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66 terms

Marketing Midterm 1

STUDY
PLAY
marketing
creating, distributing, promoting && pricing goods, services, & ideas. maintain favorable relationships w/ stakeholders
marketing mix
product, pricing, distribution, promotion
SATISFIES A SPECIFIC TARGET MARKET
Product
good, service, or idea.
creating & modifying brand names
Distribution
must be available at the right time and in convenient locations. inventory control procedures, transportation, etc
ex: subways in strip malls & in walmart
promotion
activities to inform others about the organization and its products. can educate on political and social issues or sustain interest in an extremely old product (soap)
price
high prices can be used to estb premium image, used as competitive tool
value
customer's subjective assessment of benefits relative to costs in determining worth of a product
customer value = customer benefits - customer costs
subjective, some may value convenience, others cheapness
nonmonetary costs
time * effort a customer spends to find & purchase desired product.
also, risk! (can reduce w/ warranties, 100% satisfaction guaranteed)
exchange
provision/transfer of goods for sth of value
should create & maintain satisfying rel.ships
marketing environment
competitive, economic, political, legal, tech., etc. forces that SURROUND the customer & AFFECT the marketing mix. can produce uncertainty & opport
ex: obesity = more diet products
marketing concept
satisfy a customer's NEEDS rather than not pursue opports
ex: pandora and itunes, vs cd players...
should also consider l-t needs of society (SUVs vs electric cars)
market orientation
organization-wide commitment to research & respond to customer needs
must create information system to find their needs (ex: amazon survived the dot-com b/c they understood customer wants)
relationship marketing
estb l-t, mutually satisfying buyer-seller relationships. customer loyalty
80/20 rule
CLV (customer lifetime value)
80% of profits comes from 20% of customers
some customers who need a lot of hand-holding or return things too often may be too expensive to retain
corporate strategy
means for utilizing resources in marketing, production, finance, R&D, HR to reach co's goals.
focus on corp culture, competition, differentiation, diversification
Ex: Barnes & Noble took advantage of opportunity when borders declared bankruptcy. invited them to shop at B&N
strategic business unit (SBU)
division, product line, other profit center w/in parent co.
each sell a distinct set of products
market
group of individuals/organiz that have ability, willingness, & authority to purchase these products
cash cows
indicate overall health & size of co
resources
goodwill, reputation, brand name, etc
core competencies
things a co does extremely well
strategic windows
TEMPORARY periods of optinal fit b/w market & the capabilities of a co
competitive advantage
matching a core competency to an opport in the marketplace
SWOT
strengths, weaknesses, opps, threats
p40
1st mover advantage
an innovative co. that can achieve L-T competitive advantages by being 1st in marketplace
rep as pioneer, period of time w/o rivals, HIGH COSTS, can estb patents fast!
late-mover advantage
can learn from 1st mover mistakes, reverse engineer, lower cost
face stronger competition...
selecting target market
must be chosen before adapting marketing mix to meet customer needs.
ex: toyota yaris
marketing mix decisions
consistency (w/ corp strategy) & flexibility (to adapt when markets change).
sustainable competitive advantage
an advantage the competition cannot copy
centralized organization
top-lvl managers delegate little authority to lower lvls
decentralized organization
decision-making authority is delegated as far down chain as possible
performance standard
EXPECTED lvl of performance which actual performance can be compared w/
sales analysis
analyze sales to evaluate firm's performance
marketing cost analysis
analyze costs to determine what is associated w/ specific marketing efforts
environmental scanning
collecting info abt forces in marketing environment
political action, technology can shape environ.
co's can control environm to an EXTENT
environmental analysis
assessing & interpreting info gathered from environ. scanning
competition
other co's that market products which can be substituted for your products in the same geographic area
brand competitors
co's that market products w/ similar features, benefits to same customers at similar P
diet coke vs diet pepsi
this is what MOST competitors concentrate on
product competitors
compete in same product class, markets products w/ diff features, benefits, P
iced tea vs coke
generic competitors
provide very diff products that satisfy the same BASIC customer needs
tap water vs coke
total budget competitors
co's that compete for the LIMITED financial resources of the same customers
gum vs coke
monopoly
co offers a product w/ no close substitutes, only source of the S
tolerated b/c of the huge financial resources needed to develop them (ex: water utility)
oligopoly
few sellers control a HUGE proportion of the product
monopolistic competition
many potential competitors and tries to DIFFERENTIATE their product
pure competition
EXTREMELY large # of sellers, none can signif. influence P or S
commodities market?
monitoring the competition
understand how other co's strategize & how their strategies affect OUR strategies
(ex: when Delta lowers P, so do other co's)
economic conditions
changes in economy affected by S&D, buying power, willingness to spend, consumer expenditure lvls, intensity of competitors
business cycle
prosperity, recession, depression, recovery
prosperity
low unemployment & relatively high ttl income, high buying power
recession
unemployment rises & ttl buying power declines
(ex: consumers move to Dollar General)
depression
unemployment EXTREMELY high, wages low, disposable income = minimum, consumers lack confidence in economy
recovery
economy moves FROM recession/depression TOWARD prosperity
(ex: difficult to tell how prosperous & how fast economy will recover)
buying power
$, good, services that can be traded in an exchange
disposable income
AFTER -TAX INCOME
discretionary income
income available AFTER basic necessities bought
credit
spend future income now
increases CURRENT buying power at the expense of FUTURE buying power
wealth
accum. of past income, fin. resources, natural resources
willingness to spend
inclination to buy b/c of expected satisfaction from product
factors include future employment, income, P, family sizes, economic conditions
political forces
polotical officials ok w/ particular firms/industries create/enforce fewer laws!! marketer's job to influence them
procompetitive laws
preserve competition, end antitrade practices, Sherman Antitrust Act
(ex: wachovia manipulated bidding process for contracts)
consumer protection
congress passed laws to disclose info on goods
(ex: cigs, furs, cars, beer)
FTC
federal trade commission, regulates false adverts, misleading P, deceptive packages
Better Business Bureau
self-regulatory, warns consumers through newspapers if firm lies
technology
satisfy physio needs
negatives: accidents, privacy invasion, health risks
sociocultural forces
influences in society & its culture that changes attitudes, beliefs, norms, lifestyles
demographics
# singles rising, more diverse new baby boom, birth rate is declining, more immigration, baby boomers getting older
consumerism
organized efforts to protect consumer rights