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| Question | Answer |
|---|---|
| FUNCTION of the Marketing Department | to ensure that the company and it's products PROVIDE VALUE to the customers it wants to Cuattract; the customers are whom the business seeks to identify, satisfy, & retain |
| Customers | the PURCHASERS of a GOOD or SERVICE |
| Marketing | business function that IDENTIFIES, SATISFIES, and RETAINS customers through a set of activities related to CREATING, COMMUNICATING, DELIVERING, & EXCHANGING offerings that have VALUE to the customers |
| ROLE of Marketing from a Business Perspective | COMMUNICATE with customers and ADDRESS their wants & needs |
| Consumers | the USER of a purchased product or service |
| Marketing is providing good and services that _________ or _________ the expectations of buyer | MEET, EXCEED |
| What is the professional association for marketing? | American Marketing Association (AMA); discussions on marketing excellence & marketers and academics to connect w/ people and resources on marketing |
| AMA definition of marketing | the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. |
| Marketing is about creating exchanges | which takes place when two parties give something of value to each other to satisfy respective needs or wants; Ex: consumer trades money for a product or service person volunteers time for a charity and receives a t-shirt |
| SALES actually SELL the product or service while | MARKETING is the process of COMMUNICATING THE VALUE OF A PRODUCT OR SERVICE to customers so that the product or service sells |
| Marketing Identifies | CUSTOMERS, THEIR NEEDS, AND HOW MUCH THEY VALUE they place on getting those needs addressed |
| What does marketing have to do with a product? | Marketing DESIGNS the PRODUCT to ensure it MEETS CUSTOMER NEEDS & provides VALUE for what it COSTS |
| Product Bundle | consists of a TANGIBLE GOOD, INTANGIBLE SERVICE, and the PRICE the company is offering |
| Customer Satisfaction | a MEASURE of how PRODUCTS OR SERVICES delivered by a company MEET OR EXCEED customer EXPECTATIONS |
| Marketing Concept | business philosophy holding that a COMPANY'S GOALS can best be ACHIEVED by IDENTIFYING & SATISFYING the target CUSTOMER'S NEEDS & WANTS |
| Marketing Mix or 4 "P's" of Marketing | represent the CONTROLLABLE elements of marketing; Product, Promotion, Price, & Place |
| Product | goods, services, or ideas; something offered in exchange 4 P's of Marketing M ix |
| Examples of Goods | tires, smart phones, clothing; type of product divided into business goods (commercial or industrial) or consumer goods |
| Examples of Services | hotels, hair salons, airlines, engineering firms, accounting firms, lawn care or consulting; type of product |
| Example of Ideas | "go green" or "give blood" type of product |
| Product Life Cycle | PHASES of a PRODUCT; Introduction --> Growth --> Maturation --> Decline may never complete a cycle |
| Product Life Cycle & Sales/Profit/Competition Level | Introduction: low sales, no profit, little to no competition Growth: increasing sales, increasing profits, competition begins Maturity: high sales, high profits, high competition Decline: declining sales, declining profits, high comp = demand falls |
| Product Mix or "Product Assortment" | the COMPLETE RANGE of PRODUCTS offered by a COMPANY throughout its product lines |
| Marketers can increase the PRODUCT MIX by increasing the | PRODUCT WIDTH (the number of different product lines a company offers) or PRODUCT DEPTH (adding to the sub-products of version of a product line) |
| Product Lines | SERIES OR SIMILAR PRODUCTS focused on a SECTOR that a company CREATES under a SINGLE BRAND |
| Brand | the UNIQUE IDENTITY and associations of a company, often captured in a DESIGN, SIGN, SYMBOL, or WORDS that IDENTIFY a product & DIFFERENTIATE it from competitors |
| Brand Loyalty | the FAITHFULNESS of CUSTOMER's to a PARTICULAR COMPANY & it's PRODUCTS (Ex: Dell, Google, Apple) |
| Multi-Branding or Individual Branding | MARKET a NEW PRODUCT or LINE under a SEPERATE NAME Ex: Sprite or Fanta under Coca-Cola company |
| Price | element of the marketing matrix/4 P's; involved with COST of a PRODUCT or what the COMPANY ASKS for in EXCHANGE for the PRODUCT |
| Monetary Price | use money for the product |
| Nonmonetary Price | waiting in long lines for a restaurant, time volunteering, or giving blood at a local bank |
| Profit | the AMOUNT GAINED by a company, calculated by the difference between the amount earned from the sale of a products and the total cost to produce and sell them in the market |
| When setting the PRICE of a PRODUCT | the marketer must be aware of the customer's PERCEIVED VALUE of a PRODUCT Price too High = Sale opportunities will be lost Price too Low = company may not meet company's Profit goals |
| Revenue | INCOME a company RECEIVES from the sales of Goods and services |
| Price Skimming | INTENTIONALLY pricing a new product offering HIGH with the intention of LOWERING it over time as COMPETITION GROWS, particularly in the case of a UNIQUE offering with little or no competition on the outset Ex: Apple iPhone |
