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125 Cards in this Set
- Front
- Back
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What is a need?
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Human needs are states of felt deprivation
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What is a want?
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The form human needs take as they are shaped by culture and individual presonality
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What is a demand?
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When backed by buying power, wants become demands
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What is a marketing offer?
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Some combination of products, services, information or experiences offered to a market to safisty a need or a want
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What is a value proposition?
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The set of benefits or values it promises to deliver to consumers to satisfy their needs
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What is the production concept?
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Holds that consumers will favor products that are available and highly affordable
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What is the product concept?
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Holds that consumers will favor products that offer the most in quality, performance, and innovative features
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What is the selling concept?
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Holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort
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What is the marketing concept?
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Holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
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What is the social marketing concept?
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Questions whether the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare
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Describe the concept of customer relationship management
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CRM is perhaps the most important concept of modern marketing. It is the overall process of building and maintaining pforitable customber relationships by delivering superior customer value and satisfaction
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What is "share of customer"?
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The share a company gets of the customer's purchasing in their product categories
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What is the strategic planning process?
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The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing market of opportunities
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What is the role of marketing in the strategic planning process?
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After the company mission is defined, they set objectives and goals, then they design the business portfolio and finally they plan marketing and other functional strategis
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How do you apply the BCG matrix?
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BCG=Boston Consulting Group.
A company classifies all its SBUs according to the growth-share matrix. |
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On the growth-share matrix what is on the vertical axis?
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Market growth rate- which provides a measure of market attractiveness.
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On the growth-share matrix, what is on the horizontal axis?
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Relative market share- which serves as a mesaure of company strength in the market
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What are stars and where are they located?
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Stars are high-growth, high-share business or products. They often need heavy investment to finance their rapid growth. Eventually their growth will slow down and they will turn into cash cows. Stars are in the upper lefthand corner
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What are cash cows and where are they located?
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Cash cows are low-growth, high-share businesses of products. These established and successful SBUs need less investment to hold their market share. THus, they product a lot of cash that the company uses to pay its bills and to support other SBUs that need investment. They are located in the lower lefthand corner
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What are question marks and where are they located?
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Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increse it. Management needs to think hard about which question marks it should try to build into stars and which should be phased out. They are located in the upper righthand corner
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What are dogs and where are they located?
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Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but don't promise to be large sources of cash. They are located in the lower righthand corner
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What is market penetration?
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Making more sales to currenc customers without changing its products
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What is market development?
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Identifying and developing new markets for its current products
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What is product development?
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Offering modified or new products to current markets
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What is diversification?
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Starting up or buying businesses outside of its current products and markets
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What is a company's microenvironment?
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Consists of the actors close to the company that affect its ability to serve its customers-the company, the suppliers, marketing intermediaries, customer markets, competitors, and publics
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What are the six macroenvironmentsl forces?
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Demographic, economic, natural, technological, political, cultural
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What is the demographic macroenvironmental force?
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The study of human populations in terms of size, density, location, age, gende, race, occupation, and other stats
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What is the economic macroenvironmental force?
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Consists of factors that affect consumer purchasing power and spending patterns
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What is the natural macroenvironmental force?
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Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
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What is the technological macroenvitonmental force?
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Perhaps the most dramatic force now shaping our destiny. Technology has released such wonders as antibiotics, robotic surgery, miniaturized electronics etc...
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What is the policial macroenvitonmental force?
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Consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
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What is the cultural macroenvironmental force?
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Made up of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors.
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How do you conduct a SWOT analysis?
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You evaluate the company's overall strengths, weaknesses, opportunities, and threats.
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What is internal data?
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Electronis collections of consumer and market information obtained from data sources within the company network
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What is marketing intelligence?
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The systematic collection and analysis of publicly available information about competitors and developments in the marketplace. The goal of marketing intelligence is to improve strategic decision making, assess and track competitors' actions, and provide early warning of opportunities and threats
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What is marketing research?
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The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organizaiton. Companies use marketing research ina wide variety of situations. EX: Marketing research can help marketers understand customer satisfaction and purchase behavior
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What are the advantages and challenges of internal data?
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Advantages: Can be accessed quickly and cheaply.
Challenges: Information can be incomplete or in the wrong form |
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What are the advantages and challenges of marketing intelligence?
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Advantages: Much intelligence cacn be collected from people inside the company, information can be found in online reports.
