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70 Cards in this Set
- Front
- Back
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American Marketing Association (AMA) Definition of Marketing
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An organizational function and a set of processes for creating, communicating, capturing, and delivergin value to customers and managing customer relationships in ways that benefit the organization and it's stakeholders
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Components of Almost all Marketing Definitions
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1) Satisfying Customers
2) Exchange Process |
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Marketing by our Definition
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If there is a voluntary exchange then Marketing is taking place. Interacting with a customer is marketing.
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M-W-R-C
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Manufacturers
Whole-Salers Retailers Consumers |
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Marketing Orientation
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customer satisfaction focus
*Most Important Issue* From 1950-1990 |
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Production-Oriented Era
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From 1900-1920
Believe a good product would sell itself NOT with satisfying the needs of individual customers |
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Sales-Oriented Era
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From 1920-1950
Depended on heavy doses of selling and advertising |
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Value Based Marketing Era
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From 1990-Present
Must understand what customers perceive as key benefits of a given product or service and how to improve them at the same cost or lower cost. |
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value
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reflects the relationship of benefits to costs or what the consumer gets for what they give
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Value Co-Creation
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providing additional value to customers is by allowing them the opportunity to act as collaborators in creating a product or service
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Exchange
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trade of things of value between the buyer and the seller so that each is better off as a result
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What value does Product make?
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CREATES the value
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What value does Price make?
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Price CAPTURES Value
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What value does Place make?
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Place DELIVERS the value proposition
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What value does Promotion make?
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COMMUNICATES the value proposition
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CRM
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customer relationship management- a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firms most valued customers
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transactional orientation
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the buyer-seller relationship as a series of individual transactions so anything that happens before and after are not important
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relational orientation
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philosophy that buyers and sellers should develop a long term relationship
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How do firms become value driven?
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1) they share information about their customers and competitors across the organization and with other firms that help in getting the product or service to the marketplace
2) Balance customer's benefits and costs 3) Concentrate on building relationships with customers |
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define supply chains
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the group of firms that make and deliver a given set of goods and services
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competitive intelligence (CI)
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to collect and synthesize information about their position with respect to their rivals
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What factors affect consumers immediate environment?
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the companies capabilities, competitors, competitive intelligence and the company's corporate partners
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What are the macro-environmental factors?
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CDSTEP
culture, demographics, social issues, technological advances, economic situation and political |
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define culture
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the shared meanings, beliefs, morals, values, and customs of a group of people.
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define demographics
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Information about the characteristics of human populations and segments those used to identify consumer markets such as age, gender, income and education
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define generational cohort
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a group of people of the same generation-typically have similar purchasing behavior because they have shared experiences and are in the same stage of life
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households who income is over 100K?
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21%
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describe baby boomers
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born from 1946-1964
biggest generation in U.S. history |
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define generation X
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born from 1965-1975
Nicknamed "Baby Bust" |
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define Generation Y
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born from 1976-1993
Nicknamed "baby boomlet" Nicknamed "baby boom echo" teenagers and kids have more responsibility strong emphasis on balancing work and life between 24-35 yrs old |
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define what women want in a product and/or service
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cleanliness
control safety consideration attention to detail feeling secure feeling comfortable female only |
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How much purchasing power do White people account for?
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80%
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which ethnic group is most likely to shop as family?
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latinos
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which demographic are willing to travel to their favorite store and has the greatest preference for shopping alone?
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black people
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which demographic are the most frequent shoppers and least brand loyal?
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asian people
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which demographic are the most brand conscious?
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Asian people
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who dominates family (consumer) decision making?
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females
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what percentage of household incomes are betwenn 50K-100K?
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31%
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define Tweens
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born 1994-2000
not quite teenagers but not little children either Get bored very easily |
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what economic situations affect consumers spending habits?
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1) inflation
2) foreign currency fluctuations 3) interests rates |
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what are the 5 steps in the consumer decision process?
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1) Need recognition
2) Information search 3) Alternative evaluations 4) Purchase 5) Post-Purchase |
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what categories can consumer's needs go into?
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functional needs, psychological needs, or both
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define functional needs
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pertain to the performance of a good or service. ie. knowing the material of a rugged outdoor wear coat like NorthFace
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define psychological needs
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pertains to the personal gratification consumers associate with a product and/or service. ie.Louboutin shoes are really expensive need
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what factors affect consumers search processes?
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1) Perceived benefits VS. Perceived cost of the search
2) Locus of control 3) Actual or Perceived Risk 4) Type of Product or Service |
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What are the fundamental differences in B2C then B2B?
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1) Fewer Buyers
2) Buyers are Larger in Size 3) Buyers Geographically closer |
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In B2B products are __________?
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products are inputs instead of outputs
"solutions to problems" |
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B2B Suppliers tend to _______
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Suppliers tend to go to Buyers
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In B2B businesses Promotion is ______.
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Selling is critical.
Advertising is less important. |
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In B2B, Buyers Types are _______
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Producers
Intermediaries Governments Institutions |
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B2B Marketing is nicknamed what?
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Industrial Marketing
Organizational Marketing |
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B2B marketing when regarding price tend to ________
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they are less sensitive to price
Price is more subject to negotiation |
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B2B difference in Demand
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Dependent on Consumer Market
Fluctuates more Somewhat more rational |
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Buying Process in B2B
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1) takes longer, last longer
2) involves more people 3) more formal |
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define segmentation
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process of identifying smaller, more homogeneous segments in the larger heterogeneous market
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what are the limits of Segmentation?
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Segmentation is limited by the size of the market
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Who should you target in Segmentation?
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1) Most recent purchasers
2) most frequent purchasers 3) largest purchasers |
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What are the requirements for segmentation?
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Measurable
Accessible Responsive Sufficiently Large |
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What do you decide to segment your market?
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1) Select 1 or more targets
2) Design the appropriate marketing mixes |
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Alternatives for Segmentation Strategies
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1) Concentration
2) Mass Marketing (undifferentiated) 3) Multiple segments - differentiated |
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Concentration Strategy is nicknamed......
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"niche"
"Focus" "specialist" good for small organizations |
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what are the main bases for segmentation?
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demographic
geographic psychographic- lifestyle behavioristic |
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define and talk about Subliminal perception
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Few authorities actually believe it works
Does NOT work |
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define self-monitoring
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is the ability to understand how other people see them
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define lifestyle
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activities, Interests, and opinions
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Describe opinion leaders
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heavy users but NOT brand loyal
same social class early adopters Attentive to specialize media |
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define perception
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process of exposure, attention, reception and interpretation of sensory information
nose has best sensory memory |
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why do technological improvements tend to reduce prices?
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cost effect
substitution effect on-line effect |
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define perception
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process of exposure, attention, reception and interpretation of sensory information
nose has best sensory memory |
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why do technological improvements tend to reduce prices?
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cost effect
substitution effect on-line effect |
