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97 Cards in this Set
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Marketing definition |
an organizational function and a collection of processes designed to plan for, create, communicate, and deliver value to customers |
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Marketing concept is... |
an organizational philosophy dedicated to understanding and fulfilling consumer needs through the creation of value |
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Evolution of Marketing |
Product orientation - (1850-1930) very few competitors; people didn't have access to much info
Sales orientation - (1930-1950) great depression caused companies to focus on selling; businesses wanted to sell
Consumer orientation - (1950-1980) moved more into buyers market; start using market research to figure out what buyers want; marketers started building relationships with consumers
Relationship orientation - (1980-today) companies are seeking way to establish long term relationships with consumers; companies even focus on social issues (ASU Starbucks) |
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Marketing functions are... |
activities performed within organizations that create value for specific products or services |
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Internal marketing participants |
board of directors top management other business departments marketing departments |
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4 P's of marketing |
price product place promotion |
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Planning process is... |
the series of steps businesses take to determine how they will achieve their goals |
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strategic planning... |
determines the overall goals of the business and the steps it will take to achieve them |
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Strategic planning process |
establish mission - what is the purpose?
identify vision - what the company wants to become in the future
define objectives - SMART goal - specific, measurable, achievable, relevant, time bound
develop portfolio - collection of products or services that we will offer |
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Mission statement |
should be market-oriented and defined in terms of customer needs; not too broad or narrow; relevant and current |
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stars (BCG growth-market matrix) |
high market growth; high market share
selling a lot and a lot of growth; can fund other projects; ex: Samsung tablets |
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cash cows (BCG growth-market matrix) |
low market growth; high market share
tend to be in mature markets; often fund other projects |
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question mark (BCG growth-market matrix) |
high market growth; low market share |
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dogs (BCG growth-market matrix) |
low market growth; low market share
possibly a dying market |
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BCG stands for... |
Boston Consulting Group |
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Market planning steps |
Marketing objectives> marketing audit (SWOT)> marketing strategies (determining your taget consumer; 4 P's> allocating resources/monitoring |
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SWOT analysis |
Strengths (positive internal) Weaknesses (negative internal) Opportunities (positive external) Threats (negative external) |
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a marketing plan is... |
a document that includes an assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initiatives |
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executive summary (sections of a marketing plan) |
written with senior leadership as the primary audience: -goals -recommendations |
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company description, purpose, and goals (sections of a marketing plan) |
includes historical info on business and products, as well as the company's core competencies and reason for existence |
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marketing situation (sections of a marketing plan) |
contain assessments of: -customers -competitors -product portfolio -distribution channels -marketing environment |
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forecasting (sections of a marketing plan) |
this is the anticipated outcome if marketing objectives are met |
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marketing strategy (sections of a marketing plan) |
what actions should be taken to meet objectives: -target market -positioning -marketing mix |
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measurement and control (sections of a marketing plan) |
how to monitor progress toward meeting objectives? -financial factors -nonfinancial factors |
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marketing environment is... |
a set of forces, some controllable and some not, that influence the ability of a business to create value and attract and serve customers |
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Macro environment |
political, legal, economy, competitors, technology, social/cultural (demographic) |
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micro environment |
intermediaries, customers, public, suppliers |
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external environment |
includes both macro and micro environment |
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internal environment |
includes only the organization;
top management finance R&D purchasing operations accounting |
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marketing intermediaries |
help the company to promote, sell, and distribute its products to final buyers
could be resellers, distributors, market research firms/ad agencies |
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natural environment (macroenvironment) |
natural resources that are needed as inputs by marketers or that are affected by marketing activities |
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consumer markets are... |
the end user of the product or service, and include individuals and households that are potential or actual buyers of products or services |
