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marketing exam 1
Terms in this set (90)
Goals of Marketing
Attract new customers by promising superior value.
Keep and grow current customers by delivering satisfaction.
States of felt deprivation.
Physical- food, clothing, warmth, safety.
Social- belonging and affection.
Individual- knowledge and self expression.
Form taken by human needs when shaped by culture and individual personality.
Human wants that are backed by buying power.
The act of obtaining a desired object from someone by offering something in return.
What does marketing consist of?
Creating, maintaining, and growing desirable exchange relationships with target audiences.
Choosing target markets and building profitable relationships with them.
Customer's evaluation of the difference between all the benefit and costs of a marketing offer relative to those of competing offers.
Extent to which a product's perceived performance matches a buyer's expectations.
Customer relationship Levels
Basic- low margin customers
Customer relationship Tools
Frequency marketing programs (how often you buy)
Loyalty rewards programs (frequent customers)
Club marketing programs. (special benefits)
Customer lifetime value
Value of the entire stream of purchases a customer makes over a lifetime of patronage.
Digital and social media marketing
Engaging consumers via their digital devices using digital marketing tools and social media.
Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience.
Helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities.
Statement of the organization's purpose.
Defined in terms of satisfying basic customer needs.
Emphasizes the company's strengths.
Focuses on customers and the customer experience the company seeks to create.
Collection of businesses and products that make up the company.
Steps in business portfolio planning
Analyze the firm's current business portfolio.
Develop strategies for growth and downsizing to shape the future portfolio.
Evaluation of the products and businesses that make up the company by the management.
Purpose is to direct resources toward more profitable businesses while phasing out or dropping weaker ones.
Company strategy should create customer value and build profitable relationships with the key customers.
Role of marketing in strategic planning
Provides a guiding philosophy.
Provides inputs to strategic planners.
Designs strategies for reaching the unit's objectives.
Value delivery network
Made up of the company, its suppliers, its distributors, and its customers who partner with each other.
When partnering companies should assess...
Others internal value chains.
Others value chains of their suppliers, distributors, and their customers.
Marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
Integration of product, price, place, and promotion. (Four P's)
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
Group of consumers who respond in a similar way to a given set of marketing efforts.
Evaluating each market segment's attractiveness and selecting one or more segments to enter.
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Begins with differentiation.
Differentiating the market offering to create superior customer value.
Criticisms of the Four P's
Omit or underemphasize service products.
Need to include packaging as a product decision.
Does not cater to the buyer's perspective of the four C's.
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
Addresses the who, where, when, and how of the marketing activities.
Return on Investment (ROI)
Net return from a marketing investment divided by the costs of the marketing investment.
How is ROI assessed?
Standard marketing performance measures.
Outside forces that affect marketing management's ability to build and maintain successful relationships with target customers.
Actors close to the company that affect its ability to serve its customers
Larger societal forces that affect the microenvironment.
Study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Economic factors that affect consumer purchasing power and spending patterns
Physical environment and natural resources needed as inputs by marketers or affected by marketing activities.
Concerns have grown steadily over past three decades
Natural Environment Trends
Shortage of raw materials
Increased government intervention.
New technologies create new markets and opportunities.
Government agencies investigate and ban potentially unsafe products.
Forces that influence and limit various organizations and individuals in a society.
Socially Responsible Behavior
Companies actively seek out ways to protect the long-run interests of consumers and the environment.
Companies develop policies, guidelines, and other responses to complex social responsibility issues.
Used by companies to exercise their social responsibility/Build more positive images.
Primary form of corporate giving
Controversy--strategy for selling more than a strategy for giving.
Institutions and other forces that affect society's basic vales, perceptions, preferences, and behaviors.
Cultural characteristics that affect marketing decision making.
Passively accept the marketing environment and do not try to change it.
Develop strategies to change the environment.
Fresh understandings of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships.
Marketing information system
People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
Electronic collections of consumer and market information obtained from data sources within the company network.
Can be accessed more quickly and cheaply than other information sources.
Ages rapidly and may be incomplete.
Maintenance and storage of data can be expensive.
Competitive marketing intelligence
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Gathering preliminary information that will help define the problem and suggest hypotheses.
Generating information to better describe marketing problems, situations, or markets.
Testing hypotheses about cause-and-effect relationships.
Research plan should cover:
The management problems addressed.
Information to be obtained.
How results will help decision-making.
Estimated research costs.
Type of data required (Primary or secondary).
Information that already exists somewhere, having been collected for another purpose.
Information collected for the specific purpose at hand.
Gathering primary data by observing relevant people, actions, and situations.
A form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments.
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying power.
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Involve inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization.
Online marketing research
Collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior.
Pros of online marketing research
Lowest cost per respondent of all contact methods; offers excellent sample control.
Good flexibility and response rate due to interactivity.
Cons of online marketing research
Difficulty in controlling sample.
Decisions in Sampling
Who is to be studied.
How many people should be included
How should the people in the sample be chosen.
Each population member has a known chance of being included in the sample.
Simple random sample
Stratified random sample
Cluster (area) sample.
Sampling error cannot be measured.
Closed-end questions include all the possible answers, and subjects make choices among them.
Open-end questions allow respondents to answer in their own words.
People meters, checkout scanners, neuromarketing.
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
A person's pattern of living as expressed in his or her activities, interests, opinions.
Factors influencing consumer behavior
Social (family, Role/status)
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction.
Process by which people select, organize, and interpret information to form a meaningful picture of the world.
A descriptive thought that a person holds about something.
A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
Factors that may interfere purchases
Attitude of others.
Unexpected situational factors.
Adoption (consumer decides to make full and regular use of the new product)
Buyer routinely reodrders something without any modifications.
Buyer wants to modify product specifications, prices, terms, or suppliers.
Buyer purchases a product or service for the first time.
Systems (solution) selling
Becoming more common among companies.
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