Marketing 360

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Benefit: the outcome which a consumer seeks (e.g., hunger subsides) and which motivates their buying behavior.
Competitive Advantage: The ability of a firm to outperform the competition, and provide a unique benefit (ex: competing based on cost, operational quality, benefits, options, etc.)
consumer: ultimate user of a product or service (called goods)
customer relationship management (CRM): A marketing philosophy where marketing is seen as a process of building a long-term relationship with customers to keep them satisfied and coming back for more.
distinctive competency: A superior capability of a firm in comparison to its direct competition (ability to deliver packages worldwide before lunch the next day)
e-commerce: sales of products and services via the Internet,
m-commerce: e-commerce using mobile phones
exchange: process where a transfer of value (money or trade) is made between a buyer and seller.
lifetime value of customer: The actual amount of money you believe a consumer will spend on your product lines, in their lifetime.
market: the total amount of consumers who share a common need that can be satisfied by a product, and have the disposable income to make the purchase (can be a mass market, regional market or market segment)
marketplace: the location where the buying/selling exchange can take place - can be a store, mall, or online.
marketing: an organizational function and a set of processes for creating, communicating, and delivering value (derived benefits) to customers. Marketing is the voice of the consumer within a company.
marketing mix: Marketer must make many decisions to gain high ROI for a product. These 4 categories help organize the decisions.
4 categories of the marketing mix: product, price, place, promotion
marketing plan: A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies the operational plan of who is doing what.
mass market vs. target market: The mass market is all the possible customers in a market, regardless of the specific needs of any target group. In target marketing you segment the total market into specific sections (ex: urban teens, rural teens, etc.).
Selling Era (Era of over production): characterized by mass marketing and the hard sell - marketers focused on sales. Selling large amount of the products made rather than figuring out what the customers want.
Consumer Era (Era of consumer input): marketing philosophy or identifying and satisfying customer needs.
Needs: human internal biological and psychological drives cause a person to recognize that a gap exists between consumers actual and desired state (ex: hunger, thirst, social connection, etc).
wants: desire for a specific product to satisfy the need (salad vs. cheeseburger, soda vs. milk, etc). The wants for specific products with specific bundles of attributes is culturally and socially influenced.
demand: occurs when the consumer has the money to fulfill their want. Summing demand across market segments is called market demand
Return on Investments: Metric (measurement) of how much profit is being made on a product for the business owners (entrepreneurs and investors)
services: Intangible products which are experienced, but never owned.
social marketing: the concept that products and production must not hurt society and the environment.
stakeholders: the concept that products and production must not hurt society and the environment.
utility: refers to the sum of the benefits a product or service offers. The idea is to make the consumer think they are receiving great utility, which can only be received from your branded product. the goal is also to make the consumer believe they are buying more than just the product (ex: buying a lifestyle
value: A description of the benefits a customer will receive from buying a product or service. (ex: oral hygience). every customer receives different value from the same product or service
value chain: The chain of organizational and inter-organizational activities involved in designing, producing, marketing, delivering, and supporting any product.
casual research: a research technique that manipulates factors (called treatments, or independent variables) to understand if the factor (e.g., price, time of day, discount rate) affect a dependent (outcome) variable
Boston Consulting Group growth-market share matrix: Boston Consulting Group
growth-market share matrix

stars, cash cows, ??, dogs A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of a product (or strategic business unit - SBU) to generate cash
Business planning: the general ongoing process of making decisions that guide the firm both in the short term (operational planning) and long term (tactical and strategic planning).
consumer interview: an exploratory research technique which consists of a one-on-one discussion between a consumer and a researcher. The strength is that the questions can be free-flowing and in-depth.
Business plan: A formal document that includes the decisions that guide the entire organization. Can include all levels of management focus, strategic, tactical, and operational. Normally each functional department cerates their own plan which is approved by top mgmt.
convenience sample: a non-probability sample composed of people that are conveniently available when and where the data is being collected.
