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Buad 332 exam

Terms in this set (57)

Marketing
is managing profitable customer relationships. A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Goals of marketing activity
1. Attract new customers by promising superior value
2. Keep and grow current customers by delivering customer satisfaction
Marketing process
Create value for customers and build customer relationships.
A "state of felt deprivation" is a definition of a
Need
Need
can be physical (food, clothing, shelter) Social (belonging, affection) individual (learning, knowledge, self-expression)
Want
a form that a human takes, as shaped by culture, individual personality, and marketing activity.
Want + buying power =
Demand
Needs and wants are fulfilled through
a marketing offer.
Marketing offer
combination of products, services, information, or experiences offered to a market in order to satisfy a need or a want.
George had just come into some money. He now has the financial resources to purchase a new set of skis he's been dreaming about. For George, those skis have suddenly gone from being
a Want to a Demand
Market
set of actual or potential buyers of a product or service.
Marketing managers must address 2 questions before doing anything-
1. What customers will we serve? (Target market) This is answered through segmentation and targeting
2. How can we best serve these customers? (what is our value proposition?)
Market Segmentation
dividing the market into segments of customers. (age, Race, Gender)
Targeting
select the segment to pursuit
Value proposition
set of benefits or values that a company promises to deliver to consumers to satisfy their needs. (BMW, Luxury)
CUSTOMERS NEVER BUY PRODUCTS.
THEY BUY WAYS TO GET WHAT THEY WANT, THEY BUY WAYS TO SOLVE PROBLEMS, THEY BUY WAYS TO ACHIEVE GOALS.
Marketing mix
The set of controllable, tactical tools that marketers blend to produce the response it wants front the target market. Marketing execute the marketing strategy through a set of tools
Once marketing managers choose their marketing strategy, they then have to construct a marketing program that consists of marketing mix elements called the
4 P's
4 P's
Product, Price, Promotion, Place
Who is in the center of the universe if you are a marketer?
THE CUSTOMER
Customer value and customer satisfaction
are different from each other but closely related.
Critical questions that managers ask:
What is important to our customers?
How do I know if we are delivering value to our customers?
How do I judge whether we are offering superior value relative to competitors?
Can a customer be more satisfied at a motel 6 than he/she is at a four seasons?
Yes
Satisfaction
is all about falling short or exceeding expectations.
Customer value=
importance
Customer satisfaction=
performance
4 key aspects of customer value:
1. Customer value is a tradeoff of benefits and sacrifices. (what i get are benefits, what i give up are sacrifices)
2. Interaction of both customer and product (Product itself, use situation, buyer value and goals)
3. Relative to customers, individuals, and situations.
4. Goal-driven by customer's desired attributes, desired outcome, and end goals.
The acronym SBU stand for
Strategic Business Unit
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing market opportunities.
SWOT
Strengths, weaknesses, opportunities, threats
Steps in strategic planning
1.Defining the company mission - mission statement - the mission statement should answer the following question - what is our business?, who is our customer?, what do our customers value?, what should our business be?
2. Setting company objectives and goals - the mission needs to be translating into supporting objectives for each level of management. Creates a hierarchy of objectives that are consistent with each other.
3. Designing the business portfolio - the business portfolio is the collection of businesses and products that make up a company. The company must- analyze its current business portfolio or SBU's. Decide which SBU's should receive more, less, or no investment. Develop strategies for growth and downsizing.
4. Planning marketing and other functional strategies
Strategic business unit (SBU)
a unit of a company that has a separate mission and objectives and that can be planned independently from other company businesses. Can be a company division, a product line within a division, or sometimes a single product or brand.
Stars
High growth and share, may need heavy investment to grow, eventually growth will slow down. (APPLE watch)
Cash Cow
Low growth, high share. Established, successful SBUs. Produce Cash. (Samsung Smart Phone)
Question Mark
low share SBUs in high growth markets. Require cash to compete against market share leader. Built into Stars or Phase out. (Samsung in the smartwatch business)
Dogs
Low growth, low share. Generate enough cash to sustain own businesses. (OPPO Phone)
If you're going to have the resources that allow starts to remain stars, and/or build questions marks int stars, you had better have some:
Cash Cows
Market penetration
make more sales to current customers without changing products. (starbucks adding new stores in current market areas; improve advertising, prices, services)
Market development
identify and develop new markets for current products. (starbucks - pursue different customer graphics; expand to different geographic regions)
Product development
offer modified or new products to current markets. (starbucks - add offerings, sell coffee in supermarkets)
Diversification
start up or buy businesses outside current products and markets. (starbucks - making and selling music CD's, tasting restaurant concepts)
In 1998 walt disney introduced a cruise line. Disney's goal was to attract their current customer base to this new product offering. For disney, this was an example of growth through:
Product Development
Forces close to the company, including suppliers, marketing intermediaries, customers, and competitors, make up the firm's:
Microenvironment
Microenvironment
actors close to the company that affect its ability to serve its customers. (under control of the marketing organization) actors in microenvironment include - the company itself, suppliers, marketing intermediaries, customers, competitors, and Publics.
Macroenvironment
The company and all of the actors in the microenvironment operate in a larger macro environment of forces that shape opportunities and pose threats to the company (beyond control of the organization).
If you were born between 1980 and 1999 you are a member of:
The Millennial Generation
"Information that already exists somewhere" is a good definition for:
Secondary Data
Internal databases
electronic collections of information obtained from data sources within the company.
Marketing Intelligence
systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.
Marketing research
systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Primary data
information created specifically for the purpose at hand. Must be relevant, accurate, current, and unbiased. Must determine: research approach, contact methods, sampling plan, research instruments.
Secondary Data
Information that already exists somewhere. (internal databases, commercial data services, government sources). Available more quickly and at a lower cost than primary data. Must be relevant, accurate, current, and impartial.
Primary research comes in 2 flavors-
Qualitative research - observations, in-depth interviewing, focus groups.
Quantitative research - surveys, experiments
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 based analysis
helps retailers understand which products are purchased together.
Contribution analysis
examining the profitability of specific products purchased by customers or segments.
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