1 Flashcards
(147 cards)
1
Q
What is Marketing?
A
A customer focus that is geared towards making value promises, enabling fulfillment of expectations due to these promises –> value creation in firm, customers and stakeholders
ideally result should be product that sells itself
2
Q
What is Marketing not?
A
Advertising & Selling
3
Q
Why is Marketing important?
A
Shaping products and services
Building strong brands
Identifying target groups
Buying a product means more than becoming the owner of a tangible item. often added with services -> service dominant logic
4
Q
What is Marketing’s Role in the market?
A
Identify:
needs: basic human requirements
wants: directed towards objects that satisfy needs
demands: wants for products with ability to pay
5
Q
What is a Marketplace?
A
Physical (eg Store)
6
Q
What is a Marketspace?
A
Digital (eg Internet)
7
Q
What is a Metamarket?
A
complentary products (eg car market and financing)
8
Q
What are Metamediaries?
A
Bring together collections and people (autotrader.com)
9
Q
What are Marketing realities and challenges?
A
- major societal forces (economic, technological, industrial)
- changing consumption patterns
10
Q
How have consumption patterns and consumers changed?
A
- consumer sophistication
- hybrid consumption behavior (income does not predict well what people will buy)
- importance of health and sustainablity
- local (vs global) values
- aging consumers
11
Q
What is the Marketing philosophy?
A
consumer centered
goal is to be ore effective than competitors in understanding target group needs
12
Q
What is the marketing mix and what are its dimensions?
A
Holistic approach
Product/service, Price, Promotion, Place, Physical evidence, Process, People
13
Q
What is marketing management?
A
Goal directed process: -Planning -Implementing -Controlling Increase organization wide commitment to put customer first often includes external suppliers
14
Q
What steps does the Value-Delivering Process have (Kotler)?
A
Discovering value
Developing suitable customer offering
Delivering value
Communicating value
15
Q
What are planning activities on corporate level?
A
Mission statement Vision statement Defining business Assigning resources to business units Assessing growth opportunities
16
Q
What should a mission statement answer?
A
What is our business? Who are our customers? What is the value to our customers? What will our business be? What should our business be?
17
Q
How to define a companies’ business?
A
Product definition to Market definition
(companies should take marketing perspective)
eg BP selling fuels -> delivering energy
18
Q
What are strategic business units?
A
Sub-units of a business that can be managed independently
Each business unit has own set of competitors
Own Manager is responsible for each BU
19
Q
What are the four categories of the BCG Growth-Market Share Matrix?
A
High growth + low market share = Question Marks
Low Market Growth + Low Market Share = Dogs
High Market Growth + High Market Share = Stars
Low Market Growth + High Market Share = Cash Cows
20
Q
Assessing Growth Opportunities through Ansoff’s Product-market expansion grid, what strategies can be taken and when?
A
current market + current products = market penetration
current market + new product = product development
new market + current product = market development
new market + new product = diversification
21
Q
What is essential when developing BU strategy?
A
Goal formulation (BU are managed by objectives)
Objectives mus be arranged hierachically, quantified, realistic, consistent
22
Q
What generic strategies does Porter propose?
A
Differentiation (focus on quality) Cost leadership (focus on cost)
work in both broad and narrow market scopes
23
Q
BU: Program formulation & implementation, what are the 7 S?
A
Strategy, Systems, Structure
Skills, Style, Staff, Shared values
24
Q
What are the contents of a marketing plan?
A
Executive summary and table of contents introduction of company situation analysis marketing strategy marketing-mix instruments financial projections implementation control
25
What is customer-perceived value?
Difference between total customer benefit minus Total customer cost and perceived alternatives
26
What is customer satisfaction?
Perception of actual outcome minus pre-purchase expectations
27
Why is customer satisfaction important?
Satisfied customers are more loyal, promote, pay more
28
What is customer loyalty?
Deeply held commitment to re-buy/re-patronize a preferred product in future despite influences having the potential to cause switching behavior
29
What is the relation of customer-perceived value, customer satisfaction and customer loyalty?
benefits and costs -> perceived value -> satisfaction -> loyalty
30
What types of factors foster customer loyalty?
```
psychological (personal attachment)
situational (closeness to home)
contractual
technical/functional (ecosystem or compatibility)
economic (high switching costs)
```
31
What is Customer Relationship Management
Process of managing detailed information about individual customers to maximize customer loyalty
Includes all mgmt processes that aim to initiate, stabilize, intensify and recover relationships with customers
32
What is Customer Experience Management?
