Marketing Midterm

Marketing

a set of strategic activities related to creating, communicating, delivering, and exchanging offerings that have value for others

Identify customers

understand customer wants and needs

Satisfy customers

make everyone feel better off from the exchange

Retain customers

give the customers a reason to keep coming back

Relationship

aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business

Performance

top marketers increasingly go beyond sales revenue to examine the marketing scorecard and interpret what is happening with market share, customer loss rate, customer satisfaction, product quality, and other measures

Internal

the task of hiring, training, and motivating able employees who want to serve customers well

Integrated

coordinates all marketing activities and marketing programs and directs them toward creating, communicating, and delivering consistent value and a consistent message for consumers

Production

consumers prefer products that are widely available and inexpensive

Product

consumers prefer products with the highest quality, best performance or most innovative features

Selling

consumers and businesses, if left alone, won't buy enough of the company's product

Market-value

implies that every functional area should be actively focused on creating value for customers, the company, and its collaborators

For-profit Organizations

privately owned and publicly trade; success is measured in revenue/profit

Non-profit Organizations

mission and purpose focused; success is measured in earning money for mission use

Mission Statement

a clear, concise, and enduring statement of the reasons for an organization's existence

Technology

have enabled marketers to target consumers, drive a better and more interactive experience, and tailor offerings to customer needs

Globalization

refers to the growing interconnection of nations' economies; represents the flow of financial products, goods, technology, information, and jobs across national borders and cultures

Physical Environment

companies and businesses may be forced to change or modify their business models to meet the demand

Marketing Concept

focusing the organization on identifying and understanding the customers' preferences in terms of needs and wants and delivering them more effectively and efficiently than their competitors

Functional Needs

needs that focus on achieving a specific task or function

Social Needs

needs that fixate on the perception of a product or service

Emotional Needs

needs that concentrate on feeling a certain way when using a product or service

Look - Explicit (Assessing Customer Needs)

these are easily identifiable pain points; customers are aware of their challenges and can clearly define them

Look - Latent (Assessing Customer Needs)

these frustrations are harder to pinpoint or recognize; most customers may not even be aware they exist

Ask (Assessing Customer Needs)

open ended questions, insightful observations, involve stakeholders,& conduct interviews

Try (Assessing Customer Needs)

the best way to understand the user experience is by going into the field and participating in the same process customers do

Market segmentation

the process of splitting buyers into distinct, measurable groups that similar wants and needs

Geographic Segmentation

products, salespeople, and distribution networks can all be organized around a central, specific location; provides a convenient organizational framework

Demographic Segmentation

statistical data that describes various characteristics of a population

Psychographic Segmentation

consumers are divided according top common characteristics in their lifestyle, personality, attitudes, and social class

Behavioral Segmentation

consumers are divided into groups according to common behaviors they share: user status, purchase occasion, loyalty, & readiness

Decision-maker Segmentation

groups people according to who makes the purchasing decision in an organization or household; "primary buyer" and "influencers"

Strategy

a directed course of action to achieve an intended set of goals

Tactics

the means by which a strategy is carried out

Price

this is the amount a customer willing to pay for the product or service

Promotion

encompasses the methods used to make the target audience aware of the product, such as advertising, sales promotions, public relations, and social media campaigns

Value-based Pricing Strategy

companies base their pricing on how much the customer believes a product is worth

Premium Pricing Strategy

pricing your product above competitors to give the perception your product is a higher quality

The Economic Man Theory

consumers are rational and narrowly self-interested; assumes people act selfishly as consumers, always trying to maximize the benefits they device from the exchange process

The Stimulus Response Model

focuses on the consumer as a thinker and problem solver who responds to a range of external and internal factors when deciding whether or not to buy

Buying task

refers to the consumer's approach to solving a particular problem and how much effort it requires

Market offerings

the more extensive the product and brand choices available to the consumer, the more complex the purchase decision process is likely to be, and the more limited the market offerings are, the simpler the purchase decision process is likely to be

Business ethics

the social obligations a business has to its stakeholders

Ethics

the set of moral principles or values that guides behavior

Shareholders

own a portion of the business

Design defects

regardless of how well it is manufactured something in the design is inherently unsafe

Manufacturing defects

occur while a product is being conducted, produced, or assembled

Marketing defects

results from flaws in the way a product is marketed

Brands

images that exist in your mind (and in the minds of other consumers) about the things around you: products, services, places, companies, people, entertainment, etc.

Indentifer

a name, sign, symbol, design, term, or some combination

Promise

what a company or offering will provide to the people who interact with it

Asset

a reputation in the marketplace that can drive price premiums and customer preference for goods from a particular provider

Tangible (Features of a Brand)

visual design elements

Intangible (Features of a Brand)

experience

Personal Brands

the practice of individuals marketing themselves and their unique skills

Event Brands

consistent experience that attracts consumer loyalty

Geographic Place

used frequently to attract commerce and economic investment, tourism, & new residents

Private-label

own brands

Hard-core loyal

who buy the brand all the time

Split loyal

who are loyal to two or three brands

Shifting loyal

who move from one brand to another

Switchers

who have no loyalty

Co-branding

an arrangement in which two established brands collaborate to offer a single product or service that carries both brand names

Brand Licensing

the process of leasing or renting the right to use a brand in association with a product or set of products for a defined period and within a defined market, geography, or territory

Line Extension

when a company introduces a new variety of offering within the same product category

Brand Extension

moves an existing brand name into a new product category, with a new or somehow modified product

Value

the measure of the benefit gained from a product or service relative to the full cost of the item; benefit - cost

Value proposition

a business or marketing statement that summarizes why a consumer should buy a product or use a service

Core product

satisfied the most basic need of a customer

Tangible product

perceptible by touch

Augmented product

included tangible product and all of the services that support it

Promised product

long term result the customer hopes to achieve by selecting the product

Specialty products

these products are so unique that it's worth it to go to great lengths to find and purchase them

Unsought products

consumer never plans or hopes to buy

Product Packaging

how brands contain and protect their products for sale to consumers, and can also be used to aid transportation; helps to market the brand's message and identity and provides useful information about the brand

Emotional engagement

creating a positive experience that increases desire to approach the product

Clarity

ensuring the packaging easily conveys the brand's main messages

Design effectiveness

that generates the right expectations about the product experience

Price Value Equation

focused on providing value to the consumer; value = perceived benefits - perceived costs

Profit Oriented Pricing

price is set higher than the total cost of producing and selling each product to ensure the company makes a profit; profit = revenue - costs