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Terms in this set (99)

Marketing Management: the art and science of choosing target markets and building profitable relationships with them.
-find, attract, keep, and grow target customers by communicating and delivering superior customer value

Who to serve?
-Segmentation: dividing market into segments of customers.
-Target Marketing: selecting the segments it will pursue.

Choosing a value proposition:
-set of benefits or values it promises to deliver to customers to satisfy their needs.
-how a company will differentiate itself and position itself in the market.

Management orientations:
1) Production Concept:
- consumers will favor products that are available and highly affordable.
-Focus on improving production and efficiency.
-may cause too much of a focus on operations.
2) Product Concept:
-Consumers will favor products that offer the most in quality, performance, and innovation
-focus on improving product.
-may lead to marketing myopia.
3)Selling Concept:
-Consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort.
-Practiced with unsought goods (insurance)
-focuses on sales transactions rather than relationships.
-Profits through sales volume
-inside out perspective.
4) Marketing Concept:
-Holds that achieving organizational goals depends on knowing the needs and wants fo target markets and delivering the desired satisfactions better than competitors.
-focus on customer needs/wants.
-find the right products for your customers
-profits through customer satisfaction.
-Outside in perspective
5) Societal Marketing Concept:
-Marketing strategy should deliever value to customers in a way that maintains or improves the consumers's and society's well-being.
a) Motivation:
-a need becomes a motive when it is aroused to a sufficient level of intensity.
-a drive /motive is a need that is sufficiently pressing to direct teh person to seek satisfaction.

Freudian theory:
-a person's buying decisions are affected by subconscious motives that even teh buyer may not fully understand.
-Pyramid of needs
-hierarchy of needs.

b) Perception:
-the process by which people select, organize and interpret information to form a meaningful picture of the world.
--Selective attention: the tendency for people to screen out most of the info to whcih they are exposed.
--selective Distortion: the tendency to interpret info in a way that will support what they already believe.
--Selective retention: Likely to remember good points made about a brand they favor and forget good points made about competing brands.

c) Learning:
-Changes in an individual's behavior arising from experience.
-drives: strong internal stimulus that calls for action. May become a motive when directed toward a stimulus object.
-cues: minor stimuli that determine when , where and how the person responds (hearing of a sale, spot in window)
-if experience is rewarding then the action will be reinforcing.

d) Beliefs and Attitudes:
-a descriptive thought a person holds about something.
-may be based on actual knowledge, opinion, or faith.
-A person's consistently favorable or unfavorable evaluations, feelings and tendencies towards an object or idea.
-difficult to change.
-try to fit products into existing attitudes.
Research approaches
a) Observational Research: gathering primary data by observing relevant people actions and situations. Fischer Price toy lab.
-cannot observe feelings, attitudes, or motives.
-ethnographic research: involves sending trained observers to watch and interact with consumers in their natural habitat.
-can generate fresh insights.
b)Survey Research:
-Most widely used method.
-asking people questions about their knowledge, attitudes, preferences, and buying behavior.
-surveys are flexible
-people may not give honest answers or may not know answers to questions.
c) Experimental Research:
-selecting groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
-tries to explain cause and effect relationships.

Contact Methods
a) mail questionnaires
-good for large amounts of info at low cost per respondent.
-may give more honest answers than in face to face.
-not very flexible, take longer, return rate is low.
b)Telephone interview:
-quick info, flexibility.
-higher response rates
-cost per respondent is higher, people unlikely to discuss personal info, interviewer bias.
-do not call lists
c)Individual interviewing: flexible, but costly
d)Focus Group interviewing
-participants paid a small sum.
-moderator focuses the discussion.
-6 to 10 people who gather for a few hours and talk about a product/service.
e) Online research:
-internet surveys, experiments, focus groups.
-high speed low costs
-more interactive, engaging, easier to complete, less intrusive
-high response rates
-impersonal medium can prevent natural interaction for qualitative research.
-downsides (restricted internet access, lack of control over sample)

Sampling Plan:
-sample: a segment of the population selected for marketing research to represent the population.
(who is surveyed, how many, how the sample is chosen)

Research Instruments:
a)Questionaires: most common instrument.
-closed end questions
-open ended questions
-Careful of the wording and ordering of questions
-use simple, unbiased wording.
b)mechanical instruments:
-monitor cunsumer behavior
-people meters
-checkout scanners
-Blue eyes technology.
-->How do we want the customer to view our brand?
--What place does it occupy in their mind
#Product attributes
#desired benefits
#strong beliefs and values:
-what does the brand care about delivering to me? what does associating with this brand say about me?

Name Selection:
-should suggest something about the products benefits/qualities
-should be easy to pronounce, recognize and remember
-should be distinctive
-should be extendable:
-should translate easily into foreign languages
-should be capable of registration and legal protection.

3) Sponsorship:
#National Brand:
-manufacturers brand.
#Private Brand (store brand):
-growing faster than national brands.
-generic or no name brands
-priced lower than national brand.
#licensed brands:
-license names or symbols such as celebrities, movies etc.
-practice of using the established brand names of two diff companies on the same product.

4) brand development:

a) line extensions (Existing Brand, existing product)
-->lower cost strategy to communicate value of new products
-->risk of cannibalization within brand line.
- company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category.
-morton salt has become morton popcorn salt, morton lite salt.

b) brand extensions (Current brand, new product)
-gives product instant recognition and acceptance.

c) Multibrands (New band, existing product)
-locks up more buyers on reseller shelf space.
0each brand might obtain only a small market share.
-cocacola with fanta and sprite

d) new brands (new brand, new product)
-coke: minute maid, nestea, dasani