Business portfolio: The group of different products or brands owned by an organization and characterized by different income generating and growth capabilities. The portfolio concept was borrowed from finance.
External environment: The uncontrollable elements outside an organization that may affect its performance either positively or negatively. For example macroeconomic forces, demographic changes, and population migration changes.
Functional planning: A decision process that concentrates on developing strategic, tactical, and detailed operational plans for one functional department (ex: HR, IT, Legal, etc.).
GROWTH STRATEGY: market penetration strategies: Market penetration - seek to increase sales of existing products to existing target or geographic market that is already being served - just sell more product! - by using different packaging or price incentives, increasing the distribution outlets.
cross-sectional design: a type of descriptive research technique that is used to gather primary data. It involves the systematic collection of quantitative information at one point in time, rather than over time.
GROWTH STRATEGY: market development strategies: Market development - introduce existing products to new geographic markets or new target markets
GROWTH STRATEGY:product development strategies: Product development - growth strategies that focus on selling new products in currently served markets.
GROWTH STRATEGY: diversification strategies: Diversification strategies - selling new products into new markets to achieve growth. Often a firm tailors their product line when they take it to new geographic markets.
Internal environment: The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization.
custom (primary) research: Primary research is custom-designed and conducted for a single firm (for a fee) to provide specific information that a managers needs about their customers. Although more expensive its more useful than secondary
Marketing plan (one example of a functional plan): A written document that describes the marketing environment, outlines the marketing strategy (5-year plan) and objectives, current tactical (1-year plan), and operational (daily/weekly) plans. It also identifies who will be responsible for carrying out each part of the plan.
data mining (DM): a sophisticated data analysis technique that is used to make knowledge discoveries in a mountain of data. can automatically locate patterns (key influencers, or clusters) in large amounts of data.
Operational plans: Written directions that focus on the day-to-day execution of the, for example, marketing plan. These include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks.
Strategic business units: Individual sections within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors. Ex: Disney theme parks, Disney cruises, Disney movies, etc.
descrpitive research: a type of research that probes systematically into a problem (the research question) and bases its conclusions on large numbers of observations.
experiments: a research technique that tests pre-specified relationships among variables in a controlled environment. For example consumer reactions to different software interfaces are examined to discover which screen interface is received best (as measured in consumer satisfaction or productivity).
exploratory research: a research technique that marketers use to generate insights for future more rigorous studies (often descriptive experimental, survey or field research follows exploratory research-- for example a focus group, limited # of interviews.
affect: the feeling component of attitudes, which refers to the general emotional response a person has for a product or a branded product
attitude: a learned predisposition to respond favorably or unfavorably to stimuli, based on the enduring evaluations of things (prior experiences, etc.) Ex: brand loyalty is an example of a specific attitude.
cognition: the knowing
component of attitudes, refers to beliefs or knowledge a person has about a product category or brand
cognitive dissonance: the anxiety or regret a consumer may have after they choose a product from the evoked set. Here the consumer stresses asking themselves, "did I make the best choice?" smart vendors follow-up with consumers and give them stuff, to assure them that their purchase decision was wise.
consumer behavior: the process involved when individuals or groups select, purchase, use, and dispose of goods & services to satisfy their needs.
Consumer decision-making model (CDM): Depiction of how consumers make purchases. It has the following steps, problem recognition, information search, product evaluation, purchase, and post-purchase activities.
ethno-graphic study: a detailed report based on observations of people in their own homes or communities, and how they use the product or product category in question. Researchers live with the subjects - ex: attending monster truck shows to observe
consumer satisfaction or dissatisfaction: the overall feelings or attitude a person has about a product after they purchase and consume it. If there is a gap in expected and actual satisfaction then consumers are unhappy.
