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164 Cards in this Set
- Front
- Back
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4 P's of Marketing
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Place: the formulation of all elements associated with making products available to target markets (aka distribution) -- examples include transportation of goods to retail establishments, the warehousing of finished products, and the determination of hours of operation
Product: 1) any offering provided by an entity for purchase and consumption -- can be a good, service or hybrid, 2) involves the development of goods and services that will meet, and ideally, exceed the wants and needs of target markets Price: 1) the amount of money that must be paid by customers in order to acquire particular goods and services. 2) all elements associated with pricing products in a manner that will be attractive to target markets Promotion: 1) all activities associated with communicating a product's attributes to target markets. 2) the formulation of communication strategies and tactics that will effectively convey product attributes to target markets |
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Advertising
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Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Announcements to abroad audience about the product, price, place, and reason to buy |
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Behavioral
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buyers are divided into groups on the basis of their knowledge of, attitude toward, use of, or response to a product
behavioral research focuses on measures of actual behavior to describe health care consumers. It focuses on what happens but it cannot explain why something happens. |
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Budget
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Estimate of costs, revenues, and resources over a specified period, reflecting a management's reading of future financial conditions.
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CDC Centers for Disease Control & Prevention
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a federal organization that tracks disease, issues intervention recommendations about treatment of epidemics, and recommends appropriate immunization schedules
CDC) serves as the national focus for developing and applying disease prevention and control, environmental health, and health promotion and health education activities designed to improve the health of the people of the United States. |
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Channel Conflict
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vertical – occurs when clashes between different levels within the same channel
horizontal – involves differences among members at the same level within the channel multi-channel conflict – exists when the organization has established two or more channels that sell to the same market (esp. intense when one channel can offer a lower price) causes of channel conflict – goal incompatibility, differences in perception, dependence on manufacturer; managing channel conflict – challenge is not to eliminate conflict but to manage it; co-optation, diplomacy, mediation, arbitration, litigation |
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Channel Power
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the influence one party within a channel has over other channel members.
When power is exerted by a channel member they are often in the position to make demands of others. |
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Cohort
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marketing that is directed towards specific types of customers based on their previous buying patterns.
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Competitive Advantage
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An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition.
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Competitor
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competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms".
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Consumer Buying Process
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1. Buyer recognizes a problem or need.
2. Buyer searches for information 3. Buyer evaluates alternatives 4. Purchase Decision-intention to buy the most preferred product 5. Post-purchase behavior - may experience dissatisfaction that stems from the product experience not matching expectation . Awareness/Need Recognition Internal Knowledge Search External Knowledge Search Evaluate and Compare Purchase Post-Purchase Re-consideration |
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Consumer-Driven Healthcare
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"In the consumer-driven model, consumers occupy the primary decision-making role regarding the health care they receive."
CDHC refers to health insurance plans that allow members to use personal Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), or similar medical payment products to pay routine health care expenses directly, while a high-deductible health insurance policy protects them from catastrophic medical expenses. |
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Cost
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value of money that has been used up to produce or obtain something
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Cost per unit
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total costs divided by number of units
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Cost Structure
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Cost structures are simply the identification of how costs associated with the production of a good or service are distributed throughout the process.
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Costs-Average
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total costs divided by volume.
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Costs-Direct
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Costs that can be traced to a service, organizational unit, or individual provider or manager.
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Costs-Fixed
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business expenses that are not dependent on the level of production or sales.
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Costs-Indirect
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costs that cannot be traced directly to a particular product, commonly called overhead costs.
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Costs-Marginal
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marginal cost is the change in total cost that arises when the quantity produced changes by one unit. It is the cost of producing one more unit of a good
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Costs-Total
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the total cost of purchasing, operating, and servicing a product over the course of its lifetime.
otal economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which are independent of the quantity of a good produced and include inputs (capital) that cannot be varied in the short term, such as buildings and machinery. Total cost in economics includes the total opportunity cost of each factor of production in addition to fixed and variable costs. |
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Costs-Variable
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costs that vary directly with the level of production.
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Cultural Competence
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Culture
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Customer
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Any party that purchases the goods and services of a given entity.
