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Marketing Core Performance Indicators

Terms in this set (75)

Explain the need for professional and ethical standards in marketing
There is a need for professional and ethic standards in all professions
Without them, companies might engage in deceptive marketing techniques
Misrepresentation (false statement of fact), omission (leaving out important shit), misleading practice.
Leads to unhappy customer, stop relying on marketing information from companies
ultimately makes it more difficult to sell things
Sooo, marketers need to have ethical standards in their advertising so that they don't **** themselves over.
Explain the nature and scope of channel management
Channel management is the supervision of a good or service through the manufacturing process to the final user.
This process can include manufacturers, wholesalers, retailers, direct and indirect distribution and agents.
As a good or service moves in this process, channel management can include the selection of a transportation systems and services as well as inventory storage.
Explain the relationship between customer service and channel management
Customer satisfaction is a goal of any profitable businesses.
In order to meet the needs and wants of customers, channel management must work effectively to deliver a product at the right time to the right place.
A business' ability to select the appropriate distribution channel, transportation and inventory will impact the customer's choices when making a purchase.
Explain the nature of channels of distribution
A channel of distribution is the road that a product or service takes from production to end user.
Products and services may use direct or indirect distribution channels to arrive to a customer.
Direct distribution is when the producer sells the product to the end user. Indirect distribution involves one or more intermediaries who aid in moving the product from producer to end user.
Factors including whether it is a consumer or industrial product affect what channel of distribution is selected.
Describe the use of technology in the channel management function
Technology has created a new channel of distribution known as e-tailing where customers and industrial buyers make purchases using the Internet.
The online shopping location is known as an e-marketplace.
Explain legal considerations in channel managements
The Clayton Antitrust Act of 1914 prevents businesses from exclusionary tactics that could keep other companies from accessing a channel of distribution if this would create a monopoly or lessen competition.
Describe ethical considerations in channel management
The Clayton Antitrust Act of 1914 prevents businesses from exclusionary tactics that could keep other companies from accessing a channel of distribution if this would create a monopoly or lessen competition.
Coordinate channel management with other marketing activities
Promotion: It is important that a business coordinate the distribution and promotion of a new product to make sure it is available when customers want it. In many cases, customers think a product is more unique when it is only available from a few locations
Management: Makes sure that all members of the channel are aware of policy/standard changes in the business -- And how it will affect them.
Explain the nature of channel-member relationship
Channel members need to work together to bring a product to the consumer. Each participant in the distribution channel needs to work effectively to keep costs low and profits increasing for each member. These relationships should be evaluated on an annual basis.
Explain the nature of affinity partner relationships
Affinity marketing is a partnership between a business and an affinity group (which is a group of people with similar interests - fraternities, hobby clubs) to increase the consumer base of the company.
Developing this relationship is nice for the business, because, as expected, the profits increase with a broader target market.
Describe the need for marketing data
Marketing information is needed for businesses so that they make effective decisions about their products, pricing and promotion strategies, competitor awareness and to ensure that they understand what the customer wants and needs. Marketing information has a significant financial impact on a business's profit.
Explain the nature and scope of the marketing information management function
The marketing information management function includes the activities related to gathering information on various aspects of the marketplace and analyzing the data to determine an effective marketing strategy. Various forms of market research are used in this function on a regular basis to support the decision making process so that marketing strategies are effective and profitable.
Explain the role of ethics in marketing-information management
Marketers have a responsibility to be ethical when gathering and storing information. As market research is conducted, private and competitive information must be held confidential. Gaining access to private or otherwise protected information in an unethical way should be avoided as well as pressuring individuals to supply information. Companies are encouraged to set standards for their employees to follow when conducting marketing research.
Describe the use of technology in the marketing-information management function
Technology has had a significant impact on the ability to successfully manage marketing information management activities. The Internet has increased a marketer's ability to measure effectiveness, track customer buying behavior, conduct research and manage data. Market research can use technology to automate telephone research and provide interactive focus groups online.
