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46 Cards in this Set
- Front
- Back
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What is marketing? |
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large |
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Marketing is about _______ and ________ to _______ affected by a transaction |
Marketing is about meeting needs and delivering value to all people |
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Needs |
Difference between actual and desired state |
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Wants |
Desire to satisfy needs in a certain way |
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Benefit |
The outcome customer desires; meets a need or want |
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Exchange |
Transferring value from buyer to seller |
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Demand |
Desire for product/serve + resources to pay for it |
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Market |
Collection of people who have a need for a product/service, and are willing and able to spend the resources necessary to obtain it |
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Stakeholders |
-Anybody who has a "stake" in outcome of the product or service -Seller, buyer, investor, community, or place where product is made |
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Utility/Value |
-Sum of benefits we receive from a product -Can by symbolic (prestige) |
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Types of utility |
-Form (convert raw materials into product) -Place (make product/service available when customers want them -Time (storing product until customer needs it) -Possession (benefit from owning, using, enjoying product) |
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Value proposition |
Marketplace offering that fairly and accurately sums up value realized if customer buys product or service |
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Value Chain (5) |
-In-bound logistics (bringing in raw materials) -Operations (converting raw materials into product) -Outbound logistics (shipping our final product) -Marketing and sales value chain -Servicing product or customer |
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Maslow's hierarchy of needs and Schwartz value system (5) |
-Self-actualization (self fulfillment) -Ego needs (prestige, status, self-esteem) -Social needs (affection, friendship, belonging) -Safety and security needs (protection, order, stability) -Physiological needs (food, water, air, shelter, sex) |
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McClelland's systems of needs (3) |
-Power - Individual's desire to control environment -Achievement - Need for personal accomplishment -Affiliation - Need for friendship, acceptance, and belonging |
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Deel & Ryan (2000) (3) |
-Autonomy - Desire freedom from external control -Competence - Need to feel one is competent at tasks -Relatedness - Need to relate to others
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Product orientation (4) |
-When demand > supply (seller's market) -Focus is on efficient production/distribution -Marketing plays an insignificant role -A good product will sell itself
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Selling orientation (4) |
-When supply > demand (buyer's market) -Assumed customers resist buying non-essentials -Focus is on moving product via hard sales tactics -Marketing seen as a sales function |
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Consumer (or market) orientation (7) |
-After WWII, production of consumer products resumed -Strong buyer's market created need for consumer orientation -Idea captured by the "marketing concept" -Purpose of organization is achieving long-term success of organization by creating customer value (meeting customer's needs) -Thus, must gather data, understand and meet needs -Advantage: can build products consumers will more quickly adopt -Stressed Total Quality Management (TQM) -Continual improvement/input from employees |
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New Era orientation (6) |
-Build long-term relationships with customers -Customer relationship management (track needs, tailor value proposition to unique needs) -Social marketing concept (benefit society, firm) -Sustainability -Designing products so that we meet present needs without compromising ability of future generations to meet theirs -Accountability (what is return on investment in marketing activities?)
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Dark side of marketing (6) |
Social, legal, psychological, environmental, etc -Illegal practices like "bait and switch" -Societal health problems -Diabetes, heart disease, cancer, alcoholism, domestic violence Psychological costs -Many ads exchange us to feel bad about ourselves Financial burdens -Consumer debt Environmental degradation and resource depletion |
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Marketing plan (3) |
How to achieve goals Perform a situation (SWOT) analysis Set marketing objectives (more narrowly defined that organization objectives) |
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Develop marketing strategies (2) |
Select a target market -Market opportunity analysis - size and sales potential of target group, and assessment of key competitors Develop marketing mix strategies -Product, price, promotion, place of distribution |
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Implement and control the plan (3) |
Action plans - implementation of marketing strategies, responsibilities, time line, budget, measurement, and control Control = monitoring progress -Compare actual performance to marketing objectives and adjust strategy/objectives as needed -Must have good marketing metrics Marketing audits = evaluation of objectives, strategies, structure, performance of marketing organization |
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Marketing mix 4 P's |
4 P's - Product, price, place, promotion |
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Three levels of a business plan |
Strategic, functional, operational |
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Strategic planning |
Managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival |
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Functional (marketing) planning |
Decision process that focusses on developing detailed plans for strategies and tactics for the short term that support an organization's long-term strategic plan |
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Operational planning |
Decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization's functional plans |
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Five steps in a strategic plan |
Mission, environmental analysis, set objectives, establish/evaluate portfolio, growth strategies |
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Mission (4) |
-Formal statement in an organization's strategic plan that describes overall purpose of org, and what it plans to achieve in terms of customers, products, resources, etc -Too narrow = marketing myopia; too broad = no direction -Could have one for each strategic business unit (SBU) -Individual unites in the firm that operate like separate businesess, each with its own mission, objectives, resources, managers, and competitos |
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Environmental analysis |
S.W.O.T analysis SWOT analysis (strengths, weaknesses, opportunities, threats) SW = internal OT = external Goal; figure out a competitive advantage (CA) -Cos, product/service differentiation, niche -Sustainable CA -An advantage that cannot be copied by competition |
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Internal environment (3) |
Controllable elements in org, that may affect performance, processes
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External environment |
Uncontrollable elements outside org, that may affect performance |
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Set objectives (2) |
Objectives flow from mission statement Effective objectives are -Realistic, specific, measurable, and well-matched with mission statement |
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Establish/ Evaluate portfolio (SBU's, BCG market share matrix) (2) |
Portfolio -Collection of brands/units owned by org, that have different income generating potential Portfolio analysis -Evaluating an org's business mix and assessing potential of an org's SBU's |
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Stars |
dominant market share in high growth markets |
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cash cows |
dominant market share in low growth market |
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Question marks |
low market share in high growth markets |
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Dogs |
low market share in low growth markets |
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Basic model of consumer decision making |
Problem recognition, information search, evaluate alternatives, product choice, post purchase behavior |
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Problem recognition |
-Recognizing a difference between current and desired or ideal state -Can be driven by internal (hunger, goals) or external (friends, life stage, advertisements) factors |
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Information search |
-Searching for appropriate information to make a reasonable decision -Internal sources (memory based on past experience) -External sources, non-marketing controlled, marketing controlled -Search enlarges when perceived risk and interest are high, and confidence, knowledge, experience low |
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Evaluate alternatives |
Info search --> "evoked (consideration) set -Evaluation criteria, dimensions used by consumers to compare competing products/services -Good marketers know the impact of different evaluation criteria |
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Product choice (4) |
Reducing alternatives -Key attribute (AC) or cutoff (40 mpg) Heuristics = rules of thumb that facilitate quick decision making (expensive is good) Brand loyalty also important Intentions don't always lead to choice -Attitude of others and unseen situational factors
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Post purchase behavior (3) |
Post-purchase evaluation -satisfaction based on expectations -Larger gap, less satisfaction reduce post-decisional regret (cognitive dissonance) other post purchase behaviors -repeat purchase -good vs. bad word of mouth |
