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43 Cards in this Set

  • Front
  • Back
Requirments for Marketing to occur:
1. Two or more parties.
2. Desire and ability to seek satisfaction
3. A means of communication between parties
4. Something to exchange
Cosumer needs and wants:
- Need – physicological .. (food, clothing)
- Want – cultural influences( ipod)
Marketing Mix Factor:
- Product
- Place
History of Marketing
Production Era – 1880-1920s – modern start of mkting (industrial rev)
- “build a better mousetrap”  if your good is better ppl will buy it
Sales Era – 1930-1950s – focus on consumer identify target markets
Marketing (Concept) Era – 1950s-1960s – find a need and fill it (do what consumer
Consumer Era – 1970-now
- Market Orientation – 1) continuously collect data on buyers 2) share info across depts 3) using data to create consumer value
- Customer relationship management (CRM) – process of identifying, understanding, and developing favorable perceptions in potential consumers
Depth of Marketing
1.) Who markets – producers/sellers
2.) What they market – goods/services/ideas
3.) Who are the buyers – ultimate consumers
4.) Who benefits from marketing - everyone
5.) How they benefit – Utility – benefit/value received by user
- form, place, time, possession
Market-Product Analysis

Market Penetration
Market Development
Product Development
- Market Penetration – increase sales of current product in existing mkt
- Market Development – existing products to new mkts
- Product Development – new products to existing mkts
- Diversification – new products in new markets
Strategic Marketing Process
1. SWOT Analysis
2. mkt-product focus and goal setting – segmentation (who, what?)
3. marketing program – How
- Product Strategy – innovations and product changes
- Price Strategy – changes in price (new low price)
- Promotion Strategy – examples of benefits
- Place (distribution) – increase reach or ease of accessibility
Implementation Phase
- obtain resources
- design mktng organization
- develop schedules
- actual execution of plan
Control Phase
- compare results from mktng program with goalidentify devotions from plan
- act on deviations
External Environmental Forces
- Social – demographics
- Economic – income of consumer
- Technological – innovations for industries
- Competitive – other companies satisfying your consumers’ needs
- Regulatory – laws to promote fairness in business interaction
Consumer Behavior
the actions a person takes in purchasing and using products or services, including mental and social actions before and after purchase.
Consumer Decision Making Process:
Need Recognition – out-of-stock/unavailable, current product no longer benefits, wants (Advertising, Social group, stores), change in circumstances
Information Search – “seeking best value” (alternatives)
-Internal: experiences (used before? like/dislike)
- private Friends/Family
- public Advertising, stores
Evaluate Alternatives – Criteriaimportancevalue (does it meet personal standards)
- objective attributes availability speed/location of brand
- subjective attributes prestige of brand
Purchase Decision:
- where to buy
- when to buy
- in-store activities (coupons, sales, promotions)
- value received satisfied?
- Meets criteria/importance/value?
Consideration Set
– the group of brands a consumer would consider acceptable among the brands of the product class.
personal, social, and economic significance of the purchase
- High involvement: expensive/serious personal consequences/ could reflect on
social image
- Low involvement: everyday items (toothpaste/soap)
Extended Problem Solving
Limited Problem Solving
Routine Problem Solving
More time spent on “decision making process”
- more time analyzing attributes of more brandshigh involvement
trusted recommendations from friends or family (what restaurant to go to, what toaster to get) less research (friend’s word is enough)
- everyday needs to be replaced (milk, soap) low involvmnt
Involvement and Marketing Strategy
Low Involvement:
- Market leader: 1) maintain quality 2) keep shipments steady to avoid
Out-of-stock 3) sustain advertising assure buyers
- Market newcomer: break current buying habits (free samples, coupons, rebates) entice consumers to try new brand
High Involvement: ppl seek info about objective and subjective attributes, form evaluation criteria, rate product attributes across brands, form overall brand evaluation.
Business Marketing
goods/services sold to Organizational Buyers (retail, wholesale, manufacture) for production of new good to sell to consumers
- Industrial – alterresell
- Reseller – wholesale, retail compile as-is goods to sell to consumer
- Government – fed, state agencies
Characteristics of Organizational Buying
Derived Demand – demand of industrial products for use in consumer product
(pulp for newspaper)
Size of Purchase – usually large mass production
Number of Potential Buyers – Market cap
Buying Objectives – max profit, min cost, max rev.
Organizational Buying Criteria
objective attributes company needs to produce own
1. Price
2. abilitly to meet quality specs.
