Upgrade to remove ads

Only $2.99/month

BIP 302 Marketing Management Midterm

Key Concepts:

Terms in this set (94)

marketing orientations

production focus, product focus, selling focus, marketing focus

market-oriented business

understanding your customers, knowing your competitors, understanding how dynamic forces in marketplace may impact the business

product-oriented business

looks at their offerings, and strives to continually improve them; differentiation tied to product superiority

marketing myopia

the failure to see themselves as a customer-need-oriented business as opposed to a product-producing business

production and selling concepts

customer-focused, profit through customer satisfaction

psychologist and consultant, pushed marketers to dig deeper to identify the basic human needs and motivations underlying consumer behavior

societal marketing concept

a company should make marketing decisions not only by considering consumers' immediate wants, the company requirements, but also society's long-term interests

sustainable marketing

socially and environmentally responsible marketing that meets the present needs of consumers and business while also preserving or enhancing the ability of future generations to meet their needs

marketing management process

3C, STP, 4P, CRM

company, competitor, consumers

product, price, place, promotion

product (4 P's)

goods-and-services combination (e.g.
variety, quality, design, features, brand name, packaging, services)

amount of money customers must pay (e.g. list price, discounts, allowances, payment period, credit terms)

company activities that make product available to target consumers (e.g.
channels, coverage, locations, inventory, transportation, logistics)

promotion (4 P's)

activities that communicate the merits of each product (e.g. advertising, personal selling, sales promotion, public relations)

segmentation (STP)

how to divide the total market

targeting (STP)

selecting the most attractive market segments upon which to focus company and design marketing strategy

positioning (STP)

what makes the company distinct in the marketplace/competitive landscape

undifferentiated strategy

one marketing mix for general market

differentiated strategy

marketing mix to respective segments

concentrated strategy

marketing mix to a specific niche

marketing mix to a small group of highly targeted customers

bases for differentiated segmentation

who (demographic), where (geographic), what (behavioral), why (psychographics)

consumer benefits from segmentation

products and services more customized to specific needs, personalized experience, increased customer satisfaction --> loyalty and retention

firm benefits from segmentation

Define (and serve) customers' needs and wants more precisely; develop more focused and effective communications; identify most valuable customers; better resource allocation --> sustainable profit growth

customer relationship management

activities, strategies and technologies that companies use to manage their interactions with their current and potential customers; helps businesses build a relationship with their customers that creates loyalty and customer retention

customer lifetime value

prediction of the net profit attributed to the entire future relationship with a customer

customer equity

total of lifetime values of all your current and future customers - the sum total of all the value you'll ever realize from customers

useful segmentation criteria

distinctive, large, stable, identifiable, accessible, actionable

segment choice considerations

segment's attractiveness (size, stability, growth potential, your ability to find them, etc.); fit with company's strategic objectives and capabilities; degree of competition for the segment

positioning statement

for (target segment), (brand) is the (unique proposition) among all (competitive frame) because (reasons)

attribute rating method

Directly establish the dimensions used by consumers to view your (existing/potential) product by listing all the attributes you can think of that represent possible benefits to the consumer and getting the consumer to rate each

overall similarity method

consumer judge by pairs how similar/dissimilar products are

competitive advantage

the overlap between what your brand does well and what consumers want

units sold x selling price

total revenue - variable cost

operating profit

gross profit - fixed cost

unit contribution

selling price - variable cost/unit

(unit contribution/selling price) x 100

variable cost + (margin x selling price) OR variable cost / (1-margin)

total breakeven volume

total fixed costs/unit contribution

incremental breakeven volume

additional costs/unit contribution

return on investment

(resulting gross profit - marketing investment) / marketing investment

chain ratio method

multiply your base number / estimate by a chain of adjusting percentages to come up with potential market size

cannibalization

reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer

new product unit contribution / old product unit contribution

breakeven cannibalization rate

the maximum cannibalization rate that companies can allow; rate at which the losses incurred by the company due to loss of old product sales is equal to the gains made by the company due to the new product sales

general evaluation (like/dislike) of a particular person/group/object/etc.; includes informational, emotional, behavioral

cognitive model

(consumer decision making) prioritize thoughtful, deliberative processes

(consumer decision making) prioritize affect and emotions

(consumer decision making) result from direct response to strong environmental influences

elaboration likelihood mode

routes by which attitude change occur

(ELM) attitude change results from careful consideration of evidence

peripheral route

(ELM) mental shortcuts (heuristics) are used to influence relatively simple liking/dislike and thus drive subsequent purchase. This results in weaker attitudes that are more susceptible to change

motivation and opportunity determine evaluation

subliminal perception

exposure outside awareness; minorly effective

supraliminal messaging

hidden messages that are visible but not usually noticed

perceptual vigilance

consumers are more likely to beware of stimuli that relate to (chronic and/or current) needs

