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57 Cards in this Set

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Place
Convenience: where is our product going to be available to our customers
channels, coverage, assortments, locations, inventory, logistics
Marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
1.create value for customers
2.build customer relationships
3.capture value from customers
5 Marketing Steps (broad)
1.understanding the market place
2.deciding customers
3.marketing program
4.building customer relationships
5.getting value from customers
steps we take to choose and get customers and then make money
<4.Building Customer Relationships>
customer relationship management, customer percieved value, customer satisfaction
<1.Understanding the Marketplace>
marketing research gains valuable knowledge about what customers need and want - focus on customer need, not product
how do we understand the market
Customer Relationship Management (CRM)
build then maintain profitable customer relationship by delivering superior customer value and satisfaction in order to increase customer equity
build relationship instead of one time sale
<2.Deciding Customers>
marketing management - find, get, and build customers by creating, delivering and communicating superior customer value; value proposition; marketing managment orientations
divide and conquer
Value Proposition
diferentiate and position in the marketplace; set of benefits that your product promises
What is so special about your product?
5 Marketing Managment Orientations:
1.production concept
2.product concept
3.selling concept
4.marketing concept
5.societal marketing concept
Customer perceived value
how much something is worth to the customer; customer will buy the product with highest percieved value (whether or not it is really the best)
perception only
Production Concept (Mktg Mgmt Orientation #1)
focus on production and distribution efficiency becayse consumers will favor availability and affordability (use if demand>supply or product cost is too high for customers)
customers will buy what is available and affordable
Customer satisfcation
extent that a product's expected performance matches buyer's expectations
Product Concept (Mktg Mgmt Orientation #2)
focus on continuous product development because customers will favor best product with highest quality, performance, and features (downfall: marketing myopia)
customers will buy the best
Selling Concept (Mktg Mgmt Orientation #3)
focus on pushing product by selling what you have not necessarily what market wants (use in surplus)
git rid of what you have
<5.Value from Customers>
customer lifetime value-the value of the entire stream of purchases that the customer would make over a lifetime of patronage; share of customer's purchases; customer equity
loyalty from customers leads to profitability
Marketing Concept (Mktg Mgmt Orientation #4)
focut on knowing customers' needs and wants and delivering greater satisfaction than competitors; "sense and respond" rather than "make and sell"
deliver customer satisfcation
Societal Marketing Concept (Mktg Mgmt Orientation #5)
focus on bigger picture of society, consumers, and company; long run welfare rather than short-run consumer wants
improves general state for everyone
<3. Marketing Program>
first the strategy (5 C's) and then the plan (4 P's)
what is your plan for success
Strategy C's (5):
Consumers
Company
Competition
Collaborators
Context
SHOULD we?
Tactical P's (4):
Price
Promotion
Product
Placement
HOW should we?
Consumers
who are they, where are they, what do they do, why do they want this product
Company
resources available to devote to this project, tone of company operations, company strengths and weaknesses
Marketing Strategy (customer-driven)
1.divide total market
2.choose best segments
3.design segment-specific strategy
Competition
who are they, what is their value proposition, how are they different, what are their strengths and weaknesses, where do they focus
Collaborators (channels)
who are they, how do they help us and how do we help them, what kind of relationship do we have with them (partnership, supplier, retailer, wholesaler, etc)
Context
what kind of ethical standards do we uphold; what are our guidelines for behavior
Product/Market expansion grid ->
Existing product/existing market: market penetration
Existing product/new market: market development
New product/existing market: product development
New product/new market: diversification
Marketing mix
blend of tactic (4 P's) to achieve response in target market
Price
Customer Cost: how much should we sell the product for to maximize profits - the customers desires vs. our margins
list price, discounts, allowances, paument periods, credit items
Strategic Planning
developing a strategy for long-run survival and growth
1.mission
2.goals and objectives
3.business portfolio
4.marketing plans
Product
Customer Solution: what features will our product have and how will it perform
variety, quality, design, features, brand, packaging
Market penetration
increase sales of current producs to current market segments without changing product
Promotion
Communication: how will we commuicate with our customers, and what do we want to communicate to them
advertising, personal selling, sales promos, pr
Strategic Planning Step 1:
1.defining a company's MISSION (using formal mission statement); should be market-oriented, realistic, speficific, and motivating
mission
Market development
identifying and developing new markey segments for current products
Product development
new or modified products for same market segments
Strategic Planning Step 2:
2.make detailed supporting GOALS and OBJECTIVES that guide entire company
goals
Diversification
acquiring or starting up businesses outside current realm to become more diverse
Strategic Planning Step 3:
3.design a BUSINESS PORTFOLIO which allocates company's money, time, and focus on each project
portfolio
Strategic Planning Step 4:
4.make a detailed MARKETING PLAN for each individual product in accordance with 1-3
plan
Marketing plan
exec summary-main goals for mgmt review
current mkt situation-target mkt, position
mkt description, product review, competition, distribution
threats and opportunitues analysis-for anticipation
objectives and issues
mktg strategy
action programs-specifics of what, when, who and how for mktg strategy
budgets-projected costs, profits, losses
controls-allows progres to be monitored and measured
Marketing implementation
plan to action
Marketing control
measuring and evaluating results, then adjusting for future
Marketing audit
comprehensive, systematic, independent, and periodic exam of a company's environment, objectives, strategies, and activities to find problems and opportunities and then recommend a plan to improve marketing performance
outer entity looking, judging, and then suggesting improvements
Return on Marketing (mktg ROI)
net return from mktg investment/costs of mktg investment
Marketing criticisms
impact on individual consumer welfare, on society, on other businesses
evils of marketing
Consumerism
social movement to strengthen the rights and powers of consumers relative to sellers
consumer rights
Environmentalism
social movement seeking to minimize the harm done to the environment and quality of life by marketing practicesl supported by concerned consumers, environmental groups, and government regulations
protect environment
Enlightened marketing
policy that a company's marketing should support the best long-run performance of the marketing system
long-run
Consumer-oriented marketing
the company should view and organize its marketing activities from the consumer's point of view
think what the consumer wants
Innovative marketing
the company should seek real product and marketing improvements
Customer-value marketing
the company should put most of its resources into customer value-building marketing investments
think build customer value
Sense-of-mission marketing
the company should define its mission in broad socal terms
good, philosophically
Societal marketing
the company should make good marketing decision by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
good for everyone
Types of Products
salutory (low immediate satisfaction/high long-run consumer benefits), desirable (high immediate/high long-run), deficient (low immediate/low long-run), pleasing (high immediate/low long-run)
Demarketing
marketing to temporarily or permanently reduce demand; to shift or shrink demand rather than destroy
shifting demand
3 considerations companies should balance when setting their marketing strategies:
1.Company profits
2.Society's interests
3.Consumer wants