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138 Cards in this Set
- Front
- Back
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keys to using marketing theory |
-elasticity of demand -differentiation -segmentation -relationships -commitment |
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Pure subsistence economy |
each family unit produces everything it consumes |
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customer satisfaction |
the extent to which a firm fulfills consumer needs, desires, and expectation |
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economies of scale |
as a company produces larger numbers of a particular product the cost for each of these products goes down |
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marketing ethics |
the moral standards that guide marketing decisions and actions |
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universal functions of marketing |
buying, selling, transporting, storing, standardizing and grading, financing, risk taking, and market information |
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competitive environment |
the number and types of computers the marketing manager must face, and how they may behave |
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discretioanry income |
what is left of disposable income after paying for necessitates |
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disposable income |
income that is left after taxes |
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task utility |
provided when someone performs a task for someone else and for instance when a bank handles financial transactions |
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form utility |
provided when someone produces something tangible |
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time utility |
having the product available when the customer wants it |
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place utility |
having the product available where the customer wants it |
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possession ( ownership) utility |
obtaining a good or service and having the right to use or consume it |
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simple trade era |
a time when families traded or sold their surplus output to local middlemen who resold these goods to other consumers or distant middlemen |
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production era |
a time when a company focuses on production of a few specific products and perhaps because few of these products are available in the market |
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production orientation |
making whatever products are easy to produce and then trying to sell them |
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sales era |
a time when a company emphasizes selling because of increased competition |
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marketing orientation |
trying to carry out the marketing concept that maintains a philosophy of customer satisfaction |
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marketing concept |
the idea that an organization should aim all its efforts at satisfying its customers at a profit |
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relationship era |
the current marketing era that emphasizes developing loyal customers |
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social media era |
current day marketing that utilizes social media technology to develop markets through instant and frequent communication with targeted data base customer groups |
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social responsibility |
a firms obligation to improve its positive effects on society and reduce its negative effects |
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competitive advantage |
a firm has a marketing mix that the target markets sees as better than a competitors mix |
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marketing mix |
the controllable variables that the company puts together to satisfy a target group AND INCLUDES product, place, price, and promotion |
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marketing strategy |
specifies a target market and a related marking mix |
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target market |
a fairly homogeneous group of customers to whom a company wishes to appeal |
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target marketing |
a marketing mix is tailored to fit some specific target customers |
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mass marketing |
the typical production oriented approach that vaguely aims at everyone with the same marketing mix |
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mass selling |
communicating with large numbers of potential customers at the same time |
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market penetration |
trying to increase sales of a firms present products in its present markets probably through a more aggressive marketing mix |
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market development |
trying to increase sales by selling present products in new markets |
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product development |
offering new or improved products for present markets |
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diversification |
moving into totally different lines of business perhaps entirely unfamiliar products, markets, or even levels in the production marketing system |
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SWOT analysis |
identifies and lists the firms strengths and weaknesses and its opportunities and threats |
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positioning |
an approach that refers to how customers think about proposed and or present brands in a market |
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market |
a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services that satisfy customer needs |
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market segment |
a relatively homogenous group of customers who will respond to a marketing mix in a similar way |
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market segmentation |
a two step process of naming broad markets and segmenting these broad markets in order to select target markets and develop suitable marketing mixes |
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differentiation |
the marketing mix is distinct from ( unique form) and better than whats available from a competitor |
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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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economic buyers |
people who know all the facts and logically compare choices in terms of cost and value received to get the greatest satisfaction from spending their time and money |
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low involvement purchases |
purchases that have little importance or relevance for the customer |
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high involvement purchases |
purchases that are more conspicuous and have greater social and ego value and risk from their consumption |
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routinized response behavior |
when consumers regularly select a particular way of satisfying a need when it occurs |
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limited problem solving |
when a consumer is willing to put some effort into deciding the best way to satisfy a need |
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extensive problem solving |
the type of problem solving consumers use for a completely new or important need and when they put much effort into deciding how to satisfy it |
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dissonance |
tension caused by uncertainty about the rightness of a decision
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needs |
the basic forces that motivate a person to do something |
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wants |
needs that are learned during a persons life |
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expectation |
an outcome or event that a person anticipates or looks forward to |
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learning |
