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400 Cards in this Set
- Front
- Back
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Who said, "We all live by selling something"? |
Robert Lewis Stevenson
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Who said, "Marketing isn't somebody's responsibility; marketing is everybody's responsibility"? |
Jack Welch
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Who said, "Any business enterprise has only two basic functions: marketing and innovation, all else is detail"? |
Peter Drucker
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What BYU marketing professor said, "Marketing transcends product and service; marketing reaches the human heart"?
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Michael Swenson
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What are the four steps of marketing? |
1) Select the appropriate target markets
2) Specify the marketing mix 3) Attract and retain customers 4) Drive profitability |
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Why is it so important for marketing managers to facilitate exchange by creating value for the firm's chosen customers? |
If there is no value, customers leave. Without customers, companies fail. Value us created by meeting customer's functional and emotional needs.
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What are the four elements of the marketing mix?
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Product, Price, Promotion, and Place
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What are the three levels strategy?
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Corporate Strategy
Business Strategy Marketing Strategy |
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What is the aim of corporate strategy?
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To decide what businesses the corporation should be engaged in.
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What is the aim of business strategy?
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To compete effectively in a given business.
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What is the aim of marketing strategy?
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To orchestrate the marketing mix to deliver value to a particular market segment.
Marketing strategy addresses a specific target market with a cohesive marketing mix of product, price, promotion, and place. |
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What are the BCG (Boston Consulting Group) Portfolio Model, SWOT Analysis, and Product-Market Expansion Matrix?
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Models for Strategic Decisions
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What is an SBU?
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Strategic Business Unit
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What is the purpose of the BCG Portfolio Model?
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To quantify performance measures and growth targets of SBUs/products
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What are the two performance measures of the BCG Portfolio Model?
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Market Growth Rate
Relative Market Share |
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What are the four types of SBUs in the BCG Portfolio Model?
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Stars
Cash Cows Question Marks Dogs |
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Which of the four types of SBU/product in the BCG Portfolio Model represents an SBU/product with:
1)High market growth rate AND high relative market share 2)Low market growth rate AND high relative market share 3)High market growth rate AND low relative market share 4)Low market growth rate AND low relative market share |
1)Stars
2)Cash Cows 3)Question Marks 4)Dogs |
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What are the four categories analyzed in the SWOT Analysis?
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Strengths, Weaknesses, Opportunities, Threats
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Strengths and weaknesses are internal characteristics. What are some characteristics that can be strengths or weaknesses?
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Production costs
Marketing skills Financial resources Brand image Technology |
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Opportunities and threats are external conditions. What are some of these conditions?
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Economic
Demographic Social Technological Political/legal Competitive |
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What is the purpose of the Product-Market Expansion Matrix?
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To determine the best method for expansion
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Draw the Product-Market Expansion Matrix
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What are the four marketing philosophies/orientations?
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Production Orientation
Sales Orientation Market Orientation Societal Orientation |
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What characterizes the product orientation?
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If you build it, they will come. |
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What characterizes the sales orientation?
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Sell, sell, sell! |
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What characterizes the market orientation?
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Deliver superior customer value |
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What characterizes the societal orientation?
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Preserve and enhance society |
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True/False
It is better to focus on delivering exceptional value to customers than to benchmark and copy successful competitors. |
True
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Value = Benefits - ?
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Costs
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? = Benefits - Costs
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Value
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Value = ? - Costs
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Benefits
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What are the determinants of customer perceived value?
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Customer Perceived Value
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Customer perceived value = total customer benefit - total customer cost.
What are the elements of total customer benefit? |
Product benefit
Service benefit Personnel benefit Image benefit |
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Customer perceived value = total customer benefit - total customer cost.
What are the elements of total customer cost? |
Monetary cost
Time cost Energy cost Psychic cost |
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True/False:
Successful products only need to be functional. They do not need to make an emotional connection between product and person. |
False
Successful products are more than function. They make an emotional connection between product and person. |
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Who said, "If I'd asked my customers what they wanted, they'd have said a faster horse"?
He asked what problems are people buying their horse to solve, and marketed a very successful product to solve those problems |
Henry Ford
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Who said, "Many products fail because companies develop them from the wrong perspective. Companies focus too much on what they want to sell their customers, rather than...what problems customers are trying to solve"?
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Clayton Christensen
Ask yourself the question, "What problems are people buying your product to solve?" |
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Draw the six levels of the marketing strategy process, starting with the marketing environment and ending with profits. This is called the "Path to _____________"
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This is called the "Path to profitability"
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What are the four profitability drivers?
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Customer acquisition
Customer retention Sales per customer Margin |
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What are four keys to customer acquisition?
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~Find new ways to acquire customers profitably |
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What are four keys to customer retention?
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~Eliminate the root causes of customer defection |
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What are three key points of the "sales per customer" profitability driver?
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~Increase "share of customer" for customers who buy from both you and your competition |
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What four changes can be made at the margin to drive profitability?
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~ Increase Price |
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Look for the money - a product that demands a price far exceeding its cost.