| Advantages of Price Skimming | 1. find out what buyers are willing to pay 2. if consumers find it too high, you can lower it 3. high price = image of quality & prestige 4. price is lowered later, consumers will think its a bargain |
| Disadvantage of Price Skimming | Attracts Competition |
| Penetration Pricing | INTENTIONALLY pricing a product LOWER than the MARKET PRICE to GAIN market share in a NEW Market Ex: Comcast's introductory price for cable and internet |
| Market Share | a COMPANY'S PERCENTAGE of TOTAL SALES in a PARTICULAR MARKET |
| Advantages of Penetration Pricing | 1. low initial price may induce consumers to switch brands 2. discourage competitors from entering the market |
| Disadvantage of Penetration Pricing | requires extensive planning because if you gear up for mass production and nobody wants your product you will lose money |
| Leader Pricing | pricing PRODUCTS BELOW MARKET PRICE to attract customers to a STORE where they would not normally shop; Product priced below cost - loss leader Most common at grocery stores & department stores |
| Bundling | GROUPING RELATED PRODUCTS TOGETHER and PRICING them as a SINLGE PRODUCT Ex: selling washer & dryer together Marriott selling room, breakfast, and wifi together |
| Prestige Pricing | RAISING the PRICE of a PRODUCT to INCREASE the PERCEPTION of its VALUE Ex: shops on Rodeo Drive or services with excellent reputations and more in demand |
| Competitive Pricing Strategy | setting the PRICES or a product or service RELATIVE to its COMPETITORS Ex: Product Higher Price = Greater VALUE Product Lower Price = low price solution |
| Promotion | element of the marketing mix; involving methods for INFORMING & INFLUENCING customers to BUY A PRODUCT, including traditional advertising, sales, promotions, public relations, personal selling, and digital marketing |
| Social Media | part of promotion; WEBSITES & APPLICATIONS where users can CREATE, SHARE & COMMUNICATE with others in social networks |
| Digital Marketing | part of promotion; ALL of a COMPANY'S MARKETING EFFORTS that use an ELECTRONIC DEVICE or the INTERNET |
| Elements of Promotional Mix | Advertising, Personal Selling, Sales Promotion, Public Relations, Social Media, E-Commerce, Online Advertising, Content Marketing, Guerilla Marketing |
| Traditional Advertising | promotional mix; PAID form of NONPERSONAL PROMOTION by an identified SPONSER that is delivered through traditional media channels |
| Personal Selling | promotional mix; a FACE-TO-FACE presentation to a prospective buyer; often based on long-term relationships |
| Sales Promotion | promotional mix; Marketing ACTIVITIES such as COUPONS that provide a DIRECT INCENTIVE for the CUSTOMER to make an IMMEDIATE PURCHASE of a product EX: coupons, displays, samples, shows & exhibitions, demonstrations - strict laws & regulations |
| Public Relations | promotional mix; LEAST CONTROLLABLE the PRACTICE of CREATING & MAINTAINING PUBLIC GOODWILL through PUBLICITY & NONPAID forms of COMMUNICATION Ex: lobbying, publicity events, internal publications, media (company TV channel) |
| What is the LEAST CONTROLLABLE of all the tools of promotion? | Public Relations |
| Influencer Marketing | part of social media/promotions; using PAID BRAND ADVOCATES who have LARGE SOCIAL FOLLOWINGS with a TARGET AUDIENCE to PROMOTE A PRODUCT or BRAND on SOCIAL MEDIA |
| E-Commerce | promotional mix; BUYING & SELLING of GOODS & SERVICES over the INTERNET using WEBSITES and/or MOBILE APPLICATIONS |
| Online Advertising | promotional mix; use of the INTERNET to ADVERTISE; EX: online banners, pop-up ads, video ads |
| Content Marketing | promotional mix; promotion through the CREATION and SHARING of MESSAGES and MATERIALS designed to STIMULATE INTEREST in a PRODUCT EX: digital marketing, social media, influencer marketing |
| Guerilla Marketing | promotional mix; INNOVATIVE, UNCONVENTIONAL marketing tactics that ENGAGE customers through UNIQUE EXPERIENCES usually low-cost |
| Integrated Marketing Communications IMC | IMMERSIVE & TARGETED COMMUNICATION with CUSTOMERS to help move them through the various stages of the buying process USE ALL PROMOTIONAL ACTIVITIES to present a UNIFIED, CONSITENT, CUSTOMER FOCUSED MESSAGE |
| Omnichannel Communications | UNIFIED & CONSISTENT COMMUNICATION with CUSTOMERS across ALL CHANNELS a Company employs Uses: Physical Locations, E-Commerce, Mobile Applications & Social Media |
| Place | marketing mix/ 4 P's; element of the marketing mix involved with getting the PRODUCT from the PRODUCER to the CUSTOMER |
| Elements of Place | transportation, location, supply chain management (each entity that deals with the product in its route to the buyer), online presence, inventory, and atmospheric |
| Distribution | process of ACQURING RAW MATERIALS and MOVING MATERIALS and FINISHED PRODUCTS from the PRODUCERS to the CONSUMERS |
| Supply Chain | System a company use to ACQUIRE RAW MATERIALS, PRODUCE PRODUCTS, & DELIVER PRODUCTS & SERVICES to customers |
| Direct Distribution | Sale of Products from the PRODUCER to the END USER WITHOUT an INTERMEDIARY |
| Indirect Distribution | Sale of Products where INTERMEDIARIES ASSIST in MOVING goods & services from PRODUCERS to END USERS Use agents & brokers, industrial distributors, wholesalers, & retailers |
