Chapter 7 Packet Notes Flashcards Preview

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Flashcards in Chapter 7 Packet Notes Deck (42):
1

Business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator (producer) to the targeted user and that satisfy the targeted user or consumer.

Small Business Marketing

2

  • Identification of a target market
  • Determining a target market's potential
  • Preparing, communicating, and delivering a bundle of satisfaction to the target market.

Small Business Marketing Activities

3

  • Core product/service
  • Actual prodcut/service
  • Augmented product/service

The Levels of Product/Service

4

  • Production-oriented
  • Sales-oriented
  • Consumer-oriented

Marketing Philosophies

5

Emphasizes development of the product and production effciencies over other activities.

Production-Oriented

6

Favors product sales over production efficiencies and customer preferences.

Sales-Oriented

7

  • The right choice
  • All marketing efforts begin and end with customers
  • The focus is on customers' needs, which is most consistent with long-term success of the firm.

Consumer-Oriented

8

  • Market analysis
  • Developing the marketing mix

Marketing Research Activities

9

An evaluation process that encompasses market segmentation, marketing research, and sales forcasting.

Market Analysis

10

The combination of product, pricing, promotion, and distribution activities.

Developing the Marketing Mix

11

  • Market Analysis
  • The competition
  • Marketing Strategy

The Formal Marketing Plan

12

  • State of the competition
  • Production focus
  • Focus on the present

Reasons for not adopting a consumer orientation

13

With no competition or high demand, firms focus on production.

State of Competition

14

Entrepreneurs may have strong production skills and weak marketing skills.

Production Focus

15

Entrepreneurs tend to focus on current success which is the result of an overemphasis on selling.

Focus on the Present

16

  • Marketing research
  • Outside sources
  • Steps in the marketing research process

The Nature of Marketing Research

17

The gathering, processing, reporting and interpreting of market information.

Marketing Research

18

  • Hiring professional marketing researchers
  • Using the Internet for web-based surveys and online focus groups.

Outside Sources

19

  1. Identifying the informational need- Why do we need to know this?
  2. Searching for secondary data- Who has researched this topic already?
  3. Collecting primary data- Who do we ask and what do we ask them?
  4. Interpreting the data- Got the information, now what does it mean?

Steps in the Marketing Research Process

20

  • Observational methods
  • Questioning methods

Methods for Collecting Primary Data

21

  • Human
  • Mechanical

Observational Methods

22

  • Surveys
    • Mail
    • Telephone
  • Personal interviews
  • Experiments

Questioning Methods

23

  • Market Ingredients
  • Market Segmentation
  • Focus Strategy

Understanding Potential Target Markets

24

A group of:

  1. Customers or potential customers who have:
  2. Purchasing power
  3. Unsatisfied needs

Market Ingredients

25

The division of ar market into several smaller customer groups with similar needs.

Market Segmentation

26

A type of competitive strategy which cost and differentiation-based advantages are achieved within narrow market segments.

Focus Strategy

27

  • Segmentation variables
  • Benefit variables
  • Dempgraphic variables

Market Segmentation and its Variables

28

The parameters used to distinguish one form of market behavior from another for the purpose of market segmentation.

Segmentation Variables

29

Specific characteristics that distinguish market segments according to the benefit sought.

Benefit Variables

30

Specific characteristics that describe customers and their purchasing power.

Demographic Variables

31

  • Unsegmented Strategy (Mass Marketing)
  • Multisegment Strategy
  • Single-Segment Strategy

Types of Market Segmentation Strategies

32

A strategy that defines the total market as the target market.

Unsegmented Strategy (Mass Marketing)

33

A strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each. (Taylors to each group).

Multisegment Strategy

34

A strategy that recognizes the existence of several distinct segments but focuses on only the most profitable segment.

Single-Segment Strategy

35

A prediction of how much (in units and/or dollars) of a product or service can be sold within a market in a defined period of time.

  • Assesses the new venture's feasibility
  • Assists in planning for product scheduling, setting inventory levels, and personnel decisions.

The Sales Forecast

36

  • Unique new business circumstances
  • Lack of familiarity with quantitative methods
  • Lack of familiarity with the forecasting process.

Limitations to Forecasting (for Entrepreneurs)

37

  • Breakdown process (chain-ratio method)
  • Buildup process 

Two Dimensions of Forecasting

38

Forecasting begins with a macro-level variable and works down to the sales forecast (top-down)

Breakdown Process (Chain-Ratio Method)

39

All potential buyers in various submarkets are identified and then the estimated demand is added up (bottom down).

Buildup Process

40

  • Direct forecasting
  • Indirect forecasting

Forecasting and Predicting Variables

41

Use of sales as the predicting variable.

Direct Forecasting

42

Use of variables related to sales as proxies to project future sales.

Indirect Forecasting