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76 Cards in this Set
- Front
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marketing
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the action or business of promoting and selling products or services, including market research and advertising. |
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marketing in the economic system |
But regardless of what form these take, all economic systems must develop some method—along with appropriate economic institutions—to decide what and how much is to be produced and distributed by whom, when, to whom, and why |
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history of marketing's role |
simple trade era—a time when families traded or sold their “surplus” output to local distributors.
production era is a time when a company focuses on production of a few specific products—perhaps because few of these products are available in the market. sales era - is a time when a company emphasizes selling because of increased competition. marketing department era is a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities. marketing company era is a time when, in addition to short-run marketing planning, marketing people develop long-range plans—sometimes five or more years ahead—and the whole company effort is guided by the marketing concept. |
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marketing concepts |
marketing concept means that an organization aims all of its efforts at satisfying its customers—at aprofit. The marketing concept is a simple but very important idea. |
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customer value |
This leads us to the concept of customer value—the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. |
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marketing strategy |
A marketing strategy specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market. Two interrelated parts are needed: |
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target market |
A target market—a fairly homogeneous (similar) group of customers to whom a company wishes to appeal. |
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marketing mix |
A marketing mix—the controllable variables the company puts together to satisfy this target group. |
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marketing plan |
A marketing plan is a written statement of a marketing strategy and the time-related details for carrying out the strategy. It should spell out the following in detail: (1) what marketing mix will be offered, to whom (that is, the target market), and for how long; (2) what company resources (shown as costs) will be needed at what rate (month by month perhaps); and (3) what results are expected (sales and profits perhaps monthly or quarterly, customer satisfaction levels, and the like). The plan should also include some control procedures—so that whoever is to carry out the plan will know if things are going wrong. This might be something as simple as comparing actual sales against expected sales—with a warning flag to be raised whenever total sales fall below a certain level. |
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marketing opportunities |
Newly identified need, want, or demand trend that a firm can exploit because it is not being addressed by the competitors |
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market environment |
Economic environment Technological environment Political and legal environment Cultural and social environment |
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marketing objectives |
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competitive environment |
The competitive environment affects the number and types of competitors the marketing manager faces and how they may behave. |
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political environment |
Nationalism can be limiting in international markets NAFTA builds trade cooperation in North America |
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legal enviroment |
Changes in the political environment often lead to changes in the legal environment and in the way existing laws are enforced. To illustrate the effects of the legal environment, we will discuss how it has evolved in the United States. However, laws often vary from one country to another. |
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economic environment |
The economic environment refers to macro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending. The rise and fall of the economy in general, within certain industries, or in specific parts of the world can have a big impact on what customers buy. |
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socio/cultural environment |
The cultural and social environment affects how and why people live and behave as they do—which affects customer buying behavior and eventually the economic, political, and legal environments. Many variables make up the cultural and social environment. Some examples are the languages people speak; the type of education they have; their religious beliefs; what type of food they eat; the style of clothing and housing they have; and how they view work, marriage, and family |
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analyzing opportunities |
evaluate risk The search for a breakthrough opportunity—or some sort of competitive advantage—requires an understanding not only of customers but also of competitors. That's why marketing managers turn to competitor analysis—an organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies. |
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segmentation |
Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmentingthese broad product-markets in order to select target markets and develop suitable marketing mixes. A market segment is a (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way. |
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positioning |
Positioning is a marketing concept that outlines what a business should do to marketits product or service to its customers. Inpositioning, the marketing department creates an image for the product based on its intended audience. This is created through the use of promotion, price, place and product. |
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differentation |
product differentiation (or simplydifferentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products. |
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why people buy |
The economic-buyer theory says that consumers decide what to buy based on economic needs, which are concerned with making the best use of a consumer's time and money—as the consumer judges it. Some consumers look for the lowest price. Others will pay extra for convenience. And others may weigh price and quality for the best value. Some economic needs include:Economy of purchase or useEfficiency in operation or useDependability in useImprovement of earningsConvenience |
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buying motivations |
they want to be consumers,,,wants and needs |
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economic buying |
Economic buyer – n : marketing term, typically used in business-to-business markets; describes the individual, decision-maker or group within the customer organization who controls the budget and writes the checks for new product purchases. |
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psychological influences on buying |
what people are thinking, curiosity, power, order |
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social influences on buying |
Social needs are concerned with love, friendship, status, and esteem—things that involve a person's interaction with others young people more receptive to new ideas |
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purchases situation influence on buying |
