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83 Cards in this Set
- Front
- Back
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Marketing (AMA Definition)
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“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
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Strategy
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a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result,
juxtaposed with tactics |
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strategic planning
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The objectives and strategies established at the top level provide the context for planning in each of the divisions and departments by divisional and departmental managers
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Mission Statement
(Elements and what it should be) |
elements: the organizations history, distinctive competitiveness, environment
a mission statement should be: Achievable, Motivational, Specific |
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organizational objectives
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create discrete objectives
-the end points of an organization's mission are what it seeks through on-going long run operations growth, profitability, environmental, social, political objectives |
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Organization strategy
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major directions to pursue objectives.
-org strategies based on competitive advantage, based on value, based on products and markets |
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Product- Market Growth Framework (Ansoff matrix)
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Products (present, new)
Markets market pen. product develop (Present, market develop new) diversification |
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BCG Portfolio model
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Market share vs. Market growth rate
(stars, question marks, cash cows, dogs) |
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GE portfolio model
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business strength vs. industry attractiveness
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Marketing research
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interpretation the firm adopts to improve the quality of it’s marketing efforts. -Capon and Hulbert
-Actual or potential customers -Influencers -Behaviors or mental states -Focus is external |
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Marketing research evolves form answers to five key questions:
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Why should we do research?
What research should be done? Is it worth doing the research? How should the research be designed to achieve the research objectives? What will we do with the research? |
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5 steps of MARKETING RESEARCH PROCESS
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Purpose of the research -> plan of the research -> performance of research -> processing of research data -> preparation of research report
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VALS Survey
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Values and lifestyles segments
questionnaire |
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3 - V Framework
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Customer Value, Collaborator Value, Company Value
Most important word in marketing: VALUE Shows where value is generated, use to evaluate alternatives, good for structure, not great for checking inclusiveness |
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Consumer behavior
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The study of how individuals, groups, and organizations select, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants
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Influences on the Buying process
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Social, Marketing, Situational, Psychological
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Social Influences on Buying
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Transmitted through 3 basic institutions:
-Reference groups -religious organizations -educational institutions |
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Marketing Influences on buying
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4 P's
(Product, Price, Placement, Promotional |
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Situational Influences
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-physical features of the situation
-social features -Time -task |
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Psychological Influences
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-Product knowledge
-Product involvement level |
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Consumer Decision Making Process
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1. Need recognition
2. Alternative Search 3. Alternative Evaluation 4. Purchase Decision 5. Post Purchase Evaluation |
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Decision Making Styles
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-Extensive
-Limited -Routine |
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Need Recognition
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Maslow's Hierarchy of Needs
-Physiological -Safety -Belongingness -Esteem -Self actualization |
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Categories of Organizational Buyers
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-Producers
-Intermediaries -Government Agencies -Other Institutions |
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Organization Buying Process
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1. Organizational Need
2. Vendor Analysis 3. Purchase Activities 4. Post purchase evaluation |
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Org. Buying process influences
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-Purchase type influences
-Structural influences -Behavioral influences |
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Purchase Type Influences (Org. Buying)
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-Straight Rebuy
-Modified Rebuy -New Task Purchase |
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Structural Influences (Org. Buying)
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-Purchasing roles
-Organization Specific Factors (orientation, size, centralization) -Purchasing Policies and Procedures (Sole Sourcing/single sourcing, RFP's, reverse auctions, internet) |
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Org. Buying Purchasing Roles
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-Users
-Influencers -Buyers -Deciders -Gate Keepers -Initiators |
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Behavioral Influences (Org. Buying)
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Personal Motivation (friendship, pride, fear, trust, ambitions, ethics)
Role Perceptions |
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How does marketing to Orgs differ?
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Variation in relationships, distribution channels, personal selling, individual treatment for each sale.
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Porters five forces Model
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Potential Entrants (threat of new entry)
Supplier Power Buyer Power Threat of Substitutes all forces on INDUSTRY RIVALRY |
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Forecasting types of products
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Types of Products:
-Staple Products ---Regular products carried by a retailer, use of basic stock list (e.g. milk) -Assortment Products ---Consumers need a minimum threshold of variety (e.g. cars) -Fashion Merchandise ---Cyclical sales cycles (e.g. a ‘hot’ color) -Fad Products ---Small Life cycles (e.g. Shrek toys) -Seasonal Products ---Regular patterns in sales fluctuations Buyer Actions to combat merchandise nature ----Basic stock list, Model Stock plan, Markdown, Never-out lists, inventory adjustment |
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Market Segmentation
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The process of finding groups of customers who are similar on some specific criterion of relevance to the firm’s strategic context… and differ from customers in different groups on those criteria.
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STP Framework
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Segmentation
Targeting Positioning |
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Bases for segmentation
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Benefits
Demographics Psychographics Purchasing Approaches |
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Market Segment
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A group of actual or potential customers who can be expected to respond in a similar way to a product or service offering.
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Steps in Market Segmentation
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1. Delineate Firm's Current Situation
2. Determine consumer needs and wants 3. Divide markets based on relevant dimensions 4. Develop product positioning 5. Decide segmentation Strategy 6. Design marketing mix |
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Latent Class Models
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(Dividing the market on dimensions)
Traditional models describe relationships between observed variables. ex: How does advertising impact store sales? LC models include one or more discrete unobserved variables. ex: How do combinations of product attributes differentially impact consumer purchase decisions? |
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Three Segment Criteria
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Measurable
Meaningful Marketable |
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Tangible Product
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Physical entity or service that is offered to the buyer
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Extended Product
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Tangible product along with the whole cluster of services that accompany it.
