UGA MARK 3000 Final Exam Loomer

Product: Creating Value

Marketers create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs

Price: Capturing Value

Price is everything a buyer gives up, including money, in exchange for the product or service

Place: Delivering Value

Marketing processes necessary to get the product to the right customer at the right time

Promotion: Communicating Value

Communication that informs, persuades, and reminds potential buyers about a product or service to influence their buying

Customer Excellence

Achieved when a firm develops strategies for retaining loyal customers and provides outstanding customer service

Operational Excellence

Achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers

Product Excellence

Achieved by developing products with high perceived value through effective branding and positioning

Locational Excellence

Achieved by having a strong physical location and/or Internet presence; especially important for retailers and service providers

Situation Analysis (SWOT)

Strengths, Weaknesses, Opportunities, and Threats

Company Capabilities

A defining capability or advantage that distinguishes an enterprise from its competitors

Portfolio Analysis (BCG)

Stars, Cash Cows, Question Marks, Dogs

Growth Strategies

strategies firms use to grow based on the decision to enter new markets or develop new products and services

Market Penetration Strategy

This strategy encourages current users to consume more of the current product mix

Market Development Strategy

This strategy might include targeting different consumers in the home market or seeking global expansion

Product Development Strategy

The third growth strategy option involves innovative product and service offerings to meet changing needs of existing consumers

Diversification Strategy

This is the riskiest of all growth strategies, requires extensive research into emerging markets and firm capabilities

Consumer Decision Process

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

Need Recognition

Functional needs, Psychological needs

Generate Consumer Segments

Geographic, Demographics, Psychographic, Benefit, Behavioral

Geographic Segmentation

organizes customers into groups based on where they live

Demographic Segmentation

groups consumers according to easily measured, objective characteristics such as age, gender, income, and education

Psychographic Segmentation

how consumers describe themselves, how they choose to spend their time, and what motivates them

Benefit Segmentation

groups consumers based on the benefits they derive from products or services

Behavioral Segmentation

divides consumers based on their previous purchases of goods or services

Primary Data

Collected to address specific research needs through methods such as focus groups, in-depth interviews, surveys, etc.

Secondary Data

Collected prior to the start of the research project, Sourced both internally and externally

Quantitative Data

Involves structured responses that can be statistically tested

Qualitative Data

Uses broad, open-ended questions to understand a phenomenon

product mix

the complete set of all products and services offered by a firm

product lines

groups of associated items within product mix

breadth

number of product lines offered by the firm

depth

number of products within the product line

National Brands

Owned and managed by manufacturers, who can maintain control over the quality of their products and brand image

Private Label Brands

Also known as store brands, these products developed by and sold by retailers

Line Extension

New product under the same brand within the same product line (same category)

Brand Extension

New product under the brand name but in different product line (different category)

Incremental innovation

small improvements to existing offerings

Breakthrough innovation

significant impact in either altering or creating a market

Diffusion of Innovation

bell-shaped curve, where a few people buy the product or service at first, then more buy until a product becomes widely adopted

Innovation Adoption Curve

bell-shaped curve, grouping consumers when they buy a new product: innovators, Early Adopters, Early Majority, Late Majority, Laggards

Distributive fairness

customer's perception of the benefits he or she received compared with the costs or loss

Procedural fairness

perceived fairness of the process used to resolve them

Demand Curve

visual depiction of the relationship between price and demand

Price Elasticity of Demand

measures how changes in a price affect the quantity of the product demanded: % Change in Quantity/ % Change in Price

elastic demand

move with changes in price, meaning demand is price sensitive

inelastic demand

it does not move with changes in price, meaning demand is price insensitive

Variable Costs

Costs that vary based on the volume of goods or services being produced

Fixed Costs

Costs that Remain at a consistent level regardless of the volume of goods or services being produced

The Communication Process

Sender, Transmitter, Communication Chanel, Receiver

Sender

the originator of the message (Chic fila)

Transmitter

responsible for encoding the message (Marketing Department)

Channel

Medium transmitting the message ( ESPN)

Receiver

Consumer who sees message

The AIDA Model

Awareness, Interest, Desire, Action

Aided recall

consumer's recognition of a brand after the name is presented to them

Top-of-mind awareness

indicates a higher level of awareness in which a consumer mentions a specific brand of product or service before all others

Informative Advertising

relies on facts, statistics, and product features rather than emotion

Persuasive Advertising

relies more on emotional appeals

Reminder Advertising

used to remind consumers about a product, rather than using informational or emotional appeals

Product-Focused Advertisements

advertisements inform, persuade, or remind consumers about a product or service

Institutional Advertisements

promote a company, corporation, business, or institution

Public Service Advertisements

designed to raise awareness of public welfare issues

Informational appeals

cognitive and persuade using rational thought

Emotional appeals

persuade by triggering an emotional response rather than offering rational arguments

Sales Lift

refers to an incremental increase in sales during the time of the campaign

Public Relations

•involves managing communications and relationships to achieve various objectives such as:

•Building and maintaining a positive image of the firm

•Handling unfavorable stories or events

•Maintaining positive relationships with the media