Marketing 100s

Exchange

Peoples giving up something in order to receive something else they would rather have

Conditions for Exchange

1. There must be at least two parties, 2. Each party has something that might be of value to the other party, 3. Each party is capable of communication and delivery, 4. Each party is free to accept or reject the exchange offer, 5. Each party believes it is appropriate or desirable to deal with the other party.

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

Production Orientation

A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

Sales Orientation

The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

Market Orientation

A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept

Societal Marketing Orientation

The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests

Customer Value

The relationship between benefits and the sacrifice necessary to obtain those benefits

Strategic Planning

The managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities

Goal of Strategic Planning

Long-run profitability and growth

SBU

A subgroup of a single business or collection of related businesses within the larger organization

Product Development

A marketing strategy that entails the creation of new products for present markets

Market Penetration

A marketing strategy that tries to increase market share among existing customers

Example Solutions for Market Penetration

Coupons, Loyalty cards, Serving size, Changes, Partnership

Diversification

A strategy of increasing sales by introducing new products into new markets

Market Development Strategies

A marketing strategy that entails attracting new customers to existing products

BCG Portfolio Matrix

A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate

Star (in BCG Matrix)

A business unit that is a fast-growing market leader

Cash cow

A business unit that generates more cash than it needs to maintain its market share.

Problem child

A business unit that shows rapid growth but poor profit margins.

Dog

A business unit that has low growth potential and a small market share.

Holding

If an SBU is a successful cash cow, a key goal would typically be to hold or preserve market share so that the organization can take advantage of the very positive cash flow.

Divesting

Getting rid of SBUs with low shares of low-growth markets is often appropriate. Problem children and dogs are most suitable for this strategy.

Harvesting

This strategy is appropriate for all SBUs except those classified as stars. The basic goal is to increase the short-term cash return without too much concern for the long-run impact.

Building strategies

If an organization has an SBU that it believes has the potential to be a star (probably a problem child at present), building would be an appropriate goal.

Market planning

Designing activities relating to marketing objectives and the changing marketing environment.

SWOT analyses

Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T).

Cost leadership

A strategy when a company aims to be the lowest-cost producer in its industry to gain a competitive advantage.

Product differentiation

The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Niche market strategies

Targeting a specialized segment of a larger market by creating tailored products, services, and marketing messages to meet the unique needs of a defined group of consumers.

Equality

No one should expect to be treated differently from anybody else.

Demography

The study of people's vital statistics, such as age, gender, race, ethnicity, and location.

Demographic characteristics

Demographic characteristics are strongly related to consumer buying behavior in the marketplace.

Tweens

The age of tweens is 9 to 12.

Hispanic American

With a population of more than 58 million, Hispanics make up the largest U.S. minority.

U.S. Hispanic population

The average age of the U.S. Hispanic population is 28 years old.

Young U.S. Hispanics

Forty-one percent of young U.S. Hispanics are English dominant and 40 percent claim to be bilingual.

Hispanics and social media

Hispanics are heavy social media users. Eighty-two percent of Hispanics use a smartphone and are more habitual social network users than are their non-Hispanic counterparts.

Purchasing power

a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

Inflation

a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

Legal factor

Talking about a drink related company, they are affected by what economical factor, demographic, technological, or legal. It will be a legal factor. Talking about compliance which is a legal factor.

Competitive environment

The number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry

Hedonic value

a value that acts as an end in itself rather than as a means to an end. Give us good feelings, happiness and satisfaction. Examples - ski trip; vacation to beach; spa.

Utilitarian value

a value derived from a product or service that helps the consumer solve problems and accomplish tasks. Examples - washing machines; dryers; eye glasses.

Needs

result of an imbalance between actual and desired states

Wants

recognition of an unfulfilled need and a product that will satisfy it

External stimuli

uses sensory inputs from the external environment to trigger consumer needs and influence buying behavior

Marketing controlled information source

a product information source that originates with marketers promoting the product. Examples - advertising, sales promotion, sales people, product labels, packaging, etc.

Post purchase behavior

uses strategies to influence a customer's behavior after a sale to foster loyalty, drive repeat purchases, and increase customer lifetime value

Extensive decision making

complex, infrequent, and high-cost purchases that require significant consumer involvement, thought, and research

High-involvement strategy

Promotion to the target market should be extensive

Social Factors affecting the consumer decision journey

culture, social class, family, reference groups, and opinion leaders

Characters of culture

Underlying elements of culture are the values, language, myths, customs, rituals, and laws that guide consumer behavior.

Opinion leader

an individual who influences the opinions of others

Initiator

a person who first recognizes a need or problem, thereby triggering the buying process for a product or service