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Generic Product
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Essential benefits the buyer expects to receive from the product
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Product Classifications
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Agricultural and raw materials
Organizational goods (derived demand) Consumer goods |
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Product Quality
vs. Product Value |
Product quality: the degree of excellence or superiority that an organizations product possesses
Product Value: a function of the quality of the product and the price paid for that product |
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Product Mix
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The full set of products offered
Width - how many product lines Depth - how many products in a line |
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Product Line
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groups of products that share common characteristics, distribution channels, customers, or uses
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Brand
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“A name, term, sign, symbol, or design, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler, 1991)
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Branding
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-Product quality when products do what’s expected
-Consistent advertising and marketing communications -Distribution intensity for increased visibility -Brand personality |
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Brand Equity
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the set of assets or liabilities linked to a brand that add or subtract value.
Brand loyalty, awareness, perceived quality, brand associations, other brand assets |
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Product Audit
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Deletions
Sales trends --Profit contribution --Product life cycle --Customer migration patterns Product improvement Product rejuvenation |
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New Product Development-
What does "New" mean? |
-New to the world products
-new category entries -additions to product lines -product improvements -repositionings |
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NPD in the Ansoff Matrix = new product strategies
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Market penetration
Product development market development Diversification |
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New Product Development Process (6 steps)
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1. idea generation
2. idea screening 3. project planning 4. product development 5. test marketing 6. commercialization |
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Sources of ideas
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Customers
Competitors Substitutes Distribution channels Research and engineering Entrepreneurs |
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Idea Generation
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-Estimated that one idea out of 60 is successfully implemented
-Technology push -Market pull: Out-rotation, Outsider involvement, Reward programs |
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Idea Screening
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Done by top management
Screens for : Strategic, Market, and Internal Risk |
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Project Planning
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-Analyze the feasibility of the project
-Development budget established -Prototype creation -Project plan is written up (Future development, production and marketing costs, Capital requirements, Manpower needs, Timetable) |
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NPD Team
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Core members
R&D Manufacturing Design Finance Marketing |
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Product Development
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Studies by the engineering department
Required plan design Production facilities design Tooling requirements Marketing test plan Financial program survey Estimated release date |
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Test Marketing
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Geographic test market
Controlled experimental setting Importance of proper test market area Results of test market |
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Commercialization
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Product sent to market
Analysis of performance The importance of time to market |
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Measuring Financial Success
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Return on investment (ROI)
Profit margin measures Initial sales and sales growth Payback period Internal rate of return (IRR) Return on assets (ROA) Return on equity (ROE) Breakeven point Market share Return on sales Net present value (NPV) |
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Measuring non-financial success
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Performance of products
Satisfaction of customer needs Market-related benefits Strategic issues/fit/synergy Technical aspects of production Uniqueness of new products |
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Product quality to evaluate new products
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Performance
Features Reliability Conformance Durability Serviceability Aesthetics Overall evaluation |
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Why do products fail?
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Lack of differentiation, poor positioning, poor quality, overpromising, lack of support, no value, misread market, misread costs, poor distribution, changes in the market
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Sustainability
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Think long term strategic plan
People, Planet, Profit |
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Triple Bottom Line
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People, Planet, Profit
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Corporate Social Marketing
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-Behavior Change Campaigns
ex: Steelcase promoting vaccination campaign |
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Cause Marketing
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Promoting social issues through sponsorship, licensing, and advertising
ex: Amway sponsoring a new tiger exhibit at john ball zoo and donating to efforts preserving the species |
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Cause related marketing
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donate a % of profits to causes based on product sales during a promotion
ex: breast cancer awareness, computers for schools, food to pantries |
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Corporate Philanthropy
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Making gifts of money, goods, or time to help nonprofits, groups or individuals
GR is the hub or corp. philanthropy |
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Corporate Community involvement
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Volunteering for the community
ex: bissell sending workers to God's Kitchen |
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Socially Responsible Business Practices
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Changing the way the firm does business to protect the environment, human or animal rights.
ex: Starbucks switching to biodegradable cleaning products |
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CSR: Corporate Social Responsibility
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“Status and activities that a firm engages in with respect to its perceived societal or, at least, stakeholder obligations“
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What does a firm need to implement CSR?
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Resources (time, money, knowledge, equipment)
Awareness |
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Why do CSR?
PROS |
Reputation
(Free) Publicity New customers Higher sales Long-term profits Word-of-Mouth Loyalty, low customer t/o Higher ticket items (Charge more) Internal (employee) morale Lower employee turnover |
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Why do CSR?
CONS |
Can’t get ROI
Lose customers/Investors Better use of resources (Bonuses, Benefits, R&D, Productivity,Expansion) Do you have expertise? Additional time? |
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Reasons against CSR
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Firms benefit society most when they focus solely on creating shareholder value
Businesses exist to be business not philanthropic institutions Individual shareholders are best suited to make decisions concerning social investments Let me decide what to do with the returns Shareholders are unaware of the social initiatives being undertaken by the firm I can’t keep track of your CSR to know whether it’s worthwhile |
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How to implement CSR program
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1. Must evaluate it like you would evaluate any other business process
2. Must fit with the mission and corporate objectives 3. Must help you competitively 4. Must resonate with your target market |
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Situational Analysis (3 parts)
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1. Company overview
2. Market overview 3. target market descriptions |
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Company overview
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-mission
-goals/objectives -strategies -portfolios -unique and competence features |
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Market Overview
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Who are the customers both current and potential?
How big is the market? (demographics, psychographics, geographic, behavioral) Who are your collaborators? Who are your competitors? |
