Flashcards in Test 1 Deck (84):
The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have VALUE for customers, clients, partners, and society at large.
What are the core aspects of marketing?
1. Creates value
2. Satisfies a customers need/or want
3. Entails an exchange
4. Requires all parts of the Marketing Mix (4 P's)
What are the components of the marketing mix?
Product, Price, Place, Promotion
What are the components of a market?
B2B, B2C, C2C
all activities necessary to get the product to the right customer when the customer wants it
supply chain management defined
getting the "bang for the buck", created by the amount of worth placed on a product or service.
Collaborates with customers to improve products and watching the customers (lead users: who have taken a product and adapted it in some way; made it unique to their situation. Ex: Blue Jeans/ Rock Star jeans)
Which Era included the assembly line, focused on making the best products. Manufactures, if I make the best product, it will sell itself logic.
What are the four Eras?
1. Production Oriented Era
2. Sales Oriented Era
3. Marketing Oriented Era
4. Value-based Marketing Er
Who once said "You can have any color car you want, as long as it's black?"
Which era involves having too much, convinces customers that their product is the one you want? (car salesman)
Customer is king. Customer research, we will make they want/need era
Save you money, getting more bank for your buck era
Value-Based marketing era
How does a value driven companies improve their value?
1. Sharing information among the different departments
2. Balancing Benefits with Costs: making enough money to stay in business. Keep costs down, while making money that keeps us in business
3. Building Relationships with customers:
-Ex: Car salesmen
--- Relational orientation: long term investment to gain loyal customers
(CLV: Customer lifetime value)
---Transactional orientation: Only concerned with the one time transaction.
(CRM: Customer Relationship Management)
Finding and managing your best customer relationships
4. Connecting with Customers Using social and mobile media: used to enhance the CRM and CLV of customers
What are the three components of a marketing strategy?
1. Identify your target market
2. Develop the marking mix that satisfies the customer need. (Product, price. place, and promotion)
3. Develop a sustainable competitive advantage. (something you have other the competition that is hard to copy)
Advantage you have over the competition that is also difficult to replicate.
Sustainable competitive advantage
the market you're going to focus on
What are the four macro strategies?
1. Customer excellence
2. Opperational Excellence
3. Product Excellence
4. Locational Excellence
Establishing a solid and consistent reputation for providing excellent customer service and/or/ by retaining loyal customers. Ex: Chickfila
Exercising the ability to get the product out to its customers when they need/want it.
-These companies also have great supply management skills.
-This type of excellence allows the company the ability to keep their prices low all the time
Ex: Wal-mart, Amazon, and Whole foods
Providing constancy, in the standard held in their product(s).
Ex: Ikea; customers know and expect a certain overall quality and constancy when buying their products
Having a prime location and understanding if and how your customers needs will be met according to where the company is located.
-In retail, location is everything.,
Famous quote: "The three most important things in retailing are location, location, location."
ex: Pizza Hut story
-Had a great product but was built on the wrong side of the highway comping into town, not leaving. Made out very difficult for people to access their product which in return drove them to do business else where.
What are the growth strategies?
-Market Expansion/Product Development
Current to Current (Market Penetration):
Sales promotions; loyalty programs, coupons), more advertising, longer hours
Current to New (Market Development):
Taking care of our relationships with our customers.
Ex: Coke buying juice
New to Current (Marketing expansion/product development):
Same products, new customers.
Ex: Coke going into new countries
New to New (Diversification):
Related-take advantage of knowledge and moving into another product territory.
Ex: coke coughs drops
unrelated- ex: coke water skis
What are the three phases of strategic marketing process?
What goes on in the planning phase of the market plan structure?
1. Define the business mission
2. Conduct a situational analysis:
SWOT Analysis (Strengths, weaknesses, opportunities, and threats) helps measure where you are now.
What goes on in the implementing phase of the market plan structure?
Identifying and Evaluating Opportunities Using STP > STP: *must stay in order*
Large heterogeneous (diverse) market, and divide it into smaller homogenous subsets (segments)
picking a marketing to go after
developing a clear and distinctive desirable understanding of your product compared to competition.
-This refers to the place the product occupies in the mind the consumer
implement the marketing mix and allocate resources----
strategies vary according to different products
-Expensive metals and large diamonds ($40K) *product/price*
-Lesser grade materials, tiny diamonds ($200-500)
-*Product/price locally owned jewelry store, department stores; belk, Dillards, etc.)
-Plastic, rubber ($20-50) *product/price*
Walmart, target, place
What is the control phase?
Evaluate performance using marketing metrics (BCG portfolio analysis)
How to read the marketing market share metrics?
Your share of the market sales.
