MCK1 Flashcards
levels of strategic planning (2)
1 corporate level plans
*decide whether to be an innovator (first-mover strategy) or follower (second-mover strategy)
2 business level plans in strategic business units/SBUs
3 functional level
4 steps in the strategic planning process (2)
1 evaluate external (OT) and internal environments (SW)
2 mission statement - states purpose of org and why it exists
3 objectives - SMART goals
4 value proposition and strategy formulation (means to the end - create a marketing plan)
Porter’s 5 forces model (2)
1 substitutes 2 potential new entrants/competitors 3 bargaining power of suppliers 4 bargaining power of buyers 5 jockeying for a position/competition
4 marketing strategies (2)
1 market penetration - increasing sales of existing products
2 product development - improve or create new
3 market development - enter new market with existing product
4 diversification - doing something outside firm’s current business
6 types of market development strategies (2)
1 export - low risk
2 license - high risk of creating competition by vendor
3 franchising
4 contract manufacturing - hire manufacturers to produce products in another country
5 joint venture
6 direct investment - owning company overseas
4 components of marketing (1)
1 creating - offers of value
2 communicating - describing the offerings
3 delivering - getting offerings to consumers
4 exchanging - trading value for the offerings
*all activities centered around creating VALUE
4 P’s of marketing, aka “marketing mix” (1)
1 product - create offerings
2 promotion - communicate
3 place - deliver
4 price - exchange
marketing oriented concept def (1)
marketers seek to satisfy customer wants and needs
*means firm operating this way is market oriented
production oriented def (1)
belief that best way to compete is through product innovation and low costs - good products sell themselves
- common in production era
- varies from the customer value drive of market orientation
selling oriented def (1)
believe necessary to push products by heavily emphasizing ads and selling
*common in selling era
5 reasons why marketing is good to understand (1)
1 enables profitable transactions to occur
2 delivers value
3 benefits society - facilitates trade, creates jobs, and puts knowledge in the hands of consumers
4 marketing costs money
5 offers career opportunities
positions available in marketing careers (1)
1 marketing research - studying market and customers
2 merchandising
3 sales
4 advertising
5 product development
6 direct marketing - communicate directly with customer
7 event marketing - special events to interact with customers
themes and important trends with marketing (1)
1 ethics and social responsibility
2 sustainability
3 service-dominant logic - value no matter how (service/product)
4 metrics - using technology to track customer wants/happiness
5 a global environment
market segmentation def (5)
breaking down all consumers into groups of potential buyers with similar characteristics
*what group will be interested in the same offering?
targeted vs mass marketing (5)
- targeted/differentiated - new phenomenon, technology makes customer info gathering simple, use of one-to-one marketing
- mass/undifferentiated - like Ford, expensive
segmentation bases def (5)
criteria used to classify buyers, to get a fuller pic of customers and create real value for them
4 categories of market segmentation for B2C (5)
1 behavioral - what do people want? Benefit segmentation by what is most important benefit.
2 demographic - age, race, ethnic background. Retro brands target older generation. Focus on customer life span - appeal to young generation. Family life cycle changes.
3 geographic - what do people buy based on location? Geocoding helps track sales by location. Proximity marketing sends alert when near store.
4 psychographic - what do they value?
*innovators - sophisticated take-charge people who like finer things
*thinkers - motivated by ideals look for durable, functional quality
*achievers - committed to career and family, interested in timesaving devices
*experiencers - impulsive and want to look good and have “cool” stuff
*believers - moral codes, favor American products and are loyal customers
*strivers - trendy, impulsively spend as money will allow
* makers - build things, prefer value over luxury and buy basic products
*survivors - loyal to favorite brands
consumer insight def (5)
result of using qualitative and quantitative consumer information
6 characteristics of an attractive market (5)
1 measurable purchasing power and size
2 good profit potential - market growing and not saturated with competitors
3 able to serve the market segmentation - market is accessible
4 match with marketing capabilities - find the niche
5 ability and resources to compete
6 consistent with firm’s mission
multisegment marketing def (5)
targeting multiple groups of diff consumers
*diversification means greater stability
concentrated marketing def (5)
very small group of customers
- good for small businesses with small budgets
- niche - even more select, going for big fish in small pond
- microtargeting/narrowcasting - mining data to target market (like elections)
positioning def (5)
tailoring your product so it stands out from competitors
*reposition when needed
marketing research def (10)
collecting, analyzing, and reporting marketing info that can be used to improve a company’s bottom line
*market research is much narrower than marketing research
market intelligence def (10)
competitive intelligence - where marketing research is about a problem at a point in time, market intelligence is ongoing to stay in touch with the marketplace
4 components of a marketing information system (10)
1 system for recording internally generated data and reports - sales, clickstream data from website, data mining
2 system for collecting market intelligence on an ongoing basis
3 market analytics software to help managers with their decision making - check competitors’ website, tradeshows, asking salespeople, suppliers, customers
4 system for recording marketing research info - resort if company can’t find answers to Q’s using the above 3 items
7 steps in the marketing research process (10)
1 define the problem/opportunity - identify the research objective (goal research is supposed to accomplish)
2 design the research - research design is “plan of attack”. Primary data (you collect) and secondary data (already available)
3 design the data collection forms - careful not to mislead surveyee with wording, don’t use jargon. Test questionnaire before sending out. Keep it short.
4 specify the sample - define population correctly to avoid sampling error
5 collect the data - can use mystery shopper
6 analyze the data - data cleaning (eliminate duplicates). See if study is valid (tested what it meant to) and reliable (same results over time).
7 write the research report and present its findings - include margin of error
5 types of secondary data (10)
1 syndicated research - data companies collect and sell
2 scanner-based research - info from checkout in stores
3 marketing research aggregator - buys reports created by other companies and resells them or parts of them
4 library
5 gov agencies
3 types of research design (10)
1 exploratory - used when investigating a problem that hasn’t been well defined enough to do an in-depth study, less structure, uses secondary data. Depth interview, focus group, case study (look at how another company solved the problem), ethnography (observe people’s habits), projective technique (using word association to find out more) are example.
2 descriptive - gathering hard numbers to answer who, what, when, where, and how. Physiological measurements check involuntary physical responses to marketing. Why usually requires exploratory research to answer.
3 casual - examines cause and effect to answer “what if” Qs. Conduct field experiments (in store) or other test market to see if behavior matches lab.
