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150 Cards in this Set
- Front
- Back
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Marketing
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Building and maintaining relationships
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4Ps
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Product Price Promotion Placement
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Needs
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Basic needs, clothing food water
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Wants
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Cultural backed needs, mcdonald's, apartment, soda
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Demands
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Wants backed by buying power
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Value Equation
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value = benefits/price
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Promotion
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Sales promotion, advertising, personal selling, public relations
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sales promotion
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coupons, discounts, short term incentives
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Place
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Distribution, Convenience
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Customer Relationship Management
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CRM Overall process of building, maintaining profitable customer relationships by delivering superior customer value and satisfaction
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New Customers
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Costs 5-10 times more to attract new customers
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lifetime value
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the value over the lifetime of a relationship average, demographics, statistical software determines customer lifetime value
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Customer Equity
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Total combined lifetime value of all customers
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Customer Management
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Selecting customers than can be served well & profitably. Those who are willing and able to buy the product
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Share of customer
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cross selling
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Demand Management
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Dealing with different states of demand, different levels (ie seasonal)
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Fire Customer
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spending more money on customer than is generated
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Management Orientation
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Production concept, Product Concept, Marketing Concept, Societal Marketing Concept
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Production Concept
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focusing on how much to produce
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Product Concept
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focus on product- product will sell itself, improving product
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Marketing Concept
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focus on relationships, what the customer is looking for
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Societal Marketing Concept
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takes society's longterm benefit into consideration
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Strategy
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setting a goal and coming up with a plan to achieve it
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Business Strategy
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process of defining a company mission and long term objectives, then developing functional plans to achieve these objectives
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Strategic Planning
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process of developing and maintaining a strategic fit between the organizations goal and capabilitiies and its changing marketing opportunities
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Defining Company Mission
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setting company objectives, goals
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Designing business portfolio
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planning marketing and other functional strategies
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SBU
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Stretegic Business Unit a company division product line
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Business Portfolio
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collection of SBU's
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Mission Statement
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serve as a guide for what the organization wants to accomplish, market oriented not product oriented, be neither too narrow or too broad.
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Objectives
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developed at each level in the organization hierarchy
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Plans
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developed to accomplish these goals
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Goals
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have to be measurable and have a time frame
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Business Portfolio
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the collection of businesses and products that make up the company
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Business Portfolio Planning
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involves analyzing the current business portfolio and decide what business should receive more less or no investment shaping the future portfolio by developing strategies
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BCG Growth Share Matrix
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Star, Question, Cash Cow, Dog
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Market Growth
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more people join that group
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Star
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High Growth High Market Share
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Cash Cow
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Low Growth, High Market Share
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Question Mark
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High Growth Low Market Share
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Dog
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Low growth low market share
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Star
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All money is reinvested
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Cash Cow
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profits are kept are invested into Star/Question mark
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Shape Future Business Portfolio
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determine the future role of each SBU and choose resource allocation strategy Build Hold Harvest Divest
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Product Market Expansion Grid
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Market Penetration, Market Development, Product Development, Diversification
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Market Penetration
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Existing product in existing markets
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Market Development
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Existing product in new markets
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Product Development
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new product in existing markets
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Diversification
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New product in new market
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Strategic Planning Process
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identify attractive opportunities, design effective strategies, build a strong value chain, form superior value delivery networks
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Value Chain
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all the suppliers/serivce you need to deliver superior value
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Value Delivery Network
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Supplier, marketer, distributor, customer
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Customer analyses
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analyzing business opportunities, market segmentation, target marketing, market positioning
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Competitive analyses
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offer superior velue through 4 ps
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3C's
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Segmentation, targeting, positioning
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segmentation
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separate people are different
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targeting
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choosing one or more segments
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positioning
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locating your brand in consumer's minds associate brand with an attribute
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Marketing Control
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evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained
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Operating Controls
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Checking performance against annual plan, whether how it is achieved
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Strategic Control
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checking whether objectives and strategies fit with the marketplace (whether the goal was correct)
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Competitive Advantage
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an advantage over competitors that allows a company to offer consumers greater value compared to competitors
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Competitive analyses
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the process of identifying key competitors, assessing their objectives, strategies, strengths, and weaknesses and reaction patterns
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Identifying Competitors
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Firms face a wide range of competition, methods of identifying competitors Industry point of view, market point of view
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assessing competitors
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determine competitor, identify competitive strategies, strategic groups, assessing competitors strengths and weaknesses, Estimating competitors reactions
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Benchmarking
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compare your performance against a competitors or against a previous year
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Selecting Competitiors to attack avoid
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strong or weak competitors, customer value analysis, close or distance competitors, good or bad competitors
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Good Competitors
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predictable
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bad competitors
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unpredictable
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Entreprenuerial Marketing
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new/small companies/innovative creative, used by new start up companies with limited resources
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Formulated Marketing
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when routine hits, lose creativity gain beaurocracy
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Intreprenuerial Marketing
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trying to regain creativity within departments, reinventing company
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Porter's Competitve Strategies
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Overall Cost Leadership, Differentiation, Focus
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Overall Cost Leadership
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lowest production and distribution costs and thus leads to lower prices
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Differentiation
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creating highly differentiated product line and marketing program
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Focus
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efford is focused on serving a few or one market segment
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Middle of the Road
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you will fail
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Market Leader
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40% the firm with the largest market share and leads the market price changes, proudct innovations, distribution, coverage and promotion spending
