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133 Cards in this Set
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Marketing
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The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. |
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Marketing Plan |
A written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro-forma income (and other financial) statements. |
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Marketing Mix (Four P's) |
1. Product: creating value by developing a variety of offerings to satisfy customers' needs 2. Price: capturing value; everything the buyer gives up (example: money, time, and/or energy) in exchange for the product. 3. Place: delivering the value proposition; represents all the activities necessary to get the product to the right customer when that cutomer wants it. 4. Promotion: communicating the value proposition; informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response. |
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Exchange |
The trade of things of value between the buyer and the seller so that each is better off as a result |
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Goods |
Items that you can physically touch. |
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Services |
Intangible customer benefits that are produced by people or machines and cannot be separated from the producer. |
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Ideas |
Thoughts, opinions, and philosophies; intellectual concepts such as these that can be marketed. |
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Business-to-Consumer (B2C) Marketing |
Business sells to consumers. |
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Business-to-Business (B2B) Marketing |
Business sells to business. |
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Consumer-to-Consumer (C2C) Marketing |
Consumer sells to consumers. |
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Production-Oriented Era |
The belief that a good product would sell itself. |
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Sales-Oriented Era |
Depended on heavy doses of personal selling and advertisement due to overproduction. |
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Market-Oriented Era |
Focused on what consumers wanted and needed before creating the product or service. |
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Value-Based Marketing Era |
While providing what customers want and need, they have to focus on giving a greater value than their competitors. |
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Value |
The relationship of benefits to costs |
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Value Cocreation |
Customers can act as collaborators to create the product or service |
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Relational Organization |
Marketers begin to think about their customers in terms or relationships rather than transaction. |
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Customer Relationship Management (CRM) |
A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers. |
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Supply Chain or Marketing Channel |
A group of firms that make and deliver a given set of goods and services. |
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Entrepreneurs |
People who organize, operate, and assume the risk of a business venture. |
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Marketing Strategy |
Identifies: 1. a firm's target market(s) 2. a related marketing mix 3. the basis on which the firm plans to build a sustainable competitive advantage. |
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Sustainable Competitive Advantage |
An advantage over the competition that is not easily copied and can be maintained over a long period of time. |
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Customer Excellence |
Focuses on retaining loyal customers and excellent customer service. |
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Operational Excellence |
Achieved through efficient operations and excellent supply chain and human resource management. |
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Product Excellence |
Having products with high perceived value and effective branding and positioning. |
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Locational Excellence |
Having a good physical location and Internet presence. |
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Planning Phase |
Marketing executives define the mission and/or vision of the business. |
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Implementation Phase |
Marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning (STP). |
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Control Phase |
Entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions. |
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What are the five steps in the Marketing Plan? |
1. Define the Business Mission 2. Conduct a Situation Analysis 3. Identify and Evaluate Opportunities Using STP 4. Implement Marketing Mix and Allocate Resources 5. Evaluate Performance Using Marketing Metrics |
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Mission Statement |
A broad description of a firm's objectives and the scope of activities it plans to undertake |
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Situation Analysis |
Uses SWOT analysis to assess both the internal and external environment. Internal: Strengths and Weaknesses External: Opportunities and Threats |
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STP |
Segmentation, Targeting, Positioning. The firm divides the marketplace into subgroups or segments, determines which segment should be pursued or targeted, and decides how it should position its products and services to best meet the needs of those chosen targets. |
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Market Segment |
Consists of consumers who respond similarly to a firm's marketing efforts. |
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Market Segmentation |
The process of dividing the market into groups of consumers based on different wants, needs, or characteristics. |
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Target Marketing |
Pursuing or targeting a segment(s). |
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Market Positioning |
The process of defining the marketing mix variables so that target customers have a clear distinctive, desirable understanding what the product does or represent in comparison with competing products. |
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Integrated Marketing Communications (IMC) |
Represents the promotion P of the 4 Ps. Encompasses a variety of communication disciplines in combination to provide clarity, consistency, and maximum communicative impact. |
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Metric |
A measuring system that quantifies a trend, dynamic, or characteristic. Used to explain why things happened and also project the future and compare results. |
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Strategic Business Unit (SBU) |
A division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives. |
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Product Line |
A group of products that consumers may use together or perceive as similar in some way. |
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Market Share |
The percentage of a market accounted for by a specific entity and is used to establish the product's strength in a particular market. |
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Relative Market Share |
Provides managers with a product's relative strength, compared with that of the largest firm in the industry. |
