Midterm Flashcards
(101 cards)
1
Q
Marketing
A
set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships
2
Q
What is marketing used for
A
create value in products and services
3
Q
Need vs Want
A
need is basic necessities while want is how to fulfill that need
4
Q
Creating Value
A
Product: brand size quality features
5
Q
Transacting Value
A
Price: list price discounts allowances costs
6
Q
Communicating Value
A
Promotion: advertising sales promotion public relations direct marketing
7
Q
Delivering Value
A
Place: marketing channels distribution intensity locations: retailers, online supply chain
8
Q
Product-oriented companies
A
focus on developing and distributing innovative products with little concern about whether the products best satisfy customers’ needs
9
Q
Sales-oriented companies
A
view marketing as a selling function where companies try to sell as may of their products as possible rather than focus on making products consumers really want
10
Q
Market-oriented companies
A
start out by focusing on what consumers want and need before they design, make, or attempt to sell their products and services
11
Q
Value-based companies
A
they focus on the triple bottom line: people, profits, and planet
12
Q
what is a marketing strategy?
A
they identify:
a firm’s target market
a related marketing mix (the 4 P’s)
the bases upon which the firm plans to build a sustainable competitive advantage
*leads to sustainable competitive advantage
13
Q
sustainable competitive advantage example
A
Nike: strong brand, tech, strong customer base, loyal customers
14
Q
Customer Value (4)
A
customer excellence
operational excellence
locational excellence
product excellence
having one of these is not enough to be a successful company
15
Q
Customer Excellence
A
retain loyal customers
provide excellent customer service
16
Q
Operational Excellence
A
efficient operations + excellent supply chain management + strong supplier relations
17
Q
Product Excellence
A
High perceived value + effective branding and positioning
18
Q
Locational Excellence
A
LOCATION LOCATION LOCATION
19
Q
Developing a marketing plan (5)
A
Steps:
business mission and objectives
situation analysis
identify opportunities
implement marketing mix
evaluate performance by using marketing metrics
20
Q
Step 1 in developing a . marketing plan
A
Define the mission
mission statement: a broad description of a firm’s objectives and the scope of activities it plans to undertake
21
Q
Step 2 in developing a marketing plan
A
conduct a situation analysis (using SWOT)
22
Q
SWOT analysis
A
Internal:
Strengths
Weaknesses
External:
Opportunities
Threats
23
Q
Step 3 in developing a marketing plan
A
identify and evaluate opportunities using STP (segmentation, targeting, positioning)
24
Q
Step 4 in developing a marketing plan
A
implement marketing mix and allocate resources
25
Product and value creation (4 P's)
firms attempt to develop products and services that customers perceive as valuable enough to buy
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price and value for money (4 P's)
marketers should base price on the value that the customer perceives
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place and value delivery (4 P's)
product must be readily accessible
| when and where the customer wants it
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promotion and value communication (4 P's)
marketers communicate the value of their offering, or the value proposition, to their customers through a variety of media
29
step 5 in developing a marketing plan
evaluate performance by using marketing metrics
30
Boston Consulting Group Matrix
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BCG
stars
question marks
cash cows
dogs
```
31
Stars
heavy investment to finance growth, improve CA, good for brand
high market growth rate
high relative market share
32
Question Marks
unsure of success, heavy investment to hold market share
turn into stars
high market growth rate
low relative market share
33
Cash Cows
less investment; generate lots of $$; used to support other SBUs
low market growth rate
high relative market share
34
Dogs
investment to maintain them - may breakeven
sometimes get ousted
low market growth rate
low relative market share
35
Growth strategies
Market Penetration:
current product
current market
Product Development:
new product
current market
Market Development:
current product
new market
Diversification:
new product
new market
36
Microenvironmental Factors
company
corporate partners
competition
37
Microenvironmental Factors - competition
indentify and analyze direct and indirect competitors
know strengths and weaknesses
CI (competitive intelligence)
38
Microenvironmental Factors - corporate partners
firms are part of alliances with suppliers, corporate partners, etc.
39
Macroenvironmental Factors
```
culture
demographics
social/natural
technology
economic
political/legal
```
40
Macroenvironmental Factors - culture
broadly defined as the shared meanings, beliefs, morals, values, & customs of a group of people.
41
Macroenvironmental Factors - demographics
Demographics are the characteristics of human populations & segments, especially those used to identify consumer markets.
42
generational cohorts
A generational cohort is a group of people of the same generation, that have similar purchase behaviours because they have shared experiences & are in the same stage of life.
The five major groups are: tweens, Gen Y/millennials, Gen X, baby boomers & seniors.
