Marketing Test 1

Front 1

marketing is

Back 1

the social managerial process by which individuals and organizations obtain what they need and want through creating and exchanging the value with others

Front 2

marketing

Back 2

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

create value for customer to build strong relationship w customer to get value in return

Front 3

marketing process

Back 3

1) understand the marketplace and customer needs and wants

2) design a customer driven marketing strategy

construct an integrated marketing program that delivers superior value

4) build profitable relationships and create customer delight

5) capture the value from customers to create profits and customer equity

Front 4

5 core concepts

Back 4

1) needs, wants, demands

2)market offerings (products services and experiences)

3)value and satisfaction

4)exchanges and relationships

5)markets



wants are the form taken by human needs when shaped by culture and individual personality. when backed by buying power, wants become demands. companies address needs by putting forth value proposition, a set of benefits that they promise to consumers to satisfy needs. the value proposition is fulfilled through a market offering, which delivers customer value and satisfaction, resulting in longterm exchange relationships with customers

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needs

wants

demands

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needs: states of felt deprivation

"needs food but wants a big mac"
wants: form of human needs take as shaped by culture and individual personality

demands- human wants that are back by buying power

given their wants and resources, people demand products with benefits that add up to the most value and satisfaction

Front 6

market offerings

Back 6

some combination of products, services, information, or experiences offered to a market to satisfy a need or a want

Front 7

marketing myopia

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the mistake of paying more attention to the specific products a company offers than the benefits and experiences by these products

focusing only on existing wants and losing site of underlying consumer needs

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exchange

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act of obtaining a desired object from someone by offering something in return

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market

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the set of all actual and potential buyers of a product or service

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marketing management

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the art and science of choosing target markets and building profitable relationships with them

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production concept

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the idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency

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product concept

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the idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements

apple for example
always improving the ipad

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selling concept

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the idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort

PROMOTE AND SELLL

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marketing concept

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the marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

satisfy need and want
deliver desired satisfaction better than competitors do

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societal marketing concept

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the idea that company's marketing decisions should consider consumer's wants, the company's requirements, consumers' long-run interests, and society's long-run interests

questions whether the pure marketing concept over looks possible conflicts between consumer short run wants and consumer long run welfare

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customer relationship management

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the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

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customer-perceived value

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the customer's evaluation of the difference between all the benefits and all the costs of marketing offer relative to those of competing offers

Front 18

customer satisfaction

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the extent to which a product's perceived performance matches a buyer's expectations

Front 19

customer-generated marketing

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marketing messages, ads, and other brand exchanges created by consumers themselves-both invented and uninvented

whether invented by marketers or not, this has become a significant marketing force

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partner relationship management

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working closely with partners in other company departments and outside the company to jointly bring greater value to customers

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customer lifetime value

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the value of the entire stream of purchases that the customer would make over a lifetime of patronage (regular service given to a store restaurant or public service by a person or group)

losing a customer doesnt mean losing a sale, it means losing entire stream of purchases a customer would make over a lifetime of patronage

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share of customer

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the portion of the customer's purchasing that a company gets in its product categories

books to sell everything
amazon captures greater share of each customer's spending budget

Front 23

customer equity

Back 23

the total combined customer lifetime values of all the company's customers

Front 24

internet

Back 24

a vast public web of computer networks that connects users to all types all around the world to each other and to an amazingly large information repository

Front 25

explain the importance of understanding customers and the marketplace

Back 25

if know need want demand, satisfy customers value
market offering satisfy customers
create relationships = customer lifetime value
greater share of customer
long term customer equity

Front 26

customer driven marketing strategy

Back 26

decide who it will serve.
divides into segments
selecting segments it use (target marketing)
decide how it will serve targeted customers
how it will differentiate and position itself in the market place

production concept- managements task is to improve production efficiency and bring down prices

product concept- consumers favor products that offer the most quality,performance, and innovative features, thus little promotional effort is required

selling concept- consumers will not buy enough products unless undertakes large scale selling and promotion effort

marketing concept- achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do

societal marketing concept- generating consumer satisfaction and long run societal we

Front 27

discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return

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customer relationship management is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. The aim of of customer relationship management is to produce high customer equity, the total combined customer lifetime value of all the company's customers. The key to building relationships is the creation of superior customer value and satisfaction

companies dont only want to acquire profitable customers but also want to build relationships that will keep them and grow share of customer. different types of customers require different customer relationship management strategies. the marketer's aim is to build the right relationships with the right customers. in return for creating value for targeting customers, the company captures value from customers in the form of profits and customer equity.

