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162 Cards in this Set

  • Front
  • Back
Define Marketing.
Identifying needs and wants in the market and …
create products or services that
MATCH these needs and wants to
satisfy customers better than competitors do.
What are the 5 “C’s” of the Marketing Environment?
Company
Customers
Competition
Context
Collaborators.
Marketing strategy could be divided into what 4 sub-strategies?
Segmentation
Targeting
Positioning
Differentiation.
The Implementation process consists of:
Price
Product
Promotion
Placement.
Describe a simple model of the marketing process:
 Understand the marketplace and customer needs and wants.
 Design a customer-driven marketing strategy.
 Construct an integrated marketing program that delivers superior value.
 Build profitable relationships and create customer delight.
 Capture value from customers to create profits and customer quality.
When a company starts to strategically plan, they:
1) Define their company mission.
2) Set company goals based on the mission.
3) Design their business portfolio
4) Plan marketing and other operational strategies.
Define a “star” product.
One that has a high growth rate and a High market share.
Define a “Cash cow” product.
One that has a low growth rate and a high market share.
Define a “Dog” product.
One that has a low growth rate and a low market share.
Define a “question mark” product.
One that has a high growth rate but a low market share.
Strategic planning:
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing market opportunities.
Mission statement:
statement of the organizations purpose- what it wants to accomplish in the larger environment.
Business portfolio:
the collection of businesses and products that make up the company.
Growth-share matrix:
The diagram of stars, dogs, cash cows, and question marks.
Value chain:
The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Value delivery network:
the network comprised of the company, its suppliers, distributors, and customers who partner with each other to improve the performance of the entire system.
Positioning :
Arranging for the product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers.
Differentiation:
actually differentiating the market offering to create superior customer value.
Marketing mix:
The set of controllable tactical marketing tools ( or 4 P’s) that the firm blends to create a desired reaction in the marketplace.
Marketing ROI:
Marketing Return on Investment. The net return from a marketing investment divided by the costs of the marketing investment.
Customer Insight:
fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.
Publics:
Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objectives. Examples include: Financial publics, media publics, Government publics, Citizen action publics, local publics.
Marketing environment (MICRO)
: Actors on a small scale that affect a company, such as The company, suppliers, marketing intermediaries, competitors, publics, and customers.
Demography:
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Engel’s laws:
Given that Food, housing, and transportation take up the majority of a household’s income, Ernst Engel noticed that a hosuehold’s spending patterns change as their income increases. As income rises, the percentage spent on food declines, housing remains constant, and the percentage devoted to other categories, including savings, increase.
Causal Research
: marketing research testing cause and effect relationships
MIS:
Marketing information system. People and procedures for assessing informational needs, developing the needed information, and helping the decision makers to use the information to generate and validate actionable customer and market insights.
Competitive Marketing Intelligence:
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Exploratory Research
: marketing research that provides new data to helkp define probles or suggest hyptothesis.
Descriptive research:
marketing research to better describe marketing problems, situations, etc.
Secondary Data:
Information that already exists somewhere, collected for another purpose.
Primary data:
Information collected for the purpose at hand.
Commercial online databases:
Computerized collections of information available from online commercial sources or via the internet.
Ethnographic Research:
observational research that takes place in the consumer’s “natural habitat.”
Survey research:
research by asking questions.
CRM:
Managing detailed information about individual customers and carefully managing customer in order to maximize customer loyalty.
Focus group interviewing:
Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization.
Experimental research:
Selecting test subjects and giving them different treatments or factors and observing the differing results.
consumer buyer behavior
the buying behavior of final consumers- individuals and households that buy goods and services for personal consumption.
consumer market
All the individuals and households that buy or aquire goods and services for personal consumption.
culture
the set of basic values, perceptions, and behaviors learned by a member of society from family and other important institutions.
subculture
A group of people with shared value systems based on common life experiences and situations.
Social Class
relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors.
Group
two or more people who interact to accomplish individual or mutual goals.
Opinion leader
Person within a reference group who, because of special skills, knowledge, ability, or other characteristics, exerts social influence on others.
lifestyle
a person's pattern of living
Personality
the unique physocological characteristics that distinguish a person or group
Cognitive Dissonance
buyer discomfort caused by post-purchase conflict
Stages in the adoption process
Awareness/ interest/ evaluation/ trail/ adoption
derived demand
business demand that ultimately coems from the demand for consumer goods.
Supplier development
systematic development of networks of supplier partners to ensure an appropriate and dependable supply of products and materials for the business needs.
straight rebuy
a business buying situation in which the buyer routinely reorders something without any modifications
modified rebuy
a buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
new task
a businesses first tiem buy from a supplier
systems selling
a packaged solution to a problem from a single seller, simplyfying the solution for a business.
buying center
all the individuals and units that play a role in the purchase decision making process
value analysis
carefully analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value.
E-procurement
purchasing through electronic connections between buyers and sellers- usually online.
market segmentation
dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes
Market targeting
the process of evaluating each market segment's attractiveness and selecting one or more of the segments to enter.
differentiation
actually differentiating the market offering to create superior value for the customer
positioning
arranging for a market offerign to occupy a clear, distinctive, and desireable place relative to competing products in the minds of target consumers
geographic segmentation
dividing a market into different geographical units such as nations, cities, etc.
Which differences to promote
Important/distinctive/superior/communicable/preemptive/ affordable/ profitable
value proposition
the full positioning of the brand- the full mix of benefits upon which it is positioned
The service-profit chain
internal service quality--
what are the four service characteristics?
intangibility/ variability/ inseperability/ perishability
micromarketing
tailoring brands and promotions to the needs and wants of specific individuals and local customer segments.
Competitive advantage
an advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.
Service intangibility
services cannot be seen, tasted, felt, heard or smelled.
Service inseperability
they are produced and consumed at the same time and cannot be seperated from their providers
service variability
the quality may vary greatly, depending on who provides them and where, and when and how
Service perishability
services cannot be stored for later use
internal marketing
motivating and orienting customer relation employees to work as a team
brand equity
the differntial effect that knowing the brand name has on customer response to the product or its marketing.
commercialization
introducing a new product to market
product life cycle
the course of a products sales and profits over time: development, introduction, growth, maturity, decline.
Style version fashion versus fad
Styles are long term with waxing and waning interest levels, fashions rise and fall over medium terms, and fads spike and die in the short term.
When does Marketing Myopia Occur?
Marketing myopia occurs when a company becomes so taken with their own products
that they lose sight of underlying customer needs.
What were the terms around TD's triangle of marketing steps?
Segment --> Innovate--> Monetize
What percentage of an average company's customers are estimated to be profitable?
Experts estimate only 20% of many company’s customers are profitable
What is TD's distinction between brands and branding?
Brands exist whether you want them to or not. Brands aren’t going away anytime soon. Brands are useful shorthand for a complicated asset within an organization.

