86 Cards in this Set
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marketing
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is the performance of activities that seek to accomplish an organizations objectives by anticipating a customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client
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Marketing Concept
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means that an organization aims all its efforts at satisfying its customers—at a profit
1.Customer satisfaction
2.A total company effort
3.Profit—not just sales—as an objective
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Customer Value
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the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits
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Marketing Orientation
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means trying to carry out the marketing concept
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Economic System
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is the way an economy organizes to use scarce resources to produce goods and services and distribute them for consumption by various people and groups in the society
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5 Era's of Marketing Evolution
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Simple Trade Era
Production Era
Sales Era
Marketing Department Era
Marketing Company Era
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Simple Trade Era
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a time when families traded or sold their "surplus" output to local distributers
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Production Era
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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
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Sales Era
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is a time when a company emphasizes selling because of increased competition
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Marketing Department Era
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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 firms activities
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Marketing Company Era
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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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Micro-Macro Dilemma
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when a firm focuses its efforts on satisfying some consumers—to achieve its objectives—there may be negative effects on society. For example, producers and consumers making free choices can cause conflicts and difficulties.
--What is "good" for some firms and consumers may not be good fo…
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Marketing Mix
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the controllable variables the company puts together to satisfy this target group
Product
Price
Promotion
Place
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Marketing Strategy
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specifies a target market and a related marketing mix
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Marketing Plan
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is a written statement of a marketing strategy and the time-related details for carrying out the strategy
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Customer Equity
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is the expected earnings stream (profitability) of firms current and prospective customers over some period of time. Top management expects marketing strategy planners to help identify opportunities that will lead to an increase in the firm's customer equity
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S.W.O.T Analysis
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This identifies and lists the firm's strengths and weaknesses and its opportunities and threats. is simply an abbreviation for the first letters of the words strengths, weaknesses, opportunities, and threats.
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marketing Opportunities Strategies
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Marketing Penetration
Market Development
Product Development
Diversification
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Market Penetration
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means trying to increase sales of a firm's present products in its present markets—probably through a more aggressive marketing mix
a.the firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitor's or curren…
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Market Development
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means trying to increase sales by selling present products in new markets.
a.This may involve searching for new uses for a product
b.Firms may also try advertising in different media to reach new target customers, or they may add channels of distribution or new stores in new areas, inc…
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Product Development
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means offering new or improved products for present markets
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Diversification
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means moving into totally different lines of business—perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system
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Strategic Business Unit (SBU)
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is an organizational unit ( within a larger company) that focuses on some product-markets and is treated as a separate profit center
a.By forming SBU's, a company formally acknowledged its very different activities
b.Some SBU's grow rapidly and require a great deal of attention and reso…
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Portfolio Management
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which treats alternative products, divisions, or strategic business units as though they were stock investments, to be bought and sold using financial criteria
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Market Segmentation
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: is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes
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Generic Market
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is a market with broadly similar needs—and sellers offering various, often diverse ways of satisfying those needs
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Product Market
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is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs
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Criteria for a Good Market Segments
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Homogeneous
Heterogeneous
Substantial
Operational
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Homogeneous
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the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variable and their segmenting dimensions
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Heterogeneous
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the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variable and their segmenting dimensions
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Substantial
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the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variable and their segmenting dimensions
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Operational
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the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables
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Positioning
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refers to how customers think about proposed or present brands in a market.
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PSSP Hierarchy of Needs
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Physiological Needs
Safety Needs
Social Needs
Personal Needs
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Physiological Needs
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are concerned with biological needs—food, liquid, rest, and sex
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Safety Needs
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are concerned with protection and physical well-being (perhaps involving health, financial security, medicine, and exercise). Marketers that offer solutions to consumer problems build brand loyalty
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Social Needs
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are concerned with love, friendship, status, and esteem—things that involve a person's interaction with others
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Personal Needs
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are concerned with an individuals need for personal satisfaction—unrelated to what others think or do
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Perception
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how we gather and interpret information from the world around us
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Psychographics
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is the analysis of a person's day-to-day pattern of living as expressed in that person's activities, interests, and opinions
--group consumers according to psychological and behavioral similarities. Attempts to develop quantitative measures of lifestyle
-the Vals system
-The prizm sys…
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Adoption Process- Stages
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Awareness
Interest
Evaluation
trial
Decision
Confirmation
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Awareness
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the potential customer comes to know about the product but lacks details. The consumer may not even know how it works or what it will do
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Interest
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if the consumer becomes interested, he or she will gather general information and facts about the product
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Evaluation
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a consumer begins to give the product a mental trial, applying it to his or her personal situation
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Trial
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the consumer may buy the product to experiment with it in use. A product that is either too expensive to try or isn't available for trial may never be adopted
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Decision
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- the consumer decides on wither adoption or rejection. A satisfactory evaluation and trial may lead to adoption of the product and regular use
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Confirmation
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the adopter continues to rethink the decision and searches for support for the decision—that is, further reinforcement
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Buying Center
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is all the people who participate in or influence a purchase. Because different people may make-up a buying center from one decision to the next, the salesperson must study each case carefully.