Explain the nature of marketing research
Marketing research is a process that involves identifying a problem, gathering and analyzing data, developing solutions, implementing actions and monitoring results. Marketing research is used to understand customer behavior, product uses, learn about competitors, and understand brand awareness. There are two types of market research: qualitative and quantitative. Qualitative research is used to answer questions beginning with "why" or "how". Quantitative research answers questions that start with "how many" or "how much".
Discuss the nature of marketing research problems/issues
A marketing research problem is a way to identify objectives that should be met during the data gathering process. The market research problem will guide decisions regarding what data needs to be collected and how it will be used to identify a solution. This step of the market research also focuses the marketer on a specific issue to resolve.
Describe methods used to design marketing research studies (i.e., descriptive, exploratory, and causal)
Descriptive: Describes characteristics of the population
Exploratory: to properly define/identify a problem - helps determine best research design, data collection methods and subject selection.
Causal: Research that looks at the effect of one thing on another. Might be used to quantify the effect that a change to present operations will have on future production levels.
Describe options businesses use to obtain marketing-research data (i.e., primary and secondary research)
Market research is obtained from two sources of data, primary and secondary research.
Primary research is data obtained and/or conducted solely for the purpose of research on this topic.
Secondary research is data obtained from other sources that aren't directly related to the project
Types of secondary research can include both internal (sales invoices) and external (trade associations)
Discuss the nature of sampling plans (i.e., who, how many, how chosen)
Basically outlines the data that needs to be collected, how it will be measured and how it will be used to research the topic at hand.
A sample is a smaller group of a group of people a business is interested in understanding. In order for a sample to reflect the larger group, researchers often use random sampling for fairness. The larger the sample evaluated, the more accurate the data will be. The size of a sample is determined by the budget and degree of accuracy requested by the company.
Describe data-collection methods (e.g., observations, mail, diaries, telephone, Internet, discussion groups, interviews, scanners, tracking tools)
Observation: analyze customer buying behaviour by watching their actions
Mail: Sending surveys and stuff like that
Telephone: As above.
Discussion group (i.e. focus group/interview): Get first-hand feedback for your products/services.
Explain characteristics of effective data-collection instruments
Effective data-collection tools provide accurate data, are measurable and reliable, may be easily used, use market research budgets effectively, and have a high response rate.
Explain techniques for processing marketing data
Marketing information processing is completed using a variety of technology including databases and spreadsheet programs. Marketers may also utilize customized marketing information systems to routinely update and analyze data. Data mining is a computer process that can identify data trends when analyzing a large amount of data.
Explain the use of descriptive statistics in marketing decision making
After data is collected, descriptive statistics can be used to understand the market research problem. Research may be presented in graphics including tables, charts and graphs along with a description of what the data represents.
Explain the concept of marketing strategies
Marketing strategies are used to develop a good or service, determine where to make the product or service available to a customer, how much to charge for the good or service and how to make customers aware of the good or service. Successful marketing strategies will ensure the product is available to the consumer in the right place, at the right time for the right price.
Explain the concept of market and market identification
A market is a group of consumers who have a common interest, need or want of a given good or service. This group of consumers also must be able to purchase the product. Identifying a market is an important activity in marketing as products will not appeal to everyone. Marketers identify markets' common interests by classifying consumer's demographic, geographic and psychographic information. Examples of this information include age, income, education, zip code, buying behavior, and leisure activities.
Explain the nature of marketing plans
A marketing plan is a detailed blueprint that guides marketing strategy and outlines an organization's marketing efforts.
It's a company's strategy for positioning the product and encouraging sales
A marketing process can be realized by the marketing mix. Determines the product, price, place and promotion to be used.
Elements of a marketing plan include an executive summary, situation analysis, objectives, marketing strategies, implementation decisions, evaluation measures and appendices.