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Customer Satisfaction
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A primary goal of any business entity resulting from successful efforts to meet and , ideally, exceed the wants and needs of customers
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Customer Value Hierarchy
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Fundamental level = core benefit that is customer is seeking
2nd level = basic product 3rd level = expected product - set of attributes and conditions buyers normally expect when they purchase a product 4th level = augmented product - exceed customer expectations 5th level = potential product - where the company searches for new ways to delight customers and distinguish their offering |
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Decision-making unit
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Demand Curve
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the demand curve can be defined as the graph depicting the relationship between the price of a certain commodity, and the amount of it that consumers are willing and able to purchase at that given price. It is a graphic representation of a demand schedule
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Demographic shift
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Demographics
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Commonly-used demographics include race, age, income, disabilities, mobility,educational attainment, home ownership, employment status, and even location
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Direct Marketing
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Announcements made directly to individuals about the product, price, place, and reason to buy made by means other than in-person communication
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Disparities
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containing or made up of fundamentally different and often incongruous elements
health disparities among racial and ethnic and low-income groups |
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Distribution Channel
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the path a product takes as it travels from the producer to the consumer
chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. |
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Distribution Channel Types
-Exclusive -Selective - Intensive |
Intensive – many outlets
Selective – a select few outlets Exclusive – one major outlet |
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Diversity
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the business tactic which encourages diversity to better serve a heterogeneous customer base
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Durable goods
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lasts over an extended period of time (e.g. refrigerator, wheelchair)
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Elasticity of Demand
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the measure of responsiveness in the quantity demanded for a commodity as a result of change in its price.
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Encode/Decode
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Ethnicity
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Evaluation
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Exchange Value
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Feature Story
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is a piece of journalistic writing that covers a selected issue in-depth.
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Five I's of Service
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Intangibility – services cannot be seen before they are bought. This is often true within healthcare
Inseparability: service rendering the service cannot be separated from the actual service. The client cannot separate from the surgeon providing the service Inconsistency/variability: Services are highly variable because they depend on who provides the service. Quality varies by who is rendering the service. Inventory/perishability: You cannot store services; you can only build capacity to perform the service when they are needed. This is not a problem when demand for the service is predictable and the firm has excess capacity. Ensuring that the capacity is always present in healthcare is very expensive. Interaction with Customers: dependent on attitude of the client and the service provider. Customers rate this interaction which may determine the quality of the care provided. |
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Forward/Backward distribution
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Flow of activities from the organization to the consumer (e.g. delivery)
: Flow of activities from the consumer to the organization (e.g., payment) |
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Frequency
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A measure of advertising effectiveness which specifically refers to the total number of times that individuals are exposed to a particular advertisement - the number of exposures per individual
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GIS (geographic information system)
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Goals & Objectives
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Good
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tangible item
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Goods - Industrial
Production, Support, Final |
Production groups – equipment… in Healthcare: the wet room where casts are made
Support goods- X-ray machine that determines if the cast is placed correctly Final Goods – the actual cast |
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Health Literacy
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The degree to which individuals have the capacity to obtain, process, and understand basic health information and services needed to make appropriate health decisions".
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Health US
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Health, United States is an annual report on trends in health statistics.
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Healthy People 2010
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What Is Healthy People?
Healthy People 2010 is a set of health objectives for the Nation to achieve over the first decade of the new century. |
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Horizontal Marketing System
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joining of two or more corporations on the same level for the purposes of pursuing a new marketing opportunity.
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Differentitation
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producing and providing goods and services that are perceived by customers to be unique
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Hybrid
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an item with tangible and intangible characteristics
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Institute of Medicine (IoM)
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is a not-for-profit, non-governmental American organization chartered in 1970 as a part of the United States National Academy of Sciences.[1] Its purpose is to provide national advice on issues relating to biomedical science, medicine, and health, and its mission to serve as adviser to the nation to improve health.
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Intangible
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a service - does not physically exist
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Intermediary
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Loss Leader
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is a product sold at a low price (at cost or below cost)[2] to stimulate other, profitable sales.
