Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Marketing
for bus5000
| Term | Definition |
|---|---|
| Marketing is involved in | designing products that customers will enjoy, pricing them appropriately, making them available for purchase at easy points of access in the marketplace, and advertising the products’ benefits to the customers |
| The 5 C's are | customer, company, context, collaboration, and competitors |
| STP stands for | segmentation, targeting, and positioning |
| The 4 P's are | product, price, promotion, and place |
| The American Marketing Association defined marketing as | 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 the theory and | practice of identifying needs and distributing goods in a competitive society |
| A market is | the aggregate of all people or organizations who have a need for, or want, a product or class of products and have the money to pay for them |
| The classical marketing concept is | a philosophy which guides the attitude of everyone in a firm to stimulate and satisfy the needs and wants of every customer |
| The competitive marketing strategy involves | product strategy, pricing strategy, integrated marketing communications, channels, and logistics strategy |
| Markets may be segmented by | characteristics of the buyer |
| Two types of shopping exist | business to customer (B2C) and business to business (B2B) |
| Low customer involvement | Customers don’t care and won’t spend time thinking about brands. They will typically be somewhat price sensitive. |
| High customer involvement | For expensive purchases, brand, uniqueness and quality matter |
| steps of purchase decision making | identify need, search for alternative solutions, evaluate alternatives, purchase, evaluate post purchase |
| Lexicographic method | A customer compares brands by the most important attributes or dimensions. Brands that make the cut on the first dimension go into the customer’s consideration set, and so on |
| Average method | This method uses averages so one attribute can’t make or break a brand. If a brand is strong on one attribute and average on another, it will still dominate a brand that was just average on all its attributes. |
| Use attribute importance | Models can be made more complex by bringing in weights to express how important the attributes are to the customer. Those important weights underpin how segments of customers differ. |
| Factors that Influence Customer Behavior | external, internal, situational |
| Marketers have classified B2B customers in segments according to whether they sell: | installations, accessories, raw materials, parts, or business services |
| Roles in Big, Complicated Business Purchases | initiator, user, influencer, buyer, gatekeeper |
| Intangibility | services cannot be evaluated using sight, touch, smell. Communicating the benefits is often difficult. |
| Perishability | services cannot be stored, hence matching supply with demand is critical. |
| Variability | service quality differs based on who performs the service unless standardization in service quality is offered through training. |
| Inseparability | in services, the production and consumption cannot be separated. |
| The Product Life Cycle stages | introduction, growth, maturity, decline |
| the central part of economics and marketing | Consumers’ needs and preferences |
| why properly segmenting the market is important | it is not possible for firms to satisfy everyone’s needs with a single offering |
| Economists note that imperfect competition occurs where | consumers have unique needs and desires and firms set the price. |
| foundation for segmentation | The ability to find smaller homogeneous markets within a larger heterogeneous market |
| A market segment | a group of customers who share similar inclinations towards a brand |
| Segments are(blank) groups of customers. | homogenous |
| Marketers segment markets by identifying (blank) that help them determine whether or not customers will like or connect with their product | variables |
| Demographics | customer attributes that are easy to identify and commonly used |
| Geographic distinctions | country, area of country, culture, climate, and urban vs. rural |
| Psychological /Psychographic variables | attitudes, knowledge and awareness, wants and needs, affiliations (political party), traits (extroversion), expertise and involvement (hobbies) |
| VALS (values and lifestyles) | strivers who are trendy and fashionable, achievers who are more family and work directed, potential customers for cosmetic surgery, levels of expertise, and aspirations |
| Behaviors | products purchased, user status, media habits, loyalty, and frequency of usage. |
| The primary distinction between segmenting businesses and consumers is that | the data sources tend to be different |
| research techniques that typically are utilized in market segmentation. | Cluster and Factor Analysis |
| effective segmentation does the following: | utilizes appropriate data, allows access to customers, has profitability potential, fits with corporate goals, is actionable |
| Positioning | a marketing strategy, which aims to differentiate a brand in relation to competing brands in order to gain market share |
| Market position | an effort to influence consumer perception of a brand or product relative to the perception of competing brands or products |
| Competitive positioning | defining how you'll differentiate your offering and create value for your market |
| Perceptual mapping | a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. |
