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112 Cards in this Set
- Front
- Back
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What Are The 4 Types of Utility
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Form
Time Place Ownership |
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Marketing
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An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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Production Era
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A good product will sell itself
Prior to 1920's |
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Sales Era
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Creative advertising and selling will overcome consumers' resistance
Prior to 1950's |
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Marketing Era
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The consumer rules, find a need and fill it
Since the 1950's |
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Relationship Era
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Long-term relationships with customers and other partners lead to success
Since the 1990's |
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Marketing Myopia
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Management's failure to recognize the scope of its business
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Person Marketing
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Marketing efforts designed to cultivate the attention and preference of a target market toward a person.
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Place Marketing
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Marketing efforts designed to attract visitors to a particular are; Improve consumers images of a city, state, or nation; and/or attract new business
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Cause Marketing
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Identification and marketing of a social issue, cause, or idea to selected target markets
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Event Marketing
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Marketing of sporting, cultural, and charitable activities to selected target markets.
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Organization Marketing
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Marketing efforts of mutual-benefit organizations, service organizations, and government organizations that seek to influence others to accept their goals, receive their services, or contribute to them in some way.
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Loyalty Ladder
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-New Customer
-Regular Purchaser -Loyal Supporter -Advocate |
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Exchange Functions of Marketing
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Buying and selling
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Physical Functions of Marketing
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Transporting and storing
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Facilitating Functions of Marketing
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Standardizing and grading, financing, risk taking, and securing marketing information
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Strategic Planning
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Process of determining an organizations primary objectives and adopting courses of action that will achieve these objectives
done by top management ex: organization wide objectives, long-term plans, and budget |
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Tactical Planning
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Planning that guides the implementation of activities specified in the strategic plan.
done by middle management ex: quarterly and semi annual plans, business unit budgets, divisional policies and procedures. |
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Porter's Five Forces
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Model developed by strategy expert that identifies five competitive forces that influence planning strategies
-The threat of new entrants -The bargaining power of buyers -The bargaining power of suppliers -The threat of substitute products -Rivalry among competitiors |
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SWOT analysis
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Analysis that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats
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Marketing Mix
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Blending of the the four strategy elements -product,distribution, promotion, and pricing - to fit the needs and preferences of a specific target market.
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External dimensions of the marketing environment
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Competitive
Political-Legal Economic Technological Social-cultural Factors |
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Rule of Three
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The three strongest, most efficient companies dominate 70-90% of a market
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BCG Analysis Stars
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High Industry Growth Rate
High Relative Market Share Generate considerable income Strategy: Invest more funds for future growth |
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BCG Analysis Cash Cows
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Low Industry Growth Rate
High Relative Market Share Generate strong cash flows Strategy: Milk profits to finance growth of stars and question marks |
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BCG Analysis Questions Marks
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High Industry Growth Rate
Low Relative Market Share Have potential to become stars and cash cows Strategy: Either invest more funds for growth or consider disinvesting |
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BCG Analysis Dogs
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Low Industry Growth Rate
Low Relative Market Share Generate little profits Strategy: Consider withdrawing |
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Oligarchy
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Limited number of sellers in an industry with high start up costs
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Indirect Competition
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Involves products that are easily substituted for each other.
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70% of the GDP
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Is accounted for by consumer spending
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Stages in the Business Cycle
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Prosperity
Recession Depression Recovery |
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Deflation
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Falling prices, can decrease profits, lower investment returns, and bring widespread job layoffs
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Consumerism
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social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government
-The right to chose freely -The right to be informed -The right to be heard -The right to be safe |
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Electronic Data Interchange
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Computer to computer exchanges of price quotations, purchase orders, invoices, and other sales information between buyers and sellers
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Extranets
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Secure networks used for e-marketing and accessible through the firm’s Web site by external customers, suppliers, or other authorized users.
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Electronic Exchanges
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Online marketplaces that bring buyers and sellers together in one electronic marketplace and cater to a specific industry’s needs.
• Use has declined because suppliers weren’t happy with process and buyers preferred to develop long-term relationships with buyers they knew. |
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E-procurement
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Web-based systems that enable all types of organizations to improve the efficiency of their bidding and purchasing processes.
