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98 Cards in this Set
- Front
- Back
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Evolution of Marketing Concept
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As marketing has evolved, its focus has changed from a focus on products to a focus on customer needs. An important point to remember is that some managers have not made it all the way to the final stages of marketing evolution.
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Simple Trade Era (pre 1840)
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familes trade or sell their output to local middlemen
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Production Era (1840-1940)
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company focuses on production of a few specific products, no ceiling on demand for the firm's products, focus on producing more efficiently, selling what its easy to produce. Industrial revolution, specialize, efficiency, process (model T)
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Sales Era (1940-1970)
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Competition increases, finite demand for firm's products and services, surplus of products for sale, focus on pushing products via promotion and beating the competition. Enter the market.
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Marketing Department Era (1960-2000)
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emphasis on coordinating marketing activities in a marketing department. Differentiation, needs based, and people focused
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Marketing Company Era (1980 to present)
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customer responsibility spreads to everyone in the company, long term strategy, guided by the marketing concept
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Meslow's Hierarchy
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Each individuals needs must be satified at the lower levels before they progress to the higher, more complex levels. When low-level needs are satisfied, individuals are no longer motivated by them. Physiological > Safety > Social > Personal.
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Is it all about Product / Service?
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No, we need to condier the offering, which includes the 4 Marketing Mix elements. 4 Ps, Context, and Target
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Micro View
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set of activities, performed by individual organizations, anticipate customer needs, direct flows of goods and services to customers
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Macro View
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accomplishes the objectives of society, effectively matches supply and demand, is concern with how marketing activities affect society and vice-versa
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Micro Macro Dilemma
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Social Responsibility, Should all needs be satisfied, tension between making profits and satisfying needs.
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It is possible for an organization to be truly consumer-oriented and intentionally act in an unethical manner? Why or why not?
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The marketing concept guides marketing ethics: focuses on the needs of consumers, code of ethics, take criticism of marketing seriously.
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What is the marketing strategy planning framework?
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Context + Internal and External Analysis of the a. Customers, b. Company and c. Competitors (4 Cs) > SWOT > Segmenting and Targeting / Differentiation and Positions > finally lead ing to a Marketing Mix
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Marketing management
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(Analysis, more in framework), Planning, Implementation & Control. Marketing manager focuses on process, interchangeable with corporate strategy
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4 Cs
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First on the Marketing Strategy Planning Framework. Context: Social, technological, political, cultural enviornment. Customer: Who buys / uses our products and why?. Company: Mission, culture, objectives, strategy, competitive advantages in industry. Competitors: direct and indirect.
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SWOT
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Strengths, Weaknesses, Opporunities, & Threats. Shows internal (top) and external (bottom).
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Product / Market Expansion Grid
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Existing Products and New Products x Existing Marketing and New Markets. Creates either market penetration, market development, product development, or diversification
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Market Penetration
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reduce prices, heavy advertising, extend usage situations. Exisiting market and product
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Market Development
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identifying new markets, geographically, demographically, etc. New marketing, existing product
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Product Development
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offering modified or new products. Existing market, new product
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Diversification
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going into new business, modifying goods for new markets. New product, new market
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STP
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Segmentation, Targeting & Positioning
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Segmentation
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how do you divide your audience, can be multi-level, but specialized
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Targeting
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choosing which segments to focus on
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Differentiation
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deciding how you are going to sell your product
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Four Ps
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Product, Place, Promotion, Price
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Product
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Warrenty, use, design, quality, service, accessories, etc.
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Place
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Where is it sold? Retailers, wholesale, channel of distribution.
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Promotion (4 subsections)
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Telling the target market about the product and selling the product. 4 types of promotion: personal selling: direct communication between sellers and customers. Mass selling, which splits into Advertising (any paid form of nonpersonal persentation), and Publicity (unpaid, nonpersonal). And finally, sales promotion (everything else that can spark interest). Advertising is paid for, Publicity is prayed for.
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Price
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price flexibility, how price changes over product life cycle, competition, available substitutes, impact price of product will have on other products in organization's line.
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Marketing Strategy =
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Target Market + Marketing Mix
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Marketing Plan =
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Marketing Strategy + Time-Related Details
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Firm's Marketing Program =
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Marketing Plan + Other Marketing Plans
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What constitutes the marketing enviornment?
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Direct Market Environment (3 Cs), External Market Enviornment (Context: Social/Cultural, Legal, Technological, Economic)
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Culture as a segmentation
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Values change over time between generations, however, some cultures are meshing and influencing entire generations (i.e. rap influence on teens of all cultures). This generation incredibly adept to technology, huge boom in developing nations of youth, marketing of sustainability more relevant
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Political & Legal Environment
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Protecting competition, let customer decide who "wins". can't artificially restric competition (clayton: can't force sale of one good with another, sherman: force retailer to sell at certain price, Robinson: can't charge different prices to different customers)
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Legal Regulatory forces (4Ps)
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Product: patents, copyright, trademark; Promotion: can't have misleading advertising; Place: cannot limit retailers from only selling your product; Price: can't force retailer to sell at a certain price
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Porter's Five Forces
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Threat of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitutes, Level of rivalry among competitors
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GE Strategic Planning Grid
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positions opporunities according to industry attractiveness (size, growth) and business strength (resources of the organization like people skills, technological position, growth, market share, etc.) QUALITY OF IDEA VS BUSINESS CAPABILITY, INTERNAL VS EXTERNAL, 3x3
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What are segements?
