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54 Cards in this Set
- Front
- Back
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Marketing is...
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Create, Communicate, and Deliver value to customers.
Segmenting, Targeting, and Positioning |
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The concept of exchange is... (5)
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At least two parties
Something of Value Communication and Delivery Freedom to Accept or Reject Desire to deal with other party |
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Marketing Mix
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Product
Price Promotion Place (Distribution) |
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Demographics
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Looks at similarities when marketing
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Psychographics
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Looks at differences
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Consumer Oriented Philosophy
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Satisfaction of the consumer provides the focus for product development and marketing strategies for a firm.
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Marketing concept
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Understanding and fulfilling consumer needs through the creation of value
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Production Philosophy
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Focuses on the efficiency of internal operations
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Sales Philosophy
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Focus on aggressive techniques for overcoming customer resistance
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Market Philosophy
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Focus on satisfying customer's needs and wants
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Societal Philosophy
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Focuses on satisfying customer needs and wants while enhancing individual and societal well-being (Sustainability)
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Stakeholder Orientation
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Develop understanding of relational partners to be able to create superior value for them
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Competitor orientation
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Understands strengths, weaknesses, and capabilities of both key current and key potential competitors.
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Interfunctional Coordination
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Coordinated utilization of company resources to create value
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Segmenting
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Divide market based on needs/benefits, demographics, lifestyles, behavioral measures
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Targeting
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evaluating various segments and then selecting the most viable segment for your product.
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Positioning
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Target marketing messages through 4P's (Product, Price, Promotion, Place)
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Four different bases for segmentation?
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Demographics
Psychographics Behavioral Needs |
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Demographic segmentation
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Age, Family Size, Family Life Cycle, Occupation, Ethnicity, gender, income
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Psychographic segmentation
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Values, Lifestyle, Personality, Activities, Interests, Opinons
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Behavioral Segmentation
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Dividing a market by the amount of product bought or consumed.
80/20 principal Identify the heavy users of ... |
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Needs Segmentation
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Grouping customers into market segments according to the benefits they seek from the product. (Toothpaste market based on needs)
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Four Targeting Strategies
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Undifferentiated
Differentiated Niche Micro |
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Undifferentiated
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Where the market is treated as a whole, no individual segments.
Marketers of commodities (Flour, Sugar, etc.) |
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Differentiated
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where segments are separated and a unique product is tailored for each segment.
Beware of Cannibalization... |
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Niche
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where a small, but well-defined segment is the focus of a company's marketing efforts (Jones Soda co.)
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Micro
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Where each individual is offered a customized solution, or product. Goal of increasing customer loyalty.
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Cannibalization
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Eating up your own profits with new product lines if market share stays the same and doesn't add (Prego)
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Positioning
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Placement of a product in your mind, Develop unique selling proposition
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Repositioning
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Changing consumers' perceptions of a brand in relation to competing brands. Dominos.
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Perception concepts
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Perceptual Maps help managers understand the beliefs and attitudes that consumers have about brands.
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Weber's Law
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the stronger the initial stimulus, the greater the added intensity needed to perceive a difference.
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Marketing environment
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set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers.
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Porters five forces
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1. Competitive rivalry within an industry
2. Bargaining power of customers 3. Threat of substitute products 4. Threat of new entrants 5. Bargaining power of suppliers |
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Social Changes
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choosing goods and services that meet one's diversse needs and interests rather than conforming to a single, traditional lifestyle.
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Levels of Competition
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Generic Competition
Form Competition Industry Competition Brand Competition |
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Industry Competition
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Honda against Mercedes, Lexus, etc who make the same products or class of products (different prices)
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Form Competition
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e.g. Toyota against manufacturers of other vehicles that provide the same service such as yamaha
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Brand competition
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Honda against Toyota, Nissan, etc.
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Consumer Markets
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Tweens, Gen Y, Gen X, Baby Boom, New silent generation
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Business products
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-Used to manufacture other products
-become part of another product |
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Business Markets
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-Manufacturers
-Intermediaries -Governments -Universities |
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Types of Business Products
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Major equipment
raw materials component parts business services |
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Business Demand
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demand is Derived, Inelastic, Joint, Fluctuating
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Derived Demand
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Demand for business products results from demand for consumer products.
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Joint Demand
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Multiple items are used together in final product. Demand for one affects all
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Straight Re-buy
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Auto pilot, no change, original product is reordered.
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Strategic planning
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conducted by top management that looks at big picture and guides long-term strategy for firm.
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Tactical Planning
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conducted by members of functional departments (marketing, finance, etc.)
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SWOT
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Identifying internal strengths
and weaknesses examining external opportunities and threats |
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SBU's
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A distinct mission and specific target market
Control over their resources Their own competitors Plans independent of other SBUs |
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Aggressive marketing strategy
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many internal strengths/ many external opportunities
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Defensive marketing strategy
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many internal weaknesses/ many external threats
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Competitive Advantage
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set of unique features to be perceived by target market to be better than competition
ex. California cheese |