Extension of CRM. Focusing on customer all touchpoints.
33
What is the Customer Lifetime Value?
Net present value of stream of future profits expected over customers lifetime purchases
34
How is the CLV calculated?
CLV= SUM((Revenue - cost)*Probability of customer being active)/((1+ discount rate/interest)^t)
CLV=SUM(v*p)/((1+i)^t)
all values dependent on respective costumer and year
35
What is customer equity?
Sum of all CLVs
36
What is a marketing information system?
people, equipment and procedures to gather, sort, analyze, evaluate and distribute information
37
What is a marketing intelligence system?
Set of procedures and sources that is used to gather external information about developments in marketing environment
38
What is marketing research?
design, collection, analysis and reporting of data relevant to specific marketing situation facing the company -> explain and predict behavior
39
What is the S-O-R model of consumer behavior?
Stimulus (external) -> Organism (internal) -> Response (purchase decision)
40
What steps does the marketing research process include?
1) Define problem and research objective
2) Develop research plan
3) collect information
4) analyze information
5) report findings
6) make decision
41
What are prominent research designs?
exploratory, descriptive, explicative
42
What are prominent research paradigms?
quantitative (explain, predict, control)
| qualitative (understand, discover, diagnose)
43
What are marketing metrics?
Set of measures that help firms quantify, compare, interpret their marketing performance
44
What is marketing-mix modeling?
Analyze data from variety of sources to understand effects of specific marketing activities
45
What are the basic consumer psychology variables that affect consumer decision making?
Motivation
Perception
Learning
Memory
46
What is perception?
Process by which sensations (immediate response of senses to stimuli) are selected, organized, interpreted
47
What are memory systems and connecting processes?
Sensory memory -> attention gate -> shortterm memory -> elaborate rehearsal -> long term memory
48
What behavioral learning theories can be differentiated?
```
Classical conditioning (focus on involuntary behaviors)
Instrumental/operant conditioning (focus on voluntary behaviors)
```
49
What characterizes motivation?
need triggers motivation
| eg Maslow's hierachy of needs (physiological, safety, belongingness, ego needs, self-actualization)
50
What are the five steps of the consumer decision-making process?
1) problem recognition (discover need)
2) information search (not always rationally)
3) evaluation of alternatives
4) purchase decision
5) post-purchase behavior (value creation doesn't end with purchase)
51
What characterizes B2B markets?
```
few and large buyers
close supplier- customer relationships
professional purchasing
many buying influences
longer process (negotiations etc)
demand inelastic/fluctuating
geographically concentrated buyers
direct purchasing (no intermediaries)
```
52
What differentiates the organizational decision-making from consumer decision-making?
more phases
| more formalized
53
What are Porters five competitive forces?
```
Industry competitors (in center)
Potential entrants (threat of mobility)
Buyers
Substitutes
Suppliers
```
=> determinants of the long-run attractiveness of market
54
What two types of competition exist for a company?
industry competition = group of firms that offer substitutable products
market competition = group of firms that satisfy the same customer need
55
What are strategic groups of competition?
Groups of firms that follow same strategy in given target market
56
What is the core balance in competitive strategies?
Balancing customer and competitor orientation?
57
What unifies Apple and Amazon in regard to competition strategies?
Focus in customer orientation
58
What are 5 core dimension of differentiation from competitors?
```
quality
cost
personal (eg well trained employees)
time (faster)
channel (distribution)
```
59
What are the steps of defining target markets?
segmenting (identifying groups of customers with similar needs)
targeting (ranking segments and selecting the ones to enter)
positioning (establish & communicate market offering)
60
Why do companies segment markets?
Because market member differ but can be sorted into segments. There is no one solution for whole market. Promising market segments can be identified. Product structure can be adapted.
61
What segmentation criteria do we know?
geographic
demographic
psychographic (based on activities, interests, opinions, sinus milieus)
behavioral (eg benefits sought, loyalty, user status)
62
How does psychographic segmentation rank in regard to predictivity and measurability?
very predictive
| hard to measure
63
What quality criteria do effective segments fulfill?
```
measurable
substantial
accessible
differentiable
actionable
```
64
What method is used to identify target groups?
Cluster analysis
65
What makes segments attractive?
positively influenced by five forces
include customers with high CLV
include loyal customers
66
What patterns of market selection do we know?
```
Market-Product matrix:
single segment
Product specialization
market specialization
selective specialization
full market coverage
```
67
What is customer equity management?
Managing customers after CLV
68
What is positioning?
