting strategy
Companies might develop one marketing mix strategy that is appropriate for all members of the total market (mass marketing).
Concentrated strategy
Only one marketing mix is developed and directed toward a few, or perhaps one, profitable market segments.
Differentiated strategy
Exists when a firm develops different marketing mix plans specially tailored for each of two or more market segments.
Profile
paints a clear picture of the typical customer for the company’s product using all applicable segmentation variables.
Positioning
Attempts to build or occupy
mental niche in relation to
competitor
Perceptual Mapping-
creating a visual depiction about consumer perceptions of a product on two or more dimensions in relation to competitors.
marketing offer
combination of products, services, info, or experience offered to market to satisfy a want or need
marketing management
choosing target markets and building profitable relationships with them
demarketing
reduce # of customers/demand
production concept
consumers favor highly affordable and available products
product concept
consumers favor products w/ the most quality
selling concept
consumers require large-scale campaign to be motivated to buy in large quantities
marketing concept
must know needs and wants of target markets
customer-drivinig marketing
understanding cust. needs better than customers do. telling customers what they need
societal marketing concept
questions whether pure marketing chooses customer's short-run wants, over long-term welfare. ethical
4 P's of marketing
product, price, place, and promotion
Partner relationship management
marketers must work closely w/ other marketing partners
supply chain
channel streching from raw materials to components to final products to final buyers
share of customer
amount/percentage each customer is spending
customer equity
combined discounted customer lifetime values of all current and potential customers
Customers: butterflies
profitable but not loyal
Customers: good friend...
profitable and loyal
Customers: barnacles
loyal but not profitable
social marketing campaigns
campaigns aimed at helping people, ethical
value chain
chain of departments in company
marketing control
evaluating marketing strategies, making changes.
operating control
checking ongoing performance v. annual plan
strategic control
determining if company's basic strategies are well-matched to its opportunities
marketing audit
tool for reassessing approach to the marketplace. comprehensive, systematic, independent, and periodic examination of company's objectives to determine problem areas/ opportunities.
Return on marketing (marketing ROI)
net return on marketing investment divided by the costs of investment
motion/drive
need that is sufficiently pressing to direct person to seek satisfaction
selective distortion
people screen out most info exposed to them
learning
changes in an individual's behavior resulting from experience
attitude
consistent tendencies
complex buying behavior
consumers involved in expensive, infrequent purchase w/ little differentiation b/w brands
habitual buying behavior
purchase doesn't matter much, no brand stands out
eg. salt
variety-seeking behavior
low consumer involvement, major brand differences
alternative evaluation
how consumer evaluates brand names
purchase decision
tendency to buy most preferred brand
adaption process
time for consumer to accept new product and become regular user of it
behavioral segmentation
divided by knowledge, attitudes, uses and responses, may be best indicator
occasion segmentation
buyers grouped by when they decide to, and actually make purchases, and when they use the product
benefits segmentation
finding major benefits people look for in product
PRIZM system
system by claritas, uses multiple demographic factors
intermarket segmentation
companies find people from different markets by needs and behavior
undifferentiated marketing
mass-marketing, no segmentation
differentiated
provide different products for dif. segments
concentrated marketing
firm goes after large share of small segment
micromarketing
local and individual marketing
Unique selling position (USP)
company should position itself as #1 in some category