3. ability to meet delivery schedule
4. technical capability
5. warranties incase of defective product
6. past performance or previous contracts
7. production facilities and capacity
Reverse Marketing
effort by organization to build relationships that shape products, services, and capabilities to meet consumers’ needs
two organizations agree to purchase each others products
Supply Partnership
buyer and seller adopt mutually beneficial objectives, policies, and procedures lower cost for consumer
Buying Center/Buying Committee
ppl share goals, risks, and knowledge relevant to decision
Roles in buying center
- Users – ppl who actually use product
- Influencers – ppl who affect decisions (tech support, analysts)
- Buyers – ppl who have the authority to make actual purchase
- Deciders – ppl make final decisions “final stamp of approval”
- Gatekeepers – controls/organizes flow of info in buying cente
Buying Classes
- Strait Rebuy – replace depleted product limited thought required
- Modified Rebuy – alter choice slightly moderate thought needed
- New buy – need new product many ppl, much thought involved
Make-Buy Decision
companies choice to make or buy supply for use in product
Value Analysis
systematic appraisal of design, quality, and performance  to reduce purchasing cost
Bidder’s List
list of firms able to supply a given item
Marketing research
process of defining a problem/opportunity, systematically collecting and analyzing info, and recommending actions
5-Step Approach to Make Better Decisions
1.) Define Problem
- Set research objectives
- exploritory: get details.
- Descriptive: info on outside factors (complimentory goods).
- Casual: determine possible effects from a decision),
- identify possible actions
(Measures of Success – criteria used to evaluate proposed solutions)
2.) Develop the Research Plan
- specify constraints – possible restrictions (time, money)
- identify data needed
- determine how to collect data
- Concept – potential new product
- Methods – possible ways to collect data to solve problem
3.) Collect Relevant Info
- Primary – collected first hand (exact, costly, and costly)
- Observational data – watch public
- Experimental – controlled scenario to view outcomes
- Questionaire – records attitudes, awareness, intentions, and
- Secondary – use previous data (cheap, time-saving, may not fit exactly)
4.) Develop Findings
- analyze data
- present findings
5.) Take marketing Actions
- make recommendations
- implement actions
- evaluate results
- choice made
- how choice was implemented
Marketing Managers Sales Drivers
- price
- new prodcuts
- advertising (tv, print, internet, radio)
- distribution
- consumers
- competition
- special promotions
Information technology
computer assistance for companies needs (inventory conrol)
Market Segments
groups of ppl who 1) share common needs 2) will respond similarly to marketing action
- Age
- Gender
- Price segment
- Sport segment
- Lifestyle segment
Product differentiation
changes in marketing mix to sell same product to many segments
Market-product grid
framework to relate market segments to buyers/products what action to take
Steps in Segmenting and Targeting Markets
1.) Group Potential Buyers into Segments
Criteria for forming segments
- Potential to increase profit
- Similarity of needs of potential buyers within a segment
- Difference of needs of buyers among segments
- Potential of a marketing action to reach a segment
- Simplicity and cost of assigning potential buyers to segments
Ways to Segment Consumer Markets
- Geographic – region/location (tractors by farms, boats by ocean)
- Demographic – living situations (household size, income, gender, race)
- Psychographic – lifestyle, personality
Usage (Patronage) Rate – quantity consumed(or stores visited) within given time period
80/20 Rule – concept that suggests 80% of sales comes from 20% of customers
2.) group products to be sold into catagories
3.) develop market-product grid and estimate size of markets
4.) select target market
Criteria used to pick target markets
- Market size
- Expected market growth
- Competitive position
- Cost of reaching the segment
- Compatability with the company’s objectives/resources
5.) Take marketing action to reach target markets
Perceptual Maps
2-D map of location of products/brands
Market (Industry) Potential
MKT cap (max money all firms can compete over)
Sales Forecast
– expected total sales during given time period
- judgments of the decision maker
Direct Forecast – no steps “how much milk to buy”
Lost-horse forecast
making forecast from last known position (go where last seen)
Buyer’s intention
asking customers how they feel about product
Salesforce survey
firms salesppl to estimate sales for next period
- statistical methods
Trend exploration
extending patterns from past to apply to future
BCG Growth / share matirx
-Stars - High growth and markt share
- Cash Cows - Little investment, slow growth.
- ? Not sure can invest or not
-Dogs - use resources for other things. Can drop it or do nothing and project market growth.
Social Responsibility
- Profit ( Shareholders/owners)
- Stakeholders - (Employees, vendors
Societal Responsibilites - "green marketing"
Level of involvement
Extended- buying a car
Limited - Cell phone
Routine - toothpaste