a change in thought process caused by prior experience |
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drive |
a strong stimulus that encourages action to reduce a need |
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cues |
products, signs, ads and other stimuli in the environment |
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reinforcement |
occurs in the learning process when a response is followed by satisfaction and a reduction in the drive |
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opinion leader |
a person who influences others |
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reference group |
the people to whom an individual looks when forming attitudes about a particular topic |
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social class |
a group of people who have approximately equal social position as viewed by other in the society |
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social needs |
needs conceded with love, friendship, status, and esteem and things that involve interaction with others |
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empty nestes |
people whose children are grown and who are now able to spend their money in other ways |
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senior citizens |
people over 65 |
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millenial |
generational consumers born after 1990 and ver progressive and technological savvy |
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perception |
how we gather and interpret information from the world around us |
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selective perception |
people screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs |
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physiological needs |
biological needs such as the need for food, drink, rest, and sex. Also called psychogenic needs |
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attitude |
a point of view toward something |
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belief |
a persons opinion about something |
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keys to using marketing theory |
-elasticity of demand -differentiation -segmentation -relationships -commitment |
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demand curves perfect elasticity |
-undifferentiated market -pure competition -standardization (P X Q= total revenue) -horizontal line |
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demand curves perfect inelasticity |
-unique product market -monopoly -differentiation/ uniqueness p X Q =TR line goes straight up and down |
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demand curve shifts right expansion benefits |
-revenue personal income -GDP -GNP -economic growth |
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brands role in demand |
-perfect inelasticity= complete control -perfect elasticity- no control -F= (differentiation, segmentation) want to move slope from 9 to 12 -imperfect competition: differentiated markets |
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demand curve marketing magic |
-change location ( develop markets) -change slope ( create preferences, repeat business) -benefit consciousness (differentiation) marketing effect shifts demand curve to the right |
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broad market divisions |
-lower interests market=16% -Mass market = 68% -Higher interest market=16% relevance in mass market segment initial strategy: market penetration |
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six universal questions |
who what why when where how relevance= when where and how |
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categories of adopters based on relative times of adoption |
-consumer innovators 2.5% -early adopters 13.5% -early majority 34%(white collar) -late majority 34%(blue collar) -laggards 16% |
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marketing tasks/ objectives |
-AIDA -gain attention -develop interest -create desire -gain action |
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marketing messages |
-encoder ( source) -decoder ( receiver) -benefits= functional, emotional, self enhancement -consumers buy benefits- not products! |
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marketing changing role simple trade era |
focus- sell surplus surplus exchange |
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production era |
focus increase supply manufacturer centric |
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sales era |
focus beat competition marketing deceit |
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marketing era |
focus coordinate and control marketing concept |
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relationship era |
focus long run customer satisfaction customer loyalty |
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social media era |
focus life style access/customer development frequent reinforcement |
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the marketing concept |
-guiding ideology, people first total company effort->profit->customer satisfaction |
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utility and marketing utility |
-value that comes from satisfying human needs(utility definition) -customer centric -create value -value added approach |
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from production and from marketing |
production -form -task from marketing -time -place -possession |
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classification of markets |
1. business ( commercial) market -business to business (B-2-B) 2.consumer ( household) markets -B-2-C |
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consumer purchasing criteria red zone |
-1-4 frequency -consuming period=quick -price to consume= low price under 5 -consumer knowledge= considerable -problem solving= routine -information seeking=limited none usually groceries |
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yellow zone |
-purchase frequency is from 4-6 -consuming period is4-6 -price to consume 5-100 -consumer knowledge 4-6 -problem solving 4-6 -information seeking 4-6 apparel |
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blue zone |
-purchase frequency= infrequent -consuming period=delayed -price to consume- higher price over 100 -consumer knowledge- limited -problem solving= extended -information seeking= extensive appliances |
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marketing facilitates production and consumption production sector |
-specialization and division of labor= heterogeneous supply capabilities |
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production sector downwards left side of graph |
-economies of scale discrepancies of quantity -goes to adjustment - discrepancies of assortment single product households |
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right side of graph |
-spatial separation -sparation in time -separation of information -separation in values -separation of ownership |
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consumption sector |
heterogeneous demand for form, task, time, place, and possession utility |
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marketing strategy planning marketing strategy |
marketing mix and target market product and price |
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marketing strategy and planning marketing concept |
customer satisfaction and total company effort place and promotion |
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elements of marketing mix within an environmental framework marketing environment uncontrollable/limiting |
-political legal(laws) -economy (inflation, recession) -competition ( opponent) -technological ( production) -social-cultural ( attitudes) (PECTS) |
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controllable |
product, pricing, promotion, distribution |
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target marketing strategies |
-undifferentiated marketing- normally in red zone ( elastic demand) -differentiated marketing- more common in yellow/blue zone -concentrated ( niche) marketing -micro marketing |
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customer value reflects benefits and costs customer value |