Designing company's offering/image to take certain place in mind of target market
Goal: sustained competitive advantage
69
What are prerequisites for successful positioning?
Understanding decision making processes of market segment and identifying competition
70
What are point-of-difference associations?
Attributes/benefits customers strongly positively associate with brand and believe to not find elsewhere
71
What are point-of-parity associations?
Associations that are not unique to brand
72
What method can be used to map associations?
laddering method
73
What is the goal of the laddering method??
identifying attributes perceived by customers and determine to which benefits and values they relate
74
What is a positioning analysis?
Understanding dimensions along which target customers perceive offerings and how company's offer ranks relative to competition
75
What is a major tool for positioning analysis?
Multidimensional scaling
76
What is multidimensional scaling?
mapping of companies in regard to different dimensions through determining proximities
77
What measures the product life cycle (PLC)
How sales volume and profits develop over time
78
What are the stages of PLC?
Introduction
Growth
Maturity
Decline
79
What is a brand?
name, term, sign, symbol, design or combination of them, intended to identify goods and services of one seller/group of sellers and to differentiate them from competition
80
How do marketing management influence the reactions of financial market s to branding?
indirectly, through influencing customer
81
How do customers influence reactions of financial markets to branding?
directly, by developing opinion on brand and acting in regard to brand
82
What is brand attitude?
Individuals' evaluation of brand that drive action
83
What is Brand personality?
Human characteristics that individuals associate with brand
84
What is brand equity?
Added value endowed on products by brand
85
What are the three most prominent branding strategies?
corporate brand
umbrella brand
family brand
86
What defines corporate brands?
individual names for brands & products of a company, no connection (house of brands)
87
What defines umbrella brands?
One house brand that is used for variety of products (branded house)
88
What defines family brands?
Different brands for product groups of company. (many umbrella brands)
89
What is horizontal diversification?
Diversification on same stage of production (eg HP building printers and laptops)
90
What is vertical diversification?
Diversification on different stage of production (eg Niketown in Berlin)
91
What is lateral diversification?
No tech or commercial synergies with current products (eg Hyundai building cars and monitors)
92
What managerial decisions are there in regard to existing and new offerings?
```
Innovation
Differentiation
Diversification
Modification
Elimination
```
93
What are the stages of the adoption process?
```
Awareness
Interest
Evaluation
Trial
Adoption
```
94
What are the key determinantes in the Technology adoption model?
Perceived usefulness and perceived ease of use
| influence attitude -> usage intention -> usage behavior
95
What types of brand extension are there?
line extension = parent brand covers new offering in category it already serves
category extension = parent brand is used to enter different product category from the one it already serves
96
What is co-branding?
Combination of products with products of another company (eg Nike + Apple)
97
What is the narrow and broad definition of price?
narrow: amount of money charged for an offering
broad: sum of values that consumers exchange for benefit of using an offering
98
Demand function: What is the prohibitive price?
Price at which demand = 0
99
Demand function: What is the saturation point?
Point at which price = 0
100
What is the price/demand function?
p = a - b*x
101
What pricing factors influence buying decision?
Reference price
Price-quality inferences
Price images
Price endings
102
What is price elasticity of demand?
What is change in sales if price changes by a certain amount? (rel change in sales/rel change in price)
103
What is elastic demand?
elasticity > 1
104
What is inelastic demand?
elasticity < 1
105
What objectives are there for selecting prices?
```
survival
maximum current profit
quality leadership
max market penetration
max market skimming
```
106
What is market penetration?
Market is price sensitive, low prices stimulate growth
costs fall with experience
low price discourages competition
eg Adobe Reader
107
What is market skimming?
```
sufficient demand already there
unit costs of small volume are not so high
high price scares competitors
high price communicates premium image
eg iPhone
```
108
What is cost-based pricing?
Percentage addition to a cost-based reference
109
What is the problem of cost-based pricing?
Market response to price is not implemented
| risk of pricing oneself out of the market
110
What is absorption costing?
Long-term perspective
| calculated based on total costs
111
What is direct costing?
short-term perspective
calculated based on variable costs (per unit)
used in high price elasticity conditions
112
How to determine cost-based price?
Break even analysis of total cost and total assumed revenue
113
What is the experience curve of cost-based pricing?
variable costs per unit fall with accumulated production
114
What is value-based pricing?
Price setting based on customer perception of value of offering
value and price drive decisions about product design and what costs can be incurred (target costing)
requires information about customers demand curve
115
What is the function of revenues?
U=p*x
116
What is the function of costs?
K=Kfix + kvar * x
117
How to calculate the profit maximum?