Explain the role of situation analysis in the marketing planning process
Situation analysis helps marketers to understand influences on marketing strategy both within the business and in the marketplace. Two common tools used in situation analysis are the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis and an environmental scan. Both provide a business with an opportunity understand how they can react effectively to changes in the market.
Explain the nature and scope of the pricing function
The pricing function includes all activities that determine how much to charge for a good or service. This is an important business activity as it directly impacts the financial success for the company. The price of a good or service can affect brand image, market share and profits. The goal of pricing a product is to earn a return on investment (ROI), gain market share, and face competition.
Describe the role of business ethics in pricing
Ethical practices as it relates to pricing include understanding price fixing, price discrimination, and unit pricing. Price fixing happens when competitors agree to sell their product at a certain price. Price discrimination occurs when different customers in similar situations are charged different prices. Unit measure lets consumers determine the unit cost of items. All these situations require a business to make fair decisions for the consumer and not work with other businesses to take advantage of the market.
Explain the use of technology in the pricing function
Technology allows marketers access to a wealth of information that can affect the price of a product using both internal data and competitor data in the marketplace. Technology can provide real-time prices to consumers online or by scanning bar codes in retail stores. Retailers can also change prices for products using technology effectively.
Explain legal considerations for pricing
Pricing decisions are impacted by the Robinson-Patman Act (1936), the Consumer Goods Pricing Act (1975), Federal Trade Commission guidelines and minimum price laws (these vary by state). The Robinson-Patman Act regulates businesses ability to change prices on consumers purchasing similar products in similar situations. The Consumer Goods Pricing Act controls the pricing relationship between manufacturers and retailers.
Explain factors affecting pricing decisions
There are four market factors that affect pricing decisions: costs and expenses, supply and demand, consumer perceptions, and competition.
When costs to produce a good or service change, so can the price of that product.
The economic conditions in a marketplace can also affect price; if demand for a product is high then a retailer has a choice to increase price.
Consumer perceptions of the business and product can affect how much a customer is willing to pay for a good or service.
Competition influences pricing decisions depending on how price conscious consumers are regarding the product.
Explain the nature and scope of the product/service management function
The product/service management function relates to all decision affecting the product mix of a business including developing, maintaining, and improving the product mix. Commonly referred to as product planning, this is a constant activity of a business to ensure that they are providing a good or service that meets the needs and wants of a consumer.
Identify the impact of product life cycles on marketing decisions
The product life cycle affects various marketing decisions as it relates to the product mix of a business. When a product is in the introduction phase, a company must create awareness through promotion. When a product is in the growth stage, a company may need to focus on customer service and adapting the product to the needs of the consumer. When a product is in the maturity stage, a company may need to monitor competition more frequently. When a product is in the decline stage, a company has to make product decisions that affect its continued viability
Describe the use of technology in the product/service management function
Technology has a direct impact on the product/service management function.
Technology can create opportunities for new products, make production of products more efficient, make products easier to use, and make products obsolete.
Explain business ethics in product/service management
Business ethics that relate to product/service management relate to making customers aware of product information that can affect safety and health when the product is used. This can include product recalls, allergy information and labeling, and clear instructions on how to use the good or service.
Identify product opportunities
For unmet needs/wants, create a product to address this.
Ideas can be generated during the market research process through both customers and competitive analysis. Internal teams may be put together to evaluate new product decisions including all departments of the business.
Identify methods/techniques to generate a product idea
Ideas can be generated during the market research process through both customers and competitive analysis. Internal teams may be put together to evaluate new product decisions including all departments of the business.
Tools used to generate product ideas can include brainstorming, creative thinking processes and problem solving sessions. A company can generate product ideas by conducting consumer and sales force focus groups.
Describe the uses of grades and standards in marketing
Standards are statements that specify a product's qualities (size, shape, contents) and are used to establish uniform, consistent products.