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Market Leader
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the entity or product that possesses the greatest share of a given market
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Market Penetration
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the degree to which a given product has acquired market share in a given market
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Market Segmentation
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the process of dividing a market into groups of individuals who share common characteristics
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Market Share
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an entity's portion, expressed as a percentage, of the total sales generated by a given product in a given market
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Marketing
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a management process that involves the assessment of customer wants and needs, and the performance of all activities associated with the development, pricing, provision, and promotion of product solutions that satisfy those wants and needs
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Marketing Channel
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set of interdependent organizations involved in the process of making a product or service available for use or consumption
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Marketing Mix
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the four interdependent components of product, price, place, and promotion that must be formulated for each product offering in an effort to attract target markets
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Marketing Research
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the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company
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Mass Media
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a term which refers to the range of media vehicles that can be used to deliver promotional messages to large target audiences
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Message
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expressed communication designed to achieve a desired response
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Mission
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Need versus Want
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need is something you have to have, something you can't do without
want is something you would like to have. It is not absolutely necessary, but it would be a good thing to have. |
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Niche
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target and intensively focus on fulfilling the wants and needs of a very defined segment of the market in an effort to serve that particular segment better than any other entity in the marketplace
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Noise
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elements in the environment which compete with the marketing communications of given establishments for the attention of target audiences
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Nondurable goods
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Consumed in a relatively immediate period of time (e.g. food, band-aids)
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Personal Sales
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promotional method involving the use of a sales force to convey messages to target audiences
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PID - Provider Induced Demand
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providers stimulating the use of their services or products, presumably for financial gain
leads to unwarranted variation |
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Points of Difference
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attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand
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Points of Parity
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associations that are not unique to the brand but may in fact be shared with other brands
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Predatory Pricing
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practice of selling a product or service at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors
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Press Release
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written or recorded communication directed at members of the news media for the purpose of announcing something claimed as having news value.
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Price
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the amount of money that must be paid by customers in order to acquire particular goods and services.
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Price- penetratiion pricing
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is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
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Price-takers
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accept prices at face value or as given
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Pricing - bundling
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a pricing strategy in which various products sold to a customer together are offered at a price less than the sum of the prices of the products sold individually.
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Pricing - channel
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Pricing - predatory
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an illegal practice where a very large company prices below their production cost to drive small, more poorly financed firms out of business
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Pricing - value
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basing price on the customer's perceived value of the product or service
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Pricing-shadow pricing
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the practice of adjusting prices to keep them under those of the competition
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Product
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any offering provided by an entity for purchase and consumption
a bundle of attributes capable of exchange or use; usually a mix of tangible and intangible forms |
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Product Categories
Convenience, Shopping, Specialty |
Shopping – consumers really want to compare – shop-around for the best price and best quality
Convenience – able to purchase good easily and quickly Specialty – consumer wants a very specific need that they are willing to shop around for |
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Product Line
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A group of diverse but related items that function in a compatible manner.
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Product Mix
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The set of all products (goods and services) a particular seller offers for sale.
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Product Quality Leader
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Profit Margin
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A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.
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Promotion
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all activities associated with communicating a product's attributes to target markets
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PSA
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non-commercial advertisement broadcast on radio or television, ostensibly for the public interest. PSAs are intended to modify public attitudes by raising awareness about specific issues.
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Psychographics
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science of using psychology and demographics to better understand consumers
buyers are divided into different groups on the basis of lifestyle, personality, or values |
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Public Relations
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a promotional method involving the use of publicity and other unpaid forms of promotion to deliver messages - press releases, open houses, facility tours, and educational seminars
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Purchaser Cateogires
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Push/Pull
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Push: The producer provides the intermediary with the product, who then pushes it out to the consumer.
Pull Strategy = communications and promotional activities by the marketer to persuade consumers to request specific products or brands from retail channel members : The producer gets the consumer from the intermediary, then provides the product. Push Strategy = communications and promotional activities by the marketer to persuade wholesale and retail channel members to stock and promote specific products |
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Race
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Reach
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the number of individuals exposed to promotion
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Red Oceans/Blue Oceans
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Market Space
Competition Demand Value-Cost Trade-Off Differentiation/Low Cost The Red Ocean is bloody with competition; the Blue Ocean offers wide open sailing! |
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Repeat Business
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satisfied customers returning to obtain additional goods or services
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Sales
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One on one interaction; The process of getting people to buy your product or service based on individual encounters.
