marketing exam 1

customer experience

the internal response that customers have to all aspects of an organization and its offerings

customer relationship management (CRM)

The process of identifying prospective buyers, understanding them, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase

customer value

the unique combination of benefits received by targeted buyers at a specific price

what are the aspects of customer value?

quality, convenience, on-time delivery, and before-sale and after-sale service

what are the environmental forces affecting a marketing decision?

social, economic, technological, competitive, and regulatory

exchange

the trade of value between buyer and seller so that each is better off after

market

people with the desire and ability to buy a specific offering

what are the aspects of market orientation?

collecting information about a customers needs, sharing information across departments, and using it to create customer value

market segments

relatively homogeneous groups of prospective buyers who have common needs and will respond similarly to a marketing action

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

marketing concept

the idea that organizations should strive to satisfy consumer needs while also trying to achieve the organization’s goals

marketing mix

the controllable factors that are used by marketing managers to solve a problem

what are the aspects of the marketing mix?

product, price, promotion, and place

marketing program

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

organizational buyers

entities that buy products for their own use or resale (manufacturers, retailers, nonprofit, government)

relationship marketing

links the organization to customers, employees, and other partners for mutual long-term benefit

societal marketing concept

the view that organizations should satisfy the needs of customers in a way that contributes to society’s well-being

target market

a specific group of consumers an organization will direct its marketing program to

business portfolio analysis

technique used to quantify performance measures and growth targets to analyze SBUs (strategic business units) as though they’re a collection of separate investments

customer value proposition

cluster of benefits that an organization uses to satisfy customer needs

diversification analysis

helps a firm search for growth opportunities from current and new markets, as well as current and new products

market segmentation

aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action

market share

ratio of a firm’s sales revenue to total sales of all firms in the industry

marketing dashboard

visual display of essential information related to meeting a marketing objective

marketing plan

road map for the marketing action of an organization for a specified future time period

marketing strategy

the means by which a goal is achieved, characterized by a specific target market and marketing program to reach it

marketing tactics

detailed day-to-day operational actions for each element of the marketing mix that contribute to the overall success of strategies

points of difference

characteristics of a product that make it superior to competitive substitutes

situation analysis

assessing where a product has been, where it is now, and where it is headed in terms of marketing plans and external forces affecting it

strategic marketing process

The approach whereby an organization allocates its marketing mix resources to reach its target markets

cause marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through product promotion

consumerism

movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions

marketspace

An information- and communication-based electronic exchange environment

sustainable development

conducting business in a way that protects the natural environment while making economic progress

sustainable marketing

the effort to meet today’s economic, environmental, and social needs without compromising future generations

brand community

specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of the brand, and the product in use

consumer behavior

the actions a person takes in purchasing and using products, including the mental and social processes that come before and after

consumer journey map

visual representation of all the touchpints a consumer comes into contact with before, during, and after a purchase

consumer touchpoints

a marketer’s product, service, or brand points of contact from start to finish in the purchase decision process

opinion leaders

individuals who exert direct or indirect social influence over others

purchase decision process

the 5 stages a buyer passes through in making choices about which products to buy

what are the 5 stages of the purchase decision process?

1) problem recognition

2) information search

3) alternative evaluation

4) purchase decision

5) post purchase behavior

reference groups

people to whom an individual looks as a source of personal standards

80/20 rule

80% of a firm’s sales are obtained from 20% of its costumers

customer lifetime value (CLV)

represents the financial worth of a customer to a company over the course of their relationship

market segmentation

aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action

market-product grid

a framework to relate the marketing segments of potential buyers to products and marketing actions

perceptual map

displaying the location of products or brands in the minds of consumers to enable managers to see how that perceive competing products or brands, as well as the firm’s own product

differentiation

using different marketing mix actions to help consumers perceive a product as being different and better than competing products

positioning

the place a product occupies in consumers’ minds based on important attributes relative to competitive products

repositioning

changing the place a product occupies in a consumer’s mind relative to competitive products

usage rate

the quantity consumed or patronage (store visits) during a specific period

frequency marketing

focuses on usage rate

product

good, service, or idea consisting of a bundle of tangible and intangible attributes

business analysis

specifies the features of the product, the strategy needed to bring it to market, financial projections

business products

provide other products for resale (B2B)

commercialization

stage that positions and launches a new product in full-scale production and sales

consumer products

products purchased by the ultimate consumer

convenience products

consumer purchases frequently, conveniently, with minimum shopping effort

development

the stage that turns the idea on paper into a prototype

four i’s of service

intangibility, inconsistency, inseparability, inventory

• distinguish services from goods

idea generation

stage that develops a pool of concepts to serve as candidates for new products

market testing

stage that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy

new-product development process

the 7 stages that an organization goes through to identify opportunities and convert them into products and services

new-product strategy development

the stage that defines the role for a new product in terms of the firm’s overall objectives

open innovation

practices and processes that encourage the use of internal and external ideas/collaboration when developing new products

product item

specific product that has a unique brand, size, or price

product line

group of products which are closely related because they satisfy a class of needs, are used together, sold to similar customers, distributed through same outlets, or fall within a given price range

product mix

consists of all product lines offered by an organization

protocol

statement that identifies a

(1) well-defined target market

(2) specific customer needs, wants, and preferences

(3) what the product will be and do to satisfy consumers

screening and evaluation

the stage that internally and externally evaluates new product ideas to eliminate those that warrant no further effort

shopping products

items that consumers compare several alternatives to on criteria like price, quality, or style

specialty products

items that the consumer makes a special effort to search out and buy

unsought products

items that the consumer doesn’t know about, or knows about but doesn’t initially want

standard market test

attempting to sell a product through a normal distribution channels in a number of test-market cities

controlled test market

contracting the entire test program to an outside service

• for example, service pays retailers for shelf space and can therefore guarantee a percentage of the product’s potential distribution

simulated test markets

somewhat replicates a full-scale test market, often run in shopping malls to find consumer who use the product class being tested

stars

high growth, high market share

cash cows

low growth, high market share

question marks

high growth, low share

dogs

low growth, low market share

market penetration

more sales in current market

market development

new market, same product

product development

new product, same market

diversification

new product, new market

pure competition

many sellers, identical products

purchase decision process

1. problem recognition

2. information search

3. alternative evaluation

4. purchase decision

5. post-purchase behavior

steps to segmentation

1. group buyers into segments

2. group products into categories

3. develop market-product grid

4. select target markets

5. take marketing actions