Grades are ratings assigned to products that tell to what extent standards were met
The use of grades and standards speeds up the process because consumers can buy products without inspecting each one.
These are set by government agencies (FDA), trade organizations (AAA - motels), and businesses (mcdonald's buns all have the same size and colour).
Discuss actions employees can take to achieve company's desired results
Personal selling: gain feedback from customers, by knowing the needs of the customers, salespeople can match the qualities of the products being sold to the customer's needs
Following up: by reaching out to already existing customers frequently, the employees are letting the customer know that the company cares.
Explain warranties and guarantees
Warranties are promises to repair or replace a product that does not perform as expected, from the seller to the buyer.
Express warranty (written/oral), implied warranty (self-explanatory - no time limits), full warranty (covers entire product), limited warranty (covers only certain repairs/parts)
Guarantees are promises to refund the customer if it doesn't perform as expected.
Generally, warranties only apply to goods, while guarantees apply to both g/s
Both of these builds the image of the company and provides it with a competitive edge, by gaining repeat customers
Describe the nature of product bundling
Marketers may use product bundling to package two or more complementary goods and services, usually for a lower price than had the products been purchased separately. For example, if customer goes to the spa for a manicure and pedicure the price may be lower than if that customer purchased a manicure and pedicure separately.
Explain the nature of corporate branding
Trade names or corporate branding are used to identify and promote an entire company or department in a business. A trade name is the legal name of the business and is used to promote its various activities as an organization.
Describe factors used by businesses to position corporate brands
Branding is all about creating unique identities and positions for products and services, and how you want to position the image of this brand in the minds of the customers
There are 5 main factors that help define the brand position
Attributes: what it delivers through benefits and features
Expectations: What consumers expect to receive from the brand?
Price: How do your prices compare with your competitors
Quality: Cheap or high quality?
Competition: What benefits and features are your competitors offering?
Identify customer touch points
Touch points are opportunities that a company has to interact and connect with its customers, or with potential customers.
Packaging
Demo units → sample the products in-store
Employee interaction
TV commercials
Describe factors used by marketers to position products/services
Factors used by marketers to position a product or service include price, quality, features, benefits, competition and relation to another product.
Positioning based on price and quality demonstrates a connection between a high price and high quality and a low price as an example of value.
Positioning based on features and benefits focuses on the customer benefit that is valued.
Positioning based on competition is based on creating an advantage over the other business.
Positioning based on another product allows a consumer to distinguish between goods and services.
Explain the nature of product/service branding
Branding of a product or service is focused on creating a consumer identification using a name, term, design, symbol or combination of those factors.
The use of a brand name or mark allows a consumer to recognize a product easily.
There are several types of brands including national, private distributor, and generic. National brands are owned by national manufacturers, such as Hershey. Private distributor brands are also known as "store brands". Generic brands do not have any company's identity on the packaging.
Describe the role of customer voice in branding
The goal of a marketing is to help a business to gain a competitive advantage. This competitive advantage is based off of the type of image the company wants to promote its brand as. If they promote a type of brand that does not agree with the interests of the customers, they won't be the most successful business in the market
So, if customer's voice, in one way or another, they're interests, needs, and wants, businesses can tailor the images of their brand to suit the respective needs and wants of the customers. This way businesses will experience more sales, and customers will have a larger selection of things that align with their interests.
Explain the role of promotion as a marketing function
Promotion as a marketing function includes all the activities to inform, persuade, and/or remind consumers about products and services.
Promotion is persuasive communication that prompts a target market to take action.
Identify the elements of the promotional mix
The types of promotion are personal selling, advertising, public relations, and sales promotion.
Personal selling is direct contact between a salesperson and customer.
Advertising is a form of nonpersonal promotion.
Public relations is the development of a favorable image for a company, its products or its policies.
Sales promotion includes activities that are used to create purchases and sales not related to the other types of promotion.