Evaluate Alternative: The step in the consumer decision process after information search has been completed and the consideration set (those alternatives that will be considered for purchase) is decided. At this step, the consumer compares the different product/service choices using the evaluative criteria (like miles per gallon or safety) using the information gained in the information search step of the CDM.
longitudinal design: a research technique that tracks the responses of the same sample of respondents over time (ex: a month).
mall intercept: a data gathering technique where researchers talk to shoppers in shopping or public areas, and ask them to fill out a survey, take a taste test
marketing decision support sytem: the data and interactive analysis software that allow managers to conduct analysis and create the information they need from mountains of transaction data
evaluative criteria: the dimensions used by consumers to compare competing product alternatives.
evoked set: the list of potential solutions (typically products) which a consumer considers when making their purchase decision (ex: out of all the cars available, you may choose amongst 3 or 5 different cars).
marketing information systems: The people, data software and equipment provide regular reports that marketing managers need to spot trends, problem areas, successes
family life cycle: the set of stages of life through which we progress (ex: childhood, college years, maturity, golden years).
heuristics: mental short-cut rules that simplify consumer decisions, and help people make decisions quickly, for example "higher price = higher quality"
marketing intelligence: a method by which marketers get general information about everyday happenings in the marketing environment (including information about the economy, pop trends, population growth and migrations, competitors, etc.)
hierarchy of needs: An approach that categorizes motives according to five levels of importance, the more basic physical needs being on the bottom of the hierarchy and the higher cognitive, emotional and spiritual needs at the top.
information search: the process whereby a consumer searches for appropriate information to make a reasonable decision. The search starts internally with a check of the information a consumer already has about the product category and purchase context (beliefs, prior experience, predispositions). The information search then switches to external sources (personal friends, family, magazines websites and even shopping in stores or online).
marketing research: The process of collecting, analyzing, and interpreting information about customers, competitors, and the business environment in order to improve marketing effectiveness.
involvement: either temporary (situational) or long-lasting (enduring) interest that a consumer has for a brand or product category.
learning: A relatively permanent change in behavior caused by new information or experience. If you understand how consumers learn (where, when, how many exposures are needed, etc.) you can shape this process.
lifestyle: the pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences.
nonprobablity sampling: the researcher just uses their personal judgment when selecting respondents, this can be less scientific which causes representativeness problems.
motivation: an internal state that drives us to satisfy needs by activating goal-oriented behavior
perceived risk: The assessment of the potential danger the consumer would be exposed to if they purchase a product. Usually measured in terms of loss of money, time, ego/status, or privacy.
perception: The process by which people select, organize, and interpret information from the outside world..You use your 5 (or 6?) senses to perceive stimuli (information signals - such as taste, texture, visuals, etc.)
problem recognition: the process that occurs whenever the consumer identifies a gap between their current and desired state. This starts up the consumer decision-making process
probability sampling: a more scientific rigorous approach of finding people is used, and every member of the population has a chance of being included.
psychographics: the set of activities, interests, and opinions which are used to form groups, (ex: all tri-athletes, all hunters, all vegans)
reference group: the people who you identify with an lean on when making decisions, such as family or close friends.
self-concept: how the consumer perceives themself - which is composed of a mixture of beliefs, observations, and feelings.
status symbol: a product or service which sends a message to others, perhaps that the consumer is affluent.
subliminal advertising: hidden messages in vendor messages. these are messages that are not consciously received, but they still affect consumer decisions - such as hidden shapes in pictures, or perhaps the use of music or noises in TV ads. Subliminal ads are sneaky product placement is also sneaky.
reliability: The extent to which research measurements are free of errors - and are understood by the research (often survey) respondents.
representativeness: the extent to which consumers in a study are similar to (represent) a larger group (the target market) in which the organization has an interest.
research design: a written research plan that specifies what information marketers will collect in a research study and what type of study they will do. Good research is well-planned.
sampling: the process of selecting respondents for a study. The safest is random sampling, however any probability sampling technique is preferred.
secondary research: reuses the data from primary research - it was collected for some prior purpose other that the current research question. Usually researchers use financial or economic data or purchase secondary data from government databases
syndicated research: Expensive research reports by firms that collect data and sell the results in the form of reports
validity: the extent to which research method (and survey questions) actually measure what it was intended to measure.

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Created By dudeofthedayno1