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73 Cards in this Set
- Front
- Back
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Marketing
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A organizational function and a set of processes for capturing, communicating, and delivering values to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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4 p's
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Product- creating
Price- Capturing Place- Delivering Promotion- communicating |
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Product oriented era
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Many firms believed that a good product could sell itself, not concerned with product innovation. Henry Ford example
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Sales oriented era
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1920-1950- customers bought less goods becuase of down economics and the war. Companies turned to personal selling to get rid of surplus
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Market oriented.
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Consumers had choices so producers began to focus on customer wants and needs.
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Harris Casino
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25 million customers, 90 categories
Age,sex,proximity best variables Best customers- the 30% who spend 100-500$ a visit -80% of the revenue and almost 100% of the profit. |
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Simplest definition of marketing
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Identifying, understanding and satisfying buyer demands through exchanges.
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80-20 principle
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80% of profits come from 20% of the customers.
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Components to all Marketing definition
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Satisfying buyers and exchange process.
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Most common channel of distribution for consumer goods. MWRC
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Manufactures
wholesale retailer customer. |
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Utility
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Satisfaction, value, benifits from the buyer point of view
Manufactures make things, they create form utility. |
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Utility- Marketing
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Time utility- When
place utility- where possession utility- How the customer wants Value adding activities still done in us before and after. |
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Marketing mytopia
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Mistake of focusing on product form and not the buyers needs.
and thinking there will always be a demand for your product. |
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Marketing is everybody responsibility.
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Top management- sets direction and tone of corporate culture.
Marketing management- plans 4 p's lower level management and their staff- delivers customer satisfaction. |
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Internal Marketing-
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Think of employees as customers
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increasing Importance of marketing since 1980
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More fragmented markets- mass market is dead
slow economic growth- mrkt is easier for a growing economy already a high level of affluence- de-regulation entry of strong new competitors more experience, training in the practice of marketing customers are generally more knowledgeable. |
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Marketing environments
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the uncontrollable, economy, politics...
Generally markets are uncontrollable, companies try to anticipate and adapt to enviromental forces. scan and plan** when forces are very important or the organizations are large proactive not just reactions to influence these forces may be undertaken |
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Internal environment or an organization
1 top management 2 marketing management |
1) overall goals, lines of business, role and importance of marketing
2) 4'ps, target markets, own goals, own structure |
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Demographics
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age sex income marital status...
constant change uncontrollable. Info is often more available, and predictable. |
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Senior boom
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now healthier and wealthier than ever.
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between 2000 and 2020
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age 50+ will increase 76%
age 50 and under will decrease 1% in 2025 50% of the u.s polulation will be 65+ |
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Three kinds of seniors
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go-go
go-slow no-go status depends on health, education, income not just age |
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Baby boomers
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1946-1964
in 2011 they will be between 47 and 65 years nold biggest generation in us history. |
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Baby bust (x)
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1965-1975
traditional materialists. hippies revisited 50s macho |
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Baby boomlet
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Baby boom echo
Purchasing power aplenty- less kids so more money to spend on kids. Brand building- marketers start early to build brand respect |
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Women labor force participation with kids under 6
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1960-20%
1995- 60% AND 70% of married women are in the labor force |
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Majority fallacy
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the mistake of always going after the target.
Why? Bc it’s the biggest market its not a secret, which pushes you into a competitive market with lots of sellers. |
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Increasing LFPR MW
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Time poverty- not as much time anymore bc mothers are working
Instant Gratification- want things now Lifestyle changes changing gender roles. |
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Demographics- Asian Americans
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MOST FREQUENT SHOPPERS
MOST BRAND CONSCIOUS LEAST BRAND LOYAL MOST CONCERNED RE APPEARANCES MOST LIKELY TO USE THE INTERNET TO PLAN A SHOPPING TRIP |
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Demographics - blacks
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MOST FASHION-CONSCIOUS (leadership)
MOST WILLING TO TRAVEL TO FAVORITE STORE MOST WILLING TO TRAVEL TO NEW STORES GREATEST PREFERENCE FOR SHOPPING ALONE MOST ENJOYMENT IN SHOPPING- *** |
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Demographics- Latinos
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MOST LIKELY TO SHOP AS A FAMILY
INFLUENCE OF CHILDREN ON PURCHASES THE GREATEST GREATEST PREFERENCE FOR NATIONAL CHAIN STORES |
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demographic- whites
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LEAST LIKELY TO ENJOY SHOPPING
LEAST LIKELY TO “JUST BROWSE” MOST LIKELY TO ADMIT IMPULSE PURCHASING MOST LIKELY TO PLAN AHEAD FOR MAJOR PURCHASES WHITES NOW ACCOUNT FOR ABOUT 80% OF TOTAL PURCHASING POWER IN U.S. |
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Changing compositions of u.s households.