Describe the use of business ethics in promotion
Marketers have a responsibility for ethical behavior in promotion as it relates to advertising and sales. Marketers should avoid false or misleading advertising for products and services so that it can develop good customer relations with its customers, and ultimately generate profit more effectively.
Describe the use of technology in the promotion function
The use of technology in promotion changes constantly. Technology creates new platforms for distributing information to consumers. Recently we have seen online sales, new media outlets including the Internet develop, creation of social media, and delivery of sales promotions via cell phones.
Describe the regulation of promotion
The Federal Trade Commission is the main regulator of promotional practices overseeing issues related to advertising and endorsements. Trade associations and consumers also play a role in regulating promotion strategies. The primary topics that are discussed are deceptive advertising practices including advertising to children, privacy, contests, false testimonials, bait and switch advertising, free offers, and misleading demonstrations
Explain types of advertising media
Types of advertising media include print, broadcast, online, specialty and social.
Print media include newspaper, magazine, direct mail, directory, outdoor, and transit.
Broadcast media include television and radio advertising.
Online advertising are all forms of that use the Internet or e-mail including banner and pop-up ads.
Specialty media are items used for distribution with the company's branding message.
Social media includes platforms including Facebook, Twitter, and mobile media applications.
Describe word-of-mouth channels used to communicate with targeted audiences
Word-of-mouth channels allow consumers to promote a product or service virtually free of charge. Channels of communication for this method include after-sale follow-up, recognition of purchase in media, incentive programs, buzz marketing, providing samples, and interactive promotions such as e-mails, entertainment, Youtube videos, and social media interactions.
Explain the nature of direct marketing channels
Direct marketing channels include those methods targeting a specific group of consumers. This usually means delivering a message via direct mail to a home or business or by e-mail. There are certain measurements put in place to facilitate and standardize the opt-out option for these direct marketing channels.
Identify communications channels used in sales promotion
Sales promotion channels are divided into trade and consumer promotion categories.
Trade promotions (activities that are done between two partners), include promotional allowances, cooperative advertising, slotting allowances, sales force promotions and trade shows and conventions.
Consumer promotions include coupons, premiums, deals, incentives, product samples, sponsorship, product placement, promotional tie-ins, loyalty programs and point-of-purchase displays,
Explain communications channels used in public-relations activities
Public relations can use a variety of tools to develop media coverage. A main tool is a press release that is sent to appropriate media for the company and/or product. Other channels of communication include press kits (packages of promotional materials to tell them about a product) and press conferences.
Explain the components of advertisements
The elements of an advertisement are the headline, copy, illustrations, signature and slogan. The headline is a sentence that gets a consumers attention. The copy explains the product or service. The illustrations use graphic elements to demonstrate the product or service. The illustrations may also grab the consumer's attention to the advertisement. The signature is an identification symbol of the business. The slogan is a quick message about the product or company.
Explain the importance of coordinating elements in advertisements
Each element of an advertisement needs to work together as a cohesive message for a product, service or business. Before placement, marketers check to ensure that the ad stands out on a page, the layout is clean, the text is easy to read and understand, the signature can be distinguished and that the message relates to the target market.
Discuss internal and external audiences for public-relations activities
Public relations activities are designed to influence the perceptions of a specific group of people. For example, an internal audience is a company's employees. A business may choose to create a public relations campaign to change attitudes or create awareness of policies for employees.
For example, an external audience is a market of consumers who live near a new sports stadium. A business may choose to create a public relations campaign to increase awareness for game day traffic.
Identify types of public-relations activities
Types of public relations activities include sponsoring product, sports, cultural or charitable events, awarding scholarships, and donations. Another aspect of public relations is creating news releases, an announcement that a company sends to the news media.
Explain the nature and scope of the selling function
The selling function provides consumers with the products or services that they want or need. This includes all members of the distribution channel. The selling process is a personalized communication and influences the purchase of a product or service and future sales.