What famous example of this involves the beach, a round pan, and $0.25? |
The Frisbee!
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Keep the lines of communication open. A customer who complains to you is much more likely to be retained than a customer who only complains to his or her friends.
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Satisfaction, Complaint Behavior, Retention
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Who are the three players in the marketing environment?
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Customers, the company, and competitors
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Marketers cannot afford to make decisions in a vacuum.
What five major forces act on the marketing environment? |
Economic
Social Competitive Technology Regulatory |
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Which of the following are controllable variables?
[] Social forces [] Economic forces [] Technological forces [] Competitive forces [] Regulatory forces |
None.
They are all uncontrollable variables in the marketing environment. |
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Which of the following are controllable variables?
[] Product [] Price [] Promotion [] Place |
All.
They are all controllable variables in the marketing environment. |
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Some social forces are culture and demographics. What is marketing's definition of culture? How does culture affect the marketing environment?
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Culture: shared values, attitudes, and practices that shape human behavior
Shared values lead to shared attitudes and lifestyles which affect consumer behavior. Marketers must pay attention to culture to know how it will affect their consumers' behavior. |
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What characteristics of a population does demographics measure?
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Age, gender, ethnicity, income, occupation
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What are the four main generational cohorts today?
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Baby boomers
Gen X Gen Y (Millennials) Tweens |
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Economic forces include measures of gross income, disposable income and discretionary income.
1) Which of the three refers to the money left after taxes and necessities? 2) Which refers to the total income amount in one year? 3) Which refers to the money left after taxes for necessities such as food, housing, clothing and transportation? |
1) Discretionary income
2) Gross income 3) Disposable income |
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What are the elements of Porter's Five Forces Model?
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~ Competitive Rivalry |
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What are regulatory forces?
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State and federal laws
Example: state bottle bills |
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In global marketing, what are the most important questions to ask?
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1) Should we market abroad?
2) Which foreign markets are most attractive? 3) What are the risks? 4) How should we enter? 5) Should we alter our marketing mix to satisfy local preferences? |
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What five characteristics do marketers look at in foreign markets?
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Customer Needs
Customer Purchasing Power Market Size Market Growth Rate Market Access |
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What question do marketers ask when considering customer needs in a foreign market?
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Will customers in the foreign market respond favorably to the firm's products?
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What question do marketers ask when considering customer purchasing power in a foreign market?
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Do customers have the financial resources to purchase the firm's products?
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What question do marketers ask when considering the market size of a foreign market?
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Is the foreign market large enough to make products profitable?
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What question do marketers ask when considering the market growth rate of a foreign economy?
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Is the foreign market growing?
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What question do marketers ask when considering market access in a foreign market?
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Can customers in the foreign market be reached through the firm's promotion/distribution channels?
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What are the four risk categories of global marketing?
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~ Competitive |
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What is the competitive risk in global marketing?
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Competitor's responses to the new product
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What is the economic risk in global marketing?
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The country's economy - inflation, government debt
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What is the legal risk in global marketing?
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Protection of intellectual property (IP) and contracts
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What is the political risk in global marketing?
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Demonstrations, strikes, civil strife, abrupt government changes, terrorism
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is exporting? |
Entering foreign markets by selling goods produced in the company's home country, often with little modification.
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is licensing? |
Entering foreign markets by an agreement with a licensee in the foreign market. The licensee buys the right to use the company's manufacturing process, trademark, patent, or other items of value.
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is a joint venture? |
A company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.
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Global market entry strategies include exporting, licensing, joint venture and direct investment.
What is direct investment? |
Developing foreign-based manufacturing or assembly facilities.
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What two questions do marketers ask when deciding whether to standardize or customize their marketing mix in a foreign market?
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1) Will buyers in foreign markets respond favorably to the same products, packaging, promotion, pricing and distribution as do domestic customers?
--Standardization-- 2) If not, to what extent must offerings be customized for foreign tastes and requirements? --Customization-- |
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The product trade-off
What are the advantages to a globally standardized product offering? |
Product efficiency
------------------------- Standard product in all markets Economies of scale Cost efficiences |
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The product trade-off
What advantages are their to a customized product offering? |
Market suitability
---------------------- Custom product Select markets Market fit |
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You can go global with a standardized product, multinational with a customized product, or ____________ with a mix of the two.
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Glocal
--------------- Standard platform adapted to local requirements |
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Higher or lower:
Regardless of how companies go about pricing their products, their foreign prices probably will be _________ than their domestic prices for company products. |
Higher |
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What does "dumping" mean in the context of global marketing?
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The pricing of goods at less than their cost of production or less than the price in the home market.
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Distribution across borders can be challenging. Products move
[] from the seller to the [] channels between nations to the [] channels within nations to the [] customer At which stage do marketers typically experience the greatest challenge? |
~ Channels within nations |
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Ethics are:
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the moral principles and values that govern the actions and decisions of an individual or group.
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Who said, "Ethics is knowing what you have the right to do and then doing what you know is right"?
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Judge Potter Stewart
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What are the three components of the Fraud Triangle?
