Marketing Management
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HerRoyalJuicyness on June 14, 2011
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Marketing Management: Kotler & Keller 13th Edition
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131 terms
Terms | Definitions |
|---|---|
 Marketing Management | Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. |
| Marketing | Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, ands services to create exchanges that satisfy individual and organizational goals. Meeting needs profitably. |
| Marketing Mix - 4 Ps | Product Price Promotion Place |
| What is marketed? | Services Events Experiences Persons Places Properties Organizations Information Ideas |
| Marketer | A marketer is someone who seeks a response - attention, a purchase, a vote, a donation - from another party, called the prospect. |
| Market | People with both the desire and the ability to buy a specific product or service. A market is a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market). |
| 4 Key Customer Markets | Consumer Market Business Market Global Market Nonprofit/Government Market |
| Marketplace | The marketplace is physical, such as a store you shop in. |
| Marketspace | The marketspace is digital, as when you shop on the Internet. |
| Consumer Market | Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment. These companies spend a great deal of time trying to establish a superior brand image. |
| Business Market | Companies selling business goods and services often face well-trained and well-informed professional buyers who are skilled at evaluating competitive offerings. Business buyers buy goods in order to make or resell a product to others at a profit. |
| Global Market | Companies selling goods and services in the global marketplace face additional decisions and challenges. They must decide which countries to enter; how to enter each (as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer); how to adapt their product and service features to each country; how to price their products; and how to adapt their communication to fit different cultures. |
| Nonprofit/Government Market | Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, and government agencies need to price carefully, because these buyers have limited purchasing power. Lower selling prices affect the features and quality the seller can build into the offering. Much government purchasing calls for bids, and buyers often favor the lowest bid in the absence of extenuating factors. |
| Needs | Condition in which there is a deficiency of something or need for relief. Needs are the basic human requirements. People need air, food, water, clothing, and shelter to survive. People also have strong needs for recreation, education, and entertainment. |
| Wants | Wish or desire for something. Needs become wants when they are directed to specific objects that might satisfy the need. A consumer in the US needs food buy may want a hamburger, french fries, and a soft drink. Wants are shaped by our society. |
| Demands | Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few are willing and able to buy one. Companies must measure not only how many people want their product, but also how many would actually be willing and able to buy it. |
| 5 Types of Needs | Stated Real Unstated Delight Secret |
| Target Market | A target market consists of one or more specific groups/segments of potential customers/markets toward which an organization directs its marketing program. |
| Positioning | Position refers to the place an offering occupies in the consumers' minds on important attributes relative to competitive products. Positioning is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market. |
| Market Segmentation | Market segmentation involves aggregating prospective buyers into group or segments that (1) have common needs and (2) will respond similarly to a marketing action. |
| Value Proposition | Companies address needs by putting forth a value proposition, a set of benefits that they offer to customers to satisfy their needs. The intangible value proposition is made physical by an offering, which can be combination of products, services, information, and experiences. Value proposition is the whole cluster of benefits the company promises to deliver. |
| Brand | A name, term, sign, symbol, or design, or a combination of them, intended to identify to goods or services of one seller or group of sellers and to differentiate them from those of competitors. |
| Transaction | Transaction is a trade of value between two or more parties: A gives X to B and receives Y in return. |
| 4 Company Orientations | Production Product Selling Marketing |
| Value | Value is the ratio of perceived benefits to price; Value = (Perceived Benefits divided by Price) |
| Customer Mix - 4 Cs | Customer Solution Customer Cost Convenience Communication |