U' = K'
marginal revenues = marginal costs
118
What is the realistic approach to value-based pricing?
Value-based pricing acting like a monopolist only works in certain range. Reality demand curve put together out of different linear ones.
119
What is competition-based pricing?
Goal: analyze competitions price against their costs and offerings. Prize of nearest competitors is most relevant
evaluate worth to customers for differentiated features -> conjoint analysis
anticipate response from competition
120
In what order should the three major pricing methods be used?
1) value-based pricing
2) cost-based pricing
3) competition based pricing
121
What marketing research methods can be used to determine customer demand curves?
surveys
price experiments
statistical analysis
122
What price adaption strategies exist?
geographical pricing
discounts
promotional pricing
differentiated pricing
123
What is price differentiation?
selling same offering to different customers/segments for different price
124
What is 1st, 2nd and 3rd degree price differentiation
1st: individual price for each customer, fully skimming customer surplus (reverse auctions)
2nd: individual price for customer segments, customers decide about their segment (eg Bahncard)
3rd: individual price for customer segments, customers do not decide about their segment (eg student discounts)
125
What are advantages of price differentiation?
Additional profit
customer acquisition
increasing orders
clearance
126
What is the effect of social media on the communication process?
linear process of traditional model (sender -> message -> receiving -> response/feedback) is broken up into bilateral relationships between sender-medium, receiver-medium, receiver-receiver
127
What is the Elaboration Likelihood Model?
Depending on recipient's motivation and ability to process information, persuasive information can result in different change patterns.
high -> central route (critical reflection, considering arguments and facts) -> central attitude change (enduring, resistant, predictive)
low -> peripheral route (no critical reflection, considering peripheral cues like attractiveness or expert) -> peripheral attitude change (temporary susceptible, less predictive)
128
Why are emotions important for marketing communications?
When recipients have low involvement, addressing emotions (via peripheral cues) can help. Repeated exposure (esp. through pictures) can influence attitudes positively.
129
What are steps of the management process when designing marketing communications portfolios?
```
identify target audience
determine objectives
design communications
select channels
establish budget
decide on media mix
measure results
manage integrated marketing communications
```
130
How can marketing channel members (esp. distribution) add value?
greater efficiency
bridging time, place, possession gaps that separate offerings from those who would use them
distributors reduce number of contacts
-> can offer more than firm can achieve on its own
131
What is the difference between consumer and industrial distribution channels?
consumer very linear (manufacturer -> jobber -> retailer -> consumer)
industrial more interconnections (multiple distribution ways exist at same time), distributors do not play as large role, on higher levels manufacturer tends to use own representatives to directly sell to customer
132
What are horizontal and vertical conflicts?
```
horizontal = on same level of marketing channel
vertical = between different marketing channel levels
```
133
What options are there for marketing systems?
Vertical: classical company structure. producers, wholesalers and retailers act as unified system
Horizontal: two or more companies at one level work together (eg McDonald's filials in Walmarts)
134
What are multichannel marketing systems?
When a company uses more than one marketing channel to reach customers
135
What decisions are to be made when designing marketing channels?
Analyzing customer needs
setting channel objectives
identifying major channel alternatives
evaluation
136
What is marketing logistics?
Physical distribution (planning, implementing and controlling)
137
What is the difference between the approach towards quality in classic production and service management?
classical production: quality co-factor because focus on optimization of production factors or outputs
service mgmt: quality often needs to be optimized independently from quantity, more important
138
What is are the three dimensions services are characterized by (Woratschek)?
Integration (of customer)
individualization (to customer)
uncertainty (of result)
139
What is the development in regard to focus on services or products?
Away from focus on outputs/products to processes
140
What are the five axioms of service-dominant logic (vargo & lusch)?
Service fundamental basis of exchange
value is co-created by many parties also including customer (eg Airbnb)
all actors integrate resources
value determined by beneficiary
value co-creation coordinated by actor-generated institutions
141
What is Servicescape?
Impact of firms physical surroundings or environment where service takes place on customers' and employees' behavior
142
What is essential for employees carrying out services?
customer orientation
143
How is quality evaluated?
by set of subjective characteristics
against references
from different perspectives (provider vs customer)
144
What perspectives can service-quality be measured from?
customer
competition
company
145
What basic directions can service quality measurement take from customers perspective?
either focus on characteristics (measurable) or process (contacts and problems)
146
In service-dominant logic, what is one of the most important skills?
entrepreneurial spirit
147
When is marketing successful?
When you have customers with high CLV