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1970 1990
MARRIED, 41% 27% WITH CHILDREN MARRIED, 30 29 WITH NO CHILDREN NOT MARRIED 29 44 |
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Household compositions in 2000
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105 millions households
55 m married 12 m single parents 30 m singles now just about 50-50 |
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Median age of populations
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1985- 31 yrs
2000- 36 years |
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American economy forecast
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Slow growth 2010
near normal growth 2011 slow decline in unemployment rate |
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retailing since 1990
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Major store chains now gone, relative decline in malls, less shopping
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5 forces of competition
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current competitors
potential compeditiors subsitute powers buyers sellers |
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laws protecting
competition competitors consumers |
1890-1960 relativly few, general application
1960- more frequent, more specific. roughly every 20 years the political pendulum swung in opposite direction de regulation 1975-2008 |
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tech improvements- substitution effect
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Tech creates subsitution for products
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tech improvements- on-line effect
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Comparing prices online buyers and sellers can find each other online, people know what everyone is charging bc of the online effect
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Interpersonal influences on consumer behavior.
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consumers spend more money if your with people (friends, family...)
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culture
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all beliefs, objects, etc. that are shared with a society and are passed on to the next generation
Broadest influence on behavior |
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differences in everyday behavior
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Physical distance- people do not wanna get too close in an elevator. on average people like 5in of space
importance of time- Americans have a certain idea of time. (very fast) friendliness- superficial friendliness |
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transfusive triad- where does culture come from?
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Family, Religion, Education.
older generations pass down ideal to younger. |
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Life experiences
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different experiences that come along that you like but older generations hate.
i.e cultural events, (ipod,rap) |
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long held traditional values of American culture-
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individualism- America we are supposed to stick out, but in countries like china you get put down if you stand out.
Materialism- making money, spending money youthfulness- Americans see themselves as young Pragmatism- Americans are practical people, we hate theories. skeptical of government- |
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Subcultures on college campuses
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smaller %
academics- curve busters rebels- hipsters, hippies Larger% vocational- older students, commute to school and usually have a job. Party hardy- Frat starts* this is what the average college student is. this group is much larger these days than in the past. |
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Sub-cultures
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bases include race, religion, national origin, geography.
beware of stereotypes. |
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to target specific ethic groups effectively, you must...
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show real respect and demonstrate relevance.
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"9 nations book"
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a book about the different regions of America.
foundry= ohio tex mex= west |
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Geo-demographics =
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geography + demographics + lifestyle in this order.
tries to understand customs. |
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Prizm system
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66 types of neighborhoods.
1 type is boomtown= well educated, recent graduates who are single....Chicago an example. so is the short north. gray power- older people who still want to go out and spend and be active. |
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social classes
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ranks or layers in which society is arranged.
for the u.s.- occupation, education, income and residence are some social class qualifiers. |
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opinion leaders for specific product categories.
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people that you would ask, if you needed advice about something you where unsure of....ex: i would ask someone who knew alot about fashionable clothes if what i was wearing that night looked good.
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Perception-
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its like a movie editor, he make take 20 takes of one scene in a movie but when its done he may use different parts from all 20 scenes to make one scene for the final product.
PERCEPTION IS SELECTIVE. what is perceived and what is remembered are strongly affected by what we expect to see, hear etc. |
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Why people believe in subliminal advertising when in fact it does not exist.
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because its a good story for the culture- people will always think that big businesses are up to no good and subliminal advertising fits right into what we think about BB
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Self-monitoring
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the ability to see how others see you....great for sales people.
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peoples lifestyles in marketing
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the patterns in which people spend there time and money along with basic orientations..ex: if you polled college kids about a specific questions or about a product most of their answers would be clustered together because college kids live the same lifestyle.
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Classic c.b model (5 stages)(fundamental model for decision making)
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need recognition
information search consideration of options purchase post purchase evaluation |
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situation factors of customer decision making
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Physical surroundings- store atmosphere
Social surroundings- temporal perspective- time- customers behave differently when they are running late. task definition-purpose- when customers have to buy a gift for someone. antecedent state-mood- |
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organizational marketing
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aka business 2 business marketing (b2b)
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b2b buyer types- producers
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producers- they are looking at the capability of the products or ingredients
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b2b buyer types- intermediaries
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middle men, they buy based on the idea that they are going to resell to customers (business 2 customer, b2c)
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b2b buyer types- governments
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usually have the description of what they want, how they want it, and they want the lowest price.
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B2B fundamental buyer differences
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buyers tend to be
fewer in number larger in size geographically concentrated |
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4Ps difference for B2B markets.
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product- purchase inputs rather than outputs.
"solutions to problems" Place- fewer middlemen, sellers go to buyers unlike B2C Promotion- selling is critical, advertising generally much less important Price- less price sensitivity overall. but price is subject to more negotiation, government is a special case. |
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Differences in demand for B2B
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demand is derived**
Fluctuates more somewhat more rational you want to help the customer so the demand from them goes up. |
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difference in buying process B2B
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takes longer, last longer- decisions can take years, so companies want to build good relationships with each other
involves more people- the bigger the business the more people involved often more formal- offer is more formal. |
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Segmentation
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the process of identifying smaller, more homogeneous segments. that usually like the same goods.
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bases for segmentation
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Demographic
geographic psycho graphic behavioristic |
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segmentation strategy alternatives
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Concentration- focusing on 1 type of customer
concentration strategy aka "niche", "focus", or specialist strategy. mass marketing- acting as if all customs are the same. multiple segments- ex: a car company with a dozen different models |
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Requirements for segmentation
MARS |
Measurable
Accessible Responsive Sufficiently large |
