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Flashcards in Chapter 2 Deck (43):
1

Marketing management process

The process of 1. planning marketing activities

2. directing the implementation of the plans

3. controlling these plans

2

strategic (management) planning

The managerial process of developing and maintaining a match between an organization's resources and its market opportunities

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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

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Target market

A fairly homogeneous (similar) group of customers to whom a company wishes to appeal

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Marketing mix

The controllable variables the company puts together to satisfy the target group

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Target marketing

Says that a marketing mix is tailored to fit some specific target customers

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Mass marketing

The typical production-oriented approach - vaguely aims at "everyone" with the same marketing mix

Assumes everyone is the same - considers everyone to be a potential customer

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Target marketing is the __________ approach

Mass marketing is the ___________ approach

rifle

shotgun

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Mass marketing vs. mass marketers

Mass marketing - sell to everyone

mass marketers - like Kraft and Walmart are aiming at clearly defined target markets

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It is useful to reduce all the variables in the marketing mix to 4 basic ones:

Product

Place

Promotion

Price

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Channel of distribution

Any series of girms (or individuals) that participate in the flow of products from producer to final user or consumer

12

Personal selling

Involves direct spoken communication between sellers and potential customers

May happen face-to-face, over the telephone, or required after the sale

13

Customer service

A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase - a key to builidng repeat business

This effort has to be blended with mass selling and sales promotion

14

Mass selling

Communicating with large numbers of customers at the same time

main form is advertising

15

Advertising

Any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor

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___________ is the main form of mass selling

advertising

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Publicity

Any unpaid form of nonpersonal presentation of ideas, goods, or services

Another important form of mass selling

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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

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We develop a product to:

satisfy the target customers

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We find a way to reach our target customers' ________

place

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We use ___________ to tell the target customers about the product that has been designed for them

Promotion

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We set a ________ after estimating expected customer reaction to the total offering and the costs of getting to them

Price

23

Marketing plan

A written statement of a markting strategy and the time-related details for carrying out the strategy

should describe: 1. what marketing mix will be offered and for how long

2. what company resources will be needed at what rate

3. what results are expected

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Implementation

Putting marketing plans into operation

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Operational decisions

Short-run decisions to help implement strategies may be needed

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Marketing program

Blends all of the firm's marketing plans into one "big" plan

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Customer equity

The expected earnings stream (profitability) of a firm's current and prospective customers over some period of time

28

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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Onetime strategy decisions

The decisions that decide what business the company is in and the strategies it will follow

Usually determine sucess or failure

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Breakthrough opportunities

Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time

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Competitive advantage

A firm has a marketing mix that the target market sees as better than a competitor's mix

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Differentiation

Means that the marketing mix is distinct from and better than what is available from a competitor

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S.W.O.T. Analysis

Identifies and lists the firm's strengths and weaknesses and its opportunites and threats

34

Market penetration

Trying to increase sales of a firm's present products in its present markets - probably through a more aggressive marketing mix

*the firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors' customers or current nonusers

35

Market development

Trying to increase sales by selling present products in new markets

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Product development

Offering new or improved products for present markets

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Diversification

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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4 Basic Types of Opportunities

Market penetration

Market development

Product development

Diversification

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Present products - Present markets

Market penetration

40

Present products - New markets

Market development

41

New products - New markets

DIversification

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New products - Present markets

Product development

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