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Mkt 340

Terms in this set (118)

price
capturing value, buyer gives up in exchange for a product
4 P's of Marketing
Product, Price, Place, Promotion
Place
delivering value (SCM) Marketing channel management

represents all the marketing processes necessary to get the product to the right customer when that customer wants it.
promotion
Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their buying decisions and elicit a response.
Product
to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
Marketing Plan
Analyses of current marketing situation, objectives, the strategy of the four Ps and appropriate financial statements
What are the four growth strategies?
Location (retailer focused)
Operation (SCM relations)
Customer (good service)
Product ( high perceived value)
planning phase
1. business mission and objectives. 2. situation analysis (SWOT)
implementation phase
3. Identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning
4. Implement the marketing mix using the four P's
control phase
5. evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions
Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
What are the core aspects of marketing?
-helps create value
-satisfying the customer's needs and wants
-entails an exchange
-requires product, price, place and promotion decisions
-can be preformed by both individuals and organizations
-affects various stakeholders
Marketing Mix
the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
marketing strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Market Posistion
choosing what segments to pursue and then how to pursue them within those segments

Define the marketing mix variables so target customers have a clear, distinctive, and desirable understanding of the product compared to competition.
portfolio analysis
Look at guide
Growth strategies
market penetration, market development, product development, diversification
market penetration
Existing marketing mix, Existing customers