Explain the role of customer service as a component of selling relationships
Selling relies on repeat business -- customer service drives repeat business. One of the most important things to successful selling is good customer contact so KNOW YOUR SHIT!! Service extras (those little extra things that makes someone`s day) are what the customer is going to remember and will cause him/her to return)
Customer relationship management (CRM) is an important part of selling relationships. Companies use CRM as a method to develop customers and their loyalty and maintain those relationships. Actions taken through the customer service process will impact future sales as well.
Explain key factors in building a clientele
Identify a market first → figure out who is going to be buying your products
Advertise → get your name out there
Customer service → develops customer loyalty and repeat sales (80/20 rule)
Loyalty promotion + consistency → keep these customers from getting bored.
Word-of-mouth → virtually advertising, free of charge.
Explain company selling policies
Company selling policies guide the rules for training, compensation, legal and ethical issues and sales quotas.
Company policies for training ensure that sales representatives know the product or service they are selling and present those in a way reflective of the business.
Compensation and sales quotas of a company are communicated through various policies to ensure clear expectations for the sales force.
Company sales policies also instruct sales representatives on how to conduct legal contracts and ethical sales practices.
Describe the use of technology in the selling function
Information is a necessary tool for a sales person and technology now makes this available at all times.
Technology also reduces the amount of time a sales representative uses for research and makes them a more effective resource for business.
Examples of technology used in sales include Bluetooth technology, laptops, PDA's, CRM software, e-mail, text messages, social media, etc.
Describe the nature of selling regulations
Selling regulations are growing in local and state governments. Regulations can include guidelines related to sales tax, where products may be sold and how promotions can be communicated.
Acquire product information for use in selling
Product information can be found through four channels: direct experience, written publications, other people, and formal training.
In addition, product demonstrations or product manufacturing can help a salesperson acquire product information. Printed materials can include user guides, warranties, catalogs and labels. Formal training is considered the method for information gathering about a product.
Analyze product information to identify product features and benefits
Product information provides detailed information that allows a sales representative to understand how a product will benefit a customer through a feature. A feature is a physical attribute of the product. Benefits are the advantages or satisfaction a customer receives from the product.
Knowledge of product information allows a salesperson to match the appropriate product to fill a customer's needs. For example, a t-shirt may be made of brushed cotton (feature) which means it will be extra soft to the touch (benefit).
Explain the selling process
Approaching the customer
Determining the customer's needs
Presenting the product to the customer
Overcoming customer objections
Closing the sale
Suggestion selling
Relationship building
Discuss motivational theories that impact buying behavior
Abraham Maslow's Hierarchy of Needs assists marketers to understand how consumers make decisions about their wants and needs. The Hierarchy of Needs identifies five areas of needs including physiological, security, social, esteem and self-actualization. It is important for marketers to understand what level of needs a customer is trying to meet so they can deliver the appropriate product.
Explain the nature of a promotional plan
A promotional plan is a description of the promotional mix decisions for a business. The promotional plan includes relevant market information, details about the target market, identifies promotional objectives and budget and defines the mix of promotional tools. The promotional plan has a common theme and takes a purposeful planning approach.
Explain the nature of a product mix.
Product mix includes all of the goods and services that are produced and sold by a business. The type and number of products a business sells should meet the businesses objectives, image and market. Within a product mix a business will have product lines and product items. Product width describes the number of product lines a business has and product depth describes how many items are offered in each product line.
Describe the marketing functions
Channel Management is the process of deciding how to get goods into customer's hands.
Market Planning is understanding the analysis needed to target specific marketing strategies to a select audience.
Marketing Information Management is gathering and analyzing information related to market, product and segmentation decisions.
Pricing is how much to charge for goods and services to create a profit. Product/Service Management is obtaining, developing, maintaining, and improving a product or product mix in response to market opportunities. Promotion is to inform, persuade, or remind potential customers about a product or service.
Selling is providing a customer with a good or service they want.
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