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Opportunity
Pressure Rationalization |
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Three levels of ethical behavior
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~ Ethical Leadership Understanding |
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In Ethical Leadership we consider three groups of people. Honest employees, dishonest employees, and the _______ group. Weak ethical leadership permits the _______ group to behave as if they were the dishonest employees. Strong ethical leadership induces the _______ group to behave as if they were the honest employees.
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Swing group
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What does social responsibility mean in a marketing context?
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Organizations are a part of a larger society and are accountable to that society for their actions.
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What does sustainability mean in a marketing context?
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Organizations will focus on the world's social problems and view them as opportunities to build profits and help the world.
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What is green marketing?
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The development and marketing of products designed to minimize negative effects on the environment.
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How much revenue does the marketing research industry bring in annually?
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$35 Billion
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What is marketing research?
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The function that links consumers, customers, and the public to the marketer through information
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The information gathered through marketing research is used for:
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~ Identifying and defining marketing opportunities and problems |
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Marketing research is obtained by:
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1) Clarifying the decision to be made
2) Specifying the information required to address the issues 3) Designing the method for collecting information 4) Managing the data collection process 5) Analyzing the data 6) Communicating the finds and implications |
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What is the reason for doing marketing research?
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Basically, to support marketing decisions
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What is the difference between market research and marketing research?
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Market research gathers information about demographics, how many people buy, how much people buy, how much people pay, which brands people prefer.
Marketing research gathers information about how to effectively design, promote, position, distribute, and price products for a given market. |
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Requirement ONE of good marketing research
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The research questions address specific marketing issues that are important to the client.
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Requirement TWO of good marketing research
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The data sample consists of relevant people--decision-makers, product users, and influencers.
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Requirement THREE of good marketing research
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The analytic methods give clear answers to marketing issues. Method fits the research.
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Requirement FOUR of good marketing research
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The recommendations give strategic direction and how-to marketing tactics -- support marketing decisions.
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Requirement FIVE of good marketing research
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The research report is flavored with "voice of the customer" quotations.
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Why do marketing research?
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~ To illuminate customers' needs |
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Marketing = Art + Science
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Relying on the "art" (the golden gut) without reference to the "science" (marketing research) can lead to disaster.
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Why not do marketing research?
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~ Research is often costly |
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What is causality?
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A causes B
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What is correlation?
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A and B happen simultaneously
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Causality and correlation are not the same, but they are related. How? |
~ Causality does lead to correlation (typically) |
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A correlation between A and B could be:
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![[] A causes B
[] B causes A
[] C causes A and B
[] something else entirely](https://images.cram.com/images/upload-flashcards/72/52/85/2725285_m.jpg)
1) A causes B |
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What are the five steps in the marketing research process?
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1) Define the problem |
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In the marketing research process, how can we best define the problem?
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~ Identify the client's research objective |
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What are the first steps of designing a research project?
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~ Review secondary research for insight and direction |
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What is secondary research and what are some examples of it?
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Data previously collected for any purpose other than the one at hand |
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What are the advantages of secondary research?
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~ Saves time and money (it's often free!) |
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What are the disadvantages of secondary research?
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~ May not provide sufficient information |
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What is primary data?
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Information collected for the first time. Can be used for solving specific problem under investigation.
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What questions do we need to ask in order to collect relevant primary data?
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~ What information is needed? |
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What are the two types of research data?
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Qualitative Research
Quantitative Research |
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What is quantitative research, what is it used for, and how is it collected?
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~ Used to describe and test characteristics about the population or phenomenon |
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What is quantitative research, what is it used for, and how is it collected?
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~ Used to explore and gain ideas and insights about human behavior -- feelings, perceptions, decision-making process |
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What are the advantages of primary data?
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~ Answer specific question |
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What are the disadvantages of primary data?
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~ Expensive |
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What are some methods of data collection?
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~ Personal interviews |
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What are some types of errors in data collection?
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~ Sampling error |
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What causes sampling error, and what can be done to avoid it?
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~ Drawing small samples from large populations |
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What causes measurement error, and what can be done to avoid it?
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~ Difference between the information obtained and the information wanted |
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What causes coverage error and what can be done to avoid it?
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~ Sample does not represent the population of interest |
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What causes non-response error, and how can it be avoided?
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~ Obtained sample differs from the original selected sample |
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What are the steps for analyzing the data collected through marketing research?
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1) Organize
2) Interpret 3) Draw conclusions |
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What are some systems for analyzing the data collected through marketing research?
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~ Cross tabs |
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What is Cross Tabs used for?
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~ Frequency counts |
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What is Analysis of Variance used for? |
~ Variability around an average |
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What is Regression Analysis used for?
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[] Relationship between a dependent variable and one or more independent or predictor variables
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What is a Factor Analysis used for?
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~ Data reduction techniques |
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What is Cluster Analysis used for?
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~ Classifies objects or people into groups based on similarities |
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What is Discriminant Analysis used for?
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~ Ability of predictor variable to discriminate between categories |
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What is the MaxDiff Analysis used for?