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business markets... |
include individuals and organizations that are potential or actual buyers of goods and services that are used in or in support of, the production of other products or services that are supplied to others |
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customer value is... |
the difference between the benefits a customer receives and the total cost incurred from acquiring, using, and disposing of a product |
(expected benefits) - (expected costs) = customer perceived value |
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expected benefits (customer value) |
functional - how the product works brand - the emotional benefit (showing off) outweighs cost service - additional value or service you get with buying the product |
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expected costs (customer value) |
purchase price - how much the product costs
usage costs - how much it costs to actually use the product
maintenance
disposal |
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Price-performance value map |
examines the trade-offs customers make between cost and benefits when making a purchase decision; products that fall within the FAIR VALUE ZONE are perceived to deliver benefits equal to the products total costs; products below or to the right have greater benefits than their costs |
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customer satisfaction is... |
the degree to which a product meets or exceeds customer expectations |
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highly satisfied/delighted customers |
loyalty - customers continue to come back
product champion - positive word of mouth
lower costs - fewer phone calls; lower warranty expense
larger share of wallet - satisfied customers are more likely to purchase other products from a company to which they are loyal |
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Pareto Principle |
80% of profits come from 20% of the customers |
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Customer lifetime value |
[(ave purchases per year) X (profit margin)] - cost to service the customer = customer lifetime value |
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Service recovery paradox |
highly effective service recovery can result in higher levels of customer satisfaction than in cases where a service failure did not exist |
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Relationship marketing is... |
the organizational commitment to developing and enhancing long-term, mutually beneficial relationships with profitable or potentially profitable customers |
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Why would a customer want to create a relationship with a business? (relationship marketing) |
added value reduced anxiety sense of belonging |
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Customer relationship management is... |
comprised of the activities that are used to establish, develop, and maintain customer sales |
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CRM External and internal processes |
external processes - those that connect the company with its customers
internal processes - involve the management of info acquired from customers |
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4 steps in CRM |
1. identify customers - collecting info about customers (like demographics)
2. differentiate customers - differentiate customers based on their needs and the levels of value they bring to the company
3. establish dialogue - talk to your customers to find ways of improving cost efficiencies as well as the customers interaction experience
4. customize products - customize your products or services for each customer segment |
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market segmentation is... |
the division of consumer markets into meaningful and distinct groups
ex: age, gender, location, race, interests |
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market segmentation criteria |
homogeneous - same, similar heterogeneous - groups are different from eachother substantial - reasonable size identifiable - be able to identify who's in the group responsive - will the people in the same group respond the same way?
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differentiated marketing (market segmentation) |
to be more effective with their marketing, manufacturers use segmentation to determine the different needs and develop products that address those needs |
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segmentation base is... |
a group of characteristics that is used to assign segment members |
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STP stands for... |
segmenting, targeting, & positioning |
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demographic segmentation |
divides the market into groups based on criteria such as age, gender, family size, family life cycle, income, occupation, education, religion, ethnicity, generation, nationality, and sexual orientation |
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psychographic segmentation |
assigns buyers into different groups based on lifestyle, social class, or personality characteristics |
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behavioral segmenation |
allocates consumers into groups based on their uses or responses to a product or service |
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Targeting is... |
the process of evaluating and selecting the most viable market segment to enter |
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evaluate by... (targeting) |
attractiveness size and growth potential brand objectives organizational resources |
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4 ways to target segment |
undifferentiated (mass marketing) - one product or service for everyone
differentiated - different product for each segment
niche - serving a small but well-defined consumer segment
micro - very customized to an individual |
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Positioning is... |
the placement of a product or service offering in the minds of a selected target market |
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Perceptual map |
helps managers identify the consumer |
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positioning questions |
what does the brand stand for? why should they buy from me? for whom am I trying to serve?