Challenges: Ethical issues are raised and companies should not take advantage of public information |
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yWhat are the advantages and challenges of marketing research?
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Advantages: They are able to define the problem, develop a research plan, gather secondoary data, collect primary data
Challenges: The needed information might not exist or it might not be useable, issues involving consumer privacy |
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What is primary research?
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Primary data collection calls for a number of decisions on research approaches, contact methods, sampling plan, and research instruments
Examples: observational research (gathering info by observing relevant people, actions and situations), survey research (best suited for gathering descriptive information), experimental research (gathering casual information), mail telephone and personal interviewing |
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What is secondary research?
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The company's internal database is a good place to conduct secondary research. Companies can also buy secondary data reports from outside suppliers, they can also use commercial online databases
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What is the marketing research process?
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The systematic design, collection, analysis, and reporting of data relevant to a specific markting situation facing an organization
Defining the problem and research objectives --> Developing the research plan for collecting information --> Implementing the research plan-collecting and analyzing the data --> interpreting and reporting the findings |
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What is the high-level model of consumer behavior?
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Marketing and other stimuli (marketing product, price, place, and promotion) and (other economic, technological, political, cultural)-->Buyer's black box (buyer characteristics, buyer decision process) -->Buyer responses (product choice, brand choice, dealer choise, purchase timing, purchase amount)
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What are the characteristics affecting consumer behavior?
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Culture, subclutures, social factors, personal factors, and psychological factors
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How does culture affect consumer behavior?
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Growing up in society, a child learn basic values, perceptions, success etc...
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How do subcultures affect consumer behavior?
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Different races will feel differently about value systems. Many subcultures share the same values.
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How to social factors affect consumer behavior?
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A consumer's buying behavior is influenced by social factors such as the consumer's fall groups, family, and social roles and status
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How do personal factors affect consumer behavior?
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Buyer's decisions are influenced by personal characteristics such as the buyer's age, life-cycle state, occupation, economic situation, lifestyle etc...
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How to psychological factors affect consumer behavior?
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Buyer's behavior is influenced by four major psychological factors: motivation, perception, learning, and beliefs & attitudes
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What are the types of buying decision behavior?
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Complex, dissonance-reducing, habitual, and variety-seeking
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What is complex buying behavior?
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When consumers are highly involved in a purchase and perceive significant differences among brands
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What is dissonance-reducing buying behavior?
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Occurs when consumers are highly involved with an expensive, infrequent purchase
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What is habitual buying behavior?
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Occurs under conditions of lower consumer involvement and little significant brand difference
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What is variety-seeking buying behavior?
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Situations characterized by low consumer involvement but significant perceived brand differences
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What is the buyer decision process?
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1.) Need recognition--buyer recognizes problems or needs
2.) Information search--an interested consumer may or may not seach for more information 3.) Evaluation of alternatives--how the consumer processes information to arrive at brand choices 4.) Purchase decision--the consumer's decision to buy the most preferred brand 5.) Post-purchase behavior--the consumer will be satisfied or dissatified |
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What is derived demand?
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Business demand that ultimately comes from the demand for consumer goods
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How does business buyer behavior differ from consumer buyer behavior?
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Buyer behavior includes major forces in the environment: economic, technological, political, cultural, and competitive.
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How is business buyer behavior similar to consumer buying behavior?
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The marketing stimuli for business buying consiste of the four Ps
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What are the typical roles within a buying center?
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1.Users (members who use the product)
2.Influencers (help define specifications and provide info for alternatives) 3. Buyers (have formal authority to select the supplier and arrange terms of purchase) 4. Deciders (have formal or informal power to select or approve the final suppliers) 5. Gatekeepers (control the flow of information to others) |
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What is a straight rebuy?
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A business situation in which the buyer routinely reorders something without any modifications
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What is a modified rebuy?
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A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
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What is a new task?
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A business buying situation in which the buyer purchases a product or service for the fist time
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What is the buying decision process?
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Problem recognition --> general need description --> product specification --> supplier search --> proposal solicitation --> supplier selection --> order-routine specification --> performance review
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What is the difference between the buying decision process versus the consumer process?
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As a consumer you don't need a committee to help you purchase pants. Consumers don't get to evaluate the company (performance review). It doesn't take long as a consumer to purchase an item. The buying decision process requires lots of time and money
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What is market segmentation?