Streamlines purchasing process and reduces costs. |
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Phishing
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High-tech scam that uses authentic-looking e-mail or pop-up messages to get unsuspecting victims to reveal personal information.
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Web's 4 Functions
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e-business
entertainment information communication |
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The Asch Phenomenon
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Theory of psychologist S. E. Asch that individuals conform to majority rule, even if that majority rule goes against their beliefs.
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Autonomic Role of a spouse
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Partners independently make a an equal number of decisions
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Syncratic Role of a spouse
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Buying decisions are made jontly
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Level 1 Physiological Needs
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Medicine, food, Water, sleep
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Level 2 Safety Needs
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Auto air bags, alarm systems, insurance
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Level 3 Belongingness Needs
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beauty aids, entertainment, clothing
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Level 4 Esteem Needs
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clothing, cars, hobbies
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Level 5 Self-Actualization Needs
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Education, cultural events, luxury goods
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Learning Process
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Drive
Cue Response Reinforcement |
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Cognitive Dissonance
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Imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase.
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NAICS
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Merchant Wholesalers
Merchant Wholesalers; non durable goods Paper and paper product merchant wholesalers Stationary and office supplies merchant wholesalers Stationary and office supplies merchant wholesalers in US industry |
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Derived Demand
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The linkage between demand for a company’s output and its purchases of resources such as machinery, components, supplies, and raw materials.
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Volatile Demand
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Derived demand creates volatility.
• Example: Demand for gasoline pumps may be reduced if demand for gasoline slows. |
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Inelastic Demand
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Demand throughout an industry will not change significantly due to a price change.
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Offshoring
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Movement of high-wage jobs from one country to lower-cost overseas locations.
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Cost reimbursment contracts with the government
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the government pays the vendor for allowable costs, including profits, incurred during performance of the contract.
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29% of US GDP
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Is accounted for by Global Trade
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4/5 of GDP Dollars
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Are from services
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1/3 of the Global GDP
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come from China and India
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82% of the internet usage
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Asia, Europe, and North America
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Exchange Control
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which requires firms to buy and sell foreign currency through a central bank or other agency.
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Dumping
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Practice of selling a product in a foreign market at a price lower than it commands in the producer’s domestic market.
• Targeted nations often respond with tariffs and other restrictions. |
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Custom Union
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establishes a free-trade area and uniform tariffs for nonmember nations.
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Common Market
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extends customs union by reconciling all government trade regulations.
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GATT General Agreement on Tariffs and Trade
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• Reduced average tariffs by one-third, or more than $700 billion.
• Reduced farm subsidies. • Increased protection for patents, copyrights, and trademarks. • Included services under international trading rules. • Phased out import quotas on textiles and clothing from developing nations. |
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WTO World Trade Organization
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• 152 member nations.
• Oversees GATT agreements, mediates disputes, and works to further reduce trade barriers. |
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Decision to import depends on
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• Ability of supplier to maintain quality.
• Flexibility in filling orders that vary. • Response time in filling orders. • Total costs—including import fees, packaging, and transportation—compared with costs of domestic suppliers. |
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Offset agreement
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small firm teams with international company and serves as subcontractor on a large foreign project.
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Multidomestic strategy marketing
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Customization of marketing strategies to to effectively reach individual markets.
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Countertrade
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Form of exporting whereby goods and services are bartered rather than sold for cash.
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N.W. Ayer
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conducted the first marketing research in 1879
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Syndicated Services for Marketing Research
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Organizations that regularly provide a standardized set of data to all customers.
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The Marketing Research Process
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1. Define The Problem
2. Conduct Exploratory Research 3. Formulate a Hypothesis 4. Create a research design 5. Collect data 6. Interpret and Present Research |
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Exploratory Research
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Process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources.
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Primary data
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Information collected specifically for the investigation at hand.
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Sampling
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Process of selecting survey respondents or research participants
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Probability Sample
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Sample that gives every member of the population a chance of being selected.
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Stratified sample
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randomly selected subsamples of different groups are represented in the total sample.
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Cluster sample
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researchers select subgroups from which they sample.
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Nonprobability Sample
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Sample that involves personal judgment somewhere in the process.
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Interpretive Research
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Observational research method developed by social anthropologists in which customers are observed in their natural setting and their behavior is interpreted based on an understanding of social and cultural characteristics; also known as ethnography, or “going native.”
