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120 Cards in this Set
- Front
- Back
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Marketing
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is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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Six parts to teh definition of Marketing
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- Helps Creat Value
- Is about satisfying customer needs and wants - entail an exchange - Requiers product, price, place, promotion decisions - can be performed by both individulas and organizations - occurs in many settings |
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Value driven Frims Requiremnets
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Build relationship with customer
Balance benefits and costs share information across Organization |
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Value Driven Firms Benefits
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Retention $ < Acqusistion $
positice WOM generates $ Loyal clients ^ FCF LTV =NPV {FCF} small ^ in retention = Large ^ in LTV |
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Customer Value: “Gives vs. Gets”
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Benefits - Product, Services, Personnel, Image
Costs - Monetary, Time, Energy, Psychic |
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Understand Customer Requirements
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Needs: Physiological necessities
Wants: Preference for fulfilling need Demand: Targeted want with ability to pay |
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Develop Focused Marketing Response
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Market: People with Desire and Ability to buy
Positioning: Comparative product image Marketing Program: Defined marketing mix |
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marketing mix (four Ps)
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Product, price, place, and promotion—the controllable set of activities that a firm uses to respond to the wants of its target markets.
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Product
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Goods, Services and Ideas
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Price
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All Customer costs in exchange
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Place
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Supply Chain creates access
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Promo
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Inform, persuade, remind
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marketing plan
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A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
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relational orientation
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A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.
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transactional orientation
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Regards the buyer-seller relationship as a series of individual transactions, so anything that happened before or after the transaction is of little importance.
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supply chain
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The group of firms that make and deliver a given set of goods and services.
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value cocreation
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Customers act as collaborators with a manufacturer or retailer to create the product or service.
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control phase
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the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions.
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customer excellence
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involves a focus on retaining loyal customers and excellent customer service.
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diversification strategy
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a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve.
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implementation phase
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the part of the strategic marketing planning process when marketing managers (1) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (see STP ) and (2) implement the marketing mix using the four Ps.
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locational excellence
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a method of achieving excellence by having a strong physical location and/or Internet presence.
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market development strategy
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a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.
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market growth rate
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the annual rate of growth of the specific market in which the product competes.
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market penetration strategy
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a growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers.
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market positioning
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involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
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market segment
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a group of consumers who respond similarly to a firm's marketing efforts.
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market segmentation
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the process of dividing the market into groups of customers with different needs, wants, or characteristics—who therefore might appreciate products or services geared especially for them.
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market share
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percentage of a market accounted for by a specific entity.
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marketing plan
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a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements.
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marketing strategy
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a firm's target market, marketing mix, and method of obtaining a sustainable competitive advantage.
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metric
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a measuring system that quantifies a trend, dynamic, or characteristic.
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mission statement
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a broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives?
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operational excellence
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involves a firm's focus on efficient operations and excellent supply chain management.
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planning phase
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the part of the strategic marketing planning process when marketing executives, in conjunction with other top managers, (1) define the mission or vision of the business and (2) evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
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product development strategy
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a growth strategy that offers a new product or service to a firm's current target market.
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product excellence
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involves a focus on achieving high-quality products; effective branding and positioning is key.
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product line
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groups of associated items, such as those that consumers use together or think of as part of a group of similar products.
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products
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anything that is of value to a consumer and can be offered through a voluntary marketing exchange.
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related diversification
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a growth strategy whereby the current target market and/or marketing mix shares something in common with the new opportunity.
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relative market share
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a measure of the product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry.
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situation analysis
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second step in a marketing plan; uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.
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STP
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the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits.
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strategic business unit (SBU)
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a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
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sustainable competitive advantage
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something the firm can persistently do better than its competitors.
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target marketing/targeting
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the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.
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unrelated diversification
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a growth strategy whereby a new business lacks any common elements with the present business.
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Three levels of marketing Strategy
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Corporate Strateg
Business Strategy Marketing Stategy |
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business ethics
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Refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.
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corporate social responsibility
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Refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.
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ethical climate
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The set of values within a marketing firm, or in the marketing division of any firm, that guide decision making and behavior.
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locational privacy
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A person's ability to move normally in public spaces with the expectation that his or her location will not be recorded for subsequent use.
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marketing ethics
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Refers to those ethical problems that are specific to the domain of marketing.
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Baby Boomers
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Generational cohort of people born after World War II, between 1946 and 1964.
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country culture
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Entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences, and more subtle aspects, which are trickier to identify.
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culture
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The set of values, guiding beliefs, understandings, and ways of doing things shared by members of a society; exists on two levels: visible artifacts (e.g., behavior, dress, symbols, physical settings, ceremonies) and underlying values (thought processes, beliefs, and assumptions).
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demographics
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Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education.
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economic situation
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Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer's home country and abroad; see inflation, foreign currency fluctuations, and interest rates.
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foreign currency fluctuations
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Changes in the value of a country's currency relative to the currency of another country; can influence consumer spending.
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Generation X (Gen X)
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Generational cohort of people born between 1965 and 1976.
