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52 Cards in this Set

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CUSTOMER-CENTERED COMPANY
A COMPANY THAT FOCUSES ON CUSTOMER DEVELOPMENTS IN DESIGNING ITS MARKETING STRATEGIES.
MARKET LEADER
THE FIRM WITH THE LARGEST MARKET SHARE; IT USUALLY LEADS OTHER FIRMS IN PRICE CHANGES, NEW PRODUCT INTRODUCTIONS, DISTRIBUTION COVERAGE, AND PROMOTION SPENDING.
QUALITY
THE TOTALITY OF FEATURES AND CHARACTERISTICS OF A PRODUCT OR SERVICE THAT BEAR ON ITS ABILITY TO SATISFY NEEDS.
MARKET-CENTERED COMPANY
A COMPANY THAT PAYS BALANCED ATTENTION TO BOTH CUSTOMERS AND COMPETITORS IN DESIGNING ITS MARKETING STRATEGIES.
BENCHMARKING
THE PROCESS OF COMPARING THE COMPANY'S PRODUCTS AND PROCESSES TO THOSE OF COMPETITORS.
VALUE-DELIVERY NETWORK
THE NETWORK MADE UP OF THE COMPANY, SUPPLIERS, DISTRIBUTORS, AND CUSTOMERS WHO "PARTNER" WITH EACH OTHER TO IMPROVE THE PERFORMANCE OF THE ENTIRE SYSTEM.
CUSTOMER DELIVERED VALUE
THE DIFFERENCE BETWEEN TOTAL CUSTOMER VALUE AND TOTAL CUSTOMER COST OF A MARKETING OFFER--"PROFIT" TO THE CUSTOMER.
CUSTOMER LIFETIME VALUE
THE AMOUNT BY WHICH REVENUES FROM A GIVEN CUSTOMER OVER TIME WILL EXCEED THE COMPANY'S COSTS OF ATTRACTING, SELLING, AND SERVICING THAT CUSTOMER.
MARKET CHALLENGER
A RUNNER-UP FIRM IN AN INDUSTRY THAT IS FIGHTING HARD TO INCREASE ITS MARKET SHARE.
BENCHMARKING
THE PROCESS OF COMPARING THE COMPANY'S PRODUCTS AND PROCESSES TO THOSE OF COMPETITORS OR LEADING FIRMS IN OTHER INDUSTRIES TO FIND WAYS TO IMPROVE QUALITY AND PERFORMANCE.
VALUE CHAIN
A MAJOR TOOL FOR IDENTIFYING WAYS TO CREATE MORE CUSTOMER VALUE.
MARKET FOLLOWER
A RUNNER-UP FIRM IN AN INDUSTRY THAT WANTS TO HOLD ITS SHARE WITHOUT ROCKING THE BOAT.
COMPETITOR ANALYSIS
THE PROCESS OF IDENTIFYING KEY COMPETITORS; ASSESSING THEIR OBJECTIVES, STRATEGIES, STRENGTHS AND WEAKNESSES, AND REACTION PATTERNS; AND SELECTING WHICH COMPETITORS TO ATTACK OR AVOID.
CUSTOMER SATISFACTION
THE EXTENT TO WHICH A PRODUCT'S PERCEIVED PERFORMANCE MATCHES A BUYER'S EXPECTATIONS.
RELATIONSHIP MARKETING
THE PROCESS OF CREATING, MAINTAINING, AND ENHANCING STRONG, VALUE-LADEN RELATIONSHIPS WITH CUSTOMERS AND OTHER STAKEHOLDERS.
COMPETITOR-CENTERED COMPANY
A COMPANY WHOSE MOVES ARE MAINLY BASED ON COMPETITORS' ACTIONS AND REACTIONS.
MARKET NICHER
A FIRM IN AN INDUSTRY THAT SERVES SMALL SEGMENTS THAT OTHER FIRMS OVERLOOK OR IGNORE.
COMPETITIVE MARKETING STRATEGIES
STRATEGIES THAT STRONGLY POSITION THE COMPANY AGAINST COMPETITORS AND THAT GIVE THE COMPANY THE STRONGEST POSSIBLE STRATEGIC ADVANTAGE.
