Marketing Final

Front 1

Marketing -

Back 1

creating and capturing customer value
AND
managing profitable customer relationships

Front 2

Market -

Back 2

actual and potential purchasers

Front 3

Need -

Back 3

states of felt deprivation (wanting something super bad)

Front 4

Want

Back 4

- the form human needs take when shaped by culture, people, and individual personality

Front 5

Demand -

Back 5

wants backed by buying/purchasin power

Front 6

Position -

Back 6

how the product is perceived by customers relative to competitors

Front 7

Positioning

Back 7

- actions taken by a marketer to influence a customer’s perception on important aspects relative to competing offers

Front 8

Customer perceived value -

Back 8

Perceived benefits minus costs relative to competition. We hare hard wired to compare to others and want to be better.

Front 9

Exchange -

Back 9

the act of obtaining a desired object by from someone by offering something in return (customer has a good idea of what they’re buying and are willing to pay set price).

Front 10

Production Concept - (history)

Back 10

the idea that consumers will favor products that are available and highly affordable, the organization should focus on production and distribution efficiecny.

Front 11

Product Concept (in history)

Back 11

- the idea that consumers will favor products that offer the most quality, performance, and features and that the organization should devote its time to making continuous product improvements.

Front 12

Marketing Concept

Back 12

- the marketing management philosophy that achieving organizational goals depend on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

Front 13

Societal Marketing Concept -

Back 13

the principle that holds that a company should make good marketing decisions by considering the customers’ wants, company’s requirements, consumers’ long-term interests, and society’s long-term interest.

Front 14

Marketing myopia -

Back 14

the problem of paying more attention to the actual products than to the benefit and experience that the products produce.

Front 15

Customer lifetime value -

Back 15

the value of the entire stream of purchases that a customer would make over a lifetime of patronage.

Front 16

Customer satisfaction

Back 16

- the extent to which a products perceived performance matches a buyer’s expectations == Experience - expectations

Front 17

CRM -

Back 17

Building relationships by delivering satisfaction

Front 18

Customer equity -

Back 18

the total combined CLVs of all the company’s customers.

Front 19

Market Offering -

Back 19

some combination of products, services, information, or experience offered to a market to satisfy a need or a want.

Front 20

Marketing Management

Back 20

- the art and science of choosing target markets and building profitable relationships with them.

Front 21

Market

Back 21

- the set of all actual or potential buyers of a product or service.

Front 22

Marketing

Back 22

- create and capture value

Front 23

Marketing strategy -

Back 23

the marketing logic by which the company hopes to achieve its marketing objectives.

Front 24

Market segmentation

Back 24

- diving the market into distinct groups or buyers who have distinct needs, characteristics or behaviors who might require separate products or marketing mixes

Front 25

Market segment -

Back 25

a group of customers who respond in a similar way to a given set of marketing efforts.

Front 26

Differentiation -

Back 26

actually differentiating the firm’s product offering to create superior customer value.

Front 27

Market targeting -

Back 27

the process of evaluating each market segment’s attractiveness and choosing one or more segments to enter.

Front 28

Marketing Mix -

Back 28

Product, Price, Place, Promotion

Front 29

Positioning:

Back 29

the actions a marketer takes to in!uence a
product’s position.

Front 30

Position:

Back 30

how the product is viewed by consumers on
important attributes relative to competing products.

Front 31

Ethnographic research

Back 31

- sending trained professionals to interact and observe customers in their natural habitat.

Front 32

Secondary data -

Back 32

data that exists somewhere that was collected for some other purpose.

Front 33

Primary data -

Back 33

information collected for the purpose at hand.

Front 34

Observational research

Back 34

- the gathering of primary data by observing relevant people, actions, and situations.

Front 35

Marketing research

Back 35

- the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Front 36

Brand-

Back 36

a perception that exists in the minds of your constituents about your relevance and promise of value. Your brand is the total of the impressions formed through exposure to your touchpoints.

