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117 Cards in this Set
- Front
- Back
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Define Marketing
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"activities and institutions for creating
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How does marketing benefit stakeholders?
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"Identifies what customers want through market research and customer visits; determine competitively advantageous positions for offerings in marketplace through customer analysis
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Market-Driver Approach
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"good for markets with high buyer familiarity
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Market-Driving Approach
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"help customers learn what they want
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Value
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perceived benefits by the customer
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Value Proposition
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statement that summarizes why the consumer should buy a certain product or service
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Market Orientation
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Give the customers what they want
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Limitations of Market Orientation
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"difficult to have MAJOR breakthroughs
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Utilities (Name Them)
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"Need-satisfying Capabilities; Spatial
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Spatial Utilities
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overcoming geographic spread between product and distribution point
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Knowledge Utilities
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providing information that aids buyers
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Value Utilities
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Selling perceived benefits that exceed perceived costs
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Temporal Utilities
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making the product available when the buyer wants it
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Ownership Utilities
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transferring ownership to ultimate buyers
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Why is customer satisfaction important to marketers?
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satisfied customers are retained customers and will come back and buy more or spread the word to friends who will buy more
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Measuring Satisfaction: Standard Approaches
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"Measure satisfaction levels
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Measuring Satisfaction: Newer Approaches
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"Intent to Refer
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Market-Orientation Approach: 3 Keys
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collect and understand information relating to customer needs; share information across departments; use insights gained to create customer value that is superior to competitor's
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Production Orientation
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Exploit economics of scale; emphasis on making as many products as possible
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Four Elements of Marketing Mix
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"Product
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Marketing Mix: Product
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"Quality
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Marketing Mix: Price
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"Discounts
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Marketing Mix: Promotion
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"advertising
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Marketing Mix: Distribution
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"numbers and types of middlemen
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Micro-environmental Influences
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forces close to company that have ongoing influence on how company serves customers; management has some control
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Macro-environmental Influences
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Large external forces that impact organization's decisions; management has very little control
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(MM) Owners
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micro: individuals that have full or partial possession of a company
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(MM) Employees
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micro: workers paid by the company
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(MM) Suppliers
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micro: companies and individuals that provide goods and services which allow company to operate
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(MM) Channel Intermediaries
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micro: independent organization that help company deliver product to buyers
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(MM) Collaborators
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micro: outside organization with whom the company forms a strategic alliance in order to exploit a market opportunity
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(MM) Competitor
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"macro: entity with which a company competes for customers
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(MM) Technology
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macro: applied science that improves an organization's ability to meet customer needs
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(MM) Resource
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"macro: needed capital
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(MM) Legal/Political
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"macro: Laws
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(MM) Social Cultural
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"macro: beliefs
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(MM) Economic
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macro: financial condition of the marketplace
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(MM) Demographic
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"macro: human population characteristics (income
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(MM) Physical
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Marco: environmental health of the earth or its regions
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Competitor
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"anyone who competes for customers
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Market vs. Industry
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Market is mechanism for buyers and sellers to exchange goods and services
Industry is a collection of companies that compete with each other" |
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Porter's 5 Competitive Forces of Industry
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Threat of entry; threat of substitute products; bargaining power of buyers; bargaining power of suppliers; rivalry among existing firms
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Sustainable Competitive Advantage Should be:
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based on organization assets or competencies; matched with markets that value the advantage; aligned with weak competitor abilies; significant enough to make a difference; sustainable
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Three Business Strategies
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"Cost Leadership (efficiency
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How does Cost Leadership impact Porter's 5 Competitive Forces
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reduces bargaining power of suppliers (you are big buyer); reduces bargaining power of buyers (you have lowest price); makes substitutes less attractive
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How does Differentiation impact Porter's 5 Competitive Forces
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reduces bargaining power of buyers (yours is different); makes substitutes less attractive (yours is different); reduces rivalry
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How does Focus impact Porter's 5 Competitive Forces
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makes substitutes less attractive; reduces rivalry
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Four Common Basis for Cost Leadership
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Economies of Scale; experience curve; no frills; low production and operations cost; government subsidies; product design; production innovation
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Strategic Alliance and reason for Collaboration
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"arrangement in which two or more firms combine resources outside of the market in order to accomplish a particular task or set of tasks; global distribution
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Forms of Strategic Alliances
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Joint venture; equity sharing; licensing arrangements; combinations of above
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Psychological Influences on Consumer Behavior
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"Perception - using sensory receptors to process incoming stimuli; Motivation - driving forces that cause a person to take action to satisfy certain needs; Learning - creates changes in behavior through experience and practice; Attitudes - learned tendency to respond consistently toward a given object; Self-Concept - how consumers perceive themselves; Life-style - mode of living
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Socio-cultural Influences on Consumer Behavior
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Culture - essential character of a society that distinguishes it from other cultural groups; sub-culture - homogeneous group of people who share elements of overall culture as well as cultural elements unique to their own group; reference groups - formal and informal groups that influence buying behavior of an individual; family - pass down cultural values and norms to children; social class - group of people who are considered nearly equal in status or community esteem
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High Learning Involvement
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"low emphasis on price
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Low Learning Involvement
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high emphasis on price; buyers not interested in marketing messages; communications need to be clear and bold; convenience is important in designing distribution channels
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Steps of Consumer Purchase Decision Process and impact on Marketing Strategy Development
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"Need recognition
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How is a business market different from the consumer market?