| Distribution Channels | CHAIN OF INTERMEDIARIES through which a good or service moves from the producer to reach the end consumer |
| Vertical Marketing Systems | cooperation between multiple levels of a distribution channel 1. Corporate 2. Contractual 3. Administered |
| Corporate | vertical marketing system; OWNERSHIP of a SINGLE COMPANY of ALL LEVELS of PRODUCTION & DISTRIBUTION EX: Apple |
| Contractual | vertical marketing system; cooperation between levels of a distribution channel as DESCRIBED by a FORMAL AGREEMENT EX: Franchise (Fast food), Retail or Wholesale Sponsored |
| Administrative | vertical marketing system; cooperation between levels of a distribution channel where ONE MEMBER SETS the TERMS due to its SIZE and INFLUENCE |
| Channel Conflict | when a company sells products DIRECTLY to CONSUMERS, in COMPETITION with the Company's OWN CHANNEL PARTNERS |
| Uncontrollable Elements | elements in the EXTERNAL MARKETING ENVIRONMENT that CANNOT DIRECTLY be CONTROLLED by the MARKETERSP |
| The goal in gathering environmental data is to IDENTIFY CURRENT & FUTURE MARKET ____ | OPPORTUNITIES & THREATS |
| CONTROLLABLE ELEMENTS | PRODUCT, PRICE, PROMOTION, PLACE |
| UNCONTROLLABLE ELEMENTS | COMPETITIVE, NATRUAL/ECOLOGICAL, POLITICAL/LEGAL, SOCIO-CULTURAL, DEMOGRAPHIC, TECHNOLOGICAL, ECONOMIC |
| Competitive Elements | uncontrollable elements; includes such factors as NEW & SHIFTING COMPETITION from DOMESTIC & FOREIGN based firms Ex: coffee shop competing coffee shop offered caffeine free drink for teenagers |
| Natural/Ecological Elements | uncontrollable elements; includes such factors as natural resources, increased pollution, supply or raw materials, and practices that support environment sustainability Ex: coffee shop some regions passes laws banning plastic straws |
| Political/Legal Elements | uncontrollable elements; includes such factors as changes in law, regulatory agency activities, & political movements Ex: coffee shop some regions passed laws banning plastic straws |
| Socio-Cultural Elements | uncontrollable elements; includes such factors as the buying behaviors of specific cultures and subcultures, the values of potential customers, the changing roles in the families, & other social trends such as employees working from home Ex: diets |
| Demographic Elements | uncontrollable elements; includes such factors as changes in the ages of potential customers (baby boomers, millennials), birth and death rates, and locations of various groups or people Ex: coffee shop compet shop caffeine free drink for teenagers |
| Technological Elements | uncontrollable elements; includes such factors as advances in telecommunications and computer technology Ex: coffee shop using new payment systems with phones |
| Economic Elements | uncontrollable elements; includes such factors as changing incomes, unemployment levels, inflation & recession EX: Coffee shop notices unemployment rates are low but salaries haven't increased in the last year |
| PEST | Political-Economic-Social-Technological form of ANALYSIS used to ISOLATE OPPORTUNITIES & THREATS in the marketing environment |
| Political-Legal Elements | P in PEST; federal, state, & local bodies can set rules or restrictions on the conduct of businesses to protect both consumers and businesses |
| Economic Elements | E in PEST; everyday there is economic news, marketers must digest it, assess its impact, & alter marketing plans accordingly |
| Consumer Confidence | STATISTICAL MEASUREMENT of consumer's levels of OPTIMISM about CURRENT & FUTURE conditions |
| Business Cycle | Expansions and Contractions in the LEVEL of ECONOMIC ACTIVITIES (business fluctuations) around a LONG-TERM GROWTH TREND |
| 4 Phases of the Business Cycle | 1. Expansion: 2. Peak 3. Contraction 4. Trough |
| Expansion | Phase 1 of the Business Cycle; increasing employment, economic growth, & upward pressure on prices |
| Peak | Phase 2 of the Business Cycle; (highest point): economy is producing at maximum output, employment is at or above full level, inflationary price are evident |
| Contraction | Phase 3 of the Business Cycle; growth slows, employment declines (unemployment increases), pricing pressure subsides |
| Trough | Phase 4 of the Business Cycle; the economy has a hit a bottom from which the next phase of expansion and contraction will emerge |
| Which products are more affected by changes in the business cycle? | Construction Industry |
| Inflation | general INCREASES in PRICES of GOOD/SERVICES over time and DECREASES in the PURHCASING POWER of money |
| Socio-Cultural Elements | S in Pest; the VALUES & ATTITUDES of consumers are in a state of CONSTANT FLUX; what do your customers want right now? |
| Generation Gaps | DIFFERENCE in outlook, opinion, values, and cultural norms between people of DIFFERENT GENERATIONS |
| Technological Elements | T in PEST; making OLD products OBSOLETE; CREATE OPPORTUNITIES for the GROWTH of NEW products & services |
| Marketers must keep abreast of technological advances and adapt their strategies, | both to take advantage of the opportunities and to ward off threats |
| Environment Elements | addition to PEST; impact of business upon the environment is a growing concern; can be fined for environmental impact or gain loyalty for eco friendly strives |
