mark final exam

product

create value, develop goods, svcs, and ideas to create value and satisfy customer needs

place

deliver value, right place right time

promotion

communicate value, informs, persuades and reminds potential buyers about product or service (ads)

price

capture value, everything that the buyer gives up in exchange for a product or service

sustainable competitive advantage

advantage over competition that is not easily copied and can be maintained over a long period of time

types of sustainable competitive advantage

product excellence, locational excellence, operational excellence, consumer excellence

customer excellence

develops strategies for retaining loyal customers and provides outstanding customer service

operational excellence

achieved through efficient operations, excellent supply chain management, and strong relationship with suppliers

product excellence

achieved by developing superior product excellence with high perceived value enhanced by effective brand positioning

locational excellence

having dominant online or in person presence

swot analysis

strengths, weaknesses, opportunities, threats

strengths

internal positive

weaknesses

internal negative

oppotunities

external positive

threates

external negative

growth strategies

market penetration, market development, product development, diversification

market penetration

penetrating a market by appealing to same customers with same product, just increasing promotions

market development

using same product to appeal to more customers, ex: cereve appealing to men

product development

appealing to existing customers with new product

diversification

new product and new market

immediate environment

company capabilities, physical environment, competitors, corporate partners

external

culture, politics, economy, demographics, social trends, technology

product mix/portfolio

all of the goods/svcs a comapny offers

product lines

line of related products

bcg portfolio analysis matrix

stars, question marks, cash cows, dogs

stars

high growth rate, high market value (ex: apple watch), need high levels of investment to sustain their growth

cash cows

high market value, low growth rate (Ex: ipad), need low investment to generate value bc they already had investment in their earlier years

question marks

high growth rate, low market value (ex: apple vision)d

dogs

low market value, low growth rate (Ex: ipod touch)

company capabilities

distinguishes an enterprise from its competitors, something they are uniquely good at

consumer decision making process

need recognition, information search, alternative evaluation, purchase and consumption, post purchase

types of needs

functional (things we actually need), psychological (things we think we need)

information search factors

perceived benefits/ costs, locus of control, actual/perceived risk

percieved benefits/costs

is the thing a big enough deal to warrant searching for info? (if the it is high cost and long term, then it is worth it)

locus of control

internal locus of control: control over problems, external locus of control: external issues have control over youact

actual or perceived risks

performance risk (the product might not do what you want it to do), financial risk, social risk, physiological risk, psychological risk

alternative evaluation: attribute sets

universal (all the products that are in existence), retrieval (all the products a person can name), evoked (all the products a person considers purchasing)

customer decision rules

weighs characteristics against each other, can be compensatory or non compensatory

different types of segmentation

demographic, geographic, loyalty

what are factors that determine if a segment is attractive

if it’s identifiable, sustainable, reachable, responsive, profitable

breadth

number of product lines in a product mixde

pth

number of different offerings within a product line

innovation adoption curve groups

innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%), laggards (16%)

product life cycle

development, introduction, growth, maturity, decline

four key things that differentiate services from goods

intangible, inseparable, heterogeneous, perishable

intangible

cant touchins

inseparable

cant separate product from experiencehe

heterogeneous

varry from time to time (ex: haircut)

perishable

goods are perishable, services are not

distributive fairness

customer’s perception of benefits they received compared with the costs or loss

procedural fairness

percieved fairness of process used tor esolve them

communication process

sender, transmitter, communication channel, receiverad

aida model

awareness, interest, desire, action

lift

incremental increase in sales during time of campaign

personal selling process

generate and qualify leads, pre approach, sales presentation and overcoming reservations, closing the sale, follow up

sources of power

reward, coearcive, referent, expertise, information, legitmate

reward

offers incentives if wholesalers do what they wantco

coercive

punish wholesalers for not doing what they wantref

erent power

if a supplier wants to be asssociated with them to attract other retailer’s businessex

expertise

relies on vast experience and knowledge to decide how to market the product

information

has a lot of data on consumers so might exert info over wholesalers or manufacturersle

legitimate

getting a channel member to behave in a certain way bc of contractual agreement between two firms

gdp

gross domestic product, market value of goods and services produced in a year

gross national income

consists of gdp plus the net income earned from investments abroad