Front 37

Characteristics of a service:

Back 37

1. Intangibility: Services cannot be seen, tasted, felt, heard, or smelled before purchases.
2. Inseparability: Services cannot be separated from their providers
3. Variability: Quality of service depends on who provides them and when, where, and how
4. Perishability: Services cannot be stored for later use

Front 38

SCLV =

Back 38

(M-c)/(1-r+i) -AC

T = the length (number of periods) of the relationship
Mt = the margin the customer generates in period t
ct = the marketing costs of retaining the customer in period t
i = the discount rate or !rm’s capital cost
r = the retention rate in period t (i.e., the probability keeping
the customer)
AC = the cost to acquire the new customer (at t = 0)

Front 39

Market Share==

Back 39

Brand sales / Category Sales

Front 40

Net Marketing Contribution (NMC) ==

Back 40

Sales- CoGs- Marketing Exp

Front 41

Return on Marketing Investment (ROMI) ==

Back 41

NMC / Marketing Expense *100%

Front 42

Marketing Return on Sales

Back 42

(MROS) == NMC / Sales * 100%

Front 43

TAM ==Total addressable market

Back 43

TAM = n*q*P

n = number of buyers in the market
q = average quantity purchased per buyer per year
P = average purchase price per unit

Front 44

Contribution margin =

Back 44

Revenue – VC

Front 45

Unit Contribution Margin =

Back 45

Price/unit – VC/unit

Front 46

“Margin” =

Back 46

Contribution Margin as a percent of sales

Front 47

“Mark-up” =

Back 47

Contribution Margin as a percent of VC

Front 48

Analysis (5 Cs)--Understanding customer

Back 48

-Customers
-Company
-Competition
-Collaborators
-Context

Front 49

Marketing Strategy (STP) -- Creating Value

Back 49

-Segmenting
-Targeting
-Positioning

Front 50

Marketing Mix (4 Ps)-- Capturing Value

Back 50

-Products + Place + Promotion == Price

Front 51

CRM--Sustain value

Back 51

-Customer Acquisitions--> Customer Retention
- Profits

Front 52

CRM Process

Back 52

1. Form database
2. Select customers
3. Develop relationship strategies
4. Monitor resutls

Front 53

Importance of CRM

Back 53

1. Decreases the cost of acquiring customers
2. Decreases cost to serve
3. Helps identify unprofitable customers
4. Facilitates experimentation and learning
5. Measure ROMI (return on marketing investment)
6. Allows to focus your marketing dollars

Front 54

Buyer decision process

Back 54

1. need recognition
2. information search
3. evaluations of alternatives
4. purchase decisions
5. Post purchase behavior

Front 55

Form Competition :

Back 55

Same benefit in the same way (Diet Coke/Diet Pepsi) - most direct competition

Front 56

Category Competition:

Back 56

Same benefit but in different ways (Diet Coke with Lime/Diet Pepsi with vanilla)

Front 57

Generic Competition:

Back 57

Providing a more generic benefit (such as thirst quenching) - substitute

Front 58

Budget Competition: (Think of the target, this is the furthest from center)

Back 58

Maybe different benefit but people are spending same amount for other product (discretionary budget for junk food, etc)

Front 59

Segmenting Process steps

Back 59

1. Basis for Segmentation
2. Develop profiles - create the segments and make division
3. Measure Attractiveness - Which will be more profitable or have greater population
4. Choose Target
5. Differentiate offering -
6. Choose position - create the right image in the customers minds

Front 60

Differentiable

Back 60

- if segments respond the same, then they are the same

Front 61

Substantial -

Back 61

is it large enough to make enough money

Front 62

Measurable

Back 62

- put a face on the data

Front 63

Accessible -

Back 63

distribution and promotion (can we reach customers physically)

Front 64

Actionable -

Back 64

is there resources to appeal to the segments

Front 65

Marketing cheer

Back 65

"Stand for something;
Stand for something different;
Stand for something different, that's important.
That's it!"