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~ Measures most/least important or most/least appealing |
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What is the Conjoint Analysis used for?
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~ Estimates the value of component attributes given tradeoffs |
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The last step in the marketing research process is to take action. That usually means presenting the outcome of the research.
Good presentations highlight a solid research process that addresses marketing decisions head on. They will include sections like: |
~ Purpose of the research--decisions to be made |
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What are some common research mistakes?
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1) Blindly listening to research |
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Who said, "There is only one boss--the customer. And he/she can fire everybody in the company from the chairman on down, simply by spending his/her money somewhere else"? |
Sam Walton
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"Listen to the whispers so you don't have to hear the screams."
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Cherokee saying
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In a marketing context, what are two important points about the nature of consumer behavior?
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1) People are not all the same--person variability
2) People make choices depending on the situation--situation variability |
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What is a market?
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An aggregate of individuals and/or organizations that have: |
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In both the B2B and B2C markets there are two types of buyers. What are they?
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~ Individual buyers--purchasing agent |
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What are the key roles in a buying center? |
~ Buyers ~ Deciders ~ Gatekeepers |
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What is consumer behavior defined as?
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The processes a consumer uses to make purchase decisions, as well as to use and dispose of products.
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Customer Equity
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The combined discounted customer lifetime values of all the company's current and potential customers.
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Customer Lifetime Value
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Keeping and growing customer relationships with a long-term view; own the customer for life and earn a greater share of their purchases.
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Customer Perceived Value
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The customer's evaluation of the difference between al the benefits and all the costs of a market offering relative to those of competing offers.
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Customer Relationship Management
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction: acquiring, keeping, and growing customers.
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Customer Satisfaction
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Depends on the product's perceived performance relative to a buyer's expectations.
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Demands
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Created when wants are backed by buying power.
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Marketing Myopia
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When a seller becomes so taken with their products that they focus only on existing wants and lose sight of underlying customer needs.
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Exchange
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The act of obtaining a desired object from someone by offering something in return.
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Market
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The set of actual and potential buyers of a product.
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Production Concept
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Holds that customers will favor products that are available and highly affordable: Management should focus on improving production and distribution efficiency.
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Product Concept
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Holds that consumers will favor products that offer the most in quality, performance and innovative features: marketing strategy focuses on making continuous product improvements.
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Selling Concept
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Holds that customers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.
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Marketing Concept
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Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
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Social Marketing Concept
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Questions whether the pure marketing concept overlooks possible conflicts between consumer short-term wants and consumer long-term welfare.
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Share of Customer
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The share a firm get's of the customer's purchasing in their product category or categories.
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Partner Relationship Management
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Managing how marketers parter with others inside and outside the company jointly to bring more value to customers.
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Wants
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The form human needs take as they are shaped by culture and individual personality.
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Needs
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States of felt deprivation.
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Market Offering
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Some combination of products, services, information or experiences offered to a market to satisfy a need or want.
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Strategic Planning
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The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
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Mission Statement
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A statement of the organization's purpose- what it wants to accomplish in the larger environment.
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Business Portfolio
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The collection of businesses and products that make up the company.
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Portfolio Analysis
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Management evaluates the products and businesses making up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones.
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Growth-Share Matrix
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On the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market.
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Market Penetration
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Making more sales to current customers without changing products.
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Market Development
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Identifying and developing new markets for current products.
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Product Development
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Offering modified or new products to current markets.
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Diversification
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Starting up or buying businesses outside current products and markets.
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Downsizing
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Abandoning products or markets.
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Value Chain
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Chain of value-creating activities to design, produce, market, deliver and support the firm's products.
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Market Segmentation
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The process of dividing a market into distinct groups of buyers who have different needs, characteristics or behavior and who might require separate products or marketing programs.
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Market Segment
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Consists of consumers who respond in a similar way to a given set of marketing efforts.
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Target Marketing
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Evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Market Positioning
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Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.
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Marketing Mix
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The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
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SWOT Analysis
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An analysis consisting of overall strengths, weaknesses, opportunities, and threats.
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Marketing Implementation
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The process that turns marketing plans into marketing actions in order to accomplish strategic marketing objectives.
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Marketing Control
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Involves evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained.
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Marketing Audit
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A comprehensive, systematic, independent and periodic examination of a company's environment, objectives, strategies and activities to determine problem areas and opportunities.
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Microenvironment
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The actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markets, competitors and publics.
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Macroenvironment
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The larget societal forces that affect the microenvironment- demographic, economic, natural, technological, political and cultural forces.
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Marketing Intermediaries
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Help the company to promote, sell, and distribute its goods to final buyers. They include resellers, physical distribution firms, marketing services agencies, and financial intermediaries.
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Public
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Any group that has an actual or potential interest in or impact on an organizations's ability to achieve it's objectives. Seven types: financial, media, government, citizen-action, local, general, and internal.
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Baby Boomers
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One of the most powerful forces shaping the marketing environment, resulting form when birth rates in countries affected by WWII rose sharply.
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Generation X
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"Birth dearth" following baby boom, lack of distinguishable characteristics, grew up in troubling times.