Branding on the other hand, is a thing you do. And as an activity, branding is problematic.

Branding is ill-defined, usually vacuous, often expensive and totally unpredictable.
Branding” is the sum of perceptions, associations and impressions linked to a trademark and..... ?
that mark’s capacity to command a price premium
Authentic branding is a.....
result, not a tactic.
Distinguish between "REACH" and "FREQUENCY."
Reach
New Product
Broad Audience
Long Purchase Cycle
vs.
Frequency
Complex Message
Narrow, Defined Target Segment
Shorter Purchase Cycle
Many Direct Competitors
Affecting organizational change means doing three things. What are they?
Get the talent
Make the process
Give them the tools
The marketing environment consists of what?
The 5 Cs.
Context
Company
Consumers
Competition
Collaborators
Marketing Strategy consists of what four steps?
Segmentation
Targeting
Differentiation
Positioning
Marketing implementation consists of what four steps?
The 4 P's.
Product
Price
Promotion
Place
What is segmentation?
Dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
Effective market segmentation means dividing the market into segments that are:
Measurable
Accessible
Substantial
Differentiable
Actionable
A successful differentiation strategy should....
1) Be based on points of differentiation
2) Provide percieved value
3) be difficult to copy
The summary of effective positioning is:
To (target market), (brandname) is the brand of (frame of reference) that (benefit/point of difference) because of (product attribute)