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Generation Y (Gen Y)
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Generational cohort of people born between 1977 and 1995; biggest cohort since the original postwar baby boom.
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generational cohort
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A group of people of the same generation—typically have similar purchase behaviors because they have shared experiences and are in the same stage of life.
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green marketing
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Involves a strategic effort by firms to supply customers with environmentally friendly merchandise.
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inflation
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Refers to the persistent increase in the prices of goods and services.
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interest rates
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These represent the cost of borrowing money.
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macroenvironmental factors
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Aspects of the external environment that affect a company's business, such as the culture, demographics, social issues, technological advances, economic situation, and political/regulatory environment.
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millennials
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Consumers born between 1977 and 2000 and the children of the Baby Boomers.
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political/regulatory environment
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Comprises political parties, government organizations, and legislation and laws.
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seniors
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America's fastest-growing generational cohort; people aged 55 to 64 years.
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technological advances
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Macroenvironmental factor that has greatly contributed to the improvement of the value of both products and services in the past few decades.
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Competitve Forces
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Product Form Competition
Product Category Copetition Generic Competition Budget Competition |
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Product Form Competition
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Same product to same target market
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Product Category Competition
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Different product to same target market
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Generic Competition
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Different product to same customer need
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Budget Competition
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Different product competing for same dollar
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Six macro environmental forces
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Culture
Demographics social technology economic Political/legal Culture |
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Competitive forces: Poters 5
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Threat of substitutes
Buyer Power Barriers to entry Supplier Power |
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The Immediat Environment
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Company
Corporate Partners Competition |
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Purchase Decision Process
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Problem recognition: a need
Information search seach: seeking value EValuation of alternatives: Assessing value Purchase Decision: Buying Value Postpurchase Behavior: Value in consumption or use |
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INfluencers on purchaseing decision process
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Marketing mix
Situational Psychological Socio-cultural |
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VALS
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Values and Lifestyles Program developed by Stanford Research Institute (SRI)
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Perception
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the process used to sense, organize and interpret information
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VALS types
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Innovators
Thinkers Believers Achievers Strivers Experiencers Makers Survivors |
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evoked set
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Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision
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Organizational Buying Process
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Need recognition
Product Specification RFP Process Proposal Analysis Order Specification Vendor Performance |
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Buying center roles
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Initiator
User Decider Gatekeeper Influencer Buyer |
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initiator
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The buying center participant who first suggests buying the particular product or service.
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user
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The person who consumes or uses the product or service purchased by the buying center.
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decider
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The buying center participant who ultimately determines any part of or the entire buying decision—whether to buy, what to buy, how to buy, or where to buy.
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gatekeeper
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The buying center participant who controls information or access to decision makers and influencers.
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influencer
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The buying center participant whose views influence other members of the buying center in making the final decision.
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buyer
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The buying center participant who handles the paperwork of the actual purchase.
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behavioral segmentation
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A segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyalty.
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benefit segmentation
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The grouping of consumers on the basis of the benefits they derive from products or services.
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concentrated targeting strategy
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A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs.
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demographic segmentation
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The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.
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differentiated targeting strategy
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A strategy through which a firm targets several market segments with a different offering for each.
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geodemographic segmentation
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The grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics.
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geographic segmentation
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The grouping of consumers on the basis of where they live.
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ideal point
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The position at which a particular market segment's ideal product would lie on a perceptual map.
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lifestyles
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A component of psychographics; refers to the way a person lives his or her life to achieve goals.
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loyalty segmentation
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Strategy of investing in loyalty initiatives to retain the firm's most profitable customers.
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micromarketing
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An extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called one-to-one marketing.
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occasion segmentation
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A type of behavioral segmentation based on when a product or service is purchased or consumed.
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one-to-one marketing
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See micromarketing.
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perceptual map
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Displays, in two or more dimensions, the position of products or brands in the consumer's mind.
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positioning
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Involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
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psychographics
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Used in segmentation; delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices.
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self-concept
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The image a person has of him- or herself; a component of psychographics.
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self-values
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Goals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her life.
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undifferentiated targeting strategy (mass marketing)
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A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.
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value
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Reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives.
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Value and Lifestyle Survey (VALSTM)
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A psychographic tool developed by SRI Consulting Business Intelligence; classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivors.
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value proposition
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The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.
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Marketing Research Process
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Define
Develope Search Conclude Act |
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Secoundary Data
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Existing facts and figures
Sources: Internal vs. External Financial statements, sales reports US Census Bureau, market research reports Issues + Time savings, low cost - Obsolete, mismatch for purpose |
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Primary
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Collected facts and figures
Methods: Observation vs. Questionnaire Mechanical, electronic, personal Survey, interview, focus groups, customers Issues + Current, specific and focused - Costly, time consuming, ask wrong info or audience |
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data mining
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The use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables.
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exploratory research
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Attempts to begin to understand the phenomenon of interest; also provides initial information when the problem lacks any clear definition.
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primary data
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Data collected to address specific research needs.
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