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Flashcards in Exam 1 Deck (156):
1

What is marketing?

-for creating, communicating, and delivering value
-managing customer relationships in ways that benefit the organization and its stakeholders

2

marketing management

-an art and a science
-using 6 disciplines to create superior value

3

The six disciplines

1) choosing target markets
2) building brands
3) creating offerings
4) pricing offerings
4) promoting offerings
5) delivering offerings

4

key customer markets

-consumer markets
-government markets
-business markets
-global markets

5

marketing mix

product
price
place
promotion

6

objective for MKT 805

Integrate the six marketing disciplines in the property to make a holistic marketing strategy

7

role of strategic planning

-managing business as investment portfolio
-assessing the market's growth rate and company's market position
-establishing a strategy

8

role of strategic marketing

-managing the function of marketing within the business
-including the market perspective in the strategic planning process
-advocating for the voice of the consumer

9

Two tools for situation analysis (discussed in this class)

-GE / McKinsey matrix
-Boston Consulting Group (BCG) matrix
- SWOT

10

GE / McKinsey Martix

- x axis: industry attractiveness (low, med, high)
- y axis: business position (low, med, high)

11

BCG matrix

-x axis: market share
-y axis: market growth

12

BCG matrix: stars

high market growth
high market share

13

BCG matrix: question marks

high market growth
low market share

14

BCG matrix: dogs

low market growth
low market share

15

BCG matrix: cash cows

low market growth
high market share

16

marketing research definition

the function that links the consumer, the customer, and the public to the marketer through information

17

problem identification research

help identify problems which are not apparent but are still likely to exist or happen soon

18

problem solving research

help solve specific marketing problems

19

primary data

originated by a researcher for the specific purpose of addressing the problem at hand

20

secondary data

data that have already been collected for purposes other than the problem at hand (cheaper than primary)

21

6 steps of the market research process

-define the problem
-develop an approach to the problem
-formulating a research design
- doing field work or collecting data
-preparing and analyzing data
-preparing and presenting the final report

22

research design definition

a framework or a blueprint for conducting the marketing research project.

23

two types of research design

-exploratory research design
-conclusive research design

24

two types of conclusive research design

-descriptive research
-casual research

25

two types of descriptive research

-cross sectional
-longitudinal

26

two types of cross-sectional design

-single cross section design
-multiple cross section design

27

two types of qualitative research methods

-direct (non disguised)
-indirect (disguised)

28

what type of research method are projective techniques?

indirect (disguised) qualitative

29

what are the two types of direct qualitative research methods

focus groups
in depth interviews

30

disguised observation definition

respondents are unaware that they are being observed (mystery shopping)

31

undisguised observation

the respondents are aware that they are under observation

32

what is a market segment

a group of costumers who share similar needs and wants

33

examples of demographic segmentation

-age and life cycle
-life stage
-gender
-income
-social class
-race and culture

34

millennial birth years

1979 to 1994

35

Gen x birth years

1964 to 1978

36

Baby boomers

1946 to 1964

37

Silent Generation

1925 to 1945

38

list segmentation approaches from most mass market to most customization

-undifferentiated (full market coverage)
-multiple segments
-mass customization (single segments)
-niche targeting (individuals as segments)

39

undifferentiated markets

-one size fits all
-entire market is target market
-rarely used any more
(example model T only comes in black)

40

multiple segments

-multiple products for multiple segments
-optimal market fit
-traditional approach
(PNG owning tide, gain, and cheer)

41

mass customization

-segment of one
-each customer has a unique need
-each need can be uniquely met
(example Dell computers)

42

Niche targeting

-one or few products designed to meet the very focus needs of a very focused segment
-usually able to demand a premium
(example rolls royce)

43

STP stands for...

segmentation
targeting
positioning

44

market segmentation

-identify and profile distinct groups of buyers

45

market targeting

select one or more market segments to enter

46

market positioning

for each, establish and communicate benefits of offering

47

Ways to choose target markets

-segmentation tools such as surveys, perceptual mapping, VALS, PRIZM

48

Attitudinal segments example

-style seekers
-purely pragmatic
-buyers and keepers
-loyal to brand/make
-treat me right
-high maintenance

49

perceptual mapping

when you have a graph of two sets of opposing characteristics and place different products or brands on it

50

Vals segments

survivors
believers
strivers
makers
thinkers
acheivers
experiencers
innovators

51

what are the two criteria that the VALS segmentation system is based on?