| Competition Elements | addition to PEST; Marketers who do not pay attention to their competitors are playing a losing game; watch for COMPETING BRANDS (coca-cola/pepsi) and SUBSTITUTE BRANDS (la croix) |
| Ethical Considerations for Products | does the product do DAMAGE or SUSTAIN the ENVIRONMENT? does it FULFILL CUSTOMERS NEEDS & DELIVERS VALUE? are these needs in the BEST INTEREST of INDIVIDUALS & SOCIETY? |
| Ethical Considerations for Price | may have to choose between making a higher profit and making an ethical decision. Types: Price Gouging, Price Fixing (Collusion), Price Discrimination, Predatory Pricing & Bait & Switch |
| Price Gouging | when the SELLER DRAMATICALLY INCREASES the PRICES of goods, services, or commodities to an UNREASONABLE or UNFAIR level Ex: medicine, water, electricity |
| Price Fixing (Collusion) | when TWO OR MORE competing companies AGREE (or collude) on HOW MUCH to charge a product or service Ex: Coca-Cola & Pepsi both charging $5.00 a can |
| Price Discrimination | when a company charges DIFFERENT PRICES to BUYERS of the SAME PRODUCT in order to MAXIMIZE PROFIT Ex: Tom paying $1.00 for water and Janice paying $5.00 for water |
| Predatory Pricing (Undercutting) | when a company prices a product or service EXTREMELY LOW to DRIVE OUT COMPETITION |
| Bait & Switch | when a company ADVERTISES a PRODUCT for a LOW PRICE & "SWITCHES" a Customer to a HIGHER PRICED PRODUCT |
| Ethical Considerations for Promotion | Will the product provide the benefits you say it will? Will the product deliver the promised value to customers? Is the company's story being communicated (transparent)? Are you communicating with customers well (transparent) about the brand? |
| basic objectives of all marketing COMMUNICATION methods | Communicate, Compete, & Convince |
| organizations should ensure that whatever information they communicate | clear, accurate, truthful, and useful to the stakeholders involved. |
| Deception | HIDING THE TRUTH, especially to get the advantage |
| Ethical Considerations for Place | include not only the company itself but also any organization involved in its distribution channel. |
| Environmental Sustainability | PROCESSES that are capable of being CONTINUED with MINIMAL long-term EFEFCT on the ENVIRONMENT |
| Marketing Plan | a COMPREHENSIVE DOCUMENT or BLUEPRINT informed by analysis of the org, customer, & market environment that OUTLINES MARKETING EFFORTS (including objectives, strategies, and tactics) for an identified period |
| Marketing Planning Process | the STEPS an organization goes through to CREATE a marketing PLAN includes analysis of the org, customer, & market with specific objectives, strategies and tactics for marketing |
| Marketing Objectives | SPECIFIC, MEASURABLE ACHIEVEMENTS that an ORGANIZATION WANTS from its marketing activities within a specific time frame |
| Marketing Plan Steps | 1. Identify the Marketing Mission Statement 2. Conducting a Situational Analysis 3. Defining Objectives 4. Developing Strategies & Tactics 5. Monitoring & Controlling |
| Marketing Mission Statement | Step 1. of Marketing Plan Steps; EXPLANATION of why the marketing plan EXIST & what PROBLEMS it hopes to SOLVE |
| Situational Analysis | Step 2 of Marketing Plan; a COLLECTION of METHODS that analyzes the controllable (product & org. capabilities) and uncontrollable (customer, competition, & business environment) that define the CURRENT & FUTURE state of the market |
| SWOT Analysis or Situational Analysis | Step 2 of Marketing Plan; analysis of the INTERNAL CONTROLLABLE FACTORS (strengths & weaknesses) and EXTERNAL UNCONTROLLABLE FACTORS (opportunities & threats) that influence an organization |
| Organizational Capabilities | combination of SKILLS, PROCESSES, HUMAN ABILTIES, & COMPETENCIES that are UNIQUE to an ORG |
| Objectives | Step 3 of the Marketing Plan; MEASURABLE OUTCOMES that will be ACHIEVED within a particular time frame |
| Objectives should be S.M.A.R.T. | Specific Measurable Achievable Relevant Time-Bound |
| Develop a Strategy | Step 4 of Marketing Plan; must identify a plan that will use the marketing function's resources and expertise most effectively to achieve its mission, objectives, and goals FOCUS ON THE TARGET CUSTOMER |
| Target Market | SPECIFIC GROUP of CUSTOMERS toward which a firm directs its marketing efforts |
| Monitoring & Control | Step 5 of the Marketing Plan; plan is IMPLEMENTED, Marketers TRACK PROGRESS toward the stated objectives, MEASURING PERFORMANCE so ADJUSTMENTS CAN BE MADE if necessary. |
| BCG Matrix | PLANNING TOOL which uses a QUADRANT to MAP the strategic position of a business brand based on the brand's MARKET SHARE and the MARKET'S GROWTH POTENTIAL |
| Porter's FIVE Forces Model | PLANNING TOOL which provides a model for how to identify and analyze the COMPETITIVE forces that SHAPE a company's ENVIRONMENT & INFLUENCE PROFITABLITY |
| SWOT Analysis - Internal Factors | factors CONTROLLED by the organization such a FINANICAL RESOURCES, PRODUCT LINES, OR TECHNICAL CAPABILITIES) strengths or weaknesses |
| SWOT Analysis - External Factors | factors an organization may be able to influence BUT NOT CONTROL such as technology innovations, competition, economic trends, & gov't policies; opportunities & threats |