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Generation Y
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Echo boomers, creating a large teen and young adult market.
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Economic Environment
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Consists of factors that affect consumer purchasing power and spending patterns.
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Engel's Laws
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As family income rises, the percentage spent on food declines, the percentage spent on housing remains about constant, and both the percentage spent on most other categories and that devoted to savings increase.
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Natural Environment
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Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
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Technological Environment
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Perhaps the most dramatic force now shaping our destiny. The rapidly changing environment in which technology grows.
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Political Environment
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Laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
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Cultural Environment
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Institutions and other forces that affect a society's basic values, perceptions, preferences and behaviors.
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Demography
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The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics. It involves people and people make up markets.
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Marketing Information System (MIS)
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Consists of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute needed, timely and accurate information to marketing decision makers.
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Internal databases
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Electronic collections of consumer and market information obtained from data sources within the company network- we might call this the corporate memory the organization has of the actions it has taken, the decisions it has made and the feedback it has received from partners, markets, and customers.
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Marketing Intelligence
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Systematic collection and analysis of publicly available information about competitors and developments in the marketplace.
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Marketing Research
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The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.
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Exploratory Research
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The objective is to gather preliminary information that will help define the problem and suggest hypotheses.
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Descriptive Research
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Objective is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product.
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Causal Research
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Objective is to test hypotheses about cause-and-effect relationships.
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Secondary Data
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Consist of information that already exists somewhere, having been collected for another purpose.
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Primary Data
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Consist of information collected for the specific purpose at hand.
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Online Databases
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General database services with an incredible wealth of information available on the internet.
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Observational Research
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Involves gathering primary data by observing relevant people, actions and situations.
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Survey Research
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The approach best suited for gathering descriptive information. A company that wants to know about people's attitudes, preferences or buying behaviors can ask them directly.
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Single-source Data Systems
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Start with surveys of huge consumer panels, carefully selected groups of consumers wh agree to participate in ongoing research. Then, they electronically monitor survey respondents' purchases and exposure to various marketing activities Combining data gives a better understanding of the link between characteristics and behavior.
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Experimental Research
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Best suited for gathering causal information, selecting matched groups of subjects, giving them different treatments.
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Online Marketing Research
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Internet surveys, experiments, and online focus groups
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Customer Relationship Management (CRM)
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Manages detailed information about individual customers and carefully manages customer touch points in order to maximize customer loyalty.
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Consumer Buyer Behavior
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The buying behavior of final consumers- individuals and households who buy goods and services for personal consumption.
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Consumer Market
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Made up of the combination of final consumers.
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Culture
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The most basic cause of a person's wants and behavior.
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Subcultures
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Groups of people with shared value systems based on common life experiences and situations.
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Social classes
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Society's relatively permanent and ordered divisions whose members share similar values interests and behaviors.
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Opinion Leaders
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People within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.
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Lifestyle
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A person's pattern of living as expressed in his or her psychographics.
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Personality
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The unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment.
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Motive
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A need that is sufficiently pressing to direct the person to seek satisfaction.
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Perception
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the process by which people select, organize, and interpret information to form a meaningful picture of the world.
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Learning
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Describes changes in an individual's behavior arising from experience.
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Cognitive Dissonance
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Discomfort caused by post-purchase conflict.
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Business Buyer Behavior
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The buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others.
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Derived Demand
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Demand that is ultimately derived from elsewhere- such as business demand coming from consumer demand.
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Straight Rebuy
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Buyer reorders something without any modifications.
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Modified Rebuy
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The buyer wants to modify product specifications, prices, terms, or suppliers.
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System Selling
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Results when buyers ask sellers to supply the components and assemble the package or system. The sale often goes to the firm that provides the most complete system meeting customer needs.
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Buying Center
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The decision-making unit of a buying organization: All the individuals and units that participate in the business decision-making process.
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Market Segmentation
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Dividing a market into smaller groups of buyers with distinct needs, characteristics or behaviors who might require separate products or marketing mixes.
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Target Marketing
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Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter.
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Market Positioning
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Setting the competitive positioning for the product and creating a detailed marketing mix.
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Geographic Segmentation
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Dividing the market into different geographical sectors.
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Demographic segmentation
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Divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
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Age and life-cycle Segmentation
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Offers different products or uses different marketing approaches for different age and life-cycle groups.
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Gender Segmentation
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Include wimminz because sometimes they do things too because they get tired of having babies and want to be like menz.
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Income Segmentation
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Targeting affluent or lower-income groups of people.
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Psychographic Segmentation
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Divides buyers into different groups based on social class, lifestyle or personality characteristics.
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Behavioral Segmentation
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Divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.
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Occasion Segmentation
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Buyers grouped according to occasions when they get the idea to buy, make purchase, or use the purchased item.
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Benefit Segmentation
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Requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit.
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Requirements for Effective Segmentation
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Measurable, accessible, substantial, differentiable, actionable.
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Target Market
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Consists of a set of buyers who share common needs or characteristics that the company decides to serve.
