Exchange
Terms
undefined, object
copy deck
- Value
- a customer's subjective assessment of benefits relative to costs in determining the worth of a product
- Relationship Marketing
- establishing long-term, mutually satisfying buyer-seller relationships
- Marketing Concept
- a philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve it's goals.
- Customer Relationship Marketing
- Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
- Marketing Strategy
- a strategy for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market
- Marketing Plan
- a written document that specifies the activities to be performed to implement and control an organization's marketing activities
- Sustainable Competitive Advantage
- an advantage that the competition cannot copy
- Market Opportunity
- A combination of circumstances and timing that permits an organization to take action to reach a target market
- Mission Statement
- a long-term view of what the organization wants to become
- Marketing Environment
- the competitive, economical, political, legal and regulatory, technological, and sociological cultural forces that surround the customer and affect the marketing mix
- Approaches
- Passive/reactive and Proactive
- Passive/Reactive Approach
- an approach that views environmental forces as uncontrollable
- Proactive Approach
- an approach that believes that environmental forces can be shaped
- Classes of Competitors
- Desire, Generic, Product, and Brand
- Federal Trade Commission (FTC)
- The adoption of a strategic focus for fulfilling the economic , legal, ethical, and philantrhopic social responsibilities expected by stakeholders
- Consumerism
- Organized efforts by individuals, groups, and organizations to protect consumers' rights
- Marketing Ethics
- principles and standards that define acceptable marketing conduct as determined by various stakeholders
- Social Responsibility
- An organization's obligation to maximize its positive impact and minimize negative impact on society
- Cause-related marketing
- practive of linking products to a particular social cause on an ongoing, short-term basis
- Organizational Culture
- set of values, beliefs, goals, norms, and rituals that members of an organization share
- Environmental difference in global marketing
- differences in environment are based on the impact of culture, economics, ethics, technology, politics, and competitors and their forces in foreign environments
- Levels of Commitment
- Exporting, Licensing and Franchising, Contract Manufacturing, Joint Ventures, and Direct Ownership
- Globalization
- Development of marketing strategies that treat the entire world (or it's major regions) as a single entity
- Marketing Research
- systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities
- Marketing Information System
- framework for the management and structuring of information gathered regularly from sources inside and outside an organization
- Steps of Marketing Research Process
- Locate and define problems or issues, design research project, collect data, interpret findings, and report research findings
- Types of Research Design
- Exploratory, Descriptive and Causal
- Exploratory Research Design
- use when making tentative hypothesis more specific
- Descriptive Research Design
- understand characteristics of certain phenomena
- Causal Research Design
- Variable X causes Variable Y
- Reliability
- condition existing when a research technique produces almost an identical result in repeated trials
- Validity
- condition existing when a research method measures what it is designed to measure
- Probability Sampling
- Sampling technique in which every element in the population being studied has a known chance of being selected for study
- Target Market
- group of buyers that a firm has targeted
- Segmentation Variables
- Demographic, geographic, psychographic, behavioristic
- Demographic
- variables based on age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, social class
- Geographic
- variables based on region, urban/suburban/rural, city size, county size, state size, market density, climate, terrain
- Psychographic
- variables based on personality attributes, motives, lifestyles
- Behavioristic
- variables based on volume usage, end use, benefit expectations, brand loyalty, and price sensitivity
- Micro-Marketing
- an approach to market segmentation in which organizations focus on precise marketing efforts on very small geographic markets
- Benefit-Segmentation
- division of a market according to benefits that customers want the product
- Executive Judgement
- intuition of one or more executives
- Types of surveys
- customer forecasting, sales force forecasting, expert forecasting, and delphi technique
- Sales force forecasting
- survey of firm's sales force regarding anticipated sales in their territories
- Expert forecasting
- sales forecasting prepared by experts such as economists, management consultants, advertising executives, college professors, or other persons outside the firm
- Delphi technique
- a procedure in which experts create initial forecasts, submit them to the company for averaging, and then refine the forecasts
- Time-series analysis
- uses historical sales data to discover patterns in sales
- Regression analysis
- finds relationship between past sales and one or more variables
- Market Tests
- making a product avaliable in one or more test area and measuring pruchases and consumer responses to distribution, population, promotion, and price
- Level of Involvement
- an individual's intensity of interest in a product and the importance of the product for that person
- Problem Solving Processes
- Routinized response behavior, limited problem solving, extended problem solving, and impulse buying
- Routinized response behavior
- consumer buys frequently purchased, low-cost items needing little search and decision effort
- Limited Problem Solving
- buy occasionally, or need information about unfamiliar product in a familiar category
- Extended Product Solving
- purchase unfamiliar, expensive, or infrequently bought products
- Consumer Buying Decision Process
- Problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation
- Influences on the Consumer Buying Decision
- situational, psychological, and social
- Situation influences
- results from circumstances, time, and location that affect the consumer buying decision process (i.e. physical surroundings, social surroundings, time perspective, reason for purchase, and buyer's mood and condition
- Psychological influences
- partly determine people's general behavior and thus influence their behavior as consumers (i.e. perception, motives, personality, learning, lifestyles, self-concept, and attitudes
- Social influences
- Forces that other people exert on buying behavior (i.e. roles, family, reference groups, and opinion leaders, social classes, culture, and subculture)
- Business Markets
- Individuals or gropus that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations
- Derived Demand
- demand for industrial products that stems from demand for consumer products
- Categories of Influence on Business Buying Decisions
- Environmental, organizational, interpersonal, and individual
- Stages of Business Buying Decision Process
- problem recognition, develop product specifications, search and evaluate potential products and suppliers, select product and supplier and order product, and evaluate product and supplier performance
- Types of Business Purchases
- straight re-buy, modified re-buy, and new-task purchase
- Straight Re-buy
- routine purchase of the same products by a business buyer
- Modified Re-buy
- new task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
- New-Task Purchase
- an initial purchase by an organization of an item to be used to perform a new job or solve a new problem
- Types of Consumer Products
- convenience, shopping, specialty, and unsought products
- Convenience products
- relatively inexpensive, frequently purchased, with little purchasing effort
- Shopping products
- items that consumers are willing to spend considerable effort in planning and making purchase (i.e. comparing stores/prices for items such as appliances, bicycles, furniture, etc.)