Why a consumer makes a purchase can affect buying behavior. For example, a student buying a pen to take notes might pick up an inexpensive Bic. But the same student might choose a Cross pen as a gift for a friend. And a gadget-lover with some free time on his hands might buy a digital pen that transfers handwritten notes to a tablet computer—just for the fun of trying it. |
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consumer decision process |
needs awareness leads to purchase decision or problem solving problem solving - info search, identify alts, set criteria, evaluate alts experience after the purchase |
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organizational buyers |
Organizational buyers come in several forms. Resellers involve either wholesalers or retailers that buy from one organization and resell to some other entity. For example, large grocery chains sometimes buy products directly from the manufacturer and resell them to end-consumers. Wholesalers may sell to retailers who in turn sell to consumers. Producers also buy products from sub-manufacturers to create a finished product. |
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organizational buying process |
In this step buyers gather information, solicit proposals from suppliers, and finally choose a supplier. The buying process can vary depending on the nature of the purpose—so we start by looking at different buying processes. |
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buying center |
The main point about buying centers (as a component of Business-to-business Marketing, and sometimes known as 'decision making units'(DMU)) is that they represent attempts to formalise marketing decision-making in complex environments. The key factors influencing the DMU's activities include: 1. Buy class (e.g. straight rebuy, new task or modified rebuy) 2. Product type (e.g. materials, components, plant and equipment and MRO (maintenance, repair and operation)) 3. Importance of the purchase[1] |
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marketing research |
Marketing research is guided by the scientific method, a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them. |
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scientific method |
A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them. |
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steps in marketing research process |
1.define the problem 2. analyze the situation 3.getting problem specific data 4. interpreting the data 5. solving the problem |
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product |
Product means the need-satisfying offering of a firm |
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branding and branding concept |
branding means the use of a name, term, symbol, or design—or a combination of these—to identify a product |
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types of brands |
licensed brand—a well-known brand that sellers pay a fee to use. family brand - brand name that is used for several products individual brands - separate brand names used for each product generic products—products that have no brand at all other than identification of their contents and the manufacturer or intermediary. Generic products are usually offered in plain packages at lower prices. They are quite common in less-developed nations |
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packaging |
Packaging involves promoting, protecting, and enhancing the product. |
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consumer product classes |
Consumer products are products meant for the final consumer. Business products are products meant for use in producing other products. |
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product life cycle |
product life cycle describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages: (1) market introduction, (2) market growth, (3) market maturity, and (4) sales decline. |
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managing over the product life cycle |
making existing products out of date more quickly than ever. Products, like consumers, go through life cycles. |
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new product planning |
new product is one that is new in any way for the company concerned. But customers don't see all new products in the same way |
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managing product quality |
We'll develop these ideas from the perspective of total quality management (TQM), the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs. lose customers due to poor quality |
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place strategies |
making goods and services available in the right quantities and locations, when customers want them. And when different target markets have different needs, a number of Place variations may be required. |
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types of channel distributions |
any series of firms or individuals who participate in the flow of products from producer to final user or consumer A direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries. indirect- A chain of intermediaries through which a product moves in order to be made available for purchase by a consumer. An indirect channel of distribution typically involves a product passing through additional steps as it moves from the manufacturing business via distributors to wholesalers and then retail stores.Read more: http://www.businessdictionary.com/definition/indirect-channel-of-distribution.html#ixzz3eZUsWisA |
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functions of channel |
A distribution channel is the network of individuals and organizations involved in the process of moving a product or service from the producer to the end user |
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market exposure |
The dollar amount of funds or percentage of a portfolio invested in a particular type of security, market sector or industry, which is usually expressed as a percentage of total portfolio holdings. Market exposure, also known as “exposure,” represents the amount an investor can lose from the risks unique to a particular investmentRead more: http://www.investopedia.com/terms/m/marketexposure.asp#ixzz3eZWKQViT Follow us: @Investopedia on Twitter |
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multichannel distribution |
Multichannel distribution occurs when a producer uses several competing channels to reach the same target market—perhaps using several intermediaries in addition to selling directly. |
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role of physical distribution |
the transporting, storing and handling of goods in ways that match target customers' needs with a firm's marketing mix - both within individual firms and along a channel of distribution |
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customer service and physical distribution |
customers don't care how a product was moved or stored or what some channel member had to do to provide it. customer service level—how rapidly and dependably a firm can deliver what they, the customers, want. |
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retailing vs wholesaling |
retailing - product offering, expand assortment and service, mass merchandise retailers, competing on convenience wholesalers are firms whose main function is providing wholesaling activities. |
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types of retailers |
department stores supermarkets warehouse retailers specialty retailers internet retailers |
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retailing strategies |
product offering expanded assortment and service competing on convenience retailing on the internet |
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types of wholesalers |
Merchant wholesalers own (take title to) the products they sell Service wholesalers are merchant wholesalers that provide all the wholesaling functions. Within this basic group are three types: (1) general merchandise, (2) single-line, and (3) specialty. General merchandise wholesalers are service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, Specialty wholesalers are service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers Single-line (or general-line) wholesalers are service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers. |