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Mass Marketing
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Focuses on what is common in the needs of consumers rather than on what is different.
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Segmented Marketing
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Ferm decides to target several market segments and designs separate offers for each.
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Concentrated (Niche) Marketing
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The firm goes after a large share of one or a few smaller segments or niches.
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Micromarketing
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The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
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Local Marketing
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Involves tailoring brands and promotions to the needs and wants of local customer groups- cities, neighborhoods, and even specific stores.
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Individual Marketing
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Extreme micromarketing, tailoring products and marketing programs to the needs and preference of individual customers.
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Product Position
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The way the product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products.
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Competitive Advantage
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The extent that a company can position itself as providing superior value.
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Value Proposition
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The full mix of benefits upon which the brand is positioned.
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Positioning Statement
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Sums up the company and brand positioning.
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Product
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Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
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Services
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A form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
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Core Product
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What is the buyer really buying? The core, problem-solving benefits or services that consumers seek.
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Actual product
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Product and service features, design, quality, a brand name and packaging.
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Augmented Product
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Additional consumer services and benefits added to the actual product.
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Consumer Products
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Products and services bought by final consumers for personal consumption.
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Convenience Products
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Consumer products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.
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Shopping Products
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Less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price and style.
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Specialty Products
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Consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
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Unsought Products
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Consumer products that the consumer either does not know about or knows about bud does nto normally think of buying.
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Industrial Products
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Products purchased for further processing or for use in conducting a business.
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Product Quality
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One of the marketer's major positioning tools, it has a direct impact on product or service performance; thus, it is closely l inked to customer value and satisfaction.
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Brand
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Name, term, sign, symbol or design, or a combination of these, that identifies the maker or seller of a product or service.
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Packaging
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Involves designing and producing the container or wrapper for a product.
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Product Line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
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Product Mix
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Product portfolio- all the product lines and items that a particular seller offers for sale.
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Brand Equity
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The positive differential effect that knowing the brand name has on customer response to the product or service.
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Line Extensions
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Occur when a company introduces additional items in a given product category under the same brand name.
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Brand Extension
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Use of a successful brand name to launch new or modified products in a new category.
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Service-Profit Chain
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Links service firm profits with employee and customer satisfaction.
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Internal Marketing
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The service firm must effectively train and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
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Interactive Marketing
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Means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.
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New-Product Development
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Original products, product improvements, product modifications and new brands that the firm develops through its own R&D efforts.
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Idea Generation
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The systematic search for new-product ideas.
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Idea Screening
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Helps spot good ideas sand drop poor ones as soon as possible.
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Marketing Strategy Development
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Designing an initial marketing strategy for introducing a product to market.
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Business Analysis
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Involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives.
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Product Development
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R&D or the engineering department develops the product concept into a physical product.
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Test Marketing
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The stage at which the product and marketing program are introduced into more realistic market settings.
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Sequential Product Development
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One company department works individually to complete its stage of the process before passing the new product along to the next department and stage.
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Simultaneous product development
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Company departments work closely together through cross-functional teams, overlapping the steps in the product development process to save time and increase effectiveness.
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Product Life Cycle (PLC)
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The course that a product's sales and profits take over it's lifetime.
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Channel Level
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Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
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Direct Marketing Channel
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No intermediary levels; the company sells directly to consumers.
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Indirect Marketing Channels
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Contain one or more intermediaries such as wholesalers and retailers.
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Conventional Distribution Channel
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One or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits.
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Vertical Marketing System
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Consists of producers, wholesalers, and retailers acting as a unified system. One channel member owns the others and has contracts with them, or wields so much power that they must all cooperate.
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Contractual VMS
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Consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each would have had alone.
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Franchise Organization
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Most common type of contractual relationship- a channel member links several stages in the production-distribution process.
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Administered VMS
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Leadership is assumed not through common ownership or contractual ties, but through the size and power of one or a few dominant channel members.
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Horizontal Marketing System
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Two or more companies at one level join together to follow a new marketing opportunity.
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Multichannel Distribution Systems
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Occurs when a single firm sets up two or more marketing channels to reach one or more customer segments.
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Disintermediation
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Occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones.
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Intensive Distribution
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A strategy in which they stock their products in as many outlets as possible. These products must be available where and when consumers want them.
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Exclusive Distribution
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The producers gives only a limited number of dealers the exclusive right to distribute its products in their territories.
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Selective Distribution
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The use of more than one, but fewer than all, of the intermediaries who are willing to carry a company's products. This gives producers good market coverage with more control and less cost than does intensive distribution.
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Marketing Logistics/Physical Distribution
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Involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.
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Supply Chain Management
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Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
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Distribution Centers
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Designed to move goods rather than just store them; large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
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Integrated Supply Chain Management
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The goal is to harmonize all of the company's logistics decisions. Close working relationships should be achieved perhaps by creating permanent logistics committees, made up of managers responsible for different physical distribution activities.
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Third-Party Logistics (3PL) Providers
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Outsource logistics: help clients tighten up sluggish, overstuffed supply chains, slash inventories and get products to customers more quickly and reliably.
