Marketing Final

Marketing

engaging customers and managing profitable customer relationships

goals of marketing

• attract new customers by promising superior value

• keep and grow current customers by delivering satisfaction

needs

states of felt deprivation

physical need

food, clothing, warmth, safety

social need

belonging and affection

individual needs

knowledge and self-expression

wants

form taken by human needs when shaped by culture and individual personality

digital age

mobile, online, social media

changing economic environment

economic changes within last 10 years —> economy sank in 2008-2009 now people are spending more again

growth of not for profit marketing

marketing has become a major part of strategies for non-profits (colleges, hospitals, museums, zoos, etc)

rapid globalization

global competition keeps increasing

sustainable marketing

as consumerism and environmentalism develops, marketers look for sustainable methods

Value proposition

statement that summarizes why customer chooses your product/service over competitors

Marketing Mix

Product, Price, place, Promotion

impacts of online marketplace on marketing

enhanced targeting, real time analytics, user generated content

Microenvironment

suppliers, intermediaries, competitors, customers

macroenvironment

broader societal forces—> demographic, economic, technology, politics

consumer markets

individuals purchasing for personal use

business markets

organizations buying for operational use/resale

government markets

public institutions purchasing goods/services for governmental functions

international markets

different countries w/ unique cultural/regional demabds

MIE (Marketing Information Ecosystem)

internal databases, competitive intelligence, marketing research

all parts of ecosystem contribute to gathering/analyzing information

buying center roles

initiator, influencer, gatekeeper, decider, buyer, user

Marketing strategies

segmentation, targeting, differentiation, positioning

Segmentation

divide market into segments based on needs

targeting

assess attractiveness of each segment and selecting which to enter

differentiation

tailor offerings to create superior value

positioning

position the offering distinctly in customers’ mind

cost-based pricing analysis

pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk

cost-plus pricing

adds a markup to a product and is used in retail

break-even pricing

useful for company’s launching new products/services

Integrated Marketing Communications

ensuring consistency across various promotional tools

promotion mix

advertising, sales promotion, personal selling, PR, digital marketing

price

list price, discounts, allowances, credit terms

product

variety, quality, design, packaging, services

place

channels, coverage, location, inventory

promotion

advertising, personal selling, sales promotion

suppliers

resources needed by the company to provide goods and services

marketing intermediaries

help the company promote, sell, distribute product to final buyers

physical distribution films

help the company stock and move goods from their points of origin to destinations

marketing services agenices

marketing research firms, advertising agencies, media firms, marketing consulting firms that help company target/promote its products to right markets

financial interemdiaries

banks, credit companies, insurance companies that finance transactions or insure against risks associated with buying/selling goods

business legislation helps protect

customers, company, interest of society

brand

a name, term, sign, symbol or design or combination for these that identifies the products or services of one seller or group of sellers

product line

A group of products that are closely related because they function in a similar manner and sold to the same customer groups, marketing through the same types of outlets

product mix

set of all product lines and items that a particular seller offers for sale, different product lines carried by company and how closely related the products are in end use, production requirements, distribution channels

brand equity

commerical value that derives from consumer perception of the brand name of a particular product or service

crowdsourcing

the practice of obtaining information or input into a task or project by enlisting the services of a large number of people, either paid or unpaid, typically via the internet.

inventory cycle time

time it takes to manufacture a product and deliver it to the retailer

collaborative engineering

allows an org to reduce cost and time required during design process of product

what includes the process that control distribution, maintenance, replacement of materials and personnel to support supply chain

logistics

what uses electronic tags and labels to identify objects and wirelessly over short distances

RFID

3 types of organizational automation

inner-organizational, front organizational, back-organizational automation

inner organizational

automation (SCM) a link w/ other organizations (Syppliers, business partners)

front-organizational

automation (CRM) link w/ customers

back-organizational

automational (ERP) a link

what type of automation is SCM

inter-organizational automation

JIT

inventory strat. used to receive products, when needed not too early or late

advantages

needs to accurately forecast demand, receive good only as they are needed, increase efficiency, decrease waste, reduce inventory cost

bullwhip

occurs when distorted product demand information passes from one entity to the next throughput the supply chain

contractual vertical marketing system

consists of interdependent firms at different levels of production/distribution joining together through contracts

indirect marketing channel

contains 1 or more intermediary levels

3rd party logistics provider

provides any or all functions required to get client product to market

multichannel distribution system

uses a single firm to set up 2 or more marketing channels to reach one or more customer segments

disintermediation

cutting out of marketing channel intermediaries by product or service producers or displacement of traditional resellers by radical new types of intermediaries

channel level

layer of intermediaries that performs some of the work in bringing the product and its ownership closer to final buyer

selective distribution

the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products

Direct marketing channel

marketing channel that has no intermediary level

SCM

managing upstream and downstream value added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

marketing channel

set of interdependent organizations that help make a product or service available for use/consumption by consumer or business user

intensive distribution

stocking product in as many outlets as possible

Multichannel marketing

selecting, managing, and motivating individual channel members and evaluating their performance over time

Administered vertical marketing system

coordinates successive stages of production and distribution through the size and power through the size and power of one of the parties

Horizontal marketing system

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

Exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

What CRM technology does the customer service department typically use?

contact center, web-based self-service, call scripting

What complies customer information from a variety of sources and segments the information for different marketing campaigns?

list generator

What is included in marketing operational CRM technologies?

list generator, campaign management, cross-selling, up-selling

What automation is CRM?

front-organizational automation

Operational CRM

supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

Analytical CRM

supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

Concept of iteration in CRM success factors (repetition of the same process)

avoid the big-bang approach and implement in small, manageable pieces

SRM

focuses on keeping suppliers satisfied

PRM

focuses on keeping vendors satisfied in order to optimize sale channel for customers

ERM

provides employees with a subset of CRM applications available through web browsers

core ERP components

accounting and finance, production and materials management, human resource

primary users of ERP systems

accounting, finance, logistics, productions

Which extended ERP component collects information used throughout an organization, organizes it, and applies analytical tools to assist managers with decisions?

business intelligence

Which application's primary business benefits include sales forecasts, sales strategies, and marketing campaigns?

CRM

what kind of automation is ERP

back-organizational ERP

what is the heart of ERP system

database

advantages

consistency, up to date info, collaboration

disadvantages of ERP

complex, extensive training, high cost

SCM, CR, ERP

they are the backbone of e-business

Lovely Skin is establishing apprising strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company had decided to add a $1.50 markup, so the unit price to distribution will be $5. What approach is Lovely Skin is using to price the new moisturizer?

cost-plus

Dynamic pricing is particularly suitable for Internet-based companies like Amazon who want to be responsive to shoppers' desires and marketplace changes

True

is the sum of all the values that customers give up to gain the benefits of having or using a product or service and is the only element in the marketing mix the produces revenue, one of the most flexible marketing mix elements, prices can be changed quickly

Price

Unlike the other marketing mix elements , price plays a minor role in creating customer value and building customer relationships

False

When demand hardly changes with a small change in the price of a product, the demand for the product is what?

inelastic

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo is $50. What is referred to as what?

Product bundle pricing