-resources (high or low)
-primary motivation (ideals, achievement, self-expression)

52

PRIZM

defines every household in terms of 66 demographically and behaviorally distinct segments

53

what is a brand?

a name, term, sign, symbol, or combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors

54

consumer benefits of brands

-identify who made it
-simplifies decision process
-reduces risk

55

marketer benefits of brand

-simplify product handling
-protect unique features
-create loyalty
-establish barriers to entry

56

what is "branding"

endowing products and services with the power of a brand

57

customer perceived value

the difference between perceived benefits and costs of an offering and the perceived alternatives

58

what is a brand promise?

the markets vision of what the brand can be and must do for consumers

59

brand positioning

designing a company's offering and image to occupy a distinct place in the minds of the target market
-always relative to competitors

60

points of parity

associations that are shared with other brands and aren't unique

61

points of difference

attributes or benefits that other brands can't match
-must be important and worthwhile to customers

62

points of irrelevance

features that you have that customers don't care about

63

branded house

one parent brand with many sub brands (google, google maps, google earth)

64

house of brands

The sub brands owned by the parent brand are more important (example: PNG)

65

brand equity

the value added to products because of the brand name

66

models of determining brand equity

-brand dynamics pyramid
-customer based brand equity model
-brand asset valuator

67

milliard brown brand dynamics pyramid (from weak to strong relationships)

-presence
-relevance
-performance
-advantage
-bonding

68

keller based brand equity model (4 steps from bottom to top of pyramid)

1) identify (who are you)
2)Meaning (what are you
3) response (what about you)
4) relationships (what about you and me?)

69

Young and Rubicam brand asset valuator

-differentiation
-relevance
-esteem
-knowledge

70

Young and Rubicam brand asset valuator power grid axis'

- x axis: esteem and knowledge
- y axis: energized differentiation and relevance

71

three ways to manage brand equity

brand revitalization
brand extension
brand reinforcement

72

brand revitalization

trying to deliver a completely new position for the brand (ie old spice the man your man can smell like)

73

brand extensions

new products with power of existing brand (diet coke, coke zero)

74

brand reinforcement

moves to reinforce what the brand already is (walmart buying jet.com)

75

loyalty

deeply held commitment to re-buy from a brand

76

customer value management (CVM) Customer lifetime value

net present value of the stream of future profits expected over the customer's lifetime purchases

77

Customer relationship management (CRM)

the process of managing detailed information about individual customers to maximize customer loyalty

78

what happens to 95% of dissatisfied customers?

they are silent and just stop buying

79

product line

a company's group of products, closely related in function, consumer group, distribution channel, or price range
-it may consist of different brands

80

product category

the market's collection of various companies' similar product lines

81

product mix

the variety and relative proportion of all products a company chooses to sell

82

new product development process

-idea generation
-screening
-research
-launch
-testing
-design

83

consumer research types

-portfolio research
-foundational research
-input to program execution
-market assessment
-post launch assessment

84

adoption

process by which a customer begins to buy and use a new product
-micro(individual) proces

85

diffusion

how the use of a product spreads through a population
-macro (market) process

86

typical adoption process

-awareness
-interest
-evaluation
-trial
-adoption/rejection

87

stages of the product life cycle

-introduction
-growth
-maturity
-decline

88

MIA construct

Methodology
Issue
Audience

89

setting the price: six steps

1) pricing objective
2) determine demand
3) estimate cost
4) competitor analysis
5) price method
6) select final price

90

Van Westendorp Analysis

-about finding the right price price
-4 questions (too expensive, getting expensive, bargain, inexpensive)

91

indifference point

where the inexpensive and the expensive line meet

92

point of marginal cheapness

the inexpensive line meets the expensive line

93

point of marginal expensiveness

point where the inexpensive and the too expensive line meet

94

optimal price point

point where the too expensive and inexpensive lines meet

95

what is the most important part about managing a service

it is all about satisfaction

96

how to achieve service excellence

-differentiate services
-understand best practices

97

pricing objectives

-survival
-maximum current profit
-maximum market share
-maximum market skimming
-product-quality leadership

98

price elasticity

a measure of the sensitivity of the demand to changes in price

99

Elasticity of 0

perfectly inelastic
(ex cigarettes)