43
Macroenvironmental Factors - income
Purchasing power is tied to income
Statistics Canada tracks income
Many middle class families feel the decline in purchasing power in recent years
education is related to income, which determines spending power
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Macroenvironmental Factors - technology
Technology has impacted every aspect of marketing:
New products
New forms of communication
New retail channels
45
Macroenvironmental Factors - economic situation
Marketers monitor the general economic situation, both domestically and abroad because this affects the way consumers buy and spend money.
inflation, exchange rates, recessions
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Macroenvironmental Factors - political/legal
Competition Act
Consumer Packaging
and Labelling Act
Food and Drugs Act
Access to Information Act
Patent Act
North American Free Trade Agreement (NAFTA)
47
Macroenvironmental Factors - Social
Shape consumer values
These trends change over time
Greener Consumers
Privacy Concerns
Time-Poor Society
Health and Wellness Concerns
48
Consumer Behaviour
Consumer should drive marketing strategies
Consumer behaviour must change in order for product concepts to be successful
Founding principle: listen & learn from your customers
Feedback = improve
49
the consumer decision process (5)
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need recognition
information search
alternative evaluation
purchase decision
postpurchase
```
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the consumer decision process - need recognition
Functional needs
| Psychological needs
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the consumer decision process - information search
Internal Search for Information
External Search for Information
perceived benefit vs perceived costs
actual or perceived risk
locus of control
52
internal locus of control
| external locus of control
some control over outcomes = engage in more search activities
Fate, external factors control all outcomes = why bother?
53
the consumer decision process - alternative evaluation
evaluative criteria
determinante attributes
compensatory
decision heuristics: price, brand, product presentation
non-compensatory
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the consumer decision process - purchase decision
customers are ready to buy
55
ritual consumption
a pattern of behaviours tied to life events that affect what and how we consume
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the consumer decision process - postpurchase
three potential outcomes:
customer satisfaction
postpurchase dissonance
customer loyalty
57
factors influencing consumer buying decisions
** one of the midterm questions posted
Psychological factors: motives, attitudes, perceptions, learning, lifestyle
Social factors:
reference groups, culture
Situational factors:
purchase situation, shopping situation, temporal state
58
Psychological factors: Attitude
Your evaluation or feeling towards an object or idea
Learned & long-lasting but they can change abruptly
Affective vs. behavioural components
59
Psychological factors: Perception
Culture, tradition, and our overall upbringing determine our perceptual view of the world.
60
Psychological factors: Learning
affects both attitudes and perceptions
affected by social experiences
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social factors: family
decision makers and influencers
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social factors: reference groups
family, friends, co-workers, famous people
provide information, rewards, and self-image
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social factors: culture
Shared meanings, beliefs, morals & customs
Your culture group can be your school, country, religion
Culture greatly influences consumer behaviour
Marketers must understand differences among countries
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decision heuristics
mental shortcuts that help consumers narrow down choices
65
Business-to-Business Marketing
Buying & selling goods or services to be used:
in the production of other goods & services,
for consumption by the buying firm, or
for resale by wholesalers & retailers
66
B2B markets
resellers (purchase from manufacturer and resell)
manufacturers (create their own goods from raw materials)
government (all levels of government)
institutions (schools, museums, religious organizations)
67
challenges of reaching B2B clients
Identify decision makers in organization who authorize or influence purchases
Understand the buying process of each potential client
Identify factors that influence the buying process of potential clients
68
Difference between B2B & B2C markets - market characteristics
Demand for business products is derived
Fewer customers, more geographically concentrated & orders are larger
Demand is more inelastic
69
Difference between B2B & B2C markets - product characteristics
Products technical in nature, purchased based on specifications
Mainly raw & semi-finished goods
Heavy emphasis on delivery time, technical assistance, after sale service, financing
70
Difference between B2B & B2C markets - buying process characteristics
Buying decisions more complex
Competitive bidding, negotiated pricing, complex financial arrangements
Qualified, professional buyers - more formalised buying process
Buying criteria and objective specified
Multiple participants in purchase decisions
Reciprocal arrangements common
Close long-term relationships
Online buying common
71
Difference between B2B & B2C markets - marketing mix characteristics
Direct selling & physical distribution often essential
Advertising more technical, promotions emphasize personal selling
Price often negotiated, inelastic, affected by trade/quantity discounts
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The B2B Buying Process
need recognition
product specification
RFP process
proposal analysis and supplier selection
vendor performance assessment using metrics
73
Stage 1: need recognition
Can be generated internally or externally
Sources for recognizing new needs:
Suppliers
Salespeople
Competitors
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Stage 2: product specification
Suppliers use to develop proposals
Can be done collaboratively with suppliers
75
Stage 3: request for proposal (rfp) process
Buying organizations invite alternative suppliers to bid on supplying their required components or specifications
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Stage 4: Proposal analysis & supplier selection
Often several vendors are negotiating against each other
Considerations other than price play a role in final selection
77
empty card
yeet
78
Stage 6: vendor performance assessment using metrics
taking issues into consideration, giving them importance, and then evaluating
79
the buying center
The buying centre is the group of people typically responsible for the buying decisions in large organizations
influencer
decider
buyer
user
gatekeeper
initiator
80
organizational culture
democratic
autocratic
consultative
consensus
A firm’s organizational culture reflects the set of values, traditions & customs that guides its managers’ & employees behaviour.