Needs to be DIFFICULT TO COPY
What are the sections of a marketing plan?
Background
Objective of the Plan
Analysis of the Situation
Strategic Decision
Marketing Mix Recommendations
Exhibits: Financial and Strategic Support Materials
What is strategic planning?
Strategic planning is the process of developing and maintaining a strategic fit between
the organization’s goals and capabilities and its changing marketing opportunities.
Strategic planning sets the stage for the rest of the planning in the firm.
What is a mission statement?
A mission statement is a statement of the organization’s purpose—what it wants to
accomplish in the larger environment.
What should mission statements be?
Mission statements should be market oriented and defined in terms of customer needs.
Setting Company Objectives and Goals
How do companies use their mission statements?
The company turns its mission into detailed supporting objectives for each level of
management.

Marketing strategies and programs must be developed to support these marketing
objectives.
Business portfolio includes 2 steps. What are they?
1. The company must analyze its current business portfolio and decide which
businesses should receive more, less, or no investment.
2. It must shape the future portfolio by developing strategies for growth and
downsizing.
Most standard portfolio-analysis methods evaluate SBUs on two dimensions: what are they?
Most standard portfolio-analysis methods evaluate SBUs on two dimensions:
1. The attractiveness of the market or industry
2. The strength of the position in that market or industry.
One of four strategies can be pursued for each SBU (cash cows, stars, etc).
1. The company can invest to build its share.
2. It can invest just enough to hold its share.
3. It can milk its short-term cash flow, or harvest.
4. It can divest by selling it or phasing out.
As time passes, SBUs change their positions in the growth-share matrix. Each SBU has a
life cycle.
What are some problems with matrix approaches?
Difficult, time consuming, and costly to implement.
These approaches focus on classifying current businesses but provide little advice for
future planning.
name the 4 parts of the product/market penetration grid.
Market penetration—making more sales to current customers without
changing its products.
• Market development—identifying and developing new markets for its current
products.
• Product development—offering modified or new products to current markets.
• Diversification—starting up or buying businesses outside of its current products
and markets.
What does SWOT analysis stand for?
evaulating a company's strengths, weaknesses, opportunities, and threats
.
Strengths include capabilities, resources, and positive situational factors.
• Weaknesses include negative internal factors and negative situational factors.
• Opportunities are favorable external factors.
• Threats are unfavorable external factors.
In addition to customer relationship management, marketers must also practice what?
partner
relationship management.

Firms need to look beyond its own value chain and into the value chains of its suppliers,
distributors, and customers.
Companies today are partnering with the other members of the supply chain to improve
the performance of the customer value delivery network.
What does buildign a customer-driven market strategy involve?
Customer-Driven Marketing Strategy
This process involves market segmentation, market targeting, differentiation, and
positioning.
What is market segmentation?
Market segmentation is the process of dividing a market into distinct groups of buyers
who have different needs, characteristics, or behavior who might require separate
products or marketing programs.
What is a market segment?
A market segment consists of consumers who respond in a similar way to a given set
of marketing efforts.
Business portfolio includes 2 steps. What are they?
1. The company must analyze its current business portfolio and decide which
businesses should receive more, less, or no investment.
2. It must shape the future portfolio by developing strategies for growth and
downsizing.
Most standard portfolio-analysis methods evaluate SBUs on two dimensions: what are they?
Most standard portfolio-analysis methods evaluate SBUs on two dimensions:
1. The attractiveness of the market or industry
2. The strength of the position in that market or industry.
One of four strategies can be pursued for each SBU (cash cows, stars, etc).
1. The company can invest to build its share.
2. It can invest just enough to hold its share.
3. It can milk its short-term cash flow, or harvest.
4. It can divest by selling it or phasing out.
As time passes, SBUs change their positions in the growth-share matrix. Each SBU has a
life cycle.
What are some problems with matrix approaches?
Difficult, time consuming, and costly to implement.
These approaches focus on classifying current businesses but provide little advice for
future planning.
name the 4 parts of the product/market penetration grid.
Market penetration—making more sales to current customers without
changing its products.
• Market development—identifying and developing new markets for its current
products.
• Product development—offering modified or new products to current markets.
• Diversification—starting up or buying businesses outside of its current products
and markets.
What is product position?
Product position is the place the product occupies relative to competitors in consumers’
minds.
What is positioning?
Positioning is arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers.
Positioning begins with what key action?
Positioning begins with differentiation—differentiating the company’s market offering
so that it gives consumers more value.
What is the marketing mix?
The marketing mix is the set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the target market.

