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BUAD 332 Exam 1 Moon Fall 2016

Terms in this set (97)

what is marketing?
managing profitable customer relationships. a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others
goals of marketing activity
1. attract new customers by promising superior value
2. keep and grow current customers by delivering customer satisfaction
what do customers buy?
SOLUTIONS, NOT PRODUCTS
who is the center of a marketer's universe?
CUSTOMER
Marketing Process Method (5 steps)
1. understand marketplace, customer needs/wants
2. design a customer driven marketing strategy (strategy)
3. construct a marketing program delivering superior value(execution)
4. build profitable relationships, create customer delight
5. capture value from customers to create profits and customer equity
customer equity
when a customer wants something because it is produced by a specific brand (apple ipad example)
need
a state of felt deprivation
physical- food, clothing, shelter, safety
social- belonging, affection
individual- learning, knowledge
want
a form that a human need takes, as shaped by culture, individual personality & market activity (golf ex. want vs. needing new $300 putter)
why don't all wants represent real demand?
wants are combined with buying power in order to get demand
Marketing in relationship to needs/ wants
combination of products, services, information & experiences are offered to a market to satisfy needs/wants (Mercedes example)
marketing offers
offered to a market to satisfy needs/wants
market
set of actual or potential buyers of a product or service, people who share a need or wants that can be satisfied through an exchange
2 fundamental questions marketing managers must address
1. What customers will we serve?
2. How can we best serve out customers?
market segmentation
dividing the market into segments/ customers
targeting
selecting a segment of customers to cultivate
value proposition
set of benefits/values that a company promises to deliver to consumers to satisfy needs (BMW ex.)
marketing mix (4Ps)
products, price, place, promotion (all customer needs)
customer value
customer's perception of what they want to have happen in a specific use situation with the help of a product or service in order to accomplish a desired purpose or goal
5 key aspects of customer value
1. a trade-off
2. an interaction (car example)
3. relative
4. goal driven
5. dynamic
CV as a trade off
customers want to maximize what they can get for themselves between benefits and sacrifices
CV as an interaction
intersection of product/service, use situation & occasion, customers value's and goals
CV is relative
to competitors, individuals and situations
CV is goal driven
by customers desired attributes, outcomes and end goals
CV is dynamic
becomes hard because of changes in the environment, consumer life, other companies, inside company
CLM-interactions
presentations, sales calls
CLM-research
interviews, panels, surveys
CLM-3rd party customer
consultants
CLM-secondary markets
journals, industry reports
CLM- customer databases
buying patterns, market segments, changes in buying pattrns (Harrah's casino rewards card ex.)
strategic planning
process of developing and maintaining a strategic fit between the organization's goals and capabilities and it's changing market opportunities
Steps in strategic planning
Define company mission
Set objectives and goals
Design business portfolio
Questions a mission statement should answer
Who is our customer?
What should our business be?
What is our business?
What do our customers value?
Mission statement
Should be translated into supporting objectives for each level of management (ex. Jack Welch, GE)
Business portfolia
Collection of businesses and products that make up a company
3 things a company must do
1. Analyze current business portfolio or SBUs
2. Decide which SBUs should receive more, less or no investment
3. Develop strategies for growth or downsizing
SBU- strategic business unit
Unit of company with a separate mission and objective that can be planned independently from other company business
Portfolio analysis
Evaluation of the products and business making up the company
BCG MATRIX-star
High growth/share
Eventually growth will slow
Investment heavy market (Samsung)
BCG MATRIX- question mark
Low share SBUs
Require cash to hold market share
Built into stars of phase out (LG Electronics)
BCG MATRIX- cash cow
Low growth/high share
Established successful SBUs
Produce cash
(Tablet market for Apple)
BCG MATRIX- dogs
Low growth/share
Generate cash to sustain self
Do not promise to be cash source
(Lenovo tablets)
Market penetration (Starbucks)
Make more sales to current customers without products (new stores, advertising, prices, service)
Market development (Starbucks)
Identify and develop new markets for current products (pursue a different demographic customer group or geographic region)
Product development (Starbucks)
Modified products for current markets (food, coffee in stores)
Diversification (Starbucks)
Start up new or buy business outside of current products and markets (making/selling CDs, restaurant testing, coffee makers)
Product
Variety
Quality
Design
Features
Brand name
Packaging
Service
Proce
List price
Discounts
Allowances
Payment period
Credit terms
Promotion
Advertising
Personal selling
Sales promotions
Public relations
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Micro environment
Actors close to the company that affect its ability to serve its customers
(Somewhat under influence of organization)
Macro environment
Larger societal forces that affect micro environment
(Beyond control of organization)
Actors in micro environment
Company
Suppliers
Market in intermediaries
Customers
Competitors
Publics
Supliers
Provide resources needed to produce (coors light bottle changes color)
Intermediaries
Help company promote sell and distribute
Customers
Consumer markets
Business markets
Reseller markets
Governments markets
International markets
Competitors
Those who offer products and services viewed as a reasonable substitute
Publics
Group with an interest or impact on ability to achieve objectives
Types of publics
Financial
Media
Government
Citizenship
Local
General
Internal involves
Natural environment
natural resources that are needed as inputs by markets of that age affected by marketing activities impacted by pollution climate change shortage of raw materials and government intervention
Technological environment
Most dramatic force in shaping destiny (google glass)
Political environment
Laws government agencies pressure groups that influence and limit organizations and individuals in a society (affordable care act)
what do companies need information about?
customer needs
marketing environment
competition
marketing information system
consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers
internal database
Electronic collections of information obtained from data sources within the company.
marketing intelligence
Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.
marketing research
Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
exploratory research
Gather preliminary information
that will help define the problem
and suggest hypotheses.
descriptive research
Describes things (e.g., market
potential for a product,
Demographics, and attitudes).
causal research
Tests hypotheses about
cause-and-effect
relationships
research plan includes
determining exact information needed
Developing a plan for gathering it efficiently
presenting the written plan to management
research plan outlines
sources of existing data
Specific research approaches
contact methods
Sampling plans
instruments for data collection
secondary data
Information that already exists somewhere
Internal databases
commercial data services
government sources
Available more quickly and at a lower cost than primary data
must be relevant, accurate, current and impartial
primary data
Consists of information collected for the specific purpose at hand.
Must be relevant, accurate, current, and unbiased.
Must determine:
research approach
Contact methods
sampling plan
Research instruments
quantitative research
Surveys
experiments
big data
qualitative research
observations
In-Depth Interviewing
focus groups
types of observation techniques
Obtrusive
Unobtrusive
observation techniques relevant situations
Decision Making/Purchase
Consumption
observation techniques info to gather
user behaviors and sequence
characteristics of the situation (e.g., who was involved, roles played, physical environment, etc.
particular aspects of the product that played a key role
user problems or frustrations
emotion
outcomes of product use
time expended
pros of observation
Record what "actually happened" without any bias or memory filters
avoids problem of measuring attitudes or motivations