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Consists of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitutes, and buying practices. Companies divide large markets into smaller segmentst
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What is target marketing?
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Market segmentation reveals the firm's market segment opportunities. The firm now must evaluate the various segments and decide how many and which segments it can serve best
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What is marketing positioning?
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Beyond deciding which segments of the market it will target, the company must decide on a value proposition--on how it will create differentiated value for targeted segments and what positions it wants to occupy in these segments
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What are geographic segmentations?
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They call for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhiids.
Example: Applebee's wants every town to have a bar/grill. It markets to fewer than 50,000 people, breaking down the misconception that small-market americans aren't interested in anything that can't be bought at wal-mart. This strategy it working great |
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What are demographic segmentations?
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They divide the market into groups based on variables such as age, gender, family size, income, occupation, education etc..
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What is psychographic segmentation?
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It divides buyers into different groups based on social class, lifestyle, or personality characteristics
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What is behavioral segmentation?
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It divides buyers into groups based on their knowledge, attitudes, or responses to a product
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What is an example of geographic segmentation?
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Kraft developed Post's Fiesta Fruity Pebbles cereal for areas with high Hispanic populations
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What is an example of demographic segmentation?
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Dividing by age (marketing Grand Theft Auto to teens), gender (loreal paris beings its grooming technology to you because you're worth it), income (target dollar stores to low and middle income families)
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What is an example of psychographic segmentation?
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Lifestyles, like American Express "my life, my card"
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What is behavioral segmentaiton?
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Occassions (altoids offers "love tin" during valentine's day), benefits sought (benefits from a product, Champion wear segments its markets according to benefits that different consumers seek from their activewear)
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What are the requirements for effective segmentation?
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To be useful, market segments must be:
Measurable (size, purchasing power, and profiles can be measured) Accessible (market segments can effectively be reached and served) Substantial (market segments are large or profitable enough to serve) Differentiable (market segments are conceptually distinguishable) Actionable (effective programs can be designed for attractive and serving the segments) |
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What is an example of measurable market segments?
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Lefties--most products are for right handed people...it's hard to find demographics based on left handed people
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What is an example of accessible market segment?
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If a perfume company finds that heavy users of its brand are single men and women who stay out late and socialize, then they need to have the perfume in places where single people shop
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What is an example of substantial market segment?
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A segment should be the largest possible homogeneous group worth persuing with tailored marketing
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What is a differentiable marketing segment?
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If married and unmarried men and women respond similarly to a sale on perfume, they don't constitute separate segments
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What is actionable marketing segment?
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A small company identified seven market segments but the staff was too small to develop separate marketing programs for each segment
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How do you create a positioning map based on the quality versus price with UCD, metro, etc...
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Think the map we drew in class...CCD is cheap and has low quality so it would be in the lower lefthand corner. The circle size depends on the market share of each college....metro's would be big because they have a large population
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What is a positioning statement?
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a statement that summarizes company or brand position--it takes this form: to (target segment and need) our (brand) is (concept) that (point of difference) EX: "to busy, mobile professionals who need to always be in the loop, balckberry is a wireless connectivity solution that allows you to stay connected to data, people, and resources on the go"
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Describe a marketing offer in terms of its core benefits, actual product, and augmented product
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Core benefit: what is the product's main benefit
Actual product: brand name, features, quality level, packaging and design Augemented product: after-sale service, waranty, installation, delivery and credit |
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Whare are convenience products?
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Products/services that a customer buys frequently, immediately, and with a minimum of comparison and buying effort (pop, candy, newspapers)
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What are shopping products?
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less frequently purchased consumer products/services (furniture, clothing, used cars)
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What are speciality products?
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Consumer products/services with unique characteristics or brand identification (Lamborghini, designer clothes)
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What are unsought products?
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Products that the consumer doesn't know about ot doesn't normally think about buying (life insurance)
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What is a brand?
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a name, term, sign, symbol, or design (or combination) that identifies the maker or seller of a products or service (for example: a bottle of White Linnen perfume which is a high-quality and expensive item that was packaged in an unmarked bottle would be viewed as lower in quality even if it was the same product
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What is a differentiable marketing segment?
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If married and unmarried men and women respond similarly to a sale on perfume, they don't constitute separate segments
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What is actionable marketing segment?
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A small company identified seven market segments but the staff was too small to develop separate marketing programs for each segment
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How do you create a positioning map based on the quality versus price with UCD, metro, etc...