| Dog - BCG Matrix | A product or business with LOW market share in a mature industry; There is NO ROOM FOR GROWTH , which suggests that NO NEW FUNDS should be INVESTED in it |
| Cash Cow - BCG Matrix | a product or business with a HIGH market share and SLOW-GROWING Industry; bringing in MORE money than what is invested; not much growth potential; fund high growth investments; low invesment |
| Question Mark - BCG Matrix | a product or business with a LOW market share but is IN A GROWING industry; direction is unclear must monitor can become a dog or star |
| Star - BCG Matrix | HIGH Market share and a GROWING industry; strong return on funds invested; can become a cash-cow at the end of the cycle to fund future investments |
| As a business GROWS all investments becomes | CASH COWS or DOGS |
| What composes Porter's Five forces Model? | 1. Threat of New Entrants 2. Threat of Substitute Products or Services 3. Rivalry 4. Bargaining Power of Buyers 5. Bargaining Power of Suppliers |
| Threat of New Entrants | Porter's Five Forces; the likelihood that NEW COMPETITORS will ENTER the market OR BARRIERS TO ENTRY (trying to enter a new market) |
| Threat of Substitute Product or Service | Porter's Five Forces; the likelihood that CONSUMERS will SWITCH to a DIFFERENT type of PRODUCT OR SERVICE that MEETS the SAME NEED Ex: taking a bus instead of buying a car |
| Rivalry | Porter's Five Forces; COMPETITION from OTHER COMPANIES in the INDUSTRY Ex: Airlines multiple options/competition |
| Bargaining Power of Buyers | Porter's 5 Forces Model; the POWER of Customers to DRIVE DOWN PRICES if SUPPLY EXCEEDS DEMAND |
| Bargaining Power of Suppliers | Porter's 5 Forces Model; the POWER OF SUPPLIERS when there are FEW ALTERNATIVE SOURCES for the PRODUCT'S COMPONENTS |
| Strategies | what an organization is GOING TO DO to ACHIEVE ITS OBJECTIVES |
| Tactics | are the ACTIONS a company IMPLEMENTS to affect the CONTROLLABLE elements of the strategy; Ex: coupons, television commercials, banner ads, social media posts |
| Which pricing strategies are for NEW Products | Price Skimming & Penetration Pricing |
| primary research | research tailored to the SPECIFIC PROBLEM OR CHALLENGE you are trying to address; qualitative or quantitative |
| qualitative primary research | research exploring IDEAS, PERCEPTIONS, and BEHAVIORS |
| quantitative primary research | research using INFORMATION that can be COUNTED, TABULATED, & STATISTICALLY ANALYZED |
| secondary research | using ALREADY EXISTING DATA that may be relevant to what you want to know |
| benefits of primary research | information is DIRECTLY related to what you want to know |
| disadvantages of primary research | time consuming, costly, and requires expertise in data collection |
| advantages of secondary research | data already exists, not costly, and less time |
| disadvantages of secondary research | info may be outdated may not address what you need to know |
| primary research techniques | behavioral observation in-depth interviews focus groups social listening survey research experimental research |
| observation | primary research technique; watching customers and non-customers engage with a product |
| in-depth interviews | primary research technique; conversations with an individual the marketer wants to understand better |
| focus groups | primary research technique; small groups of individuals (usually 6-12) who delve deeply into topics of interest |
| social listening | primary research technique; monitoring conversations on social media or soliciting input from a social media community |
| survey research | primary research techniques; asking individual customers to provide responses on a questionnaire; close-ended or open-ended |
| experiments | primary research technique; testing the effect of varying a factor or a set of factors in a marketing artifact; Ex: A/B Testing |
| A/B Testing | Experiment/primary research technique; a marketing experiment where two variants of a campaign are tested to see which one is most effective |
| secondary research techniques | 1. internal data 2 . gov't agency, nonprofit, NGO data 3. industry & professional associations 4. commercial marketing research companies 5. internet searches |
| internal data | secondary research technique; info your company has already collected; such as sales and marketing records, customer account info, & product purchasing and usage data |
| Gov't agency, nonprofit, NGO Data | secondary research technique; agencies freely publish economic data, demographic data, trade statistics, and regulatory info |
| industry and professional associations | secondary research technique; most industries have dedicated media and orgs, which publish online or offline news, magazines, newsletters, & journals and collect data about their industry or profession |
| commercial marketing research companies | secondary research techniques; SYNDICATED research of consumer data for purchase as well as database info on consumer purchases and behaviors |
| internet searches | secondary research techniques; may provide useful insights into what data has already been collected |
