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80 Cards in this Set
- Front
- Back
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definition of marketing management
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the process of planning an executing the conception, pricing, promotion, and exchanges that satisfy individual and organizational goals
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definition of marketing
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creating, offering and freely exchanging goods and services
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what are the 4 p's of marketing
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price, promotion, product, placement
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contents of a marketing plan
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Exec summary
Situation analysis Marketing objectives Marketing strategy Marketing program Financial and tactical summary |
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four types of buying behavior
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complex
variety seeking dissonance reducing habitual |
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what is complex buying behavior? ex
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high involvement, significant difference between brands
eg. electronics and cars |
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what is variety seeking buying behavior? ex
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low involvement, significant difference between brands
eg. 7up vs cola |
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what is dissonance reducing buying behavior? ex
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high involvement, few differences between brands
eg airplanes |
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what is habitual buying behavior? and example
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few differences between brands, low involvement
eg coffee |
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situation analysis
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1. consumers - who are they?
2. business: changes in environment, tech, government competitors |
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definition of a product
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anything that can be offered to a market to satisfy a want or a need
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growth strategies (4)
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market penetration:existing products, existing markets
product development: new products, existing markets market development: existing products, new markets diversification: new markets, new products |
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what is market penetration? give example
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existing products, existing markets. you would want to do price cuts and heavy promotion in this category
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what is product development? give example
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new products in existing markets, like satellite radio
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what is market development? give an example
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existing products, in a new market. for example, using baking soda as a deodorizer
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what is diversification as a growth strategy? give an example
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new product, new market.
eg. smart cars |
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how do you calculate the probability of success?
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probability of technical completion
x probability of commercializing x probability of economic success |
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what are five adoption categories?
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innovators, early adopters, early majority, late majority, laggards
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what are the stages of the product life cycle?
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introduction, growth, maturity, decline
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define brand equity
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added value over and above product attributes
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what are the 5 stages of brand equity?
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devoted
values satisfied and there's a switiching cost satisfied no brand loyalty. |
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what are four characteristics of services?
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intangible, variable, perishable, inseparable
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BCG Matrix
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high growth: stars | ???
low growth: $ cow | dogs high | low <--market share |
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what is an example of a star in the BCG matrix
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iphone, want to make this a cash cow
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what is an example of a question mark?
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high growth, but low market share, has a potential to be a star
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what is an example of a dog in the bcg matrix?
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not growing market share, don't want to keep? the ford taurus
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what are four introductory marketing strategies?
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rapid skimming
slow skimming rapid penetration slow penetration |
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what is rapid skimming?
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high promotion, high price
intel |
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what is slow skimming?
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low promotion, high price
maybach |
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what is rapid penetration?
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low price, high promotion
satellite radio |
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what is and an example of slow penetration introductory marketing strategy?
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smart
low promotion low price |
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what are different types of promotion (5)?
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advertising
trade promotions consumer promotions b2b pr |
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definition of advertising
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non personal presentation and promotion of ideas goods or services by an identified sponsor
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unique selling proposition
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the one attribute your product is best at compared to the rest of the competition
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what are the 5 m's of advertising?
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mission
money message media measurement |
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list strengths and weaknesses of advertising in newspaper
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MASS MEDIA USED TO REACH ADULTS 35+ WITH A COMPLEX DETAILED MESSAGE
strength: large mass audience, tangible, more educated audience weakness: passive delivery, declining circulation, clutter, expensive to maintain frequency |
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list strengths and weaknesses of advertising on the radio
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reach narrow target with frequency to build awareness
strength: high frequency, low unit cost, demographically more selective, emotional, timing, cost weakness: cannot reach broad demographics, may have too many advertisers, no visuals |
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list strengths and weaknesses of cable advertising
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reach narrow target groups within a single exposure in a chosen geography
strength: growing medium, frequency top of the mind awareness, low cost, geographically and demographically selective: cons: clutter, reach is fragmented, limited research in affectability |
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list strengths and weaknesses of outdoor billboards
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mass reach medium with reminder or directional messages
strength low cost, large mass audience, visible, target specific georaphy weaknesses: negative image, no message detail, limited availability, low recall |
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list strengths and weaknesses of direct marketing
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to reach a highly targeted group within a specific geography, as cost efficiently as possible
strength: low cost, timing, personalized, response rate is easily measured, tangible and saves time weaknesses: consumer avoidance, timing, cost, reach |
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Maslows Hierarchy of Needs
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Self Actualization
Esteem Needs Social Safety Physiological |
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Gross Rating Points - How do you calculate?