(10% of the Toal shares of that market. Ex: Cars; Toyotas)
Products that you have a high growth rate and high market share. *(bigger seller in a market that's growing) requires ALOT of marketing support.
ex: electric and hybrid vehicles (Pris)
Seen some good growth/potential, but you're not the top seller. The tough decisions.
ex: full size trucks (tundras)
Not growing, but stable and you're top seller. Use the extra money to boost your stars.
ex: economy car (camery)
You suck. Products that are loosing more money than they are making. Products up for deletion.
what are the two ways of viewing ethics?
What goals does a short-term profit seek?
can almost certainly (or eventually) lead to serious long term consequences. Where as cresting value over the long-term, should lead to long term success.
The ethic code generally accepted in marketing
AMA (American Marketing Association) Code of Ethics
Where do ethics come from?
Genetically proven to be subject to acting unethical.
Ex: Mental illness, schizophrenia
what we are taught from home
perceive an ethical code according to their deity
driving forces within oneself to live by
What is CSR (Corporate Social Responsibility)?
Voluntary actions taken by a company to address the ethical, social and environmental impacts of its business operations.
-Its important to remember what your company can do. What you are good at your strengths. Your reputation/image.
A company that is know for making family friendly movies.
So would Disney ever make an R-rated movies?
- No. It would be too far from what made them famous and their reputation/image
-Successfully leveraging companies capabilities:
-Use core competency and existing knowledge then apply it to new markets and new products.
Ex: Tempered glass.
-Once design to be used for cookware. It’s ability to go from high heat to cold without shattering, made I very popular for housewives and households who had a need for such a product. As time progressed, not as many people were buying the product because the traditional “housewife” mentality shift to where less and less households where growing away form cooking as much in the household. In response the manufacturers took a step back to reconfigure how they could apply this technology to a new market in new products.
The solution? Smartphone screens.
Its important to know their strengths and weaknesses (ex: buy their products, look them up online, conduct surveys, google earth their facility), as well as be proactive rather than reactive.
Firms are part of alliances. They are aligned with competitors, suppliers,
vendors etc. Includes anyone effected by your decisions getting things from factory to retailer.
What are the six macro-environmental factors including specifics about:
-Gender and gender roles
-Greener consumers – and greenwashing
-Currency exchange rate, interest rates, inflation
Shared meaning beliefs morals values and customers of a group of people.
ex: Language "boot: meaning trunk or shoe
ex: sweet tea in the south vs. the north
-Difference in language/ behavior/ styles/ foods/ taste/ symbols
-Culture changes, marketers need too change their approach accordingly.
Why do demographics matter?
They are linked to consumption behavior.
:Characteristics of human population that are used to identify segments
What are the components of demographics?
Rock and Roll/ Casual Friday
-Responsible at an early age Helicopter parents
-Less economics married later cynical shoppers
-Work life balance Tech savvy
-"mini" baby boom" 60 million people
-Buying power of the future
-Similar product consumption with different gens *self-indulgent, lazy, short attention spans: helicopter parents?
Digital Natives Globally connected 50 million people
How does gender play a role in demographics?
Ex: Trends in the work place.
Women becoming more active in the workplace.
Ex: Buying insurance and cars; gender roles are blurry. Times are changing and so are gender roles.
Bottom line: Different genders make decisions differently
How does education play a role in demographics?
Is related to income, which in return determines spending/ purchasing power.
How does income play a role in demographics?
Purchasing power is tied to income.
How does ethnicity play a role in demographics?
Ex: Grocery store catering to a larger ethnic section
Where is immigration going? *marketing perspective
Higher birth rates (hispanics)
Buying behavior/becoming more integrated (African American) Fastest growing (Asian-American)
gyms, supplements, equipment to help you make you healthier
product and services
coming up with greener, recognizing the consumers interest/ concern for those products
trying to make you think their products are more environmentally friendly when they are not.
How does technology play a role into demographics?
comes new ways in which companies can create new products, form communications and retail channels to reach new/ more people.
How does it economics play a role in demographics?
Inflation and interest rates affect firms' ability to market good and services
1890 Sherman Antitrust:
Allowed certain business activities that federal government regulators deem to be competitive, and recommended the federal government to investigate and pursue trusts.
Political/ Regulatory environment:
Political parties, government organizations, legislation and laws
Prohibited monopolies (trying to encourage free market competition)
Can't combine to from one big organization, prohibits price discrimination, excludes deals or tying contracts. (Tying-great product with bad product)
government organization that oversea all aspects of free trade, policies deceptive practices (protect consumers)
Federal Trade Commission (FTC)
Prohibits price discrimination.
Keeping a company form charging different price to different customers for the same product. Illegal in b2b transactions, in order to make sure everyone can compete fairly.
ex: ladies night vs. Budweiser selling its beer at different prices for bar number 1 and a higher prices to bar number two
prohibiting price discrimination
they effect the labels of the products, for the protection of the customers
*protect customers and competiton
What are the five steps in consumer decision making process psychological and function needs?
1. Need recognition
2. Information search
3. Alternative evaluation
5. Post purchase
external locus of control =
fate, external factors