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"business market is bigger
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Buying Center vs. Purchasing Department
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"Buying center includes users
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in buying center
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people who are directly effected by the choice are invited
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in purchasing department
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there is a set of things to buy and they get bought"
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Strategic Business Planning
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"Organization -> Organization Mission -> Marketing Plan
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Market Planning Process
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"Where are we now? (define business unit
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Strategic Business Unit (SBU)
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part of the firm that can be managed separately for marketing purposes --- almost like a free-standing business within a business
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Key SBU characteristics
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"serves an external
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Mission Statement
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brief general description defining the basic needs the SBU hopes to fill in the marketplace
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Make ID of Market Opportunities
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Identify potential customer groups (segments) that could be served: segment size and segment growth; Identify potential applications or functionality that could be provided to targeted customers
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Complete Market Analysis
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"Analysis Guide: company
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SWOT Analysis
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Internal (Strengths and weaknesses) and External (Opportunities and Threats)
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Identify Market Goals
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"select target markets
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Develop Business Case for Management Approval
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What is happening that is leading to this opportunity? Is this a business you understand? Who are you targeting and will enough people buy your product? What is the value proposition? What position do you need and how are you going to get it? Will projected volumes and margins justify the investment?
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Finalize Marketing Mix and Implement
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"Product
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Follow-Up
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Measurement - efficiency and effectiveness; Corrective action
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New Task Buying
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situation requiring purchase for the first time; often lots of research
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Straight rebuy Buying
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purchaser reorders same goods without looking for new investments or capital
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Modified rebuy
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purchaser wants some change in product or service (nothing huge)
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Derived Demand
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demand for business products; rises and falls with demand of initial product
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Joint Demand
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occurs when two or more items are used together in a final product
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Fluctuating Demand
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multiplier effect; small increase or decrease in consumer demand can produce much larger effect on demand for business products
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Inelastic Demand
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increase or decrease in price does not significantly affect demand for product
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Market chain
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"series of value-adding activities
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Common Bases for Segmenting Business Market
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"Geographic segmentation
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Complexity of Business Buying
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"different buying processes exist that affect business purchase; organizational buying can be handled by committees
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Market Research
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systematic process for uncovering key knowledge needed for specific marketing management decision; provided on special request
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Marketing Information Systems
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"people and processes that provide needed info to marketing decision makers on an ongoing basis; once designed
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Primary data
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"directly collected for this purpose; can potentially provide market insights
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Secondary data
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"inexpensive and quick to obtain
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Probability vs. Non-Probability Samples
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"probability is completely random
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Formal Market Research
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Direct observation; experimentation; analysis of purchase data; survey research; focus groups; individual interviews
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Concept Tests
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"presents product idea and then
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Conjoint Analysis
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"break down product into individual attributes and ask preference judgments for attributes
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Focus Group
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"get small group and ask them questions; find out how consumers feel
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Marketing Research Process
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"Define problem
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Criteria for Segmenting
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"Differentiable
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Geographic Segmentation
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"divides market based on physical proximity; regions
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Demographic Segmentation
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"divides by age
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Psychographic Segmentation
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"divides market by how people think
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Behavioral Segmentation
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"divides market by consumer's uses
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Profitability Segmentation
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Benefit Segmentation
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"ideally
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Product Benefit vs. Feature
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Feature: focus on product and product characteristics; Benefit: focus on customer and benefits represented by capabilities of product
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"Segmenting
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Positioning
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Why or Why not segment?
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"can concentrate resources on potential buyers
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Undifferentiated Targeting
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aggregation strategy; Target everyone
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Concentrated Targeting
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work on just one segment really well
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Differentiated Targeting
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multiple-segment strategy; choose a few segments and do a lot in them
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Positioning
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using marketing mix to present your product in relation to competitive products in the mind of the consumer; used to set apart your company from competitors; buyer determines ultimate position
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Perceptual Maps
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visually plot various brands for differences; can be based on important attribute or overall similarity and dissimilarity between products
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Competition Based Positioning
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Look at competitors and make something new that they do not have
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Socio-Cultural Environment Example
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customers are becoming more interested in individualized products; 24/7/365 customers; cross currents of different social values
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Demographic Environment Example
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Families are changing; more single parents and adults without families; increasing number of working women; ethnic and racial diversity
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Marketing Responsibilities
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"Ethics (of exchange and competition)
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Internal Forces Impacting Ethical Behavior
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"personal goals
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External Forces Impacting Ethical Behavior
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"Country
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Steps of Marketing Process
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Understand -> Plan -> Implement -> Follow Up
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Marketing Process: Understand
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"Customers
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Marketing Process: Plan
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"objectives
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Marketing Process: Implement
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"Procut
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Marketing Process: Follow-Up
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"Performance vs. Objectives
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