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Market Growth Rate |
Annual growth rate of the specific market in which t he product competes. Measures how attractive a particular market is. |
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Stars |
High-growth rate markets High-market share products Often require a heavy resource investment in such things as promotions and new production facilities to fuel their rapid growth. |
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Cash Cows |
Low-growth rate markets High-market share products Because these products have already received heavy investments, they have excess resources that can be used for other products that need it. |
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Question Marks |
High-growth rate markets Low market share products Whether or not this product should be infused with cash cows to turn into a star or should withdraw the resources and phase out the product. |
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Dogs |
Low-growth rate markets Low market share products Not destined for stardom and should be phased out unless needed to complement or boost the sales of another product or for competition purposes. |
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BCG Matrix |
Star, Cash Cow, Question Mark, Dog |
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Market Penetration Strategy
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Employs the existing marketing mix and focuses the firm's efforts on existing customers. |
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Market Development Strategy |
Employs the existing marketing offering to reach new market segments, whether domestic or international. |
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Product Development Strategy |
Offers a new product or service to a firm's current target market. |
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Diversification Strategy |
Introduces a new product or service to a market segment that currently is not served. |
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Related Diversification |
The current target market and/or marketing mix shares something in common with the new opportunity. |
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Unrelated Diversification |
The new business lacks any common elements with the present business. |
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Macroenvironmental Factors |
The culture, demographics, social trends, technological advances, economic situation, and political/regulatory environment (CDSTEP) |
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Culture |
Shared meanings, beliefs, morals, values, and customs of a group of people. |
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Country Culture |
Artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors and tastes, and food preferences. Try finding a universal appeal within the specific identities of the country culture. |
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Regional Culture |
The way they might refer to something ("soda" in one place and "pop" in another) |
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Demographics |
Indicate the characteristics of human populations and segments, especially those used to identify consumer markets. |
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Generational Cohort |
A group of people of the same generation Tends to have similar purchase behaviors, because they have shared experiences and are in the same stage of life. |
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Generation Z |
AKA Digital Natives (2001 to Present) Born into a world that already was full of electronic gadgets and digital technologies such as the Internet and social networks. |
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Generation Y |
AKA Millennials (1977 to 2000) Largest cohort Ranging from teens to adults who already have their own family |
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Generation X |
(1965 to 1976) Latchkey Children (those who grew up in homes where both parents worked) 50% divorced parents |
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Baby Boomers |
(1946 to 1964) After WWII, the birthrate in the US rose sharply. |
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Green Marketing |
Involves a strategic effort by firms to supply customers with environmentally friendly merchandise. |
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Greenwashing |
A type of exploitation of whether companies are actually making greener products or just holding a facade. |
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Economic Situation |
The way consumers buy merchandise and spend money. |
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Inflation |
Refers to the persistent increase in the prices of goods and services. |
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Foreign Currency Fluctuations |
Can influence consumer spending. |
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Interest Rates |
Represents the cost of borrowing money. |
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Political/Regulatory Environment |
Comprises political parties, government organizations, and legislation and laws. |
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Need Recognition |
Measured by the discrepancy between the needy state to the desired state. |
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Functional Needs |
Pertains to the performance of a product or service. |
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Psychological Needs |
Pertain to the personal gratification consumers associate with a product and/or service. |
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Internal Search for Information |
The buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences. |
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External Search for Information |
The buyer seeks information outside his or her personal knowledge base to help make the buying decision. |
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Internal Locus of Control |
The belief one has some control over the outcomes of their actions Generally engage in more search activities |
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External Locus of Control |
The belief that fate or other external factors control all outcomes Does not feel it matters how much information they gather |
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Performance Risk |
Involves the perceived danger inherent in a poorly performing product or service. Example: Katie Smith is worried that her new interview outfit is prone to shrinking when dry cleaned. |
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Financial Risk |
The risk associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service. Example: Katie Smith is worried about the dry cleaning cost that comes with buying her new interview clothes. |
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Social Risk |
Involves the fears that consumers suffer when they worry others might not regard their purchases positively. Example: Katie Smith is worried whether or not her friends would like her new interview clothes. |
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Physiological Risk (AKA Safety Risk) |
Involves what might happen if a product does not perform as expected. Example: What if the car's brakes do not work? |
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Psychological Risks |
Those risks associated with the way people will feel if the product or service does not convey the right image. Example: Katie Smith sought after fashion magazines, her friends, and the internet to look for the interview clothes that fit what she desires. |