| strategic opportunity matrix | FRAMEWORK that maps the FOUR growth strategies (market penetration, market development, product development, & diversification) to a GRID based on whether they address NEW OR EXISTING products/markets |
| market penetration | strategic opportunity matrix; this growth strategy uses CURRENT PRODUCTS & CURRENT MARKETS with the goal to INCREASE Market share |
| market development | strategic opportunity matrix; the growth strategy uses EXISTING PRODUCTS to CAPTURE NEW MARKETS |
| product development | strategic opportunity matrix; this growth strategy uses NEW PRODUCTS in the EXISTING MARKET |
| diversification | strategic opportunity matrix; this strategy CREATES completely NEW OPPORTUNITIES for the company by creating NEW PRODUCTS AND NEW MARKETS |
| new product development | process of CREATING A NEW PRODUCT OR SERVICE for the market, involving strategy, organization concept generation, marketing planning, and commercialization |
| customer relationship management (CRM) | processes implemented by a company to handle its contact with customers with the goal of creating a unified customer experience to maximize retention |
| CRM handles contact with | LEADS, PROSPECTS, & CUSTOMERS |
| Leads | information about a potential customer |
| Prospects | a qualified and interested potential customer |
| operational | CRM; ensure CUSTOMER SATISFACTION by integrating sales, marketing, and customer support |
| analytical | CRM; use data to understand WHO THE CORE CUSTOMERS ARE, how they behave, what they are looking for, and how satisfied they are |
| collaborative | CRM; work across teams & departments more effectively, including with suppliers and vendors |
| customer life cycle | the steps in the customer relationship with a company; from initial contact to loyalty |
| Steps in the Customer Life Cycle | 1. Reach - getting a prospective customer's attention 2. Acquisition - bringing a customer into a sphere of influence 3. Conversion - turning a prospect into a paying customer 4. Retention - engaging an existing customer to keep them 5. Loyalty - advo |
| customer lifetime value | the TOTAL PROFIT a company EXPECTS TO GAIN from a CUSTOMER throughout the relationship |
| CLV Formula | (Profit Margin per customer X # of years customer is active) - cost of acquiring customer |
| customer equity | the COMBINED CUSTOMERS LIFETIME VALUES of all of the COMPANY'S CUSTOMERS |
| value equity | customer equity; how the CUSTOMER ASSESSES the VALUE of the PRODUCT OR SERVICE provided by the company |
| brand equity | customer equity; how the CUSTOMER ASSESSES the VALUE OF THE BRAND above its objective value |
| retention equity | customer equity; the tendency of the customer to STICK WITH THE BRAND even when IT IS PRICED HIGHER than an otherwise equal product |
| customer satisfaction | a measure of how products or services delivered by a company MEET OR EXCEED customer expectations |
| The Role of Marketing | 1. Identify Customers 2. Satisfy Customers 3. Retain Customers |
| permission marketing | expectation that marketers will ask for PERMISSION to sell or offer potential customers marketing messages |
| The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) | 2003; establishes federal standards for commercial email; consumers MUST be given an option to OPT Out of receiving future solicitations |
| nondisclosure agreements (NDAS) | signed documents when entering into a business relationship detailing what info cannot be disclosed about another company |
| FAIR INFO PRACTICES | 1. Notice - notice of company's info practices 2. Choice - options to control their data (opt in/out) 3. Access - view data & verify accuracy 4. Security - accurate & secure |
| cookies | a SMALL PACKET of info stored on your web browser to help a website keep track of your visits and activity |
| business to consumer B2C | sales DIRECTLY to the INDIVIDUALS who consume a finished product for PERSONAL USE |
| business to business B2B | sales to ANOTHER COMPANY that consumes the product or service as part of operating the business or uses the product in the assembly of the final product its sells to consumers |
| consumer | the USER of a PURCHASED product or service |
| customer | the PURCHASER of a product or service |
| market segmentation | process of DIVIDING the market into SUBGROUPS of CONSUMERS (SEGMENTS) |
| targeting | SELECTION OF A SEGMENT or segments of the market on which MARKETERS WILL FOCUS |
| geographic segmentation | dividing the market into sub groups based on REGION or GEOGRAPHIC characteristics |
| demographic segmentation | dividing the market into subgroups based on DEMOGRAPHIC DATA SUCH AS AGE, EDUCATION, GENDER, INCOME, RACE, SOCIAL CLASS, HOUSEHOLD SIZE |
| psychographic segmentation | dividing the market into subgroups based on LIFESTYLE OR PERSONALITY, VALUES, ATTITUDES, & OPINIONS T |
| product-related segmentation | dividing the market into subgroups based on the consumer's relationship to the product (benefits, usage rates, brand loyalty) |
| TARGET MARKET | SPECIFIC GROUP of customers toward which a firm DIRECT ITS MARKETING EFFORT |
| differentiated marketing | TARGETING STRATEGY where a company provides SEPARATE Offerings to each DIFFERENT market segment that it targets |