| Tailoring strategy: Customizing for Segments | This company serves multiple segments, marketing a different product to each segment. |
| Depth strategy: Serving one Segment Well | This company focuses on a single segment and has multiple offerings for the segment. |
| Breadth strategy: Reaching Multiple Markets | This company elects to market a single product to two or more segments. |
| Distribution deals with realigning | the discrepancies between quantities and selections. |
| Breaking bulk means | making goods available in smaller batches |
| distribution channel | a network of interconnected firms that provides sellers a means of infusing the marketplace with their goods and buyers a means of purchasing those goods as efficiently and profitably as possible |
| Actors in the distribution channel are | manufacturing firms, distributors or wholesalers, retailers, consumers and any other supply chain partners |
| Activities in distribution channels are | customer oriented (ordering, handling, and shipping), product oriented (storage and display), marketing-centric (promotion), financial oriented, and logistics |
| Logistics | the coordination of the flow of all of the goods, services, and information between channel members throughout the channel |
| The upstream partners that a company has to deal with are its suppliers; this is called the supply chain and dealing with those firms is called | supply chain management |
| Businesses determine the distribution intensity by deciding how many(blank) will be used. | intermediaries |
| Intensive distribution | used for widely distributed products in drugstores, supermarkets, discount stores, and convenience stores. It is used for simple, inexpensive, easily transported products like snack food, shampoo, and newspapers |
| Selective distribution | used for less widely distributed products |
| Exclusive distribution | used for the extreme case of selectivity. |
| The terms push and pull refer to | whether the manufacturer targets consumers or channel partners with its marketing communications |
| Customers (blank) goods through the channel, while intermediaries (blank) the goods to consumers from the manufacturer. | pull, push |
| Marketing channels assume financial risks such as | international exchange rates and inventory obsolescence, and they provide marketing communications (e.g., advertising and sales promotion), physical distribution, inventory management, and market feedback |
| is among partners at the same level. | Horizontal conflict |
| is among partners at different levels in the channel. | Vertical conflict |
| is unauthorized buying and selling among channel partners. | Gray market conflict |
| provides control of conflict | Corporate vertical marketing systems, in which all channel members are owned by/contracted to one company |
| allows control of conflict by domination of the channel by one partner. | Channel power/leadership |
| Coercive power | when one party can make another party do something by taking away benefits or inflicting punishment on the other party |
| Information power | when one party gets cooperation because it has information the other party seeks. |
| Legitimate power | when by size or expertise, one party can make claims and threats that encourage the other party to conform |
| Referent power | when one party cooperates with another because the former seeks affiliation with the latter. |
| Reward power | when one party has the ability to provide good outcomes for the other party. |
| Mediation | negotiated through a third party that determines the two parties’ utility functions |
| Arbitration | when a third party makes a binding decision for the two parties |
| Transaction Cost Analysis (TCA) | a model that considers the channel member’s production and governance costs, both of which are ideally minimized |
| Governance costs | costs associated with coordinating and controlling the members in the channel |
| Double marginalization | the problem associated with determining what is a proper profit for the manufacturer and retailer without increasing the price paid by the consumer to the point where demand drops |
| Integration refers to | the back or buy decision that firms face when determining whether to do a distribution function or have someone else undertake the activity |
| Integration simply means | having the activity done "in house” rather than outsourced |
| forward integrate | doing an activity that is “downstream” so the function is closer to the end consumer |
| backward integrate | doing an activity “upstream”, so the function is further away from the customer than the company is currently doing |
| retailing | the most visible element of the channel and can impact image, positioning, and brand equity |
| There is a strong positive relationship between employee satisfaction and | customer satisfaction |
| Service design and flowcharting operations are critical and typically divided between | backstage and frontstage |
| additional services that can come from retail growth | opening additional stores (multisite), and expanding internationally |
| Franchising | a form of multi-size expansion that allows the company to retain some control without complete ownership of capital expenditure |
| Many businesses drive their customers online to reduce (blank) | labor costs |
| While the internet is well suited for search, catalogs are preferred for | browsing |
| Key sales force issues | sales force size and compensation issues |
