MKTG 300 Exam 1

a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
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Terms in this set (74)
a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
marketing
List the five steps in the marketing process
1. Understand the marketplace and customer needs and wants
2. Design a customer-driven market strategy
3. Construct an integrated marketing program that delivers superior value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity
states of deprivation
needs
List the three types of needs
- physical
- social
- individual
food, clothing, warmth, safety
physical needs
belonging and affection
social needs
knowledge and self-expression
individual needs
form that needs take as they are shaped by culture and individual personality
wants
wants backed by buying power
demands
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
market offerings
focusing only on existing wants and losing sight of underlying consumer needsmarketing myopiathe art and science of choosing target markets and building profitable relationships with themmarketing managementdividing the markets into segments of customers; focus is on a subset of customers likely to purchasemarket segmentationrefers to which segments to go aftertarget marketingthe set of benefits or values a company promises to deliver to customers to satisfy their needsvalue propositionList the five marketing management orientations- production - product - selling - marketing - societalthe idea that consumers will favor products that are available or highly affordableproduction conceptthe idea that consumers will favor products that offer the most quality, performance, and featuresproduct conceptthe idea that consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotion effortselling conceptthe idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors domarketing conceptthe idea that a company should make good marketing decisions by considering consumers' wants, the company's requirements, consumers' long-term interests, and society's long-run interestssocietal conceptthe set of tools the firm uses to implement its marketing strategy; includes product, price, promotion, and place (the four P's)marketing mixthe difference between total customer value and total customer costcustomer perceived valueworking closely with partners in other company departments and outside the company to jointly bring greater value to customerspartner relationship managementthe value of the entire stream of purchases a customer would make over a lifetime of patronagecustomer lifetime valuethe total combined customer lifetime values of all the company's customerscustomer equityWhat are the six major developments in the market/the new marketing landscape?- digital age - ethics and social responsibility - customer frugality - rapid globalization - not-for-profit marketing - sustainable marketingthe process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunitiesstrategic planningthe organization's purpose; what it wants to accomplish in the larger environmentmission statementList the four components of the product mix analysis- star - cash cow - question mark - doghigh-growth, high-share businesses and products; often need heavy investments to finance rapid growth; growth eventually slows, and they become cash cowsstarlow-growth, high-share businesses and products; established and successful and need less investment to hold market shares; produce a lot of cash that the company uses to pay its bills and support other SBUs that need investmentcash cowhigh-growth, low-share businesses and products; require a lot of cash to hold/increase their sharequestion marklow-growth, low-share businesses and products; may generate enough cash to maintain themselves but do not promise to be large sources of cashdoga growth strategy increasing sales to current market segments without changing the productmarket penetrationa growth strategy that offers new or modified products to existing market segmentsproduct developmenta growth strategy that identifies and develops new market segments for current productsmarket developmenta growth strategy through starting up and acquiring businesses outside the company's current products and marketsdiversificationmade up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire systemvalue delivery networktheory advocating that the company that is first to offer a product in a marketplace will be the long-term market winnerfirst mover strategytheory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the marketplacesecond mover strategyanalysis that helps planners compare internal organizational strengths and weaknesses with external opportunities and threatsSWOT analysisfresh and deep insights into customer needs and wants; difficult to obtain and not derived from more information but better information and more effective use of existing informationcustomer insightselectronic collections of consumer and market information obtained from data sources within the company networkinternal databasesthe systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing and organizationmarketing researchmarket research to gather preliminary information that will help define problems and suggest hypothesesexploratory researchmarketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumersdescriptive researchmarketing research to test hypotheses about cause-and-effect relationshipscausal researchinformation gathered for the special research planprimary datainformation that already exists somewhere, having been collected for another purposesecondary datapersonal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization; 6 to 10 peoplefocus group interviewingWhat are the three challenges of focus group interviewing?- expensive - difficult to generalize from small groups - consumers are not always open and honesta segment of the population for marketing research to represent the population as a wholesampleallow respondents to answer in their own words; useful in exploratory researchopen-ended questionsincludes all possible answers, and subjects make choices among them; provides answers that are easier to interpret and tabulateclosed-ended questionsthe buying behavior of final consumers (individuals and households who buy goods and services for personal consumption)consumer buy behaviorthe buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to othersbusiness buyer behaviordelivering more value and satisfaction to target customers than competitors docompetitive advantagehow companies analyze their competitors and develop value-based strategies for profitable customer relationshipscompetitive strategiesWhat are the four competitive positions?- market leader - market challenger - market follower - market nicherthe firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spendingmarket leaderWhat are the three related strategies for market leaders?- expand total demand - protect their current market - expand market sharefirms fighting to increase market sharemarket challengerWhat are the two related strategies for market challengers?- challenge leader with an aggressive bid for more market shares - play along with competitors and not rock the boatfirms that work to hold onto their market sharesmarket followerWhat are the two related strategies for market followers?- second mover advantage (watch and improve) - challenges firms its own size or smallerfirms that serve small segments not being pursued by other firmsmarket nicherWhat are the two related strategies for market nichers?- big enough to be profitable, yet small enough to go unnoticed - market, customer, and product specializationB2B vs. B2C: product- B2B: relatively technical in nature; exact form often variable; accompanying services very important - B2C: standardized form; service important but less than for business productsB2B vs. B2C: promotion- B2B: emphasis on personal selling - B2C: emphasis on advertisingB2B vs. B2C: distribution- B2B: relatively short, direct channels to market - B2C: product passes through a number of intermediate links en route to consumerB2B vs. B2C: customer relations- B2B: relatively enduring and complex - B2C: comparatively infrequent contact; relationship of relatively short durationB2B vs. B2C: decision-making process- B2B: diverse group of organization members makes decision - B2C: individual or household unit makes decisionB2B vs. B2C: price- B2B: competitive bidding for unique items; list prices for standard items - B2C: list prices