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Sales Promotion
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A variety of short-term incentives to encourage trial or purchase of a product or service. Gimmicks to entice buyers to buy your product, such as coupons, discounts, 2:1 sales
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Segment
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a group of individuals within a market who share common characteristics (age, income, tastes, preferences)
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Service
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A intangible product; something provided by person to person interaction. Harder to measure than a tangible product
an intangible product offering |
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Social Marketing
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the use of marketing strategies and tactics to promote goods and services deemed to be beneficial to the health and well being of individuals and society
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Socioeconomics
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is an economic and sociological combined total measure of a person's work experience and of an individual's or family’s economic and social position relative to others, based on income, education, and occupation.
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Stakeholder
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Substitutes
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a product that differs from a particular offering but largely, and sometimes completely, fills equivalent wants and needs. laser vision could be viewed as a substitute for eyeglasses
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Supply Curve
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Target Audience
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the market segment that has been selected by an organization
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Types of Distribution
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push
pull forward backward |
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Types of Goods
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Durable
Non-durable Consumer Goods- Shopping – consumers really want to compare – shop-around for the best price and best quality Convenience – able to purchase good easily and quickly Specialty – consumer wants a very specific need that they are willing to shop around for Industrial Goods |
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Value
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the best product or service one can obtain for a given price for a desired product or service
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Value Network
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a system of partnerships and alliances that an organization creates to source, augment, and deliver its offerings.
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Vendor Bid Process
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Vertical Integration
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intergrating backward or forward to offer a total solution that advantageously positions its services and products vis -a vis competitors
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Vertical Marketing System
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producer, wholesalers, retailers act as a unified systems - attempts to control channel behavior and eliminate the conflict that results when independent member pursue their own objectives
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Vision
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Primary Data
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Secondary Data
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Objective Data
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Subjective Data
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Qualitative Data
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Primary Service Area
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Secondary Service Area
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Tertiary Service Area
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Experimental Design
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Unit of Analysis
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is the major entity that is being analyzed in the study. It is the 'what' or 'whom' that is being studied.
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Sampling Frame
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Population
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Random Sample
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Convenience Sample
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Survey
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Pre-Test
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Focus Groups
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Key Informant Interviews
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Descriptive Statistics
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Multivariate Analyses
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Multivariate analysis (MVA) is based on the statistical principle of multivariate statistics, which involves observation and analysis of more than one statistical variable at a time. In design and analysis, the technique is used to perform trade studies across multiple dimensions while taking into account the effects of all variables on the responses of interest.
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Time Series Analysis
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In statistics, signal processing, and many other fields, a time series is a sequence of data points, measured typically at successive times, spaced at (often uniform) time intervals. Time series analysis comprises methods that attempt to understand such time series, often either to understand the underlying context of the data points (where did they come from? what generated them?), or to make forecasts (predictions).
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"N"
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the number of people in a sample
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Reliability
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consistency of a set of measurements or measuring instrument, often used to describe a test. This can either be whether the measurements of the same instrument give or are likely to give the same measurement
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Validity
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Validity is the extent to which a test measures what it claims to measure.
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Maslow's Hierarchy of Needs
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Pg 148 Kolter
Explain why people are driven by particular needs and particular times. Human needs are arranged in a hierarchy from most pressing to least pressing. Physiological, safety, social, esteem, and self-actualization. |
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Anderson's Model of Uitlization
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Health Belief Model
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The individual believes that the issue is a health concern (heart disease kills)
The individual believes that the issue applies to them (family history of prob) The individual believes that an action will have an impact on the condition (aspirin works) The individual believes that the action will have an impact on their own situation (my doctor told me to take an aspirin daily to prevent a heart attack) |
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Herzberg- 2 Factor Model
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Kolter 148
Distinguishes dissatisfiers from staisfiers Dissatisfiers: factors that cause dissatisfaction. Satisfiers: factors that cause satisfaction Absence of dissatisfiers is not enought to motivate a customer to purchase. Need a satisfier to motivate. |
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Wennberg - Geographic Differences
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John E. "Jack" Wennberg is the pioneer and leading researcher of unwarranted variation in the healthcare industry. Through four decades of work, Wennberg has documented the geographic variation in the healthcare that patients in the United States receive.