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Groups of customers that a) have common needs & wants and, b) will respond similarly to a set of marketing actions (marketing mix)
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Why segment?
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to address unique needs of unique segements, to focus company's decisions making and be practical, to accomplish business objectives. RELEVANT, PRACTIVAL, FINANCIAL
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Product Market Definition (4 parts)
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Product Type (not in generic market), Customer Type, Geographic Area, Customer Needs i.e. bikes for men in north america who are looking for non-car transportation = product market
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Generic Market vs. Product Market
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No product type. Generic Market allows you to find opportunities within larger markets. Also, finds competition that affects your demographic, though not directly. Men in north america looking for non-car transportation.
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Market Segmentation
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groups customer with similar needs
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Criteria for segmenting
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same within, different outside, substantial, and operational,
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Targeting
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choosing to focus on specific segments
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How do you decide targeting?
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a) customer characteristics (large / growing segment), b) competition (is there a large amount of competition, substitute products, cost of reaching segment?), c) company (alignment with assets, brand, finances, etc.)
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Process of target marketing
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All customer needs > some generic market > one product market > narrowed product markets, then select target marketing approach (single, multiple, combined)
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Single Target Market
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select one homogenous segment as target
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Multiple Target Market
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select two or more segments, develop different marketing mixes for each
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Combined Target Market
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combines submarkets into a single target market, develop one marketing mic for the combined target
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Segment or Combine?
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combiners satisfy "pretty well", segmenters satisfy "very well". Segmenting may produce bigger sales of that segment bc may are willing to pay more to satisfy needs more precisely. Segment or combine? Depends on 4 Cs. Low cost = Combining, High Revenue = Segmenting
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Perceptual Map
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the place the product currently occupies in consumers' minds. Positioning means choosing the place a product should occupy in consumers' minds. This is how you differentiate a product. This affects both your firm and competitors.
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Positioning
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Positioning means choosing the place a product should occupy in consumers' minds. Helps with deciding between combining or segmenting
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Positioning Statement (has 5 important pieces of information)
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For (TARGET), (PRODUCT) is (PT OF DIFFERENTIATION) among all (COMPETITION) because (SINGLE MOST IMPORTANT SUPPORT).
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Final Consumers
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buy things for their own use
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Organizational Customers
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firms who also make products and/or services
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Consumer Behavior (4 key ideas)
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the process consumers use to select, purchase, use, and dispose of products, services, or experiences to satisfy needs/desires.
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Why do we study CB?
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to predict, satisfy, and influence consumers' behavior. Not necessarily a bad thing-- could be used for good.
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Internal Factors for CB
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Economic Needs & Psychological Variables
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External Factors for CB
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Situation & Social influences
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4 Key Points of the Consumer Decision Process
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Awareness, Problem Solving, Purchase Decision, Evaluation the Decision. Marketing can affect each of these stages.
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CB: Awareness
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Internal need, or triggered by social situations (friend has one) or marketing (advertisement).
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CB: Problem Solving
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Information search. Begin evaluating options to consider. Criteria to consider: value perceptions, what matters more (safety, looks, etc.); Choice strategy to evaluate alternatives (Compensatory + inferior vs. non-compensatory + superior)
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CB: Purchase Decision
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From whom to buy (influences by convenience, overall experience), and when to buy (personal circumstances and marketing actions)
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CB: Experience After the Purchase
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Compare actual experience with expectations. Expectations are set by personal experiences, social influences, and marketing influences.
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Problem Solving Continuum
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Low Involvement is usually more Routinized Response Behavior because it's frequently purchased inexpensive, and there's little risk. High Involvement involves infrequently purchased, expensive products
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Economic Needs consider with CB
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Economy of purchase, convenience, efficiency in use, dependability. We don't, however, use too much logic with items that are luxuries.
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Psychological Variables to consider with CB
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Motivation, perception, learning, attitude, personality / lifestyle. Maslow's Pyramid of needs. Physiological (water) > Safety (health) >Social (love, friendship) > Personal (self-esteem, fun, freedom)
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Learning and CB
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Sufficient learning leads to habits. Learning is in essense a change in one's thought process caused by prior experience. Drive > Cue > Response. The more times a cue is placement, the more reinforced the response will be.
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Attitude vs. Belief in CB
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Attitude is a POV, life vs. dislike, and tends to be learned. Attitudes affect selective processes, learning, and also relate to buying decisions made in the person's mind."I really dislike Listerine". Beliefs are opinions, such as "Listerine burns".
