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66 Cards in this Set
- Front
- Back
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marketing process |
1) understand market and customer needs 2)Create a customer driven marketing strategy 3) create a marketing program to deliver superior value 4) build profitable customer relationships and delight your customers 5) build customer equity and profit |
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needs, wants, demand |
need: social, physical, individual want: a need shaped by culture demand: a want with buying power |
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production concept |
people want affordable+available TODO: maximize production/efficiency |
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product concept |
people want the best performance, quality, features TODO: improve product quality |
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selling concept |
customers will not buy unless there is a large-scale selling and promotion effort |
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marketing concept: |
TODO: know needs/wants and deliver satisfaction better than competition |
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customer perceived value |
customer's evaluation of benefit-cost or your product vs competition |
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customer satisfaction |
customer's evaluation of performance - expectations |
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customer lifetime value |
Sum of all possible sales that a current customer can have during their patronage |
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customer equity |
lifetime value of current and future customers. A good measure of future company value |
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Partner Relationship Management |
Work with partners internally and externally to jointly bring value Why: increase production performance, improve over competition, create more value |
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mission statement |
1) company's purpose in terms of satisfying basic customer needs 2) emphasis on company strength/specialty 3) emphasis on customer experience |
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BCG |
rates SBU (strategic Business Unit) on market share and growth. Dog: Keeps itself afloat Questionmark: low share, high growth can become star with investment. Choose the best one Star: can become cow with investment Cow: stable income source. Low investment, supports other SBU's |
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product-market expansion grid: Product Development |
new/modified product for the same market: ex. going from sports socks to sports shoes |
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product-market expansion grid: Market Development |
new market for current product: ex. sell to new demographic |
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product-market expansion grid: Penetration |
same product same market done better with improved design/advertising/price/distribution |
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product-market expansion grid:Diversification |
start/buy a business outside of your current product/market |
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micro vs macro environment |
Micro: actors close to company that affect its ability to serve Macro: social forces that affect the micro. Essentially beyond company's direct reach |
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Micro intermediaries List |
1) Reseller:wholesale and retail. Often giant like walmart and can overpower smaller providers 2)Physical Distribution firm: stock/move goods 3) Marketing service agencies: research firms, ad agencies that help you target and promote your product to the right market 4) Financial Intermediary: Bands, credit company, ect. give temporary cash 5) competitor: company must provide more value/satisfaction than competitor |
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Micro public list |
1) financial: bank ect 2) media: news/opinions 3)government: safety, truth, regulation 4) local: neightborhood, company must develop positive relations to seem personal 5) general: public image 6) internal: worker moral/inclusion |
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Baby boom (time, desc) |
1946-1964 wealthy (%70 of nation's disposable income) old but still with it live life to the fullest material, like spending money |
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Gen X (time, desc) |
1965-1976 shadow of boomers less materialist experience>acquisition family>career first internet savvy group |
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Gen Y Millenials(time,desc) |
1977-2000 more populus than baby boomers unemployed in debt techy like transparency, authentic, versatility poop-teir |
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Gen Z (time, desc) |
2001- online fickle, will look for alternatives online know technology the new market, important to start buildings loyalty early |
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Macro environment set (list) |
1)Economic: effects on people's buying power and batters. In recession people become frugal and look for alternatives. Also shifts in income: more rich, more poor, no middle 2) Natural: shortage of raw materials pollution, varying levels of government intervention. concerns over sustainability. 3)Cultural: beliefs and values Core: shared by all of society. Stable Sub-culture: shared by groups and demographics. Some can change easily, others not as much 4) Technological: everything from how we market to how we measure to how we provide extra value. Tech is key for future |
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Define Marketing |
Process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals |
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Internal Data: |
customer+market information that is gathered from company networks +quick and affordable to collect -ages rapidly -maintenance and storage is expensive |
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research approaches |
1) explanatory research gather preliminary info define problems and hypothesizes 2) descriptive research describe market potential for products or demographic attitudes 3)causal research test hypothesis from explanatory stage confirm cause-effect relationship |
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Steps in research process |
1) define the problem/research obj 2) develop research plan for collecting info 3) implement plan, collect info 4) interpret report |
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Sampling plan |
sample is a population subset. decide on size decide on unit (which people to study) define procedure (how to select your samples) |
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types of samples (with probability) |
simple random, stratified random, cluster more scientific but also slow and expensive |
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types of samples (without probability) |
convenience, judgement, quota easy, cheap, but data quality can be poor due to bias |
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primary data |
data collected for specific purpose at hand. ie, seeing the average refrigerator of American household |
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primary data collection approaches |
check graphs, but here are strengths of techniques personal: flexible, large data quantity high quality info, but $$ and slow mail: control over interviewer effects no interview bias, but less insight/response telephone: good sample and speed online: good sample and speed and cost apparently superior to telephone in every way |