81
buying situations
New buy:
Purchasing for the first time
Likely to be quite involved
The buying centre will probably use all six steps in the buying process
Straight Rebuy:
Buying additional units or products that have been previously purchased
Most B2B purchases fall into this category
Modified Rebuy:
Purchasing a similar product but changing specifications
Current vendors have an advantage
82
the segmentation-targeting-position process
strategy or objectives
segmentation
evaluate segment effectiveness
select target market
identify and develop positioning strategy
83
Step 1: establish overall strategy or objectives
Consistent with mission statement
Derived from mission & current state
84
Step 2: segmentation bases
Geographic: continent, country, region, province, city, etc.
Demographic: age, gender, income, education, etc.
Psychographic: lifestyle, personality/self concept, social class, etc.
Behavioural: benefits sought, usage, loyalty
85
geodemographic segmentation
how consumers describe themselves using a combination of geographic, demographic, and lifestyle characteristics to segment a market
86
geodemographic segmentation psyte clusters (3)
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Urban Lower Middle (U4):
Urban Bohemia
rom body piercing to
tattoos, Urban Bohemia
includes a diverse population
by design. A neighbourhood
with a youthful skew, this
cluster occupies itself in
a variety of artistic, retail,
and generally creative
employment. Men and
women employed in cultural,
artistic, and entertainmentrelated
jobs abound.
Household maintainers under
age 25, many with college
degrees, are also
46,000
```
```
Suburban Affluent (S1):
Suburban Affluence
This cluster with a flair for fine
living represents both old and
new wealth. Because wealth
accumulates throughout life
stages, this cluster exhibits an
older skew with many empty
nests. Suburban Affluence
indexes high on managerial
and technical employment
and are married with children
166,000
```
```
Suburban Affluent (S1):
Asian HeightsAsian ancestries combined with
hard work and growing wealth
create and mould these upscale
neighbourhoods. Asian Heights
represents the affirmation of
dreams cultivated through
generations of immigrants and
often through hardship. These
families boost local economies
as well as family prospects.
Asian Heights indexes high
on Chinese, Korean, and
Japanese immigration as well
as households of six or more
persons.
96,000
```
87
step 3: evaluate segment attractiveness
identifiable: who is in their market?
reachable: know the product exists, understand what it can do, recognize how to buy
responsive: react positively to firm's offering, move toward the firm's products/services
substantial and profitable: size matters
88
step 4: select target market
based on completing a SWOT analysis
89
step 5: identify and develop positioning strategy
positioning methods:
value: relationship of price to quality
product attributes: focus on the attributes that are most important and varies by target market
benefits and symbolism: emphasizes the benefits of the brand as well as the psychological meaning of the brand to consumers
competition: position against a specific competitor
market leadership
90
repositioning
refers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences
91
Marketing Research
Consists of a set of techniques and principles for systematically collecting, recording, analyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas.
92
The Marketing Research Process
# define research problem and objectives
design the research plan
collect data
analyze data and develop insights
present action plan
93
Step 1: Define the research problem & objectives
what information is needed to answer specific research questions?
how should that information be obtained?
94
Step 2: design the research plan
identify the type of data needed
determine type fo research necessary to collect the data
project objectives drive the type of data needed
95
Step 3: Collect data
secondary data: pieces of information that have been collected prior to the start of the focal project (internal or external)
primary data: data collected to address specific research needs (focus groups, interviews)
96
Step 4: analyze data & develop insights
converting data into information to explain, predict and/or evaluate a particular situation
97
Step 5: present action plan
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PREPARE the results:
Executive summary
Body of the report (objectives, methodology, findings)
Conclusions
Supplemental tables/appendices
```
```
PRESENT the results:
Short & to the point
Interesting & appropriate to style of audience
No technical jargon!
Recommendations
```
98
secondary data
can be free or very inexpensive to obtain
external data: census data, trade journals, books, articles, etc.
internal data: from the company/firm itself
99
qualitative research
reliability
validity
sampling
methods: observation, social media, in-depth interviews, focus groups, projective techniques
100
quantitative research
information confirms early insights
uses surveys, formal studies, scanner and panel data
testing the prediction or hypothesis
101
experimental research
systematically manipulates one or more variables to determine which variable(s) have a causal effect