Technology can facilitate detailed data gathering
cons of observation
Attitudes and motivations cannot be determined
some behavior cannot be observed because it is unethical or illegal
most popular way to collect secondary data
surveys
survey pros
versatile
Quick data gathering and analysis
accuracy of data
survey cons
Survey construction and quality highly variable - requires expertise
implementation time can be lengthy

sampling must be scientific

May yield a great deal of data, but little knowledge
experimental research pros
Isolation of the test (independent) variable supports cause-effect judgments
experimental research cons
time consuming and expensive

Not always able to isolate all possible causal variables
probability sampling
simple random sample, stratified random sample
Simple RS
every member of the population has an equal and known probability of selection
Stratified RS
Population is divided into mutually exclusive groups and each group is randomly sampled
non-probability sampling
convenience sample
judgment sample
convenience sample
researcher selects population based upon ease and availability
judgment sample
Researcher strategically selects members who are good representatives of the population
data mining
A process that accesses the company's internal data, (usually stored in a data warehouse) and which then transforms data into knowledge, and hopefully, wisdom.
objectives of data mining
customer profiling
lost customer analysis
market basket analysis
contribution analysis
customer profiling
Identifying the characteristics of a "good" customer with the goal of retaining those who are and predicting those who will/could become one.
lost customer analysis
Determining the characteristics of customers who have left for a competitor so that the company can act to retain customers who are at risk of leaving.
market basket analysis
Helps retailers understand which products are purchased to together.
contribution analysisExamining the profitability of specific products purchased by customers or customer segments.
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