in building customer relationships, good marketers realize that they cannot do it alone. they must work closely with marketing partners inside and o

Front 28

major trends and forces that are changing the marketing landscape in this age of relationships

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computer, telecommunications, information transportation and other technologies has created exciting new ways to learn about and track customers, and create products and services tailored to customer needs. allowed new approached by which marketers can target consumers more selectively and build closer, two way customer relationships

marketers connect globally with their customers and marketing partners.
marketers reexamining their ethical and societal responsibilities. marketers take more responsibilities for their societal and environmental impact of their actions.
marketing has been most widely applied in the for-profit business sector. marketing has become a major part of the strategies of many non profit organizations such as colleges, hospitals, museums, zoos, symphony orchestras, and churches.

major new developments in marketing can be summed up in one word: relationships.

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strategic planning

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the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

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steps to strategic planning

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1)defining the company mission

2) setting company objectives and goals

3) designing the business portfolio

4)planning marketing and other functional strategies

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missions statement

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a statement of the organization's purpose- what it wants to accomplish in the larger enviroment

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business portfolio

Back 32

the collection of businesses and products that make up the company

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portfolio analysis

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the process by which management evaluates the products and businesses that make up the company

Front 34

growth-share matrix

Back 34

a portfolio planning method that evaluates a company's strategic business units in terms of its market growth rate and relative market share. SBU's (strategic business unit) are classified as stars, cash cows, question marks, or dogs.

PORTFOLIO

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product/market expansion grid

Back 35

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

PORTFOLIO

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market penetration

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strategy for company growth by increasing sales of current products to current market segments without changing the market (existing markets, existing products)

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market development

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a strategy for company growth by identifying and developing new market segments for current company products (existing products, new markets)

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product development

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a strategy for company growth by offering modified or new products to current market segments (new products, existing markets)

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diversification

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a strategy for company growth through starting up or acquiring businesses outside the company's current products and markets (new products new markets)

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downsizing

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reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy

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value chain

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the series of departments that carry value-creating activities to design, produce, market, deliver, and support a firm's products

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value delivery network

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the network made up of the company's suppliers, distributors, and ultimately, customer's who "partner" with each other to improve the performance of the entire system

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marketing strategy

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the marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships

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market segmentation

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dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

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market segment

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a group of consumers who respond in a similar way to a given set of marketing efforts

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market targeting

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the process of evaluating each market segment's attractiveness and selecting one or more segments to enter

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positioning

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arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers

In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.And what adds value to the customers.

Front 48

differentiation

Back 48

actually differentiating the market offering to create superior customer value

the process of distinguishing a product or offering from others, to make it more attractive to a particular target market.

Front 49

marketing mix

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the set of controllable tactical marketing tools - product, price, place, and promotion - that the firms blends to produce the response it wants in the target market
THINK CHILIS
Product - A product is seen as an item that satisfies what a consumer needs or wants.

Price – The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often, it will affect the demand and sales as well.

* Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion. [1]

Place - refers to providing the product at a place which is convenient for consumers to access. distribution

Front 50

SWOT analysis

Back 50

an overall evaluation of the company's strengths, weaknesses, opportunities, and threats

Front 51

marketing implementation

Back 51

the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives

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marketing control

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the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved

Front 53

return on marketing investment (marketing ROI)

Back 53

the net return from a marketing investment divided by the costs of the marketing investment

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments

Front 54

explain company wides strategic planning and its four steps

Back 54

strategic planning sets the stage for the rest of the companys planning. marketing contributes to strategic planning, and the overall plan defines marketing's rolde in the company. although formal planning offers a variety of benefits to companies, not all companies use it or use it well.

strategic planning involves developing a strategy for long run survival and growth.

1)defining the company mission

2) setting company objectives and goals

3) designing the business portfolio

4)planning marketing and other functional strategies

Front 55

discuss for to design business portfolios and develop growth strategies

Back 55

guide by mission statement/objectives/goals
create portfolio business and products make up company
portfolio analysis: find key businesses. SBU
swat, downsizing, market expansion grid

Front 56

marketings role in strategic planning and how marketing works with its partners to create and deliver customer value

Back 56

major functional departments must work together to accomplish strategic planning. marketers key role is providing a marketing concept philosophy and inputs regarding attractive marketing oppotunities

success= value adding activities as well as departments work together to serve customer
must work closely in effective value chain to serve customer and perform superior value delivery network

growth share matrix
BCG approach

market growth rate- measure of markets attractiveness
relative market share- measure of company's strength in market