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Organizational Buying Process
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New-Task Buying
Straight Rebuy
Modified Rebuy
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New-Task Buying
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occurs when a customer organization has a new need and wants a great deal of information. New-task buying can involve setting a product specifications, evaluating of supply, and establishing an order routine that can be followed in the future if results are satisfactory. Multiple buying i…
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Straight Rebuy
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is a routine repurchase that may have been made many times before. Buyers probably don't bother looking for new information or new sources of supply. Most of a company's small or recurring purchases are of this type—but they take only a small part of an organized buyer's time. Important p…
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Modified Rebuy
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is the in-between process where some review of the buying situation is done—though not as much as in new-task buying. Sometimes a competition will get lazy enjoying a straight rebuy situation. An alert marketer can turn these situations into opportunities by providing more information or …
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Market Information System (MIS)
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which is an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions
- accessing multimedia data
-Data warehouse
-Decision support system
-Marketing models
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Secondary Data
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information that has been collected or published already
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Primary Data
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information specifically collected to solve a current problem
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Marketing Research
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procedures that develop and analyze new information about a market. Marketing research may involve use of questionnaires, interviews with customers, directly observing customers, experiments, and many other approaches
-Role of research specialist
-Scientific method
-Steps in marketing …
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Validity
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concerns the extent to which data measure what they are intended to measure. Validity problems are important in marketing research because many people will try to answer even when they don't know what they're talking about
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Quality-Perspective
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a product's ability to satisfy a customer's needs or requirements
-quality is tied to how customers think a product will fit some purpose, and not necessarily to some technological level of perfection
(high-tech jeans vs. everyday jeans)
-Service guarantee: (dominos and Nordstrom)
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Product Assortment
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is the set of all product lines and individual products that a firm sells
- a product line: is a set of individual products that are closely related
-And individual product: is a particular product within a product line
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Branding- advantages to the Customer
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means the use of a name, term, symbol, or design—or a combination of these—to identify a product.
--It includes the use of brand names, trademarks, and practically all other means of product identification
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Brand Equity
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the value of a brands overall strength in the market. For example, is likely to be higher if many satisfied customers insist on buying the brand and if retailers are eager to stock it
-Strong brand equity enables:
-Brand leverage: family branding, brand extensions, or umbrella brandin…
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Manufacturer Brand
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are brands created by producers. These are sometimes called national brands because the brand is promoted all across the country or in large regions.
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Private Brand
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are brands created by intermediaries. Examples of private brands include Craftsman and Kenmore (Sears), Primo Taglio and Priority pet (Safeway), Up & Up (Target), and Sam's Choice and Equate (Wal-mart).
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Consumer Product Classes
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convenience
shopping
specialty
unsought; each class is based on the way people buy products
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Product Life Cycle (PLC)
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Market Introduction
Market Growth
Market Maturity
Sales Decline
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Market Introduction
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sales are low as a new idea is first introduced to a market
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Market Growth
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industry sales grow fast—but industry profits rise and then start falling
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Market Maturity
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occurs when industry sales level off and competition gets tougher
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Sales Decline
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new product replaces the old one
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Wheel of Retailing
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say that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices. Then they're threatened by new low-status, low-margin, low…
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Scrambled Merchandising
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carrying any product lines they think they can sell profitably. Supermarkets and drugstores sell anything they can move in volume—panty hose, phone cards, one-hour photo processing motor oil, potted plants, and computer software
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Corporate Chains
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is a firm that owns and manages more than one store—and often it's many
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Cooperative Chains
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are retailer-sponsored groups—formed by independent retailers—that run their own buying organizations and conduct joint promotion efforts
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Voluntary Chains
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are wholesaler-sponsored groups that work with "independent" retailers.
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Mass Selling
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is communicating with large numbers of potential customers at the same time.
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3 Promotional Objectives
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Informing
Persuading
Reminding
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Integrated Marketing Communication (IMC)
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the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
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AIDA Model
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attention
interest
desire
action
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Push Strategy
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means using normal promotion effort—personal selling, advertising, and sales promotion—to help sell the whole marketing mix to possible channel members
pushing typically involves personal selling
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Pull Strategy
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means getting customers to ask intermediaries for the product, intermediaries won't work with a producer—perhaps because they're already carrying a competing brand—a producer may try to use a pulling approach by itself
pulling typically involves use of mass selling tools to stimulate de…
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Adoption Curve- Stages
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Innovators
Early Adopters
Early Majority
Late Majority
Laggards
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Innovators
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are the first to adopt. They are eager to try a new idea and willing to take risks. Innovators tend to be young and well educated. They are likely to be mobile and have many contacts outside their local social group and community. Business firms in the innovator group are often specialize…
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Early Adopters
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are well respected by their peers and often are opinion leaders. They tend to be younger, more mobile, and more creative than later adopters.
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Early Majority
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avoids risk and waits to consider a new idea after many early adopters have tried it—and liked it. The early majority have a great deal of contact with mass media, salespeople, and early adopter opinion leaders. Members usually aren't opinion leaders themselves
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Late Majority
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is cautious about new ideas. Often they are older and more set in their ways, so they are less likely follow early adopters
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Laggards
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prefer to do things the way they've been done in the past and are very suspicious of new ideas. The main source of information for laggards is other laggards. This certainly is bad news for marketers. In fact, it may not pay to bother with this group
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MKTG 320: Exam 1