| Creating Value / Value Chain | The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of 5 primary and 4 support activities performed to design, produce, market, deliver, and support its products/services. |
| Marketing Information System (MIS) | A MIS consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. |
| Services Marketing Mix - 8 Ps | Product Price Promotion Place Packaging People Process Physical Evidence Productivity & Quality |
| Fad | A fad is unpredictable, short-lived, and without social, economic, and political significance. A company can cash in on a fad, but getting it right is more a matter of luck and good timing than anything else. |
| Trend | A trend is a direction or sequence of events that has some momentum and durability. Trends are more predictable and durable than fads. |
| Megatrend | Megatrends are large scale, economic, political, and technological changes that are slow to form, and once in place, they influence us for some time - between 7 to 10 years, or longer. |
| 6 Environmental Forces That Impact Strategy | Demographic Economic Socio-Cultural Natural Technological Political-Legal |
| Marketing Research | Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. |
| Marketing Research Process | 1. Define the problem 2. Develop research plan 3. Collect information 4. Analyze information 5. Present findings 6. Make decision |
| Marketing Metrics | Marketing metrics is the set of measures that helps marketers quantify, compare, and interpret marketing performance. |
| Marketing-Mix Modeling | Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. |
| Measures of Market Demand | Potential Market Available Market Target Market Penetrated Market |
| Marketing Decision Support System (MDSS) | A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. |
| What Influences Consumer Behavior? | Cultural Factors Social Factors Personal Factors |
| What is Culture? And how it influences consumer behavior. | Culture is the fundamental determinant of a person's wants and behaviors acquired through socialization processes with family and other key institutions. Subcultures: Nationalities, Religions, Racial Groups, Geographic Regions. |
| Social Factors. And how they influences consumer behavior. | Family Reference Groups [Primary, Secondary, Aspirational, Dissociative] Social Roles Statuses |
| Personal Factors. And how they influences consumer behavior. | Age Life Cycle Stage Occupation Wealth Personality Values Lifestyles Self-Concept |
| Key Psychological Processes | Motivation Perception* Learning Memory |
| Perceived Risk | Functional Physical Financial Social Psychological Time |
| Motivation: Freud's Theory | Behavior is guided by subconscious motivations. |
| Motivation: Maslow's Hierarchy of Needs | Behavior is driven by the lowest, unmet need. 5. Self-actualization needs 4. Esteem needs 3. Social needs 2. Safety needs 1. Physiological needs |
| Motivation: Herzberg's Two-Factor Theory | Behavior is guided by motivating and hygiene factors. |
| Organizational Buying B2B | Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers. |
| Key Organizational Buying Criteria | Quality Specifications Delivery Schedules Past Performance Production Facilities/Capacity Warranty/Claim Policies Technical Capability Price |
| The Buying Center | Initiators Users Influencers Deciders Approvers Buyers Gatekeeprs |
| Buying Situations | Straight Rebuy Modified Rebuy New Task |
| Opportunism | Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract. |
| 4 Levels of Market Segmentation | 1. Segments - Geographic, Demographic, Psychographic, Behavioral 2. Niches 3. Mass Market 4. Individuals |
| The Role of Brands | - Identify the maker - Simplify product handling - Organize accounting - Offer legal protection |
| What is Branding? | Branding is endowing products and services with the power of the brand. |
| What is Brand Equity? | Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand. Drivers of Brand Equity - Brand Elements, Marketing Activities, Meaning Transference |
| What is a Brand Promise? | A brand promise is the marketer's vision of what the brand must be and do for consumers. |
| 6 Brand Elements | Brand Names Slogans Characters Symbols Logos URLs |
| STP Critical in Marketing | S - Segmentation: discover different market group needs T - Targeting: pursue market segments you can satisfy in superior way P - Positioning: target market recognizes distinctive offering and image |
| Points-of-Difference PODs | Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand. Consumer Desirability Criteria for PODs - Relevance/Importance, Distinctiveness/Uniqueness, Believability Deliverability Criteria for PODs - Feasibility, Communicability, Sustainability |
| Points-of-Parity POPs | Associations that are not necessarily unique to the brand but may be shared with other brands. |
| Differentiation Strategies | Product Personnel Channel Image |