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promotion |
Promotion is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior |
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elements of promotion mix |
In marketing, the promotional mix describes a blend of promotional variables chosen by marketers to help a firm reach its goals. personal selling - Personal selling involves direct spoken communication between sellers and potential customers. Advertising is the paid presentation and promotion of ideas, goods, or services publicity is information about a firm's products and services carried by a third party in an indirect way. Sales Promotion is media and non-media marketing communication used for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability |
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push vs pull strategies |
Push marketing is defined as a promotional strategy in which a business attempts to get their message in front of their potential customers without them having a desire or interest to buy the product or learn more about it. pull marketing takes the opposite approach. Consumers actively seeking out a product define it and the retailer presents his ads, or products, in the path of the consumer. |
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communication models |
Here we see that a source—the sender of a message—is trying to deliver a message to a receiver—a potential customer source - encoding - message channel - decoding - receiver |
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promotion of the product life cycle |
market intro - "this new idea is good"
market maturity - "our brand is better, really" sales decline - "lets tell those who still want our product " |
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role of personal selling |
Personal selling is often a company's largest single operating expense. This is another reason why it is important to understand sales management decisions. Bad ones are costly in both lost sales and in actual out-of-pocket expenses. |
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types of personal selling |
Order Getters are concerned with establishing relationships with new customers and developing new business Order Takers - sell to the regular or established customers, complete most sales transactions, and maintain relationships with their customers Order Influencers Sales Support - help the order-oriented salespeople, but they don't try to get orders themselves |
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personal selling techniques |
prospecting involves following all the leads in the target market to identify potential customers. prepared sales presentation approach uses a memorized presentation that is not adapted to each individual customer consultative selling approach involves developing a good understanding of the individual customer's needs before trying to close the sale selling formula approach starts with a prepared presentation outline—much like the prepared approach—and leads the customer through some logical steps to a final close aida - attention, interest, desire , action |
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advertising objectives |
inform persuade specific |
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types of advertising |
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media decisions |
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publicity |
Publicity is gaining public visibility or awareness for a product, service or your company via the media. |
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types of publicity |
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sales promotion |
Sales Promotion refers to those promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel |
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types of sales promotion |
contests, coupons, aisle displays, samples, trade shows, promotion allowances, calendars, gifts , meetings |
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pricing objectives |
maximize long-run profit. maximize short-run profit. increase sales volume (quantity) increase monetary sales. increase market share. obtain a target rate of return on investment (ROI) obtain a target rate of return on sales |
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price flexibility |
A flexible-price policy means offering the same product and quantities to different customers at different prices. When computers are used to implement flexible pricing, |
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types of discount and allowances |
Quantity discounts are discounts offered to encourage customers to buy in larger amounts. This lets a seller get more of a buyer's business, or shifts some of the storing function to the buyer, or reduces shipping and selling costs—or all of these Cumulative quantity discounts apply to purchases over a given period—such as a year—and the discount usually increases as the amount purchased increases Noncumulative quantity discounts apply only to individual orders. seasonal discounts |
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allowance policies |
Advertising allowances are price reductions given to firms in the channel to encourage them to advertise or otherwise promote the supplier's products locally Stocking allowances—sometimes called slotting allowances—are given to an intermediary to get shelf space for a product. Push money (or prize money) allowances—sometimes called PMs or spiffs—are given to retailers by manufacturers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items. A trade-in allowance is a price reduction given for used products when similar new products are bought. |
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price strategy |
A business can use a variety of pricing strategies when selling aproduct or service. Penetration pricing includes setting the price low with the goals of attracting customers and gaining market share. The price will be raised later once this market share is gained In most skimming, goods are sold at higher prices so that fewer sales are needed to break even absorption - Method of pricing in which all costs are recovered.The price of the product includes the variable cost of each item plus a proportionate amount of the fixed costs |
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cost based pricing strategies |
Implementation of cost-based pricing presents problems in practice.A company must know its costs to implement cost-based pricing.Costs are a function of sales, which are in turn a function of prices; therefore, the calculation of these values is circular.Cost-based pricing is misplaced in industries where there are high xed costs and near-zero marginal costs.Source: Boundless. “Cost-Based Pricing.” Boundless Marketing. Boundless, 27 Jun. 2015. Retrieved 30 Jun. 2015 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/pricing-8/general-pricing-strategies-62/cost-based-pricing-309-5160/ |
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demand based pricing strats |
Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.Price discrimination exists when sales of identical goods or services are transacted at different prices from the same provider.Psychological pricing is a marketing practice based on the theory that certain prices have a psychological impact.Bundle pricing is a marketing strategy that involves offering several products for sale as one combined product.Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.Value-based pricing sets prices primarily on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices.Source: Boundless. “Demand-Based Pricing.” Boundless Marketing. Boundless, 27 Jun. 2015. Retrieved 30 Jun. 2015 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/pricing-8/general-pricing-strategies-62/demand-based-pricing-310-4130/ |