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Personality & Lifestyle Analysis in CB
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personality affects how people see things, markerters have found it difficult to incorproate personality into the marketing mix bc it's hard to identify them. Activities, Interests, and Opinions can indicate personalities.
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What affects Purchase situations?
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Purchase reason, time available, and physical surroundings.
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Social influences on CB
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FAMILY ties are important-- Family income is important because so many people live in families. Provides stages with unique priorities, etc. (Young people more expecting and frivilous. Teens like control / influence parents.) Also, SOCIAL CLASS (occupation, education, type of housing, location of housing. Also, REFERENCE GROUPS, OPINION LEADERS (celebrities), and CULTURE
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Organizational Consumer Types (4)
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Manufacturers, Producers of Services, Retailers and Wholesalers, Government
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Supply Chain
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depicts a chain of companies involved in providing a product / service (raw > finished product)
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How are Consumer and B2B buying behavior similar and different?
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SIMILAR: Businesses have needs, the decision process has same basic stages, influenced by the context. DIFFERENT: Market: demand is "derived", few customers bigger purchases. 4 Ps: often raw products w/ emphasis on delivery, service and meeting specifications; direct selling w/ advertising targeted & technical; negotiatied prices; usually online or in person, with few retailers
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Buying decision for B2B buying behavior
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Quality (parts meet specs), Total costs to purchase and use, reliability (order delivery), flexibility (can change orders), and logistics (shipping / information sharing, etc.)
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People involved in buying decision for B2B
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User, Buyer, Influencer, Decider, Gatekeeper
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If you were selling to an organization, which of the three buying processes would present the easiest opporunity? Why?
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1. New Task Buying (hardest);2. Modified Rebuy (medium); Straight Rebuy (easiest)
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Reverse marketing
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Common in B2B. Marketing tends to be bi-directional, because companies pick and groom suppliers to streamline processes, shape their development, investments, develop exclusivity arrangements, long term contracts, etc.
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Advantages of B2B Relationships
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ADVANTAGES:reliable source of products, reduced costs because of reduced suppliers (vice versa as well), price stability / concessions, more secure for the supplier, buyers / sellers can resolve problems jointly and improve quality
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Disadvantages of B2B Relationships
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DISADVANTAGES: Reduce buyer's flexibility and leverage, some purchases too small / infrequent, suppliers may incur risk if they rely too much on the purchases of a small number of buyers
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Manufacturers (locations, quantity, classifications)
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Not many big ones (high capital investment) but the big ones are HUGE, customers cluster in geographic areas because of shipping costs, history, resource promixity, create ecosystems of an industry (Detroit), NAICS code
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NAICS Code
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Identifies and Segments business buyers. Starts in broad category and dwindles down, adding numbers. Allows for statistical aggregation.
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Producers of Service (locations, quantlty, buying culture)
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Geographically spread out (need to be close to customers), growing in number, informal buying (bc of small size), and government data incomplete.
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Retailers and Wholesalers
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buying on behalf of the customer. Committee buying, mix is very different, "open to buy" refers to availability of funds within an organization's separate divisions; resident buyers
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The Government Market (as buyers)
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Use competitive bidding and approved supplier's list, and put legal constraints on supplier (ethical, labor, etc.) However, it's a huge and diverse market, hard to get deal but bigger rewards like longevity, negotiated contracts
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5 Steps to Market Research
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1. Define the problem. 2. Analyze the situation. 3. Get more data. 4.Interpret the data. 5. Solve the problem.
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Define the Problem: 3 Types of Research Problems
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1. MARKETS: perceptual maps, customer needs and demand forcasting. 2. MARKETING MIX: product testing, ad testing, and market mix testing. 3. PRODUCT AND BRAND PERFORMANCE: market tracking, customer satisfaction
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Define the Problem: 3 Types of Objectives
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1. Exploratory, 2. Descriptive, 3. Causal
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Market Research: Analyze the situation
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Formal (reports, MIS) and informal (salesforce, retailers) information networks; create ACTIONABLE research (relevant questions), primary or secondary data
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Market Research: Secondary Data
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pre-existing data collected, usually for another reason. Fast and low-cost, but also may be outdated, too general, or inaccurate. (previous studies, Nielsen, search engines)
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Market Research: Primary Research
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"Get more data" step. Observation (exploratory: direct:watching consumers, indirect:UPC data ), Survey (descriptive: structured:questionnaire/semi-structured:focus group, interview), or Experiments (causal: manipulate variables, taste tests, test market).
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Types of Data (4)
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Internal / External Secondary, Questioning / Observation Primary Data
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Factors to consider when researching
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1. On-time delivery (stays relevant). 2. Cost. 3. Reliability (sample size). 4. Representativeness (sampling units). 5. Validity (correlations)
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Sampling Procedures (2)
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Probability (simple & stratified); Non-probability (convenience & quota)
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Ethical issues in marketing research (4)
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withholding information, disguised sales pitches, unauthorized disclosire of personality information, lying with statistics.
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