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Reach x Frequency
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Share of Voice - How do you calculate?
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Your GRP/Category GRP
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How many times do you have to advertise to be effective?
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3
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Three types of promotions
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Manufacturer
Retailer Consumer |
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Steps to Setting a Price
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Estimating Costs
Determining Demand Analyze Competition Modify Price Presentation |
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How to calculate markup
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unit cost / (1-desired markup %)
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How to calculate unit cost
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unit variable cost + (total fixed cost/ expected unit sales)
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Perceived Value Pricing
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the worth of gained satisfaction in terms of other products
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How do you estimate perceived value?
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conjoint analysis
consumer surveys costs to consumers for NOT using product |
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Price Leader
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firm whose price sets the tone for the entire category's price level
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What is psychological pricing
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$1.99 for 26 oz vs. $2.19 for 23 oz
people read left to right not necessarily a better value |
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Types of promotional pricing (5)
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loss leader pricing
cash rebates low-interest financing longer payment warranties and service contracts |
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Break Even Volume equation
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total fixed cost / (price-unit variable cost)
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Legal Aspects of pricing
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robinson patman act - seller provide same price to retailers
ftc guidelines against descriptive pricing price fixing predatory pricing and dumping laws - selling to destroy competition |
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what are two types of marketing data? describe them
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primary - collect yourself
secondary - already been collected and summarized |
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three approaches to collecting primary data
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exploratory research
descriptive research (surveys) causal research (test cause and effect) |
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secondary data sources for market research
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internal company records
government publications periodicals and books commercial research providers |
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sources of competitive information
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competitors advertising, annual reports, secondary data like consumer reports, sales force, consultants
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estimating future demand through market research 5 things
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survey buyer intent
composite sales force opinion expert past sales test markets |
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new product development research - 6 steps
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idea generation
idea screening probability/investment concept development and testing business analysis product development market testing |
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3 basic market preference patterns
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homogenous preference
diffused preference clustered preference |
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define market segment
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group of consumers with very similar needs
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define descriptor
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variables used to segment the market
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types of descriptors
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geographic, demographic, psychographic lifestyle, behavioral, class
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define direct marketing
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an interactive system of marketing targeted to a person in order to produce a measurable response which is stored in a database
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weaknesses of direct marketing
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consumer avoidance
image - junk mail timing takes 3-10 bulk mail |
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three key components to direct marketing
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list
offer execution |
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strengths of direct marketing
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targetability
cost timing versatility reach measurement environment |
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what is direct selling?
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when goods go straight from the manufacturer to consumer
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what are three types of vertical marketing systems?
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corporate owner - the gap
franchising wholesalers/conventional |
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distributor
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purchases products from manufacturer, and passes them on to wholesalers
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agent
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acts between manufacturer and wholesaler as distributor would but does not purchase products like a selling rep
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broker
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similar to agent, but can represent competing companies
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pros and cons of corporate owned vertical marketing system
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pros : control pricing
cons: costs, risks |
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pros and cons of contractual vertical marketing systems
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franchisor pros: no investment
cons: control of offer franchisee pros: immediate access to expertise and brand name cons: carry the risk |
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pros and cons of conventional marketing system
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pros- flexibility, ease of gaining access
cons: instability, likelihood of being dropped out |
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when to use personal selling?
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concentrated market
product must be customized personal contact is important must demonstrate product |
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how do you calculate sales force size?
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total sales calls/ calls per rep per year
total sales calls = desirable calls per year x accounts |
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zone of agreement
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buyers reservation - sellers reservation
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