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