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Think the map we drew in class...CCD is cheap and has low quality so it would be in the lower lefthand corner. The circle size depends on the market share of each college....metro's would be big because they have a large population
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What is a positioning statement?
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a statement that summarizes company or brand position--it takes this form: to (target segment and need) our (brand) is (concept) that (point of difference) EX: "to busy, mobile professionals who need to always be in the loop, balckberry is a wireless connectivity solution that allows you to stay connected to data, people, and resources on the go"
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Describe a marketing offer in terms of its core benefits, actual product, and augmented product
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Core benefit: what is the product's main benefit
Actual product: brand name, features, quality level, packaging and design Augemented product: after-sale service, waranty, installation, delivery and credit |
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Whare are convenience products?
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Products/services that a customer buys frequently, immediately, and with a minimum of comparison and buying effort (pop, candy, newspapers)
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What are shopping products?
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less frequently purchased consumer products/services (furniture, clothing, used cars)
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What are speciality products?
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Consumer products/services with unique characteristics or brand identification (Lamborghini, designer clothes)
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What are unsought products?
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Products that the consumer doesn't know about ot doesn't normally think about buying (life insurance)
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What is a brand?
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a name, term, sign, symbol, or design (or combination) that identifies the maker or seller of a products or service (for example: a bottle of White Linnen perfume which is a high-quality and expensive item that was packaged in an unmarked bottle would be viewed as lower in quality even if it was the same product
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What is brand equity?
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the positive differential effect that knowing the brand name has on customer response to the product or service....for example: mercedes, GE, disney all have high brand equity
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What is a product line?
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a group of products that are closely related because they function in a similar matter, are sold to the same customer groups, are marketed through the same type of outlets (such as Nike producing lots of stuff: shoes, clothing etc)
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What is a product mix?
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consists of all the product lines and items that a seller offers for sale. think colgate: they sell oral care, personal care, home care, and pet nutrition...GE makes more than 250,00 products
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What is product quality?
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one of the marketer's major positioning tools. quality has a direct impact on product or service performance
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what is performance versus conformance?
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performance: don't expect high quality from mcdonalds
conformance: expect every burger to taste the same at every mcdonalds |
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What are the four special characteristics of service?
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intangibility, inseparability, variability, and perishability
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What is service intangibility?
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services cannot been seen, tasted, felt, heard, or smelled before purchase (such as an airline ticket)
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What is service inseparability?
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services cannot be separated from their providers (if a service employee provides the service, then the employee becomes part of the process
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What is service variability?
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the quality of services depends on who provides them as well as when, where, and how they are provided (one mariott employee could be very happy and friendly and one standing next to them could be unpleasant)
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What is service perishability?
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the services cannot be stored for later sale of use (some doctor's charge patient for missed appointments because the services value existed only at that point and disappeared when the patient didn't show up)
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What is the new product development process?
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idea generation, idea screening, concept development & testing, and marketing strategy development
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what is idea generation?
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the search for new product lines
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what is idea screening?
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helps spot good ideas and droop poor ones as soon as possible
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what is concept developing and testing?
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develop a product then test the new-product concepts with groups of target consumers
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what is marketing strategy development?
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designing an initial marketing strategy for introducing a product into the market (the first part describes the traget the market; the planned product positioning; and the sales, market share, and profit goals for the first few years
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what is business analysis?
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involves the review of sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives
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what is product development?
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this calls for a large jump in investment as the product gets developed
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what is test marketing?
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the stage at which the product and marketing program are introduced into more realistic market settings
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what is commercializaion?
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introducing the product into the market (it faces high costs)
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what is the product life cycle?
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1. product development
2. introduction 3. growth 4. maturity 5. decline |
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what strategy is appropiate for product development?
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produce a desired product
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what strategy is appropiate for introduction?
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the initial strategy is just the first step in a grander marketing plan for the product's entire life cycle. someone looking to "make a killing" may be sacrificing long-run revenue
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what strategy is appropiate for the growth stage?
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improve product qualit and add new product features and models
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what strategy is appropiate for the maturity stage?
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evolve to meet changing customer needs, modify the market, product, and marketing mix
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what strategy is appropiate for the deline stage?
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companies need to pay more attention to their aging products and regularly review sales, market shares, costs, and profit trends then the managemtnt must decide whether to maintain or drop product
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