Front 57

describe elements of a customer driven marketing strategy and the forces that influence it

Back 57

value chain
value delivery network
create value and relationships are the center of marketing strategy and programs.
segmentation, targeting, differentiation, and positioning, the company divides the total market into smaller segments, selects segments it can best serve and decides how it wants to bring value to target consumers.
designs an integrated marketing mix to produce the response it wants in the target market.
product, price,place and promotion

Front 58

list the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on market investment

Back 58

find best strategy and mix and put into action
marketing analysis, planning implementation, control

components of marketing plan- executive summary, situation analysis, gstic, exhibits

to be successful must be effective at implementation

responsibility for implementation goes to company's marketing department. marketing departments can be organized in one or a combination of ways: functional marketing organization, geographic organization, product management organization, or market management organization.
now companies change organizational focus to customer relationship management. marketing organizations carry out marketing control

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list the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on market investment
continued

Back 59

use marketing audits to determine marketing opportunities/problems and to recommend short run and long run actions to improve overall performance

marketing managers ensure that marketing dollars are being well spent. todays marketers face growing pressures to show that they are adding value in line with their own costs. in response, marketers are developing better measures of return on market investment. increasingly, they are using customer centered measures of marketing impact as a key input into their strategic decision making

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marketing environment

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the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

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microenvironment

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the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors and publics.

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macroenvironment

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the larger societal forces that affect the micro environment - demographic, economic, natural, technological, political, and cultural forces

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marketing intermediaries

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firms that help the company to promote, sell, and distribute its goods to final buyers

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public

Back 64

any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives

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demography

Back 65

study of human populations in terms of size, density,location, age, gender, race occupation,and other statistics

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baby boomers

Back 66

78 million people born during the baby book following world war II and lasting until 1964

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millennials (generaton y)

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the 83 million children of the baby boomers, born between 977 and 2000

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economic environment

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factors that affect consumer buying power and spending patterns

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engel's law

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differences noted over a century ago by ernst engel in how people shift their spending across food, housing, transportation, health care and other goods and services categories as family income rises

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natural environment

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natural resources that are needed as inputs by marketers or that are affected by marketing activities

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environmental sustainability

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developing strategies and practices that create a world economy that the planet can support indefinitely

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technological environment

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forces that create new technologies

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political environment

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laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

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cultural environment

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institutions and other forces that affect society's basic values, perceptions, prefrences, and behaviors

Front 75

describe the environmental forces that affect the company's ability to serve its customers

Back 75

the company's microenvironment consists of other actors close to the company that combine to form the company's value delivery network or that affect its ability to serve its customers. it includes the companys internal environment- its several depeartments and management levels- as it influences marketing decision making.

marketing channel firms- suppliers and marketing intermediaries include resellers, physical distribution firms, marketing service agencies, and financial intermediaries- cooperate to create customer value. five types of customer markets include consumer, business, reseller, government, and international markets. competitors vie with the company in an effort to serve customers better. finally, various publics have an actual or a potential interest in or impact on the company's ability to meet its objectives.

the macroenvironment consists of larger societal forces that affect the entire microenvironment. the six forces making up the company's macroenvironment include demographic, economic,

Front 76

explain for the changes in demographic and economic environments affect marketing decisions

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Demography is the study of characterists of human populations. todays's demographic environment shows a changing age structure, shifting family profiles, geographic population shifts, a better educated and more white-collar population, and increasing diversity. the economic environment is characterized by more consumer concern for value and shifting consumer spending patterns. todays customers just want the right kind of combination of good quality and service at a fair price. the distribution of income is also shifting- rich grown richer, middle class shrunk, poor remained poor, leading to a two-tiered market.
many companies now tailor their marketing offers to two different markets - the affluent and the less affluent

Front 77

identify the major trends in the firm's natural and technological environments

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the natural environment shows three major trends: shortages of certain raw materials, higher pollution levels, and more government intervention in natural resource management. environmental concerns create marketing opportunities for alert companies. the technological environment creates both opportunities and challenges as companies that fail to keep up with technological change will miss out on new product and marketing opportunities.