| Product Life Cycles | Products have a limited life. Product sales pass through distinct stages each with different challenges and opportunities. Profits rise and fall at different stages. Products require different strategies in each life cycle stage. Introduction, Growth, Maturity, Decline. |
| Marketing Program Modifications | Prices Distribution Advertising Sales Promotion Services |
| Market Evolution Stages | Emergence Growth Maturity Decline |
| Emerging Markets | Latent Single-Niche Multiple-Niche Mass-Market |
| 5 Forces Determining Segment Structural Attractiveness | Potential Entrants Buyers Subsitutes Suppliers Industry Competitors |
| Competitive Strategies | Market Challengers Market Nichers Market Followers |
| 5 Attack Strategies | Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Warfare |
| 4 Market Follower Strategies | Counterfeiter Cloner Imitator Adapter |
| Product | A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas. |
| 5 Product Levels | Potential Product Augmented Product Expected Product Basic Product Core Benefit |
| Consumer Goods | Convenience Shopping Specialty Unsought |
| The Product Hierarchy | Item Product Type Product Line Product Class Product Family Need Family |
| Product Line Analysis | Core Product Staples Specialties Convenience Items |
| Product-Mix Pricing | Product-line pricing Optional-feature pricing Captive-product pricing Two-part pricing By-product pricing Product-bundling pricing |
| What is a Service? | A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product. |
| 5 Service Sectors | Government Private Nonprofit Retail Manufacturing Business |
| 5 Categories of Service Mix | Pure Tangible Good Good w/ Accompanying Services Hybrid Service w/ Accompanying Goods Pure Service |
| Physical Evidence and Presentation of Services | Place People Equipment Communication Material Symbols Price |
| Common Pricing Mistakes | - Determine costs and take traditional industry margins - Failure to revise price to capitalize on market changes - Setting price independently of the rest of the marketing mix - Failure to vary price by product item, market segment, distribution channels, and purchase occasion |
| Steps in Setting Price | 1. Select the price objective 2. Determine demand 3. Estimate costs 4. Analyze competitor price mix 5. Select pricing method 6. Select final price |
| Price-Adaptation Strategies | Geographical Pricing Discounts/Allowances Promotional Pricing Differentiated Pricing |
| What is a Marketing Channel? | A marketing channel system is the particular set of interdependent organizations involved in the process of making a product or service available for use or consumption. |
| Push Strategy | A push strategy uses the manufacturer's sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users. |
| Pull Strategy | A pull strategy uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries. |
| What is Retailing? | Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use. |
| Major Retailer Types | Specialty store Department store Supermarket Convenience store Discount store Off-price retailer Superstore Catalog showroom |
| Levels of Retail Service | Self-Service Self-Selection Limited Service Full Service |
| Nonstore Retailing | Direct Selling Direct Marketing Automatic Vending Buying Service |
| What is a Franchising System? | A franchising system is a system of individual franchisees, a tightly knit group of enterprises whose systematic operations are planned, directed, and controlled by the operation's franchisor. |
| Retailers' Marketing Decisions | Target Market Product Assortment Procurement Prices Services Store Atmosphere Store Activities Communications Locations |
| What are Integrated Logistics Systems? | An integrated logistics system (ILS) includes materials management, material flow systems, and physical distribution, aided by information technology. |
| What are Marketing Communications? | Marketing communications are the means by which firms attempt to inform prospective buyers, persuade them to try, and remind consumers of the benefits, directly or indirectly, about the products and brands they sell. |
| Integrated Marketing Communications (IMC) | Integrated marketing communications (IMC) is the concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences. |
| 5 Primary Elements of the Promotional Mix | Advertising Personal Selling Public Relations Sales Promotion Direct Marketing |
| Steps in Developing Effective Communications | Identify Target Audience Determine Objectives Design Communications Select Channels Establish Budget Decide on Media Mix Measure Results/Manage IMC |
| 4 Communications Objectives | Category Need Brand Awareness Brand Attitude Purchase Intention |
| What is Advertising? | Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. |
| 5 Ms of Advertising | Mission Money Message Media Measurement |
| Advertising Objectives | Informative Advertising Persuasive Advertising Reminder Advertising Reinforcement Advertising |