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Retailing
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Includes all the activities involved in selling products or services directly to final consumers for their personal, non-business use.
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Specialty Stores
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Carry narrow product lines with deep assortments within those lines.
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Department Stores
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Carry a wide variety of product lines.
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Supermarkets
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Most frequently shopped type of retail store, facing slower sales growth because of slower population growth.
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Convenience Stores
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Small tores that carry a limited line of high-turnover convenience goods like newspapers, snacks, and drinks.
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Superstores
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Much larger than regular supermarkets and offer a large assortment of routinely purchased food products, non-food items, and services.
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Category Killers
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Superstores that are actually giant speciality stores that feature giant stores carrying a very deep assortment of a particular line with a knowledgeable staff. May include bookstores, baby gear, toys, electronics, home improvement products, linens, party goods etc.
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Discount Store
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Sells standard merchandise at lower prices by accepting lower margins and selling higher volume.
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Independent Off-Price Retailers
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Off-price retailers that are either are owned and run by entrepreneurs or are divisions of larger retail corporations.
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Off-Price Retailers
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Buy at less than regular wholesale prices and charge consumers less than retail.
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Factory Outlets
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Producer-operated stores sometimes grouped together offering prices as low as fifty percent below retail on a wide range of items.
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Chain Stores
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Two or more outlets that are commonly owned and controlled. Their size allows them to buy in large quantities at lower prices and gain promotional economies.
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Franchise
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System normally based on some unique product or service, on a method of doing business, or on the trade name, goodwill or patent that the franchiser has developed.
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Wholesaling
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All activities involved in selling goods and services to those buying for resale or business use.
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Broker
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Brings buyers and sellers together and assists in negotiation.
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Agents
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Represent buyers or sellers on a more permanent basis.
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Manufacturers' Sales Branches and Offices
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Place where a type of wholesaling is done by sellers or buyers themselves rather than through independent wholesalers.
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Price
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The amount of money charged for a product or service; broadly, the sum of all the values that customers give up in order to gain the benefits of having or using a product or service.
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Value-Based Pricing
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Uses buyers' perceptions of value, not the seller's cost, as the key to pricing; the marketer cannot design a product and marketing program and then set the price. Price is considered along with the other marketing mix variables before the marketing program is set.
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Fixed Costs
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Costs that do not vary with production or sales level.
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Variable Costs
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Vary directly with the level of production.
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Total Costs
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The sum of the fixed and variable costs for any given level of production.
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Cost-Plus Pricing
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Adding a standard mark-up to the cost of the product.
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Break-Even Pricing
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The firm tries to determine the price at which it will break even.
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Target Profit Pricing
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The firm tries to determine the price at which it will make the target profit it is seeking.
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Target Costing
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Reverses the usual process of first designing a new product, determining its cost, and then asking "Can we sell it for that?"
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Demand Curve
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Shows the number of units the market will buy in a given time period at different prices that might be charged.
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Promotion Mix
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Consists of the specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses persuasively to communicate customer value and build customer relationships.
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Advertising
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Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
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Sales Promotion
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Short-term incentives to encourage the purchase or sale of a product or service.
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Public Relations
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Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events.
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Personal Selling
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Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.
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Direct Marketing
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Direct connections with carefully targeted individual consumers both to obtain an immediate response and to cultivate lasting customer relationships- the use of telephone, mail, fax, email, the internet, and other tools to communicate directly with specific consumers.
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Integrated Marketing Communications (IMC)
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The company carefully integrates its many communications channels to deliver a clear, consistent, and compelling message about the organization and tis brands.
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Pull Strategy
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The producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them o buy the products.
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Push Strategy
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Involves "pushing" the product through marketing channels to final consumers.
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Affordable Method
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Set the promotion budget at the level they think the company can afford.
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Percentage-of-Sales Method
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Setting the promotion budget at a certain percentage of current or forecasted sales.
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Competitive-Parity Method
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Setting the promotion budgets to match competitors' outlays.
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Objective-and-Task Method
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The company sets its promotin budget based on what it wants to accomplish with promotion.
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Sales Force Management
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Analysis, planning, implementation, and control of sales force activities. Includes designing sales force strategy and structure and recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople.
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Territorial Sales Force Structure
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Each salesperson is assigned to an exclusive geographical area and sells the company;s full line of products or services to all customers in that territory.
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Product Sales Force Structure
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Sales force sells along product lines.
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Customer Sales Force Structure
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Organize the sales force along customer or industry lines.
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Outside Sales Force
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Travel to call on customers in the field.
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Inside Sales Force
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Conduct business from their offices via telephone, internet, or visits from buyers.
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Team Selling
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Serves large, complex accounts and can unearth problems, solutions, and ales opportunities that no individual salesperson could. Such teams may include experts from any area or level of the selling firm.
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Prospecting
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Identifying qualified potential customers.
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Pre-approach
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Learnign as much as possible about the organization (what it needs, who is involved in the buying) and its buyers (their characteristics and buying styles).
