Upgrade to remove ads
Only $35.99/year

BUAD 332 Exam 1 MOON

Terms in this set (71)

Marketing
managing profitable customer relationships
Goals of Marketing
1. Attract new customers by promising superior value
2. Keep and grow current customers by delivering customer satisfaction
Need
state of felt deprivation (physical, social, individual)
Want
a form that a human need takes as shaped by culture, individual personality, and marketers
Demand
wants + buying power
Market
the set of all actual and potential buyers of a product or service
2 Questions of Marketing Managers
1. what customers will we serve?
2. how can we best serve these customers?
Segmentation
divide the market into segments of customers
Targeting
select the segments to cultivate
Value Proposition
the set of benefits or values it promises to deliver to consumers to satisfy their needs
What do customers never buy?
PRODUCTS
What do customers buy?
ways to get what they want, solve problems, and achieve goals
4 P's of Marketing
Product, Price, Place, Promotion
Marketing Mix
what marketing managers use to execute their marketing strategy
Customer Value
the 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
(importance)
Customer Satisfaction
the extent to which a product's perceived performance matches a buyer's expectations
(performance)
Nature of Customer Value
1. tradeoff of benefits and sacrifices
2. interaction of both customers and product
3. relative to competitors, individuals, and situations
4. goal-driven by customers desired attributes
5. dynamic in that it changes over time
Customer Value Oriented Firm
"Customer Value Culture"
- Commitment to Innovation
- Organize everything we do as a company around delivering Customer Value
- Continuous Learning about customers
Customer Value Strategy Process
1. identify the value
2. choose the value
3. provide the value
4. communicate the value
5. assess the delivered value
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
The Mission Statement
-what is our business?
-who is our customer?
-what do our customers value?
Business Portfolio
the collection of businesses and products that make up the company
SBU
Strategic Business Unit
-a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses
Portfolio Analysis
an evaluation of the products and businesses making up the company
BCG Matrix
a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market
Stars
-high growth and share
-growth will slow
-need heavy investment
Question Mark
-relatively low market share
-require cash to compete
-build into star or phase out
Cash Cows
-low growth
-high share
-produce cash
-established, successful SBUs
Dogs
-low growth, low market share
-generate cash to sustain self
-do not promise to be cash source
Market Penetration
make more sales to current customers without changing the original products
Market Development
identifying and developing new markets for its current products
Product Development
offer modified or new products for current markets
Diversification
starting up or acquiring businesses outside the company's current products and markets
Marketing in "corporate strategy"
-provides guiding philosophy
-provides input to strategic planners
-design strategy to achieve corporate objectives
Corporate Marketing Mix
the set of controllable, tactical tools that marketers blend to produce the response it wants from the target markets
Microenvironment
the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics (some control)
Macroenvironment
the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces (out of control)
Internal Environment
areas inside the company, defines the companies strengths and weaknesses (capabilities and limitations)
Suppliers
provides resources needed to produce goods and services, important link in the "value delivery system", enlightened marketers consider key suppliers to be partners
Marketing Intermediaries
help the company promote, sell, and distribute its products to final buyers
-resellers (amazon)
-physical distribution firms (fedex)
-marketing services agencies (Tombras)
-financial intermediaries (TVA credit union)
Customers
five types of markets that purchase a company's good sand services
1. consumer markets
2. business markets
3. reseller markets
4. government markets
5. international markets (includes other 4)
Cmpetitors
those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes
Publics
any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
-financial
-media\government
-citizen-action
-local
-general
Demographic
marketers track changing age, family structures, geographic population shifts, educational characteristics, and population density
Economic
factors that affect consumer purchasing power and spending patterns
-ex: extreme weather, healthcare, federal debt, oil/gas prices
Natural
involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
-ex: shortage of raw materials, increased pollution, global climate change (neodymium)
Technological
most dramatic force now shaping our destiny
Political
includes laws, gov. agencies, and pressure groups that influence or limit various organizations and individuals in a given society
Cultural
the institutions and other forces that affect a society's basic values, perceptions, preference and behaviors
Do companies need more info?
No, they need better info
Assessing Info Needs
a good balance of what users would like versus what they need and what is feasible to offer
Secondary Data
Info that already exists somewhere, quicker and cheaper than primary data
-internal database/marketing intelligence
Primary Data
info for a specific purpose at hand
-marketing research
-qualitative (observations, interviews, focus-groups)
-quantitative (survey, experiment,"big data")
Internal Database
electronic collections of consumer and market information obtained from data sources within the company network
Marketing Intelligence
the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
Marketing Research
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Exploratory Research
marketing research to gather preliminary information that will help define problems and suggest hypotheses
Descriptive Research
marketing research to better describe marketing problems, situations, or markets (market potential for a product or the demographics and attitudes of consumers)
Causal Research
marketing research to test hypotheses about cause-and-effect relationships
Surveys
-most commonly used method of collecting data for marketers
-heavily scaled/categorized responses
Simple Random Sample
every member of the population has a known and equal chance of selection
Stratified Random Sample
a sample from selected subgroups of the target population in which everyone in those subgroups has an equal chance of being included in the research
Convenience Sample
a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives
Judgement Sample
the researcher uses his or her judgement to select population members who are good prospects for accurate information
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
Data Warehouse
an assembly of desperate data from all over a company, which is then transformed info a consistent state for business decisions
Types of available data
-product sales
-complaint data
-satisfaction survey
-sales report
-demographics
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 Analysis
Examining the profitability of specific products purchased by customers or customer segments.
Students also viewed