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Stages of Change Model
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Behavior does not change in one step. Progress through changes in steps to reach full, successful change.
Kolter 149-150 Cyclical process that varies by individual. Precontemplation- not considering change. Not ready yet. Contemplation - ambivalent about change: sitting on the fence post. Preparation for Action - Experience with change and is trying to change: testing the waters. Plan to act within one month Action - Practice new behavior for 3-6 months Maintenance - Continued commitment to sustaining new behavior. 6months - 5 years Relapse - Resume old behaviors. Stagnate or start cycle again. |
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Stages of Consumer Buying Process
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Functions of a Channel
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Place slides:
***Financial management is KEY! Physical or cyberspace place Time availability Arranging purchase & terms Financing and/or risk management Form & product modification to meet customer needs Compliance with external regulations Communications, incl Promotions Ultimate delivery Feedback Kolter pg 358 Moves G&S from producers to consumers. Overcomes time, place and possession between G&S. -Gathers info on customers, competitiors, and other aspects of the market -Gather and sends out persuasive info to stimulate purchasing Physical or cyberspace place Time availability Arranging purchase & terms Financing and/or risk management Form & product modification to meet customer needs Compliance with external regulations Communications, incl Promotions Ultimate delivery Feedback |
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Product Market Expansion Grid
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Slide 31 of Product PPT
Market Penetration = Current Product, Current Market Market Development = Current Product, New Market Product Development = New Product, Current Market Diversification = New Product, New Market |
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Product Life Cycle
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Introduction – educate, what it is, how you use it
Growth – consumer understands what it is, budgeting challenge: how long is introductory period? What is growth revenue and up front capital during this time? Maturity – what is the peak/ maximum? 95% what do I do next? Decline – unavoidable, but can be dodged for a while |
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Total Product Concept @ Levitt
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Specific to Broad Concentric Circles
Generic Product: Most basic core product; competitors are indistinguishable Expected Product: What consumers expect with features that distinguish it from competitors Augmented Product: Expected product PLUS additional features beyond customer expectations Potential Product: all features imaginable |
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Ecological Model
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Communications Process Model
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http://www.coba.unt.edu/mgmt/pitre/mgmt3330/Communication%20Process%20Model.pdf
A sender 2. A message to be sent 3. A channel through which to send the message 4. A receiver 5. A response to the message sent back to the sender by the receiver. |
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Effective Segmentation Criteria
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Kolter pg 231
Five good attributes to have when looking at a market: 1. Measurable: Of size, purchasing power, and segment characteristics 2. Sustainable: Segments large and profitable to serve. Largest homogenous group to focus marketing program 3. Accessible: Segments effectively reached and served. 4. Differentiable: Distinguishable and respond differently to market elements and programs. 5. Actionable: Programs created to attract and serve segments. |
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Purposes of Advertising
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Kolter pg 397
-Establish long term image for product -trigger quick sales -efficiently reach geographically dispersed buyers -Buyers believe heavily advertised product/brand must have "good value" - except in HC where a frequently advertised doc is thought of as desperate for patients. -Pervasiveness - seller can repeat message several times. Buyer can compare competitors -Amplified Expressiveness - Opportunities to dramatize organization and products |
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Diffusion of Innovation
innovators,early adopters, early majority,latemajority,laggards |
theory of how, why, and at what rate new ideas and technology spread through cultures.
Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system. Innovators – early in! want it because it is a status symbol…want newest technology and newest trend thing! Help product in the beginning. Bail out early because they get bored easily. Early Adopters – weigh decision a little bit, buy while it is growing, still learning, debugging Early Majority – seen adds, believe it is effective, know about it Late Majority – finally participate after much coxing Laggards – wouldn’t budge for a while, may not have had the money |
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Boston Consulting Group Matrix
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The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company.
Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth, high market share) - use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. 2. Cash Cows (=low growth, high market share) - profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high - Foundation of a company 3. Dogs (=low growth, low market share) - avoid and minimize the number of dogs in a company. - beware of expensive ‘turn around plans’. - deliver cash, otherwise liquidate 4. Question Marks (= high growth, low market share) - have the worst cash characteristics of all, because high demands and low returns due to low market share - if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. - either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash |
