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110 Cards in this Set
- Front
- Back
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Marketing
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Provide value to customer through close relationships with them to benefit the organization
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Market
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People with desire and ability to buy
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Four Ps
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Price
Product Promotion Place |
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Environmental Forces
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Uncontrollable marketing factors such as social, economic, technological, competitive and regulatory
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Customer Value:
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Buyer's benefit
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Relationship Marketing
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Linking the organization to its individual and others for long term benefit
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Marketing Program
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Plan that integrates the marketing mix to provide a good to prospectve buyers
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Production era
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until 1920
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Sales era
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1920- 1960
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Marketing Concept
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idea that an organization should strive to satisfy the needs of consumers while trying to achieve organization goal
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Marketing orientation
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Focus organizational efforts to collect and use information about customer's needs to create value
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Organizational buyer
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Manufactuerers, wholesalers, retailers that buy goods and services for own use or resale
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Ultimate consumers
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people who use the goods and services purchased
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Utility
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Benefits or customer value received by users of product
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Profit
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Rewsard to a business firm for the risk it undertakes in offering a product for sale
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Corporate level strategy
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Top management directs overall strategy
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Business level strategy
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where business unit managers set directions for products
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Functional level strategy
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create value
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Strategic Business Units (SBU) aspects
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Horizontal -relative market share
vertical-market growth rate cash cow- high market share, slow growth star= high share, high growth question= high growth, low share dog= low share and growth Works counter clockwise |
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Market penetration
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a marketing strategy of increasing sales of present product in existing market\
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Market development
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selling existing products to a new market
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Product development
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selling new product to existing market
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Diversificationhttp://www.flashcardexchange.com/mycards/add/677788
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new products to new markets
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Market segmentation
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sorting potential buyers into groups that have common needs and will respond similarly to a market action
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Components of Implementation phase
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Obtaining resources
Designing the market organization Develop schedules Executing the marketing program |
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Environmental Scanning
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Process of acquiring information on events outside the organizations to identify and interpret potential trends
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Social Forces
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Demographic characteristics of population and its values
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Demographic
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description of a population according to characteristics sucah as age gender ethnicity and occupation
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Baby boomers
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born between 1946-1964
56-58% of consumer products |
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Generation X
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born between 1965-1976
15% of popuation Self-reliant, savings |
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Generation Y
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Born 1977-1994
Echo Boomer Generational marketing |
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Culture
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Set of values, ideas and attitudes that are learned and shared among members of group
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Types of income
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Gross
Disposable Discretionary Income |
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Marketspace
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information and communication- based electronic exchange environment occupied by digitized offerings
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Types of Competition
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Perfect Competition: similar products
Monopolistic : many sellers compete Oligopoly: few companies control Monopoly: one firm sells |
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Regulation
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Restrictions state and fed law place on business
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Sherman Anti trust (1890)
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Contracts, combination or conspiracies in restraint of trade
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Clayton Act (1914)
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Forbids certain actions that will lessen competition although no actual harm has happened
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Robinson-Patman Act(1936)
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unlawful to discriminate prices
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Digital millennium company (1998)
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improve protection of copyrighted digital products
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Self-regulation
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alternative to gov control where an industry attempts to police itself
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Ethics
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Moral Principles and value that govern the actions and decisions of an individual or a group
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Consumer bill of rights
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Right to safety
right to be informed right to choose right to be heard |
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Economic Espionage
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collection of trade secrets or proprietary info about a company's competitors
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Bribes and kickback
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disguised as gifts. provided incentive for actions
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Whistle blowers
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employees who report unethical or illegal actions
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Moral idealism
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considers certain individual rights or duties as universal regardless of the outcome
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Utilitarianism
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moral philosophy that focuses on "greatest good for greatest number"
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Social responsibility
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idea that organizations are part of a larger society and are accountable to that society for their actions
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Social Audit
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systematic assessment of a firm's objectives, strategies and performance in the domain of social responsibility
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Consumer behavior
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Actions a person takes in purchasing and using products and services
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Purchase Decision process:
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stages a buyer passes through in making choices about which products or services to buy
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Perception
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Process by which someone selects organizes and interprets information to create a meaningful picture of the world
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Selective perception
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Filters info so that only some of it is understood or remembered or even available to the conscious mind