| undifferentiated marketing | TARGETING STRATEGY involving a SINGLE OFFER and marketing mix for ALL SEGMENTS; " MASS MARKETING" |
| concentrated marketing | TARGETING STRATEGY that focuses on a VERY LIMITED SPECFIC SEGMENTS of the market; "NICE MARKETING" |
| micromarketing | TARGETING STRATEGY that focuses narrowly on catering to THE NEEDS OF THE INDIVIDUAL or VERY SMALL segments in a targeted GEOGRAPHIC; individual marketing/local marketing |
| individual marketing | micromarketing; focused on the needs of the individual; mass customization or one-on-one marketing |
| local marketing | micromarketing; focuses on very small segments in a given geography |
| positioning | is a strategic process that marketers use to DETERMINE THE PLACE an offering should occupy in a given market relative to other customer alternatives |
| 4 parts of positioning | 1. Place - where is it in the market? 2. Rank - how does it compare to others? 3. Attitude - what customer thinks & its benefits? 4. Outcomes - product or service delivers on the positioning selected 3. |
| positioning statement | SINGLE SENTENCE that concisely identifies the target market for a product and what marketers want customer to think about it |
| positioning statement qualifications | 1. target market 2. the brand name 3. keys points of differentiation 4. product /service category 5. the reasons why customers should believe positioning claims |
| positioning maps | graphical direction of how potential customers view a brand or product and the competition against key criteria |
| product attributes | positioning strategy; positioning based on characteristic that defines a product and will influence the customer's decision to purchase EX: 2 IN 1 SHAMPOO/CONDITIONER |
| price - positioning strategy | positioning strategy; positioning the product as the lowest cost or best value Ex: economy brands |
| quality | positioning strategy; positioning the product as highest quality Ex: top-tier hotel brand such as Ritz Carlton |
| competition | positioning strategy; positioning the product against competition; Ex: cell phone androids vs iphone |
| product application | positioning strategy; positioning a product based off how it is used as the best option for that specific task and use Ex: specific brand of greeting card for a special occasion (Hallmark) |
| product user | positioning strategy; positioning a product for a specific user group Ex: Johnson & Johnson - Baby Products |
| product category | positioning strategy; positioning a product within a product category where there is strong recognition for the category and brand EX: BMW competing with other luxury car brands |
| consumer behavior | the study of individuals, groups, organizations, and all the activities associated with the purchase, use, and disposal of goods and services |
| Consumer Decisions Making Process | 1. Problem & Opportunity - Need a place to live 2. Search - Look at homes and apts. 3. Evaluation - Compare the homes and apts price, location 4. Decision - decided to rent an apt. 5. Buy - renting the apt 6. Post Purchase 4. Decision |
| cognitive dissonance | mental discomfort triggered by holding two or more contradictory beliefs, ideas, or values; POST PURCHASE |
| needs | Personal; human REQUIREMENTS that range from basic physiology to safety, love and belonging, esteem, and self actualization Maslow's hierarchy of needs |
| motivations | personal; level of INNER DRIVE OR PRESSURE TO SATISFY a need |
| pereceptions | personal; process by which a consumer IDENTIFIES, ORGANIZES, & INTREPRETS INFO to create meaning |
| learning | personal; CHANGES IN BEHAVIOR that result from previous experiences |
| attitudes | personal; POSITIVE, NEGATIVE, OR AMBIVALENT EVALUATION OF people, objects, events, activities, ideas, or anything else in the environment |
| selective perception | process by which consumer see what they want to in media messages while ignoring contradictory viewpoints Ex: loving a brand even though others find fault with it |
| experiential learning | changes in behavior in response to DIRECT EXPERIENCE; learning as reflection on doing; tasting and wine, not liking so not buying the bottle |
| nonexperiential learning | change in behavior in response to SECONDARY INPUT; such as celebrity endorsement asking the worker their thoughts on a particular bottle of wine and not buying it based on what they say |
| reinforcement | process of having learning validated through rewards or consequences; which confirm what you learned was correct |
| a consumer's __________ has a major impact on attitude and behavior | FAMILY |
| syncratic decision making | a purchase decision where in a family BOTH PARTNERS HAVE EQUAL SAY |
| culture | the customs, arts, social institutions, beliefs, and value systems of a particular people, nation, or social group |
| reference groups | society; formal or informal group of people whose shared attitudes, behavior, beliefs, opinions, and values are adopted by a consumer Ex: churches, clubs, schools, |
| opinion leaders | society; highly influential people who help set the attitudes, behaviors, beliefs, opinions, and values of a reference group |