Marvel used a market penetration strategy by expanding the distribution of its films:
• Theaters• Xfinity• DVDs (in a variety of retail locations)
market development
Current Products or ServicesNew Markets
What can a company do to continue to grow in a difficult retail environment?
product development
New product or service, current target market
Diversication
introducing New product or service and New market segment
What is the stakeholder view of marketing?
Conscious view
employees- families/safe work enviorment
Customers- current/ potential customers
Society- community enviorment
Marketplace- partners/ competitors
Corporate Social Responsibility
the notion that corporations are expected to go above and beyond following the law and making a profit
mechanistic view
conscious marketing
An approach to marketing that acknowledges four key principles: a higher purpose, stakeholders, conscious leadership, and a conscious culture
higher purpose, ecosystem view
What are the ethical decision making steps?
1. Identify issues
using marketing research firms as an example- data collection
2. Gather information
3. Brainstorm and evaluate alternatives
4. Choose course of action
admired observer test
Would I want the person I admire most to see me doing this?
What are the steps in the consumer design process?
1. Need recognition
2. Information search
3. Alternative evaluation
4. Purchase and consumption
5. Postpurchase
post purchase outcomes
customer satisfaction- stand behind product, encourage feedback post purchase dissonance- internal conflict arises from inconsistency between two beliefs or behavior
customer loyalty- solidify relationship, encourage feedback
Segmentation
the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics
positioning strategy
a fundamental component of a company's marketing efforts as it uses elements of the marketing mix to influence the consumer's interpretation of its meaning in the marketplace relative to its competitors
Targeting Strategy
The number of market segments and the relative amount of resources targeted at each
Segmentation, Targeting, Positioning Process
1. Strategy or Objectives
2. Segmentation Methods
3. Evaluate Segment Attractiveness
4. Select Target Market
5. Identify and Develop Positioning Strategy
concentrated marketing
one segment
Micromarketing
one-to-one marketing; an extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs
undifferentiated
mass marketing that focuses on entire market universe
differentiated marketing
separated segment
What are the five characteristics of a segment?
Identifiable- important to identify who is in their market to design products or services to meet their needs
, Reachable- Need to be able to reach audience
, Substantial,-Measuring sizes. if a market is to big or small or buying power insignificant will not generate sufficient profits
Responsive-Need customers to react similarly
Profitable- assessing probability
Marketing Research Process
1. Defining the problem and research objectives
2. Developing the research plan for collecting information A. Internal secondary: data mining B. External secondary: scanners, panels, Nielson( research companies)
3. Implementing the research plan - collecting and analyzing the data
4. Interpreting and reporting the findings
Primary vs secondary data
Secondary- collected prior to start
Primary- collected to address specific needs
Qualitative- in depth interviews focus groups, social media observation
Quantitative-experiements
actual product
the physical attributes of a product including the brand name, features/design, quality level, and packaging
augmented product
the actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale
shopping products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
Depth
the number of products within a product line
breadth
a count of the number of product lines offered by the firm (costly to maintain) too many brands can weaken a firm
Manufactor vs retailer
manufactor-national brands
Retailer- private label brands
diffusion of innovation process
the process by which a new product spreads throughout a market over time
helps marketers see when will adopt product (look at graph)
Product Life Cycle
introduction- product first launches, 1 or few competitors, sales low
, growth-product gains acceptance, demand, sales increase competitors emerge
maturity- sales reach peak, try to add new features or reposition them
decline
What are the 5 Cs of pricing
1. Competition-monopoly, ogipolgy, mono, pure comp
2. Costs- Variable, fixed, total, break even analysts
3. Company Objectives- orientation, sales, competitor, profit
4. Customers-knowing the demand
5. Channel Members- difference between manufactures, wholesalers and retailers
premium pricing
Pricing the highest-quality or most versatile products higher than other models in the product line
competitor orientation
a company objective based on the premise that the firm should measure itself primarily against its competition
status qou pricing
only change prices to meet competitors price
cross price elasticity
the percentage change in demand for product A that occurs in response to a percentage change in price of product B
income effect
the change in consumption resulting from a change in real income
competitive parity
a firm's strategy of setting prices that are similar to those of major competitors
oligopolistic competition
occurs when only a few firms dominate a market
pure competition
the market structure that exists when there are many small businesses selling one standardized product
Factors to consider when entering into a new market?
1. economic indicators (GDP, gross net income, purchasing power trade)
2.Infrastucture (transportation, distribution channels, commerce, communications)
3. Government actions- trade agreements, tariffs, quotas, exchange rate controls
4. Sociocultural Hofstede- power distance, uncertainty avoidance, individualism, masculinity, time orientation, indulgence.
Global Entry Strategies
Direct investment, joint venture, strategic alliance, franchising, export
direct investment
requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries
joint venture
formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared
strategic alliance
refer to collaborative relationships between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
Exporting
producing goods in one country and selling them in another (least riskiest)
global marketing strategy
selling the same product using the same positioning approach and communications globally
Sell a product or service similar to that sold in the home country
Sell totally new product
Glocalization
same product or service in both the home country market and host country
global marketing strategy
1. Product or service
2. Pricing- tariffs, quotas, anti dumping laws, exchange policy, competitive factors
3. Distribution- suppliers sometimes have to be creative
in delivering product( small family owned retailers)
Communication (literacy Levels, language, custom, culture)
exchange controls
refers to the regulation of the country currency exchange rate, the measure of how much one currency is worth in relation to another
Glocalization
standardizing products globally but using different promotional campaigns to sell them
Export vs direct
Export- low risk, low control
Direct- high risk, high control
Quota
A limit placed on the quantities of a product that can be imported
Tariff
A tax on imported goods
marketing channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Marketing channels add value .. but how?
Reduce number of transactions
Increase value of consumers
More efficient and effective
vertical marketing system
A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
administered vertical marketing system
A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship.
Walmart imposing controls on small manufactures
contractual vertical marketing system
independent firms at different levels of the marketing channel join through contracts
Vertical vs Horizontal channel conflict
Vertical- Manufactor- retailor 1
Horizontal- Retailer- retailer
independent marketing channel
A marketing channel in which several independent members—a manufacturer, a wholesaler, and a retailer—each attempts to satisfy its own objectives and maximize its profits, often at the expense of the other members.
independent marketing channel
A marketing channel in which several independent members—a manufacturer, a wholesaler, and a retailer—each attempts to satisfy its own objectives and maximize its profits, often at the expense of the other members.
vendor managed inventory
an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores
can reduce vendor and retailers costs
manages inventory of one of consumers
Retailing
all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
How to choose retail partners
Channel Structure
Customer expectations
Channel Member characteristics
Distribution Intensity
Channel Structure
-degree of vertical integration
-manufacturers brand
-power of manufacturer and retailer
degree of vertical integration
in what stages of the industry value chain to participate
Channel Member Characteristics
the larger and more sophisticated the channel member, the less likely that it will use supply chain intermediaries
distribution intensity
inclusive, exclusive, selective
6 Ps of retail strategy
Presentation
Personal
4 Ps
omnichannel retailing benefits
deeper selection, personalization, expanded market presence, ability to collect information
passive vs interactive
one vs two way
Communication Process
• Sender (firm) transmitter encodes message Communications channel (media) Receiver (Consumer) decodes the message
AIDA model
(Awareness-Interest-Desire-Action)
Developed for personal selling- represents the stages a salesperson must take a customer through to induce purchase
IMUnderstanding IMC effectiveness
- Clear goals
rule-of-thumb methods
budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted
objective and task method
an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs
Gross Rating Points (GRPs)
a measure used for comparing the effectiveness of different media vehicles: average reach x frequency
web tracking software
used to assess how much time viewers spend on particular web pages and the number of pages they view
aided recall
occurs when consumers recognize a name that has been presented to them
Metrics for measuring success!
GRP, web tracking, aided recall, reach
Advertising
A paid form of communication sent out by a business about a product or service.
Objectives of Advertising
inform, persuade, remind them product exists
Push- customers
Pull- wholesalers, retailers, salespeople
Niche vs mass marketing
Niche: more focused reach narrower segments
Mass: reach large anonymous audiences( billboards)
Evaluating Advertising Effectiveness
advertising can be evaluated before, during, and after the campaign
Popular or common public relations tools
- Cause related marketing
- Event sponsorship
event sponsorship
Popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors.
cause-related marketing
the cooperative marketing efforts between a for-profit firm and a nonprofit organization
Why do firms invest in personal selling?
-strong relationships
personal selling process
1. Generate and qualify leads
2. Preapproach
3. Sales presentation and overcoming reservations
4. Closing the sale
5. Follow-up
Sales management decisions
Str
company sales force
comprised of people who are employees of the selling company and are engaged in the selling process
manufactorers representatives
-not employees
-small firms
- new markets
salesperson duties
order getter- identify potential customers, order taker-process routine orders or rebuy products
, sales support personnel, selling teams
Recruiting and Selecting Salespeople
personality, optimism, resilience, self-motivation, empathy
Sales Training
Selling and negotiation techniques
Products and service knowledge
Technologies used in the selling process
Time and territory management
Company policies and procedures
Marketing Fundamentals
A. firms should meet customer needs through analysis
b. effects stakeholders exchange meet needs and wants
marketing ethics
A. recognize marketing greater purpose consideration of stakeholders, conscious leadership, understanding ethical decisions
SWOT analysis
Internal: Strengths, Weaknesses
External: Opportunities, Threats
branding strategy
carrying well-known brand names to attract customers who are loyal to those brands
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