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Selective exposure
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when people pay attention to messages that are consistent with their attitudes and beliefs
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Selective comprehension
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interpreting information so that it is consistent with your attitudes and beliefs
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Selective retention
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consumers do not remember all info they see read hear
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Perceived risk
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anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase
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Behavior learning
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process of developing automatic responses to a situation built up through repeated exposure
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cognitive learning
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involves making connections between two or more ideas or simply observing outcomes of others
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Market research
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process of collecting and analyzing information in order to recommend actions
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Steps of market research
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Define problem
develop research plan collect relevant information Deliver the final report |
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Internal secondary data
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facts and figures already recorded and exist in business firm
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External secondary data
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from census bureau or other publications
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Observational primary data
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facts and figures obtained by watching how people behave
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Questionnaire primary data
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facts or figures obtained by asking people
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panels and experiment
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sample of consumers or stores
involves obtaining data by manipulating factors under controlled conditions |
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Sales forecasting
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total sales of a product that a firm expects to sell
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Market segmentation
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sorting potential buyers into groups that have common needs and will respond similarly to a marketing action
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marketing segments
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groups of prospective buyer that result from a marketingsegmentation
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market-product grid
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framework relating the segments of a market to product or marketing action of the firm
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usage rate
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Q consumed
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80/20 rule
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idea that 80% of a firms sales are obtained from 20 % of its customers
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Product positioning
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the space a product occupies in consumers minds on important features relative to competing products
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Perceptual map
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means of displaying the position or brands in consumers' minds
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Product line
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group of products that fulfill simillar needs, sold together
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Product mix
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lines offered by company
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Types of consumer goods
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Convenience
Shopping Specialty unsought |
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Business support goods
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Installation
accessory supplies service |
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Continuous innovation
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no new behaviors must be learned to use
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Dynamically continuous innovation
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minor changes in behavior to operate
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Discontinuous innovation
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new skill set needed to operate
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Build up method
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ID each potential buyer
estimate purchases forecast demand |
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Top down method
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ID your product category
Estimate category sales in units and dollars Forecast demand for category sale |
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80/30 rule
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80% of definitely buy will buy
30% of probably buy will buy |
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Likert scale
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has to do with level of agreement
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Fixed alternative scale
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choose between 3+ alternatives
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Dichotomous scale
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fixed alternative scale that only has two choices
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semantic scale
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ask about the importance of each attribute
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semantic differential scale
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asks to describe the degree of a characteristic
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Wording problems in questionnaires
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leading questions
ambiguous questions two in one question unanswerable question nonmutually exclusive |
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Cross tabulation
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a method of presenting and relating data having two or more variables
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Skimming price strategy
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High initial price to recover cost of development and take advantage of price insensitivity
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Penetration pricing
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price low to discourage competitive entry
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Deletion
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dropping the product from the company line
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Harvesting
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when a company keeps the product but reducing marketing costs
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Innovators
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venturesome, highly educated, multiple info sources
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Early adopter
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leader is social setting, slightly above average education
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Early majority
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deliberate, many informal social contact
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Late Majority
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skeptical, below avg social status
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Laggard
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fear of debt, neighbors and friends= info sources
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Creating brand equity
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Create brand Identity
establish meaning generate response create a relationship |
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Picking a good brand name (5 criteria)
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Suggest product benefits
Be memorable Fit company/ product image no legal restriction simple and emotional |
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Multi-product branding
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manufacturer uses one brand for all products
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multibranding
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Manufacturer gives product distinct name (tide and cheer under P&G)
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Mixed branding
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firm markets under its own name and under different reseller.
(Michelin makes own tires and sears tires) |
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Private branding
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when company manufacturers products but sells them under the brand name of wholesaler or retail( sears and craftsman tools)
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Functional benefits
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affects storage, convenience protection or quality
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Perceptual benefits
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design and info creates perception in consumer mind
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Consumer benefits
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directions, commercial seals, and brand recognition
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