customer value concerns the difference between the benefits a customer sees from a firms market offering and the costs of obtaining those benefits -expectations what is the outcome of purchasing VALUE GAP- the difference between expected benefits and actual costs |
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summary overview he wrote customer value reflects benefits and costs customer value |
customer value is the difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits. the customer is likely to be more satisfied when the value is higher-- when benefit exceed costs by a larger margin. On the other hand, a customer who sees the costs as greater than the benefits isn't likely to become a cusomter |
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summary overview one complication |
one complication is that different customers may see the benefits and costs in different ways. That makes it difficult to satisfy everyone with one offering |
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summer review competition and customer value |
-customer point of view to better understand what it takes to satisfy a customer, its useful to take the customer point of view. they have choices about how to meet their needs. So a firm that offers superior customer value is likely to win and keep customers. This is expescially important when what different firms have to offer is very similar |
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summary overview customer value reflects benefits and costs |
customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits |
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consumer value and price |
value= F( perceived benefits, Price) exceed customer expectations! value- perceived benefits/price walmarts practice: accentuate customer value |
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supply chain channel suppliers |
raw material to parts suppliers |
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demand suppliers |
manufacturer |
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demanders |
trades resellers to consumers |
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supply chain channel |
wholesale retail and business households (form+task utility) + ( time + place + ownership utility) = value added |
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directive strategic question |
1. where are we now- what is our situation? 2. where do we want to go? - Business(es) we want to be in. -market positions we want to stake out buyer needs and segments we want to serve -outcomes we want to achieve 3. how will we get there? |
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broad market types |
1. homogenous ( undifferentiated) markets 2. heterogeneous ( differentiated) markets |
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types of strategic opportunities four basic strategies |
-market condition left, product conditions on top -Present markets and new markets on market conditions -present products and new products on product conditions -1st square market penetration -2nd market development ( 1st top left, 2nd bottom left) 3rd ( top right) product development 4th diversification |
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classifying product offering consumer goods |
those products meant for final consumers (household users) |
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industrial goods |
those products meant for producing other products or making profits ( profit- oriented users) |
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the learning process model |
1. drive 2. cues 3. response -between cues and response is a black box ( response back to cues is reinforcement) in the black box are needs, wants, and expectations |
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hierarchy of needs |
-personal needs -ego and social needs -safety needs -physiological needs |
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levels of problem solving routinized response behavior red |
-low involvement, frequently purchased, inexpensive, little risk, little information needed -buyer experience factor= considerable -involvement continuum= low involvement -buyer brand commitment = high |
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levels of problem solving limited problem solving yellow |
in the middle |
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levels of problem solving extensive problem solving blue |
-high involvement, infrequently purchased, expensive, high risk, much information needed -buyer experience factor= limited -involvement continuum = high involvement -buyer brand commitment = low |
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the adoption process |
-awareness ( between awareness and interest is attention on right side) -interest (pre purchase)-evaluation (actual) - trail- to left is perceived (avoidance)-decision- left is repurchase (repeat purchase)-confirmation)- left is preference |
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the black box |
buying influences interpersonal determinants -cultural influences ( congruence) -social influences ( social class) -family influences ( spousal influence) -opinion leadership and reference groups situations determinants personal determinants -needs and motives( motivation) -perception ( selectivity) -attitudes( cognitive, affective, conative) -learning ( memory, recall, habit) -self concept ( idealization, rationalization) - |
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pre purchase behaviors |
problem récognition search alternative evaluation purchase |
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decisions |
routine limited extended (intentions) |
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new purchase |
problem recognition search alternative evaluation purchase consumption usage post purchase evaluation |
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social class dimensions |
-1.5% upper-class ( old money) -12.5% upper middle class ( new rich) -32% lower middle class ( white collar) -38% upper lower ( working class blue collar) -16% lower- lower class |
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marketing message why people buy |
functional motives personal motives social motives impulse shopping BENEFITS |
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PLC strategies |
differentiation segmentation price leadership |
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segmentation dimensions all potential dimensions |
focus relevant purchase behavior -who? potential purchases users |
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qualifying dimensions |
focus relevant customer type -who? demographic relevant market |
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determining dimensions ( product type) |
focus specific purchase influence -what? benefits sought |
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determining dimesntions ( brand specific) |
focus attraction to brand -why? brand promise |
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criteria for effective segmentation |
-measurable purchasing power and size -accessibility -substantial ( sufficient in size to be profitable) -match marketers capabilities |
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methods of segmentation geographic segmentation |
-metropolitan statistical area (SMSA) -consolidated metropolitan statistical area ( megalopolis) -primary metropolitan statistical area ( exhibits social and economic ties) |
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MOS demographic segmentation (socioeconomic segmentation) |
- consumer descriptive characteristics ( gender, age, education, income) - generational cycles ( baby boomers, yuppies, generation X) |
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the rest of methods of segmenting markets |
-ethnic segmentation -lifecycle segmentation -household segmentation ( traditional v non traditional ) -income segmentation ( engels laws of consumption) -psychographic segmentation ( lifestyle segmentation) |
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central markets |
convenient place where buyers and sellers can meet one on one to exchange goods and services |
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GNP |
the total market value of goods and services in an economy |