- Specialty products
- possess one or more unique characteristics, and generally buyers are willing to spend considerable time and effort to obtain them (i.e. one-of-akind baseball memorabilia
- Unsought products
- products that are purchased due to a sudden problem, or a product the customer does not usually think of purchasing (i.e. automobile repairs)
- Stages of Product Life Cycle
- introduction, growth, maturity, and decline
- Introduction Stage of PLC
- sales at zero, profits negative
- Growth Stage of PLC
- sales rise rapidly, profits reach peak
- Maturity Stage of PLC
- sales peak, profits continue to fall, 3 stages attempted to achieved here - generate cash flow, maintain market share, increase share of customer)
- Decline Stage of PLC
- sales fall rapidly, profits continue to fall
- Profits peak at which stage?
- Growth
- Sales peak at which stage?
- Maturity
- Product Adaptation Process
- Awareness, interest, evaluation, trial, adoption
- Adopter Categories
- innovators(2.5%) early adopters(13.5%) early majority(34%) late majority(34%) laggards (16%)
- Brand Loyalty
- customers favorable attitude towards a specific brand
- Brand Recognition
- customer aware that the brand exists and views it as an alternative purchase if preferred brand is not available or if other unpreferrable brands are not available)
- Brand Preference
- customer definitely prefers one brand over competitor's and will purchase the brand if available rather than looking for preferred brand)
- Brand Insistence
- customer strongly prefers a brand, accepts no subtitutes, and is willing to spend a great deal of time and effort to acquire that brand
- Types of Brands
- manufacturer, distributor, and generic
- Manufacturer Brands
- initiated by products that ensure that producers are identified with their products at the point of purchase (i.e. Green Giant, Compaq, Levi's)
- Distributor Brands
- initiated and owned by resellers. Major characteristic is that manufacturer is not identified on the product (i.e. Sears Kenmore, JC Penny's Arizona Clothing)
- Generic Brands
- indicate only product category and do not include company name or other identifying terms (i.e. Ibuprofen)
- Criteria for Brand Naming
- easy to say, spell, and recall; name should indicate product's benefits; should be distinctive
- Packaging considerations
- meet FDA requirements, protects product, promotional role, meets need of reseller (easy to transport, store and handle), and environmentally sound
- Steps in Development of a New Product
- idea generation, screen and evaluating, concept testing, business analysis, product development, test marketing, and commercialism
- Line Extension
- development of a product that is closely related to existing products in the line but meets different customer needs
- Product Differentiation
- process of differentiating your product from your competitor's
- Quality
- overall characteristics that allow a product to perform as expected in satisfying customer needs
- Design
- styling and features; how a product is conceived, planned, and produced
- Support Services
- any human or mechanical efforts to provide value to product, such as a warranty on an automobile
- Product Positioning
- creating and maintaining a certain concept of a product in customer's minds
- Characteristics of Services
- intangibility, inseperability, heterogeneity, perishability, client based relationships, and customer contact
- Intangibility
- not physical and cannot be touched
- Inseperability
- production of service and consumption of service happen simultaniously
- Heterogeneity
- maintaining consistent quality
- Perishability
- unused services cannot be saved for a later time period
- Client Based Relationships
- repeated interaction with customers that results in satisfied customers who use a service
- Customer Contact
- level of interaction between service provider and customer
- Service Quality
- customer's perception of how well a service meets or exceed their expectations
- Non-Profit Marketing
- marketing conducted to achieve some goal other than ordinary business goals or profit, market share, or return on investment
- Steps to improve service quality
- analyze customer needs, service quality specifics, employee performance, and manage service expectations
- Opportunity cost
- the value of the benefit given up by choosing one alternative over another
- Marketing channel
- a group of individuals and organizations directing products from producers to customers
- Marketing intermediary
- a middleman linking procedures to other middlemen or the ultimate customer through contracts or purchase and resell or products
- Supply-Chain Management
- long term partnerships among marketing channel members that reduce inefficiencies, costs, and redundancies and develop innovative approaches to satisfy customers
- Vertical Marketing System
- marketing channel managed by a single channel member
- Intensity of Market Coverage
-
Intensive (use all available outlets for promoting a product)
selective (use only some available outlets in area to promote a product)
exclusive (use only one outlet in a fairly large geographical area to distribute product)