Front 66

Core (heart) -

Back 66

key benefit of the product (main reason to buy)

Front 67

Tangible (mind) -

Back 67

all specifications that make up the product itself

Front 68

Augmented (credibility) -

Back 68

tangibles that are unique to your product (they reinforce the core)

Front 69

Six Attributes of Good Brand Names

Back 69

Suggestive (of benefits)
Simple (easy to say and remember)
Distinct
Extendable (not tied to one product)
Translatable (into other languages)
Defensible (legal protection)

Front 70

Deep Dives - Techniques for observing people

Back 70

Shadowing: observing a person
Behavioral Mapping: observing a space (The Office)
Consumer Journey: observing a product
Video journals - gives perspective of the consumer
Storytelling - to observe things that happened in the past
Un-focus group - you get experts to consult you in product design event though they may not use it
Focus group: Have a group of people that are led in a discussion with a moderator

Front 71

The adoption curve parts/percentages

Back 71

Adoption - how quickly people adopt
Innovators (2.5%) - Risk Takers -New/Cool
Early adopters (13.5%) - Opinion Leaders, look for advantage - Competitive Advantage
Early majority (34%) - Deliberate adopters - Full Solution
Late majority (34%)- Skeptical - Cheap Solutions
Laggards (16%) - Tradition bound - Commodity

Front 72

Chasm in adoption curve is between...?

Back 72

Early adopters and early majority

Front 73

What are the steps to capturing value from customers?

Back 73

1. Understand the marketplace, needs, and wants
2. Design a customer-drive marketing strategy
3. Construct an integrated marketing program that delivers superior value
4. Build profitable relationships and create customer delight

Front 74

selling concept

Back 74

holds that customers wil not buy enough of the firm's products unless it understakes a large-scale selling and promotion effort

Front 75

Societal marketing concept:

Back 75

The idea that a company
s marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

Holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being

Front 76

In the market mix of product, price, place, and promotion, what does each of the p's mean?

Back 76

Product: goods and services

Price: amount of money

Place: activities that make the product available

Promotion: activities that communicate merits

Front 77

Contents of a marketing plan

Back 77

1. Executive summary
2. Current marketing situation
3. Threats and opportunities analysis
4. Objectives and issues
5. Marketing strategy
6. Action programs
7. Budgets
8. Controls

Front 78

In the market mix of product, price, place, and promotion, what does each of the p's mean?

Back 78

Product: goods and services

Price: amount of money

Place: activities that make the product available

Promotion: activities that communicate merits

Front 79

CRM often overlooks

Back 79

Functional needs, emotional needs.

Front 80

What does CRM often collect

Back 80

Personal info (gender, age)
Customer history (purchase info)
Profitability information

Front 81

Contents of a marketing plan

Back 81

1. Executive summary
2. Current marketing situation
3. Threats and opportunities analysis
4. Objectives and issues
5. Marketing strategy
6. Action programs
7. Budgets
8. Controls

Front 82

CRM often overlooks

Back 82

Functional needs, emotional needs.

Front 83

What does CRM often collect

Back 83

Personal info (gender, age)
Customer history (purchase info)
Profitability information

Front 84

Process of Collecting information

Back 84

1. Define problem
2. Secondary research
3. Design Primary Research
4. Collect Data
5. Analyze Data
6. Communicate results

Front 85

Exploratory Research Approaches

Back 85

Informal
Qualitative: focus groups
Observation: deep dives, ethonography

Front 86

Descriptive Research Approaches

Back 86

Surveys
Panels

Front 87

Causal Research Approaches

Back 87

Experiments, Models and Simulations

Front 88

Focus groups are what kind of research

Back 88

qualitative--exploratory

Front 89

Criteria for effective segments

Back 89

Differentiable: behave differently
Substantial: profit potentials
Measurable: can be identified and measure?
Accessible: can be reached?
Actionable: can be addressed?

Front 90

Service-Profit Chain

Back 90

1. Internal Service Quality
2. Satisfied Employees
3. Greater Service value
4. Satisfied customers
5. Profits

Front 91

What is publicity?

Back 91

Publicity is the message that goes out to market

Front 92

What is Public relations

Back 92

The management of publicity--what is done to manage.

Front 93

2 Laws of Communication

Back 93

1. Advertising maintains brands
2. Publicity builds brands
--Equity, need credibility and loyalty