GOALS OF RELATIONSHIP MARKETING
1.ATTRACT NEW CUSTOMERS
2.CREATE TRANSACTIONS WITH NEW CUSTOMERS
3.RETAIN CURRENT CUSTOMERS
4.BUILD RELATIONSHIPS WITH CURRENT CUSTOMERS
NEW MARKETING REALITIES (FEWER CUSTOMERS TO GO AROUND)
1.CHANGING DEMOGRAPHICS
2.MORE SOPHISTICATED COMPETITORS
3.OVERCAPACITY IN MANY INDUSTRIES
2 WAYS AN ORGANIZATION MAY IMPROVE ITS OFFER
1.INCREASE TOTAL CUSTOMER VALUE BY STRENGTHENING THE BENEFITS OF ITS OFFER
2.REDUCE TOTAL CUSTOMER COST BY LOWERING ITS PRICE OR LESSENING THE BUYER'S TIME, ENERGY, & PSYCHIC COSTS.
BASIS OF EXPECTATIONS
1.CUSTOMER'S PAST BUYING EXPERIENCES
2.OPINIONS OF FRIENDS & ASSOCIATES
3.MARKETER & COMPETITOR INFORMATION & PROMISES
TOTAL CUSTOMER SATISFACTION
WHERE TODAY'S MOST SUCCESSFUL COMPANIES ARE RAISING EXPECTATIONS & DELIVERING PERFORMANCE TO MATCH.
COMPANY BENEFITS FROM HIGHLY SATISFIED CUSTOMERS
1.LESS PRICE SENSITIVE
2.TALK FAVORABLY TO OTHERS ABOUT THE COMPANY & ITS PRODUCTS
3.REMAIN LOYAL FOR A LONGER PERIOD
CUSTOMER DELIGHT
CREATES AN EMOTIONAL AFFINITY FOR A PRODUCT OR SERVICE.
SHARE OF CUSTOMER
AMOUNT OF CUSTOMER'S PURCHASING IN THEIR PRODUCT CATEGORIES
2 WAYS T0 INCREASE SHARE OF CUSTOMER
1.BECOMING THE SOLE SUPPLIER OF PRODUCTS THE CUSTOMER IS CURRENTLY BUYING
2.PERSUADING THE CUSTOMER TO PURCHASE ADDITIONAL COMPANY PRODUCTS
CROSS-SELLING
GETTING MORE BUSINESS FROM CURRENT CUSTOMERS OF ONE PRODUCT OR SERVICE BY SELLING THEM ADDITIONAL OFFERINGS.
LEVELS COMPANIES CAN BUILD CUSTOMER RELATIONSHIPS AT
1.ECONOMIC
2.SOCIAL
3.TECHNICAL
4.LEGAL
MARKETING TOOLS TO DEVELOP STRONGER BONDS WITH CONSUMERS
1.ADD FINANCIAL BENEFITS TO THE CUSTOMER RELATIONSHIP
2.ADD SOCIAL BENEFITS AS WELL AS FINANCIAL BENEFITS
3.ADD STRUCTURAL TIES AS WELL AS SOCIAL & FINANCIAL BENEFITS
CONFORMANCE QUALITY
FREEDOM FROM DEFECTS & THE CONSISTENCY WITH WHICH A PRODUCT DELIVERS A SPECIFIED LEVEL OF PERFORMANCE.
MARKETERS ROLE IN HELPING THEIR COMPANIES DEFINE & DELIVER HIGH-QUALITY PRODUCTS & SERVICES TO TARGET CUSTOMERS
1.BEAR THE MAJOR RESPONSIBILITY FOR CORRECTLY IDENTIFYING THE CUSTOMERS' NEEDS & REQUIREMENTS & FOR COMMUNICATING CUSTOMER EXPECTATIONS CORRECTLY TO PRODUCT DESIGNERS
2.MARKETING MUST DELIVER MARKETING QUALITY AS WELL AS PRODUCTION QUALITY
STEPS IN SATISFYING TARGET CONSUMER NEEDS BETTER THAN COMPETITORS DO
1.COMPETITOR ANALYSIS
2.COMPETITIVE MARKETING STRATEGIES
IDENTIFYING COMPETITORS
1.ALL FIRMS MAKING THE SAME PRODUCT OR CLASS OF PRODUCTS
2.INCLUDE ALL COMPANIES MAKING PRODUCTS THAT SUPPLY THE SAME SERVICE
3.INCLUDE ALL COMPANIES THAT COMPETE FOR THE SAME CONSUMER DOLLARS
STEPS IN ANALYZING COMPETITORS