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Approach
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Know how to meet and greet the buyer and get the relationship off to a good start.
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Presentation
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Salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer's problems.
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Handling Objections
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Salesperson should use a positive approach, seek out hidden objections, ask the buyer to clarify andy objections, take objections as opportunities to provide more information, and turn the objections into reasons for buying.
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Follow-Up
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Necessary if the salesperson wants to ensure customer satisfaction and repeat business. They should complete any details on delivery time, purchase terms, and other matters. They should then schedule a follow-up call when the initial order is received to make sure all went well.
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Direct Marketing
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Direct connections with carefully targeted individual consumers both to obtain an immediate response and to cultivate lasting customer relationships.
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Customer Database
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An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic and behavioral data.
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Integrated Direct Marketing
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Involves using carefully coordinated multiple-media, multiple-stage campaigns.
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Intranets
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Networks that connect people within a company to each other and to the company network- sets of pages and online resources available only to those in that organization.
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Extranets
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Connect a company with its suppliers, distributors, and other outside partners.
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E-business
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Involves the use of electronic platforms- intranets, extranets and tin internet- to conduct a company's business.
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E-commerce
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Includes e-marketing and e-purchasing.
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E-marketing
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Consists of company efforts to communicate bout, promote, and sell products products over the internet.
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Business to Consumer (B2C) E-commerce
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The online selling of goods and services to final consumers.
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Business to Business (B2B) E-commerce
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Marketers use trading networks, auction sites, spot exchanges, online product catalogues, barter sites, and other online resources to reach new customers, serve current customers more effectively, and obtain buying efficiencies and better prices. |
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Open Trading Exchanges
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Huge e-marketspaces in which buyers and sellers find each other online, share information and complete transactions efficiently.
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Private Trading Exchanges
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Links a particular seller with its own trading partners, conducting through private sites.
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Consumer to Consumer (C2C) E-commerce
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Occurs on the web between interested parties over a wide range of products and subjects; In some cases, the internet provides an excellent means by which consumers can bu or exchange goods or information directly with each other.
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Consumer to Business (C2B) E-commerce
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Consumers communicate with companies: companies invite prospects and customers to send in suggestions and questions via company websites.
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Click-Only Companies
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Sell products and services to final buyers via the internet only.
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Click-and-Mortar companies
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Companies that have brick-and-mortar and online operations, some of which may cannibalize each other.
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Corporate Website
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Designed to build customer goodwill and to supplement other sales channels, rather than to sell the company's products directly.
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Marketing Website
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Engage consumers in an interaction that will move them closer to a direct purchase or other marketing outcome.
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Global Firm
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A firm that, by operating in more than one country, gains marketing production, R&D and financial advantages that are not available to purely domestic competitors. Sees the world as one market.
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Economic Communities
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Groups of nations organized to work towards common goals in the regulation of international trade.
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Counter-trade
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Paying for items instead of cash: Bartering or compensation.
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Exporting
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Passively export surplus production or make an active commitment to expand exports to a particular market. The simplest way to enter a foreign market.
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Joint Venturing
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Joining with foreign companies to produce or market products or services.
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Licensing
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A simple way for a manufacturer to enter international marketing. The company enters into an agreement with a licensee in the foreign market. For a fee or royalty, the licensee buys the right to use the company process, trademark, patent, trade secret, or other item of value.
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Contract Manufacturing
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The company contracts with manufacturers in the foreign market to produce its product or provide its service.
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Management Contracting
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The domestic firm supplies management know-how to a foreign company that supplies the capital.
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Joint Ownership
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Ventures consisting of one company joining forces with foreign investors to create a local business in which they share joint ownership and control.
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Direct Investment
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The development of foreign-based assembly or manufacturing facilities.
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Standardized Marketing Mix
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Selling largely the same products and using the same marketing approaches worldwide.
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Adapted Marketing Mix
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Producer adjusts the marketing mix elements to each target marking, bearing more costs but hoping for a larger market share and return.
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Straight Product Extension
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Marketing a product in a foreign market without any change.
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Product Adaptation
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Changing the product to meet local conditions or wants.
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Communication Adaptation
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Fully adapting advertising messages to local markets.
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Whole-Channel View
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View of the problem of distributing products to final consumers via links between the seller and the final buyer.
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Enlightened Marketing
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Holds that a company's marketing should support the best long-term performance of the marketing system.
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Consumer-Oriented Marketing
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The company should view and organize its marketing activities from the consumer's point of view.
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Innovative Marketing
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Company should always be seeking real product and marketing improvements.
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Customer Value Marketing
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The company should put most of its resources into customer value-building marketing investments.
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Societal Marketing
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An enlightened company makes marketing decisions by considering consumers' wants and interests, the company's requirements and the society's long-term interests.
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Deficient Products
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Neither immediate appeal nor long-term benefits.
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Pleasing Products
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Give high immediate satisfaction but may hurt consumers in the long run.
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Salutary Products
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Low appeal but may benefit consumers in the long run.
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Desirable Products
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Give both high immediate satisfaction and high long-term benefits.
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