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Universal Sets |
Include all possible choices for a product category. |
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Retrieval Sets. |
Those brands or stores that can be readily brought forth from memory. |
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Evoked Sets |
Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. |
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Evaluative Criteria |
Consists of salient, or important, attributes about a particular product. |
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Determinant Attributes |
Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. |
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Consumer Decision Rules |
Set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. |
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Compensatory Decision Rule |
Assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics. |
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Multi-Attribute Model |
A model to demonstrate how Compensatory Decision Rule works. |
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Noncompensatory Decision Rule |
Where they choose a product or service on the basis of one characteristic or one subset of a characteristic, regardless of the values of its other attributes. |
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Conversion Rate |
To measure how well they have converted purchase intentions into purchases. |
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Postpurchase Cognitive Dissonance |
An internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior. Example: Buyer's Remorse |
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Negative Word of Mouth |
Occurs when consumers spread negative information about a product, service, or store to others. |
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Motive |
A need or want that is strong enough to cause the person to seek satisfaction. |
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Maslow's Hiearchy of Needs |
Abraham Maslow organized needs into five categories (from most important to least important):
1. Self-Actualization 2. Esteem 3. Love/Belonging 4. Safety 5. Physiological Needs |
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Attitude |
A person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. |
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Cognitive Component |
Reflects a person's belief system, or what we believe to be true. |
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Affective Component |
Involves emotion, or what we feel about the issue at hand. |
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Behavioral Component |
Pertains to the actions we undertake based on what we know and feel. |
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Perception |
The process by which we select, organize, and interpret information to form a meaningful picture of the world. |
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Learning |
Refers to a change in a person's thought process or behavior that arises from experience and takes place throughout the consumer decision process. |
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Lifestyle |
Refers to the way consumers spend their time and money to live. |
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Reference Group |
One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors. |
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Situational Factors |
Factors specific to the situation |
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Extended Problem Solving |
Common when the customer perceives that the purchase decision entails a lot of risk. To reduced perceived risk, they would search for more information before buying. |
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Limited Problem Solving |
Occurs during a purchase decision that calls for a moderate amount of effort and time. Usually with consumers with prior experience with the product of service and the perceived risk is moderate. |
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Impulse Buying |
A buying decision made by customers on the spot when they see a merchandise. |
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Habitual Decision Making |
Describes a purchase decision process in which consumers engage in little conscious effort. |
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Business-to-Business (B2B) Marketing |
Business sells to Business
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Derived Demand |
Reflects the link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output. |
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Resellers |
Marketing intermediaries that resell manufactured products without significantly altering their form. Example: Wholesalers and Distributors (B2B), Retailers (B2C) |
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Institutions |
Hospitals, educational organizations, religious organizations Purchase goods and services. |
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B2B Buying Process |
1. Need Recognition 2. Product Specification 3. RFP Process 4. Proposal Analysis and Supplier Selection 5. Order Specification 6. Vendor/Performance Assessment using Metrics |
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Request for Proposals (RFP) |
A common process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications. |
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Web Portal |
An Internet site whose purpose is to be a major starting point for users when they connect to the web. |
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Buying Center |
Several people who are responsible for buying decisions. |
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Initiator |
The person who first suggests buying the particular product or service. |
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Influencer |
The person whose views influence other members of the buying center in making the final decision. |
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Decider |
The person who ultimately determines any part of or the entire buying decision. |
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Buyer |
The person who handles the paperwork of the actual purchase. |
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User |
The person who consumes or uses the product or service |
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Gatekeeper |
The person who controls information or access, or both, to decision makers and influencer. |
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Organizational Culture |
Reflects the set of values, traditions, and customs that guide its employees' behavior |
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Autocratic Buying Center |
One person makes the decision alone although there are multiple parties |
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Democratic Buying Center |
Decision based on majority rules. |
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Consultative Buying Centers |
One person makes a decision, but solicit input from others before doing so. |
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Consensus Buying Center |
All members of the team rush reach a collective agreement to make the decision. |
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New Buy |
A customer purchases a good or service for the first time. |
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Modified Rebuy |
The buyer has purchased a similar product in the past but has decided to change some specifications. |
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Straight Rebuys |
Occur when the buyer or buying organization simply buys additional units of products that have previously been purchased. |