1.IDENTIFYING THE COMPANY'S COMPETITORS
2.ASSESSING COMPETITORS' OBJECTIVES, STRATEGIES, STRENGTHS & WEAKNESSES, & REACTION PATTERNS
3.SELECTING WHICH COMPETITORS TO ATTACK OR AVOID
HOW COMPANIES LEARN ABOUT COMPETITORS' STRENGTHS & WEAKNESSES
1.SECONDARY DATA, PERSONAL EXPERIENCE, & HEARSAY
2.PRIMARY MARKETING RESEARCH WITH CUSTOMERS, SUPPLIERS, & DEALERS
3.BENCHMARK THEMSELVES AGAINST OTHER FIRMS
CLASSES OF COMPETITORS
1.WEAK
2.STRONG
3.CLOSE
4.DISTANT
STRATEGIC BENEFITS RESULTING FROM THE EXISTENCE OF COMPETITORS
1.MAY HELP INCREASE TOTAL DEMAND
2.MAY SHARE THE COSTS OF MARKET & PRODUCT DEVELOPMENT & HELP TO LEGITIMIZE NEW TECHNOLOGIES
3.MAY SERVE LESS ATTRACTIVE SEGMENTS OR LEAD TO MORE PRODUCT DIFFERENTIATION
4.THEY LOWER THE ANTITRUST RISK & IMPROVE BARGAINING POWER VERSUS LABOR OR REGULATORS
"WELL-BEHAVED" COMPETITORS
PLAY BY THE RULES OF THE INDUSTRY
"DISRUPTIVE COMPETITORS"
BREAK THE RULES, TRY TO BUY SHARE RATHER THAN EARN IT, TAKE LARGE RISKS, & SHAKE UP THE INDUSTRY.
3 WINNING BASIC COMPETITIVE STRATEGIES
1.OVERALL COST LEADERSHIP
2.DIFFERENTIATION
3.FOCUS
MIDDLE-OF-THE-ROADERS
FIRMS THAT DO NOT PURSUE A CLEAR STRATEGY, A LOSING BASIC COMPETITIVE STRATEGY
3 STRATEGIES (VALUE DISCIPLINES) FOR DELIVERING SUPERIOR CUSTOMER VALUE
1.OPERATIONAL EXCELLENCE
2.CUSTOMER INTIMACY
3.PRODUCT LEADERSHIP
ROLES FIRMS PLAY IN THE TARGET MARKET
1.LEADING
2.CHALLENGING
3.FOLLOWING
4.NICHING
CONTINUOUS INNOVATION
WHEN THE LEADER REFUSES TO BE CONTENT WITH THE WAY THINGS ARE & LEADS THE INDUSTRY IN NEW PRODUCTS, CUSTOMER SERVICES, DISTRIBUTION EFFECTIVENESS, & COST CUTTING.
MARKET CHALLENGER STRATEGIES
1.CHALLENGE THE LEADER & OTHER COMPETITORS IN AN AGGRESSIVE BID FOR MORE MARKET SHARE
2.PLAY ALONG WITH COMPETITORS & NOT ROCK THE BOAT
FRONTAL ATTACK
MATCHING THE COMPETITOR'S PRODUCT, ADVERTISING, PRICE, & DISTRIBUTION EFFORTS, ATTACKS THE COMPETITOR'S STRENGTHS RATHER THAN ITS WEAKNESSES.
INDIRECT ATTACK
ATTACKING THE COMPETITOR'S WEAKNESSES OR GAPS IN THE COMPETITOR'S MARKET COVERAGE.
LINES A MARKET NICHER CAN SPECIALIZE ALONG
1.END USER
2.A GIVEN CUSTOMER-SIZE GROUP
3.SPECIFIC CUSTOMERS
4.GEOGRAPHIC MARKET
5.QUALITY-PRICE (OPERATING AT THE HIGH OR LOW END OF THE MARKET)
6.SERVICE NICHERS
7.MULTIPLE NICHING
3 MARKET LEADER STRATEGIES
1.CAN FIND WAYS TO EXPAND TOTAL DEMAND
2.CAN PROTECT THEIR CURRENT MARKET SHARE THROUGH GOOD DEFENSIVE & OFFENSIVE ACTIONS
3.CAN TRY TO EXPAND THEIR MARKET SHARE FURTHER
TOTAL CUSTOMER COST
THE TOTAL OF ALL THE MONETARY, TIME, ENERGY, AND PSYCHIC COSTS ASSOCIATED WITH A MARKETING OFFER.
PERFORMANCE QUALITY
THE LEVEL AT WHICH A PRODUCT PERFORMS ITS FUNCTIONS