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Marketing Information Systems MIS
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A planned, computer-based system designed to provide decision makers with a continuous flow of information relevant to their areas of responsibility.
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Marketing Decision Support System
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Marketing information system component that links a decision maker with relevant databases and analysis tools.
• Develops raw data into information useful for decision making. |
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Data Mining
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• The process of searching through computerized data files to detect patterns.
• Focuses on identifying relationships that are not obvious to marketers. • Efficient way to sort through huge amounts of data and make sense of it. |
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Jury of Execution form of Sales Forecasting
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• Combines and averages the outlooks of top executives from such areas as marketing, finance, production, and purchasing.
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Delphi Technique of Sales Forecasting
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Solicits opinions from several people, but it also gathers input from experts outside the firm rather than relying completely on company executives.
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Exponential Smoothing
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Sophisticated method of trend analysis that weighs each year’s sales data, giving greater weight to results from the most recent years.
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Market
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Group of people with authority, purchasing power and willingness to buy certain products.
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Metropolitan Statistical Areas
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area with an urban center of at least 50,000 and total metropolitan area of at least 100,000.
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Micropolitan statistical area
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area with between 10,000 and 49,999 residents with proportionately few commuting outside the area.
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Consolidated metropolitan statistical area (CMSA)
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includes two or more primary metropolitan statistical areas.
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Primary metropolitan statistical area (PMSA)
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urbanized areas with populations more than 1 million.
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The Cohort Effect
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Generation to be influenced and bound together by significant events in their formative year, ages 17 to 22.
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Generation X
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• Born between 1966 and 1981, numbers nearly 50 million.
• Family-oriented, well educated, and optimistic. |
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Baby Boomers
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• Born between 1946 and 1965, numbers approximately 78 million.
• Influenced by Vietnam War and careerism that followed. • Lucrative segment. • Example: Baby Boomers wield spending power estimated at $2.1 trillion. • Diverse segment that generally tends to value health and quality of life. |
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Engel's Laws
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As household income increases:
• A smaller percentage of expenditures goes for food. • The percentage spent on housing, household operations, and clothing remains constant. • The percentage spent on other items (such as recreation and education) increases. |
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Strivers
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value professional and material goals more then any other group
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Devouts
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value duty and tradition
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Altruists
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emphasize social issues and societal well-being
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Intimates
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value family and personal relationships
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Fun seekers
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focus on personal enjoyment and pleasurable experiences
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Creatives
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seek education, technology, and knowledge
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The Market Segmentation Process
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Develop a relevant profile of each segment
Forecast market potential Forecast probable market share Select specific market segments |
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Transaction Based Marketing
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Buyer and seller exchanges characterized by limited communications and little or no ongoing relationship between the parties.
• Focuses on short-term, onetime exchanges. |
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Internal customers
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employees or departments within the organization whose success depends on the work of other employees or departments.
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Internal marketing
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managerial actions that enable all organizational members to understand, accept, and fulfill their respective roles in implementing a marketing strategy.
• Improves employee recruitment and retention. • Increase employee knowledge and involvement. |
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Three Levels of Relationship Marketing
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Level 1 Focus on Price
Level 2 Social Interactions Level 3 Interdependent Partnership |
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Affinity Marketing
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Marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities.
• Example: Credit cards tied to customer interests such as sports teams or charities. |
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Database Marketing
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Use of software to analyze marketing information, identifying and targeting messages toward specific groups of potential customers.
• Help firms in several ways: • Identify their most profitable customers. • Calculate the lifetime value of each customer’s business. • Create a meaningful dialogue that builds relationships and encourages genuine brand loyalty. • Improve customer retention and referral rates. • Reduce marketing and promotion costs. • Boost sales volume per customer or targeted customer group. • Expand loyalty programs. |
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Grassroots Marketing
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connecting directly with existing and potential customers through nonmainstream channels.
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Lateral Partnership
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strategic alliances with other companies or not-for-profit organizations, and research alliances between for-profit firms and colleges and universities
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National Account Selling
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Technique of providing special attention to a firm’s largest, most profitable customers by assembling a team to serve just one or more large accounts.
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Vender Managed Inventory
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Inventory management system in which the seller—based on an existing agreement with a buyer—determines how much of a product is needed.
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