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Market Challengers
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30% firms fighting to increase market share
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Market Followers
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20% Firms that want to hold onto their market share
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Market Nichers
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10% firms that serve a small market segment not being pursued by other firms
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Competitor Myopia
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Companies become so competitive centered that they lost their customer focus
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Microenvironment
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direct influence on a company to keep it's customers
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Macroenvironment
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indirect influence on a company to keep its customers
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Microenvironment
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company, suppliers, marketers, competitors, publics, customers
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Marketing intermediaries
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resellers, physical distribution firms, public shareholders, media, local government, financial instititution
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Macroenvironment
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larger societal forces that affect a company's ability to serve its customers
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Demography
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study of structure of population income, age, race, occupation
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Baby Boomers
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1946-1964 most affluent most economic, political power
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Gen X
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1965-1976 high divorce rate, concerned about environment, less materialistic, quality of life
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Millenials (gen y)
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1977-2000 Internet Generation
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Key Demographic Trends
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divorcing or seperating, choosing not to marry, marrying later, marrying without children, higher divorce, educated, diverse
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Economic Environment
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Consists of factors that affect consumer purchasing power and spending patterns (subsistence vs industrial) state of economy, income distribution
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Ernst Engel's law
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As income rises the percentage spent on food declines, the percentage spent on housing remains constant, the percentage spent on savings increases
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Natural Environment
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Concern for the natural environment has grown steadily, increasing the importance of these trends, shortage of raw materials, increased pollution, increased governmental intervention
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Technological Environment
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Key Tech trends, rapid changes in technology, new technologies create new opportunities but make old tech obsolete
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Political Environment
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Key political trends, increased legislation to protect businesses as well as consumers, increased emphasis on ethical behavior, social responsible behavior occurs when firms actively seek out ways to protect long terms interests
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Marketing Information System
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A system that consists of people, equipment, and procedures to gather sort analyze evaluate distribute needed timely and accurate information to marketing decision makers
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Assessing Marketing Information Needs
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interviewing marketing managers to know what information they need. Evaluating the benefits of collecting needed information against cost
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Developing Marketing Information
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Internal data, sales records, cost records, customer demographics/buying behavior, sales force reports, info from suppliers, distributors, observing monitoring competitors
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Marketing Intelligence
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the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace
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Steps to improve Marketing Intelligence
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Train & Motivate sales force, motivate channel members to share intelligence, network externally, utilize customer advisory panel, utilize gov't data resources, purchase info, collect customer feedback online
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Marketing Research
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The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization
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Primary Data
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fresh data collected first time
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Secondary data
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data that already exists
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Black box
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brain to the marketer
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Consumer Buyer Behavior
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Buying behavior of individuals and households that buy products for personal consumption
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Stimulus Response Model
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marketing 4 ps + economic, social, culture, personality -> Buyers Black Box-> Buyer Response (product choice, brand choice timing)
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Culture
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A shared set of basic values, perceptions, and wants that is transmitted from one generation to the next
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Subculture
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society's relatively permanent and ordered divisions whose members share similar values interests behaviors
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Membership
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any group to which you are a member interactions influence behavior
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Reference/Aspiration Groups
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change behavior to please others, not a member but you want to join, imitate behavior and consumption
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Opinion Leaders
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celebrity athlete
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Family
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especially high involvement purchase
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Roles and Status
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mother vs ceo affects consumption behavior
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Personal
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Age and family life cycle, occupation & economic situation, lifestyle, AIO framework activities, interests, opinions, Psychographics (buy products that relate to interest)
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Personality and Self Concept
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the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environmental (self confidence, sociability, defensiveness)
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Brand Personality
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Sincerity, Excitement, Competence people tend to buy products that reflect their personality
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Psychological
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motivational- needs provide motives for consumer behavior
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Motive
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a need becomes a motive when it is aroused to a sufficient level of intensity (what drives you)
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Perception
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process by which people select, organize and interpret info to form a meaningful picture of the world
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Selective attention
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pay attention to what's important to you , too much info to listen to everything
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Selective Distortion
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Interpreting info in a way that supports your own opinions, beliefs
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Selective Retention
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we retain info that we think is important to us
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Behaviors
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A descriptive thought about something and attitudes (like and dislikes influences consumption behavior)
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Types of Buying Decision Behavior
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Involvement and differences
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Complex buying behavior
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High involvement, significant differences
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Variety Seeking Buying Behavior
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Low involvement, significant differences
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Dissonance reducing buying behavior
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High Involvement, few differences
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Habitual Buying Behavior
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Low involvement, few differences
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Dissonance reducing buying behavior
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regret
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The buyer decision process
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need recognition, information search, evaluations of alternatives, purchase decision, postpurchase behavior
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Need Recognition
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actual state is larger than desired state
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Information Search
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products that satisfy your need
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Evaluation of alternatives
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comparing between options
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Purchase Decision
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yes or no
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Postpurchase behavior
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satisfied or dissatisfied
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New product
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good, service or idea that is perceived by customers as new not from point of view of company (can advertise as new for 6 months)
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adoption process
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awareness, interest, evaluation, trial, adoption
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Individual Differences in Innovativeness
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consumers can be classified into five adopter categores, each of which behaves differently toward new products
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Early Adopters
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13.5% Early adopters most influential in success of new product
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Innovators
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2.50%
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Early Majority
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34%
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Late Majority
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34%
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Laggards
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16%
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Relative Advantage
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greater value then everything else
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Compatibility
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fits with lifestyle other products you use
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Complexity
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difficult to use slower
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Divisibility
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able to divide into small samples to give to consumers to try
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Communicability
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ease with which you can communicate benefits to consumer
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