Chap 2 Flashcards
(30 cards)
Marketing management process:
Is the process of: Planning marketing activities Set objectives, evaluate opportunities, create marketing strategies, prepare marketing plans, develop marketing program Directing the implementation of the plans. Controlling these plans Measure results, evaluate progress
Strategic management planning:
The job of planning strategies to guide a whole company.
Marketing strategy:
Specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market.
Target market:
A fairly homogenous group of customers to whom a company wishes to appeal.
Marketing mix:
The controllable variables the company puts together to satisfy the target group. NOTE! Customers are not a part of the marketing mix they are the target.
Target marketing:
A marketing mix that is tailored to fit some specific target customers.
Mass marketing:
The typical production-orientated approach. The same marketing mix vaguely aims at “everyone”. Mass marketing assumes that everyone is the same.
The four Ps:
Product, Price, Place, Promotion. The four Ps are needed in a marketing mix and they are equally important. We develop a product to satisfy the target customer. We find a way to reach our target customers’ place. We use promotion to tell the target customers the product. And we set price after estimating expected customer reaction to the total offering and the costs of getting it to them.
Product – the good or service for the target’s needs:
This area is concerned with developing the right “product” for the target market. This offering may by a physical good, a services or a blend of both.
Place – reaching the target:
A product reaches costumers through a channel of distribution.
Channel of distribution:
Is any series of firms or individuals that participate in the flow of products from producer to final user or consumer.
Promoting – telling and selling the customer:
Telling the target market or others in the channel of distribution about the “right” product. Promotion can focus on acquiring new customers or retaining current customers. Promotion includes personal selling, mass selling and sales promotion.
Personal selling:
Involves direct spoken communication between sellers and potential customers.
Customer service:
A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase.
Mass selling:
Is communication with large numbers of customers at the same time. The main form of mass selling is advertising – any paid form of non-personal presentation of ideas, goods or services. Publicity is any unpaid form.
Sales promotion:
Refers to those promotion activities other than advertising, publicity and personal selling that stimulate interest, trial or purchase by final customers or others in the channel.
Marketing plan:
Is a written statement of marketing strategy and the time-related details for carrying out the strategy. It should spell out the following in detail: What marketing mix will be offered, to whom and for how long What company resources (=costs) will be needed and at what rate What results are expected
Implementation:
Putting marketing plan into operation.
Operational decisions:
Short run decisions to help implement strategies.
Marketing program:
Blends all of the firm’s marketing plans into one “big” plan. Target market + Marketing mix = Marketing strategy. Marketing strategy + Time-related details and control procedures = Marketing plan. Marketing plan + Other marketing plans = Marketing program.
Customer equity:
Expected earnings stream of firm’s current and prospective customers over some period of time.
Breakthrough opportunities:
Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.
Competitive advantage:
Means that a firm has a marketing mix that the target market sees as better than a competitor’s mix. An advantage is only successful if it allows the firm to provide superior value and satisfy customers better than some competitor.
Marketing strategy planning process:
It is useful to think of it as narrowing down process: External market environment Customers, Company, Competitors S.W.O.T. Segmentation and targeting, differentiation and positioning Marketing mix (four Ps + target market)