| consumer involvement | level of consumer INTEREST, search, or complex decision making |
| high-involvement decisions | COMPLEX purchase decisions that are IMPORTANT to the consumer and INVOLVES SOME RISK |
| low-involvement decisions | STRAIGHTFORWARD, often routine purchases that require LESS EFFORT and POSE LOWER RISK TO the consumer; EX: GROCERIES |
| routine problem solving | AUTOMATIC, low involvement purchase decision process based on limited information or information gathered in the past |
| extended problem solving | COMPLEX, HIGH INVOLVEMENT purchase decision process with SIGNIFICANT INVESTMENT IN INFO, SEARCHING & PRODUCT COMPARISON |
| limited problem solving | MODERATELY INVOLVED purchase decision making process where a consumer has some prior knowledge but still conducts light research |
| fair trade | ORGANIZED SOCIAL MOVEMENT that seeks to help producers in developing countries achieve better trading conditions while promoting sustainability |
| ethical consumerism | type of consumer activism where ethical products are favored and unethical products or companies are avoided |
| supply chain transparency | company disclosing how its products (and their components) are sourced and made |
| corporate social responsibility (CSR) | way of conducting business with commitment to the VALUES, NORMS, & EXPECTATIONS OF SOCIETY FOR SOCIAL RESPONSIBILITY |
| person selling | a type of selling that uses PERSON-TO-PERSON INTERACTION to sell products and services |
| consultative selling | sales approach where the seller becomes a TRUSTED ADVISOR to the customer and BUILDS A RELATIONSHIP to truly understand her needs |
| solution selling | sales approach where sellers DIAGNOSES the CUSTOMER'S PROBLEM then RECOMMEND a mix of products and services |
| team selling | sales approach that involves MULTIPLE PEOPLE from an ORG JOINING FORCES to advance a customer opportunity |
| telemarketing | method of DIRECT marketing by a SALESPERSON OVER THE PHONE |
| adaptive selling | using social styles to CUSTOMIZE a sales approach to the specific customer |
| 4 types of social style mixes | 1. analytical 2. driver 3. amiable 4. expressive |
| analytical | social style mix; they want to know "HOW" low responsiveness, low assertiveness |
| driver | social style mix; they want to know "WHAT" low responsiveness, high assertiveness |
| amiable | social style mix; they want to know "WHY" low assertiveness, high responsiveness |
| expressive | social style mix; they want to know "WHO" high responsiveness, high assertiveness |
| integrated marketing communications (IMC) | IMMERSIVE AND TARGETED COMMUNICATION with customers to help move them through the various stages of the buying process |
| Steps in a Successful Sale | 1. Prospecting & Qualifying 2. Approaching Customers 3. Presenting & Demonstrating Product 4. Handling Objections 5. Closing Sale 6. Following up on Sale |
| prospecting | IDENTIFYING PEOPLE OR COMPANIES that might be interested in buying a product or service |
| qualifying | ASKING QUESTIONS & CONDUCTING RESEARCH to determine that a prospect is willing and able to buy |
| trial close | where the salesperson asks a question or makes an assumptive statement to gauge whether or not a potential customer sees value in the product, service, or solution before asking for a decision |
| planned obsolescence | selling products that will need to be REPLACED FREQUENTLY by design because they are obsolete |
| pyramid scheme | UNETHICAL AND UNSUSTAINABLE business model where those higher up the pyramid profit from recruitment fees of those below |
| hard selling | sales approach using psychological pressure and insistent language to push a customer to a quick purchase decision |
| kickback | where a decision maker at the customer business receives some sort of monetary or other reward in exchange for supporting the sale |
| B2B FACTORS | 1. Organizational: 2. Interpersonal 3. Environmental |
| straight rebuy | an organization REORDERS a product or service WITHOUT MODIFICATIONS |
| modified rebuy | an organization REODERS a product or service WITH MODIFICATIONS |
| new task | a buying situation where an organization considers BUYING A PRODUCT OR SERVICE for the FIRST TIME |
| 5 phases of negotiation | 1. Investigation 2. Determining your desired outcome 3. Presentation 4. Bargaining 5. Closure |
| distributive negotiation | divide the pie (win-lose) |
| integrative negotiation | collaborate to expand the pie (win-win) |
| inductive negotiation | start with DETAILS |
| deductive negotiation | start with BIG PICTURE |
| mixed negotation | focus on KEY DETAILS & BIG PICTURE |
| dual concern model | maps 5 styles of handling conflict on a grid according to their degree of cooperation or assertiveness |
| avoidance | conflict resolution using little empathy and SELF-INTEREST uncooperative and unassertive |
| accomodation | conflict resolution focused on EMPATHY over self-interest cooperative and unassertive |
| compromise | middle ground of conflict style |
| competition | style of handling conflict focused on SELF INTEREST over empathy |
| collaboration | style of handling conflict with high concern for BOTH SELF-INTEREST AND EMPATHY HIGH ASSERTIVENESS AND COOPERATION |
Created by:
sietsmame