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primary data collection techniques |
read graphs for: observational, survey, and experiment |
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Factors of Consumer Behavior (lists) from general to individual |
Cultural: culture, subculture, race, religion, geography class Social: groups/networks, family, roles/status Personal: Age, occupation, wealth, personality Physchological: motivation, perception, learning, beliefs |
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Mazlow vs Freud |
Freud: all things are sub-conscious, deep desires Mazlow: Hierarchy of needs, from basic to top physical>safety>social>esteem>self-actualization by understanding what currently motivates customers, you can market better toward them |
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Perception and selective |
Perception: if people are motivated, they will act according to their perceptions> how people interpret the world Selective attention: ignore unimportant effect: difficult for marketing to be noticed Selective distortion: interpret information with a bias Selective retention: remember the good about what you like, forget the good about everything else |
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Motivation (two types) |
Biological & physiological Needs become motivations when aroused |
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Buying process |
1) recognize needs 2) info search commercials inform, personal sources legitimize 3)Evaluate alternatives based on customer's perception of important traits, ie price>performance> ect>ect 4) purchase decision will chose favorite brand unless impacted by other's attitudes or economic shift 5) post-purchase behavior cognitive dissonance: uneasy feeling about compromise, losing out on the value of alternative brands |
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Adoption |
awareness>interest>evaluation>trial>adoption |
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speed up adoption |
relative advantage: be better than competition compatibility: fit user's values and infrastructure complexity: be simple to learn divisibility: allow people to test out low scale communicability: be able to explain why good |
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Business buying situations |
straight rebuy: reorder, no mods modified rebuy: reorder, change price, specs, ect new task: purchase product/service first time systems selling: all-in-one solution, one source |
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Business Buyer decision(long list) |
1) recognize problems 2) need description 3) product specs 4) supplier search 5) proposed solution 6)supplier selection 7)order-routine specs 8) performance review |
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product mix directions |
width = # of lines length = # of products per line depth = # of versions of a product consistency = similarity |
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product line filling |
more items in current economic range risk of cannibalization, but can plug holes make sure products are different enough |
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product line stretching |
items in new economic ranges upward growth for rich prestige downward growth for low-end plugs holes |
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basis for segmentation |
Geographic, Demographic, Physchographic, Behavioral Why: to target market, get larger share, ensure fit p200 for more details |
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differed vs undiffered |
undiffered : mass market, focus on what ppl have in common. Noone is completely satisfied differed: lower target group, but better fit. See higher sales in individual segments. Too many products can increase cost of business however, so use in moderation |
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positioning |
how customers will define a consumer based on attributes. The set of perceptions, impressions, and feelings customers get. often personifies brand/product |
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how to identify competitive advantage |
advantage over competitors based on value 1) identify points of differentiation along product, service, channel, people, or image 2) either develop a Unique Selling Point (USP) or claim best combination of attributes 3)choose which differences to promote based on customer importance |
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choosing differentiation points |
difference must be: important distinctive superior communicable preemptive affordable Profitable |
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value proposition combinations |
more for more more for the same more for less same for less less for less |
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product |
sum of the physical, psychological, physiological, and sociological satisfactions the buyer derives from purchase and consumption. |
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three levels of product |
the 3 valuable levels of attributes that products have: 1) augmented product support, warranty, after-sale service 2) Actual product design, quality, brand name, features 3)Core customer value why customers bought this stuff |
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product classification |
convenience, shopping, specialty, unsought convenience: mass appeal, low price, everywhere, buy without thinking shopping: plan, compare. Expensive, select distributors, and requires personal selling/ads Specialty: $$ brand, loyalty, performance. brands dont get compared, prices dont matter, exclusive unsought: noone knows or wants. must be advertised extremely aggresively |
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service |
intangible, variable (quality on case by case), inseparable (from provider), perishable |
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brand equity |
differential effect of brand on sales good brand = favor over generic bad brand = worse than generic |
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brand equity measurements (list) |
differentiation, relevance, knowledge, esteem |
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brand development strategy |
Line extension: same brand, variation on product, like new flavor, color can cannibalize if it doesn't imitate competitor brand extension: new product, same brand liability for core brand multi branding: give each product unique brand gets more shelf space, but spreads resources |
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why increase product line? |
new profits, satisfy dealers who lose out on specialty items, use all capacity, block out competition |
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product development process (list) |
1)idea generation
2) idea screening 3) concept development/testing 4) marketing strategy development 5) business analysis 6) product development 7) test marketing 8) commercialization |
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concept testing vs test marketing |
concept testing: test physical or symbolic idea customers think these concepts are good? NO PRODUCT test marketing: introduce product/marketing program to a mini market expensive, but gives good info as to success |
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test market alternatives |
controlled test market and simulated. Cheaper, faster |
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project life cycle (list) |
1) product development 2)introduction 3) growth 4) maturity 5) decline see graph for sales/profit waves |
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style, fashion, fad |
style: long term stable, short term cycles fashion: gradual growth then decrease fad: jump and crash |