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explain the key changes in the political and cultural environments

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the political environment consists of laws agencies, and groups that infulence or limit marketing actions. the political environment has 3 changes that affect marketing: increasing legislation regulating business, strong government agency enforcement, and greater emphasis on ethics and socially responsible actions. the cultural environment is made up of institutions and forces that affect a society's values, perceptions, preferenes, and behaviors. the environment shows trends toward digital "cocooning", a lessening trust of institutions, increasing patriotism, greater appreciation for natures, a new spiritualism, and the search for more meaningful and enduring values

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discuss how companies can react to the marketing environment

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companies can passively accept the marketing environment as an incontrollable element to which they must adapt, avoiding threats and taking advantage of opportunities as they arise.

or they can take a proactive stance, working to change the environment rather than simply reacting to it. companies should try to be proactive rather than reactive

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customer insights

Back 80

fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value realtionships

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marketing information systems (MIS)

Back 81

people and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights

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marketing intelligence

Back 82

the systematic collection and analysis of publically available information about consumers, competitors, and developments in the marketing environment

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marketing research

Back 83

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

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exploratory research

Back 84

marketing research to gather preliminary information that will help define problems and suggest hyothesis

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descriptive research

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marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

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casual research

Back 86

marketing research to test hypothesis about cause and effect relationships

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secondary data

Back 87

information that already exists somewhere having been collected for another purpose.

Front 88

primary data

Back 88

information collected for the specific purpose at hand

Front 89

commercial online databases

Back 89

computerized collections of information available from online commercial sources via the internet

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observational research

Back 90

gathering primary data by observing relevent people, actions, and situations

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ethnographic research

Back 91

a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural habitat"

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survey research

Back 92

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

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experimental research

Back 93

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

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focus group interviewing

Back 94

personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. the interviewer "focuses" the group discussion on important issues

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online marketing research

Back 95

collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior

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online focus groups

Back 96

gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior

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sample

Back 97

a segment of the population selected for marketing research to represent the population as a whole

Front 98

customer relationship management

CRM

Back 98

managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty

Front 99

explain the importance of information of information in gaining insights about the marketplace and customers

Back 99

the marketing process starts with a complete understanding of the marketplace and consumer needs and wants. thus, the company needs sound information in order to produce superior value and satisfaction for customers. the company also requires information on competitors, resellers, and other actors and forces in the marketplace. increasingly, marketers are viewing information not only as an input for making better decisions but also as an important strategic asset and marketing tool

Front 100

define marketing information system and describe its parts

Back 100

MIS consists of people and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. a well-designed information system begins and ends with users.

The MIS first assesses the information needs. the marketing information system primarily serves the company's marketing and other managers, but it may also provide information to external partners. then, MIS, develops information from internal databases, marketing intelligence activities, and marketing research. internal databases provide information on the company's own operations and departments. such data can be obtained quickly and cheaply but often needs to be adapted for marketing decisions. marketing intelligence activities supply everyday information about developments in the external marketing environment. market research consists of collecting information relevenet to a specific marketing problem faced by the company

Front 101

outline the steps in the marketing research process

Back 101

the first step involves defining the problem and setting the research objectives, which may be exploratory, descriptive, or casual research. the second step consists of developing a research plan for collecting data from primary and secondary sources. the third step calls for implementing the marketing research plan by gathering, processing, and analyzing the information. the fourth step consists of interpreting and reporting the findings.

both internal and external secondary data sources often provide information more quickly and at a lower cost than primary data sources, and they can sometimes yield information that a company cannot collect itself however needed info may not exist in secondary sources. researches are evaluate secondary info to ensure that it is relevent, accurate, current, and impartial(fair). primary data must also be evaluated. each primary data collection method- observational, survey, experimental- has advantages/disadvantages. research contacts - mail, phone, interview, online- has

Front 102

explain how companies analyze and use marketing information

Back 102

info gathered in internal databases and through marketing intelligence and marketing research usually requires more analysis. this may include advanced statistical analysis or the application of analytical models that will help marketers make better decisions. to analyze individual customer data, many companies have now acquired or developed special software and analysis techniques called customer relationship management (crm). that intergrate, analyze, and apply the mountains of individual customer data contained in their data bases

marketing information has no value until it is used to make better marketing decisions. thus, the marketing information system must make the information available to the managers and others who make marketing decisions or deal with customers. in some cases, this means providing regular reports and updates, in other cases it means making nonroutine information available for special situations and on the spot decisions. many firms use company intranets and extranets to facilitat

Front 103

discuss the special issues some marketing researchers face, including public policy and ethics issues

Back 103

some marketers face special marketing research situations, such as those conducting research in small business, nonprofit, or international situations. marketing research can be conducted effectively by small businesses and nonprofit organizations with limited budgets. international marketing researchers follow the same steps as domestic researchers but often face more and different problems. all organizations need to act responsibly to major public policy and ethical issues surrounding marketing research, including issues of intrusions on consumer privacy and misuse of research findings