What we PERCEIVE is frequently NOT a direct representation of objective reality, but is influenced by our preexisting attitudes and expectations

theoretical construct from cognitive psychology' expectations influence experience

old marketing research definition

systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services; passive and backwards-gazing

new marketing research definition

use of scientific methods to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance, and improve our understanding of marketing as a process; active, purposeful, rigorous

expand our general knowledge about marketing phenomenon; focuses on theory building

applied research

addresses a specific marketing problem or decision facing a specific business/brand/organization

management decision problem

What problem / symptoms are we trying to address (or what opportunity are we interested in exploring)?
What decisions need to be made?
What actions are available to us?

researcher decision problem

What might the underlying causes of this problem be?
What info do we need to enable the manager to make this decision?
How should the data be obtained?
Will this data clearly lead the manager to one choice over another?

marketing research studies designed to test hypotheses, conducted by organizations and businesses

data that was previously collected either by the firm or industry group data, governmental data

exploratory research

a technique that marketers use to generate insights for future, more rigorous studies; no hypothesis tests

descriptive research

research conducted to clarify the characteristics of certain phenomena to solve a particular problem

causal research

marketing research to test hypotheses about cause-and-effect relationships

unique in their ability to make causal claims; require—manipulation of one or more variables, random assignment of participants to conditions, careful control of extraneous variables that could pose alternative explanations

qualitative research

research that relies on what is seen in field or naturalistic settings more than on statistical data;
method that involves gaining in-depth understanding of human behavior and what governs it

quantitative research

research that collects and reports data primarily in numerical form; allows for examination of specific hypotheses of relationships between measured variables (either correlational or causal relationships)

ethnographic observation

observation in which the observer does not participate in what is occurring; especially useful for gaining insights when consumers can't necessarily articulate what they are looking for in a product or service

researcher-guided discussion among a small group of carefully selected consumers to explore ideas, attitudes, & experiences

one-on-one interviews

as a follow up to product use and observation

goal is to elicit metaphors, allows consumers to "think in images"

Is the sample from which you collect your data truly representative of the target market the firm is interested in?
Probability sampling methods-Ideal choice if feasible (single random sample)
Non-probability sampling methods-Frequent choice (feasibility, cost, etc.)
Larger samples are not necessarily representative

survey questions

Leading questions
Double-barreled questions
Negative wording
Question order
Inappropriate response options/range

macro environment

monitor changes/shifts in demographics, social/lifestyle trends, cultural values; natural environment; economic conditions; political and regulatory influences; technological advancements

microenvironment

partners / stakeholders can have great impact on a firm's performance, and also serve as essential sources of information: Channel members: Suppliers, Distributors, Retailers Organization & Community contacts (funders, local organizations, employees, etc.) Customers Related business units / parent company (beware of silos)

core compentency

specialized set of skills or resources developed over time .....result from collective learning in the organization, coordination of diverse production skills and technologies

core competency qualifications

must: provide potential access to a wide variety of markets, make a significant contribution to the perceived customer benefits of the end product, and be difficult for competitors to imitate

strategic business units

multiple, disparate business division; may be single product, line, market area

competitor group segmentation

direct, followers, indirect, leaders

indirect competitors

businesses that offer close substitutes that meet the same basic need

Porter's Five Forces

threat of entry, threat of substitute, supplier power, buyer power, and competitive rivalry

expand total market, protect market share, expand market share

market challenger

full frontal/indirect attack

market follower

follow closely/at a distance

by customer, market, quality, price, service; multiple niching

key performance indicator

a statistical measure of how well a company is doing in a certain area; indicates how effectively firm is achieving specific, measurable business objectives

YOU MIGHT ALSO LIKE...

Sports and Entertainment Marketing

43 terms

Marketing 300

99 terms

BA 390- Marketing Midterm 1 OSU

59 terms

BA 390- Marketing Midterm 1 OSU

59 terms

OTHER SETS BY THIS CREATOR

Diversity of Life Timespans

15 terms

Avancemos 2 Unidad 5 Leccion 2

13 terms

Avancemos 2 Unit 1

83 terms

Muscle Groups

6 terms