distinct aspects that set you apart from others |
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consumer behavior is... |
the dynamic interaction of affect and cognition, behavior, and the environment in which human beings conduct the exchange aspects (product and service purchases) of their lives
why and how are we making decisions |
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the consumer decision-making process is... |
the steps that consumers take to identify and evaluate choice options |
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steps of the consumer decision-making process |
need recognition - internal or external
info search - ask friends or family, research
evaluate alternatives - look at all your options
purchase decision - buying the product
post purchase evaluation - what you think of the product after the purchase |
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problem recognition (consumer decision-making process) |
identifying the need
ex: being hungry (internal) tv ad for restaurant during dinner time (external) |
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information search (consumer decision-making process) |
depends on: how much info you have ease of obtaining info value you place on info
loyal customers so less info search |
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Information sources (consumer decision-making process) |
personal (most effective) - family, friends, neighbors, and casual or work acquaintances
commercial - advertising, salespeople, dealers, web sites, packaging, and displays
public - mass media articles or news programs, internet searches, consumer rating organizations
experiential - using, handling, or examining the product |
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evaluate alternatives (consumer decision-making process) |
process varies with product type: careful, logical impulse seek advice
if evaluating a tv, you're going to be more careful than if buying a bag of chips; depends on price |
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purchase decision (consumer decision-making process) |
brand to purchase selected, but not bought; choice can still be altered
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post-purchase evaluation (consumer decision-making process) |
cognitive dissonance - disconnect between your behavior and attitude
discomfort caused by a purchase decision leads to low satisfaction and you returning the product |
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cognitive dissonance (consumer decision-making process) |
marketers can minimize dissonance by: reassuring consumer they made the right choice and minimizing the potential for product misuse (product literature and instructions)
offering mechanisms for lodging complaints (800 numbers, web forms, etc)
being responsive to problems and questions |
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postpurchase behavior |
consumer satisfaction is a function of consumer expectations and perceived product performance
if performance is below expectations = disappointment equal = satisfaction greater = delight |
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three product categories |
approach - customers gain enjoyment from
avoidance - products that consumer normally don't consider and don't want to buy (insurance)
utilitarian - neither enjoyed or used as precaution (pencils) |
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factors that influence consumer decisions |
personal
psychological - what motivates you
situational - your environment
social - group influences |
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personal influences (factors that influence consumer decisions) |
self identity - who you want to be, ideal self
personality - your overall personality, risk taker
lifestyle - particular lifestyle
age and life stage - where you are in life
vocation - a persons occupation influences the products and services they buy
affluence - how much money you make; one might spend more than another |
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The lipstick effect |
during economic downturns, consumers purchase small, inexpensive items rather than large expensive items |
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psychological influences (factors that influence consumer decisions) |
perception - how you process stimuli in the environment
motivation - what drives people to fill a need or a want
attitudes/beliefs - attitudes towards a particular product
learning - what we learn from experience |
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selective attention |
only pay attention to the tings you are looking for |
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selective distortion |
tendency of people to interpret info in a way that supports that they already believe |
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selective retention |
consumers are likely to remember good point made about a brand they favor and to forget good points made about competing brands |
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Maslow's hierarchy of needs |
esteem needs - desire for respect
self-actualization needs - when humans have reached their full potential; very few get to this
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a belief is... |
a descriptive thought that a person holds about something |
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an attitude is... |
a person's consistently favorable or unfavorable feelings, evaluations, and tendencies toward an object or idea |
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learning (factors that influence consumer decisions) |
drive - internal stimulus that encourages action
cue - external stimulus that encourages action
response - consumers reaction to the drive or cue
reinforcement - drive influence by positive response |
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4 situational influences (factors that influence consumer decisions) |
purchase environment
time
digital environment
context |
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7 social influences (factors that influence consumer decisions) |
culture subculture global group social class gender roles family |
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culture is... |
shared values, beliefs, and preferences of a particular society |
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subculture |
a group of people who share value systems based on common life experiences |
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Groups and social networks |
can have strong influences with your decision making
membership groups aspirational groups reference groups |
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membership groups (group and social networks) |
groups with direct influence and to which a person belongs |
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aspirational groups (group and social networks) |
groups an individual wishes to belong to
not a member; a group you aspire to be a part of |
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reference groups (group and social networks) |
groups that form a comparison or reference in forming attitudes or behavior
indirect group
ex: look at models to see what fashions are in |
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opinion leaders are... |
people within a reference group who exert social influence on others |
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consumer problem solving is... |
how someone comes to a conclusion about a situation. This is determined by what kind of decision a consumer is facing. |
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Routine problem solving |
low risk; internal search; single alternative; low involvment |
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limited problem solving |
limited risk; internal search; few alternatives; medium involvment |
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significant problem solving |
high risk; external search; multiple alternatives; high involvment |
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