| Factors to Consider in Setting an Advertising Budget | Stage in the product life cycle. Market share and consumer base. Competition and clutter. Advertising frequency. Product substitutability. |
| What is Sales Promotion? | Sales promotions consist of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. |
| Using Sales Promotions | Establish Objectives Select Tools Develop Program Pretest Implement and Control Evaluate Results |
| Using Sponsored Events | Establish Objectives Choose Events Design Programs Measure Effectiveness |
| Ideal Events | - Audience closely matches target market - Event generates media attention - Event generates media attention - Event lends itself to ancillary activities - Event enhances brand image of sponsor |
| Decisions in Marketing PR | Establish Objectives Choose Messages Choose Vehicles Implement Evaluate Results |
| What is Direct Marketing? | Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen. |
| Direct Marketing Channels | Direct Mail Catalogs Telemarketing Other Direct Response |
| Constructing a Direct-Mail Campaign | Establish Objectives Select Target Prospects Develop Offer Elements Test Elements Execute Measure Success |
| 5 Elements of an Offer Strategy in Direct Mail | Product Offer Medium Distribution Method Creative Strategy |
| 5 Components of the Mailing | 1. Outside envelope 2. Sales letter 3. Circular 4. Toll-free number and/or Website and/or Reply form (postage free) 5. Reply envelope |
| 7 Website Design Elements | 1. Context - Layout and design 2. Content - Text, pictures, sound, video 3. Community - User to user communication 4. Customization - tailor to users 5. Communication - two-way 6. Connection - site to site links 7. Commerce - commercial transactions |
| e-Marketing Guidelines | - Give the customer a reason to respond - Personalize the content of your emails - Offer something the customer could not get via direct mail - Make it easy for customers to unsubscribe |
| Designing a Sales Force | Sales Force Objectives Sales Force Strategy Sales Force Structure Sales Force Size Compensation |
| 7 Steps in Effective Selling | 1. Prospecting/Qualifying 2. Preapproach 3. Approach 4. Presentation 5. Overcoming Objectives 6. Closing 7. Follow-up |
| 6 Categories of New Products | New-to-the-World New Product Lines Additions Improvements Repositionings Cost Reductions |
| New Product Failure Factors | - Market/Marketing: small potential market, differentiation unclear, poor positioning - Financial: low ROI - Timing: too early or too late in market - Technical: bad design or doesn't work - Organizational: lack of support or poor fit - Environmental: government or environmental factors |
| What is a Venture Team? | A venture team is a cross-functional group charged with developing a specific product or business; intrapreneurs are relieved of other duties and provided a budget and time frame. |
| What is Adoption? | Adoption is an individual's decision to become a regular user of a product. |
| Stages in the Adoption Process | Awareness Interest Evaluation Trial Adoption |
| What is a Global Firm? | A global firm is one that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. |
| Major Decisions in International Marketing | - Deciding whether to go - Deciding which markets to enter - Deciding how to enter - Deciding on the marketing program - Deciding on the marketing organization |
| 4 Stages of Internationalization | 1. No regular export activities 2. Export via independent agents 3. Establish sales subsidiaries 4. Establish production facilities abroad |
| 5 Modes of Entry into Foreign Markets | 1. Indirect Exporting 2. Direct Exporting 3. Licensing 4. Joint Ventures 5. Direct Investment ---Commitment, Risk, Control, Profit Potential---> |
| Direct Exporting Methods | - Domestic-based export department - Overseas sales branch or subsidiary - Traveling export sales representatives - Foreign-based distributors or agents |
| Global Cultural Dimensions | Individualism vs. Collectivism High vs. Low Power Distance Masculine vs. Feminine Weak vs. Strong Uncertainty Avoidance |
| Commandments of Global Branding | - Understand similarities and differences in the global branding landscape - Do not take shortcuts in brand building - Establish a marketing infrastructure - Embrace integrated marketing communications - Establish brand partnerships - Balance standardization and customization - Balance global and local control - Establish operable guidelines - Implement a global brand-equity measurement system - Leverage brand elements |
| Levels of Product Adaptation | - Production of regional product versions - Production of country versions - Production of city versions - Production of retailer versions |
| What is a Gray Market? | A gray market consists of branded products diverted from normal or authorized distributions channels in the country of product origin or cross international borders; dealers in lower priced countries sell products in higher priced countries. |
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