100

elasticity from 0 to -1

relatively inelastic (alcohol)

101

elasticity

elastic (soft drinks)

102

why is elasticity usually a negative integer?

it is an inversely proportional relationship

103

types of cost

fixed + variable = total costs

104

price ceiling

the highest that demand will pay for it

105

price floor

the minimum price to make a profit

106

markup pricing

the difference between the cost of a good and it's selling price and keeping a consistent percentage

107

break even pricing

where costs and revenue from selling a product are equal

108

price skimming

set a relatively high price at first and then lower it over time

109

penetration pricing

set a relative low price to drive market share and value perceptions
-volume over margin

110

prestige pricing

setting a high price so that quality/status conscious consumer will be attracted to the product and buy it

111

promotional pricing

selling products at or below cots to stimulate sales of other profitable products (milk/eggs at a grocery store)

112

captive pricing

the razor/blade model

113

pricing models

-pricing model categories
-customer attitudinal models
-conjoint (choice based) experiments
- Van Westendorm Price Sensitivity analysis

114

two types of customer attitudinal models

-complex, multivariate techniques
-simler, price sensitivity techniques

115

pricing model categories

-econometric
-financial management
-production volumetric
-customer attitudinal

116

econometric pricing model

behavioral impact to economic changes

117

financial management pricing model

profit and loss simulation

118

production volumetric pricing model

production capacity planning

119

customer attitudinal pricing model

marketing research

120

conjoint analysis

show customers a series of hypothetical products and asked them to pick the one they like best
-use responses to estimate attribute level utilities

121

types of integrated communications

-mass communications
-personal communications

122

types of personal communications

-direct marketing
-personal selling
-interactive marketing
-word of mouth

123

types of mass communications

-advertising
-promotion
-experiential
-public relations

124

direct marketing

the use of consumer direct channels to reach/deliver products without a middleman

125

types of direct marketing

-telemarketing
-direct mail
-infomercials
-catelogs

126

interactive marketing

internet marketing

127

types of word of mouth

social media
buzz marketing
viral marketing
opinion leaders

128

sales promotion

a collection of incentive tools to stimulate short term increased demand for a product or service

129

experiential marketing

becoming part of the consumers lives through events and experiences

130

public relations

providing information about a brand to the public so that people will regard the brand in a favorable way

131

key PR functions

1) press relations
2) product publicity
3) corporate communications
4) lobbying
5) counseling

132

the 5 M's of advertising

mission
money
message
media
measurement

133

advertising objectives

inform
persuade
reinforce
remind

134

Decision factors for advertising budget

-stage in the product life cycle
-market share and consumer base
-competition and clutter
-advertising frequency
-product substitutability

135

pre message advertising measurement

ad testing

136

post message advertising measurement

ad tracking

137

concept testing

evaluating broad descriptions of theme

138

copy testing

evaluating different executions of a theme

139

reach

number of different people or households exposed to an ad

140

rating

percentage of households in a market that are tuned into a show or a program

141

frequency

average number of times a person is exposed to an ad

142

gross rating points (GRPs)

-reference number used by advertisers
-reach x frequency

143

CPM

-cost per thousand
-cost of reaching 1000 individuals or households with an ad

144

what is the most disruptive, most evolving part of the marketing mix

Delivering offerings

145

channel management

how a company directs its marketing activity by invoking other parties that make up its distribution channels

146

supermarket intermediaries example

manufacturer
wholesaler
distributor
retailer
customer

147

push strategy

use manufacturer's sales force and trade promotions to persuade intermediaries to carry and promote an product to end users

148

pull strategy

use of advertising, promotion, and other communication to persuade customers to demand the product from intermediaries

149

steps in designing a marketing channel

1) analyze customer needs
2)establish channel objectives
3)identify major channel alternatives
4)evaluate major channel alternatives

150

Non store retailing

-direct selling
-direct marketing
-automatic vending

151

direct selling

at home parties, door to door

152

direct marketing

1-800-flowers, lands end

153

franchising retailing

franchisor owns a trade or service mark and licenses it to franchisees in return for royalty payments

154

private label brand retailing

private label brands are store brands

155

showroom phenomena

visiting a physical store in order to examine a product before buying it online at a lower price

156

goal of private brands

to take loyalty away from manufacturer to the retailer