made up of the 4 P's.
What are the 4 P's of the marketing mix?
Product: the goods-and-services combination the company offers to the target
market.
• Price: the amount of money customers have to pay to obtain the product.
• Place: the company activities that make the product available to target consumers.
• Promotion: the activities that communicate the merits of the product.
The marketing environment is split into what 2 parts?
The Macro and micro environment.
The microenvironment consists of the actors close to the company that affect its ability
to service its customers.

The macroenvironment consists of larger societal forces that affect the
microenvironment.
Describe the company's microenvironment in gerenal terms.
The company
Collaborators
suppliers
marketing intermediaries
competitors
customers
Describe the companys MACROenvironment, in general terms.
Demography
economic environment
natural environment
technological environment
political environment
cultural environment
What is demography?
Demography is the study of human populations in terms of size, density, location, age,
gender, race, occupation, and other statistics.
Changes in the world demographic environment have major implications for business.
Thus, marketers keep close track of demographic trends and developments in their
markets, both at home and abroad.
What is the economic environment?
The economic environment consists of factors that affect consumer purchasing power
and spending patterns.
What do companies use marketing information to accomplish?
Companies use such customer insights to develop competitive advantage.
To gain good customer insights, marketers must effectively manage marketing
information from a wide range of sources.
The real value of marketing research and marketing information lies in how it is used—in
the customer insights that it provides.
The marketing Research process has 4 steps. What are they?
Define the problem and the research objectives.

Develop the research Plan.
implement the research plan.
interpret and report the findings.
Name three marketing research approaches
Observational research- relevant data based.

Ethnographic research- observe consumers in teh natural habitat.

Survey research- ask questions.

Experimental research- gathering causal info.
The buyer decision process consists of five stages:
1. need recognition,
2. information search,
3. evaluation of alternatives,
4. purchase decision, and
5. postpurchase behavior.
The need can be triggered by either an:
• internal stimuli or
• external stimuli.
What's the difference between a commercial source of information and a Personal source of information?
Commercial sources inform the buyer.
Personal sources legitimize or evaluate products for the buyer.
Two factors can come between the purchase intention and the purchase decision. They are_________.
1. Attitudes of others.
2. Unexpected situational factors.
Business buyer behavior refers to.....?
Business buyer behavior refers to the buying behavior of the organizations that buy
goods and services for use in the production of other products and services that are sold,
rented, or supplied to others.
What is the business buying process?
In the business buying process, business buyers determine which products and services
their organizations need to purchase, and then find, evaluate, and choose among
alternative suppliers and brands.
What are the 3 main differences between business markets and consumer markets?
• market structure and demand,
• nature of the buying unit,
• types of decisions and the decision process involved.
What kind of demand is business demand?
Business demand is derived demand—it ultimately derives from the demand for
consumer goods.
Many business markets have ______ demand.