| he three top complaints of salespeople by business-to-business customers | the salesperson isn’t following my company’s buying process, the salesperson doesn’t listen to my needs, and the salesperson didn’t bother to follow up |
| channel | the upstream partners that a company has to deal with |
| supply chain | the downstream partners that help a company reach customers |
| push strategy | manufacturers target channel partners with their marketing communications |
| pull strategy | manufacturers target consumers with their marketing communications |
| causal data | Experiments are used to study the effects of manipulated marketing mix variables on measures of sales and customer attitudes |
| exploratory data | Focus groups and interviews are used to formulate marketing questions |
| descriptive data | surveys and scanner data are used to obtain large-scale statistics |
| Popular Marketing Research Techniques | Cluster analysis for segmentation ,Perceptual mapping for positioning,Focus groups for concept testing ,Conjoint analysis for testing attributes ,Scanner data for pricing and coupon experiments and brand switching,Surveys for customer satisfaction, |
| Clustering methods | use survey data to group observations (individuals) that are most similar into a cluster (group) |
| Positioning studies | used to understand how customers view a business in the marketplace |
| approaches of perceptual mapping for positional studies | attribute-based approach and multidimensional scaling (MDS). |
| Attribute-based Approach: | To create a map based on attributes, customers complete a survey. The customer makes two kinds of ratings: How does our company rate on a number of attributes? And how important are each of these attributes? |
| Multidimensional scaling (MDS) for hotels | asks how similar these two hotels are for every pair of hotels under consideration in the mapping.results are plotted. Similar hotels are close together, and different hotels are farther apart. |
| focus groups | exploratory and descriptive technique where eight to ten consumers discuss products and competitors’ products |
| conjoint analysis | run to understand how consumers make trade-offs among attributes uncovering what combinations of attributes customers value most |
| scanner data can be used to | forecast demand, watch responses to marketing mix changes, and also to watch responses to marketplace. |
| Scanner-experiment observation | can manipulate something (price), control everything else (assumption), monitor changes in sales attributable to manipulation, and has high internal validity. |
| Scanner-naturalistic observation | does not manipulate but constantly monitors, is more difficult to attribute changes in sales to one action, and has high external validity. |
| sampling | the researcher selects a sample of respondents from an available population of similar respondents for collecting data |
| Probability sample— | Implies the probability of selecting any respondent from the population into the sample is known |
| Simple random sample— | When every population element (e.g., a person) has an equal chance of being included in the sample |
| Nonprobability sample— | A sample drawn due to specific research considerations and/or the researcher’s judgment (a shopping mall-intercept survey) |
| large correlation | greater than 0.3 magnitude |
| An actor | some agent, such as a consumer, a firm, a department within a firm, or a partner in a supply chain. |
| buzz marketing | social media, influences, interconnectedness, etc |
| The Boston Consulting Group (BCG) Matrix | used in portfolio analysis and classifies brands or products according to whether each has a strong or weak market share and a slow or growing market. |
| Dog: | products in low growth markets and with low relative market share (optimize or hold) |
| Star: | products in high growth markets with high relative market share (minimize or divest) |
| Cash cow: | products in low growth markets but with high relative market share (milk) |
| Question mark or problem child: | products in high growth markets but having low market share (products in development, new technologies, uncertain markets) |
| types of corporate identity | innovative vs conservative, offensive vs defensive, leader vs follower |
| Firms can increase profits by | decreasing costs or increasing revenue |
| revenue can be increased by | changing price or through an increase in volume |
| Volume can be increased by | an increase in market share or an increase in market size. |
| dashboard | as an analogy for the many indicators of performance that should be monitored, much like an instrument panel in an automobile, indicator of a company's success |
| measures on a dashboard | sales, profit margins, market share, employee satisfaction, and customer satisfaction |
| classes of goals | make more money, delight customers, redefine position, achieve broader social goals |
| associated with the make more money goal | return on investment (ROI), return on marketing (ROM), or return on quality initiatives (ROQ). |
| first marketing strategy | to achieve sales goals is to do nothing and let the brand sink or swim on its own with no infusion of marketing budget |
| second marketing strategy | to do nothing differently from the status quo and maintain business as usual offering the same product at the same pricing with the same amount of marketing support |
| third marketing strategy | to do something differently and take action because marketers do have control over STP and the 4 P's |
Created by:
bitchalaureateofscience
Popular Marketing sets