Some have _________ demand.
Many business markets have inelastic demand; that is, total demand for many business
products is not affected much by price changes.
Business markets have more fluctuating demand.
What is supplier development?
Supplier development is systematically developing networks of supplier-partners to
ensure an appropriate and dependable supply of products and materials that they will use
in making their own products or resell to others.
What is a buying center?
Buying center is all the individuals and units that play a role in the business purchase
decision-making process.
Designing a true customer-driven marketing strategy involves:
Segmentation
Targeting
Differentiation
Positioning
What is psychographic segmentation?
Psychographic segmentation divides buyers into different groups based on social
class, lifestyle, or personality characteristics.
Name 7 types of segmentation.
Geographic
demographic
psychographic
income
behavioral
occasion
benefit
When evaluating a market segment, what should you consider?
Segment size and growth:
Analyze current segment sales, growth rates, and expected profitability.

Segment structural attractiveness:
Consider competition, existence of substitute products, and the power of buyers and
suppliers.

Company objectives and resources:
Examine company skills and resources needed to succeed in that segment. Offer superior value and gain advantages over competitors.
To be useful, market segments must be:
• Measurable: The size, purchasing power, and profiles of the segments can be
measured.
• Accessible: The market segments can be effectively reached and served.
• Substantial: The market segments are large or profitable enough to serve.
• Differentiable: The segments are conceptually distinguishable and respond
differently to different marketing mix elements and programs.
• Actionable: Effective programs can be designed for attracting and serving the
segments.
Name 4 targeting strategies.
Undifferentiated
differentiated
concentrated (niche)
micromarketing
A product’s position is:
The way the product is defined by consumers on important attributes—the place the
product occupies in consumers’ minds relative to competing products.
Perceptual positioning maps can help define a brand’s position relative to
competitors.
Choosing a differentiation and positioning strategy involves:
Identifying a set of possible value differences and competitive advantages on which
to build a position.
Choosing the right competitive advantages.
Selecting an overall positioning strategy.
Identifying possible value differences and competitive advantages:
Key to winning target customers is to understand their needs better than competitors
do and to deliver more value.
Competitive advantage is achieved through:
achieving meaningful differentiation.
Choosing the right competitive advantage requires___________.
selecting how many and which
differences to promote.
Differences that could be promoted to attain competitive advantage are:
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Overall or full positioning of the brand is called__________________. ?
the brand’s value proposition.
How do you write a positioning statement?
Format: “To (target segment and need)
our (brand) is (a concept) that (point of difference).”
Example: “To busy mobile professionals who need to always be in the loop,
BlackBerry is a wireless connectivity solution that gives you an easier, more reliable
way to stay connected to data, people, and resources while on the go.”
What is Perception?
the process by which people select, organize, and interpret information to
form a meaningful picture of the world.
What is Selective attention?
the tendency for people to screen out most of the information to
which they are exposed.
What is Selective distortion?
the tendency of people to interpret information in a way
that will support what they already believe.
What is Selective retention?
the retaining of information that supports their attitudes and beliefs.
Define and differentiate between a drive, a motive, and a cue.
A drive is a strong internal stimulus that calls for action.

A drive becomes a motive when it is directed toward a particular stimulus object.

Cues are minor stimuli that determine when, where, and how the person responds.
What are the 2 parts of the buyer's black box?
The buyer’s characteristics influence how he or she perceives and reacts to the
stimuli.
2. The buyer’s decision process itself affects the buyer’s behavior.
Characteristics
Marketing stimuli consist of:
The 4 P's plus outside stilmuli factors, like technological stimuli, economic stimuli, political stimuli, etc.
Companies use such customer insights to_______________.
develop competitive advantage.
The grid for a swot analysis involves what 2 axis?
Internal/external and positive/negative.
One of four strategies can be pursued for each SBU.
1. The company can invest to build its share.
2. It can invest just enough to hold its share.
3. It can milk its short-term cash flow, or harvest.
4. It can divest by selling it or phasing out.