MK Final

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.

Planning phase of strategic marketing process

Conduct a situation analysis, determine a market-product focus, develop a customer value proposition, and set goals, and design the marketing program.

Implementation phase of strategic marketing process

Obtain resources, design marketing organization, develop schedules, execute the marketing program

Evaluation phase of strategic marketing process

compare results with goals to identify deviations, correct negative deviations and exploit the positive ones

Star

High market growth share, high relative market rate

Question Mark

High market growth share, low relative market rate

Cash cow

Low market growth share, high relative market rate

Dog

Low market growth share, low relative market rate

Exchange

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

Product

Bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

Good

A product that has tangible attributes that consumers' five senses can perceive.

For Profit, Non-Profit, and Governmental

Types of Organizations

Service

Intangible item that fulfills a need or want.

Organizational buyers

Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.

Social, Economic, Technological, Competitive, Regulatory

Environmental forces that are uncontrollable that affect a marketing decision

Need

Feeling deprived of basic necessities such as food, clothing, or shelter.

Want

Need that is shaped by a person’s knowledge, culture, and personality.

Market

People with both the desire and the ability to buy a specific product.

Market segments

Relatively homogeneous groups of prospective buyers that have common needs and will respond similarly to a marketing action.

Target market

Specific groups of potential customers toward which an organization directs its marketing program.

Product, Price, Place, Promotion

Marketing Mix (4P’s)

Customer value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

Customer Lifetime Value

A metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship.

Marketing concept

The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals.

For Profit Business firm

Privately-owned organization that serves its customers to earn a profit so that it can survive.

Nonprofit organization

Nongovernmental organization that serves its customers but does not have profit as an organizational goal.

Government agency

Federal, state, or local unit that provides a specific service to its constituents.

Strategy

An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.

Core values

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

Mission

A statement of the organization's function in society that often identifies its customers, markets, products, and technologies.

Market Share

Ratio of sales revenue of a firm to total sales revenue of all firms in the industry, including the firm itself.

Marketing plan

A road map for the marketing actions of an organization for a specified future time period.

Diversification analysis

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Strengths, Weaknesses, Opportunities, Threats

SWOT analysis

Market segmentation

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

Points of difference

Those characteristics of a product that make it superior to competitive substitutes.

Marketing dashboard

The visual display of the essential information related to achieving a marketing objective.

Environmental scanning

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

Demographics

Describing a population on characteristics such as age, gender, ethnicity, income, and occupation.

Culture

The set of values, ideas, and attitudes learned and shared among the members of a group.

Economy

Income, expenditures, and resources that affect the cost of running a business and household.

Gross income

The total amount of money made in one year by a person or household.

Disposable income

The money a consumer has left after paying taxes to use for necessities.

Discretionary income

The money a consumer has left after paying for taxes and necessities for savings and luxuries.

Electronic commerce (e-Commerce)

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services.

Internet of Things (IoT)

The network of products embedded with connectivity-enabled electronics.

Pure competition

Many sellers with similar products in the market.

Monopolistic competition

Many sellers with substitutable products in a price range.

Oligopoly

Few sellers control the majority of sales.

Pure monopoly

Only one seller in the market.

Ethics

The moral principles and values that govern the actions and decisions of an individual or group.

Caveat emptor

The legal concept of 'let the buyer beware'.

Social responsibility

The idea that organizations are accountable to society for their actions.

Triple bottom line

The recognition of the need for organizations to improve economic, environmental, and social conditions simultaneously.

Sustainable marketing

Marketing efforts to produce, promote, and reclaim environmentally sensitive products.

Green marketing

Marketing efforts focused on environmentally sensitive practices.

Cause marketing

Occurs when charitable contributions are tied directly to customer revenues.

Consumer behavior

The actions a person takes in purchasing and using products and services.

Purchase decision process

The five stages a buyer passes through in making choices about products.

Consumer Journey Map

All the touchpoints a consumer experiences before, during, and after a purchase.

Maslow’s Hierarchy of Needs

physiological, safety, social, personal, self-actualization needs

Perception

The process by which an individual selects, organizes, and interprets information.

Lifestyle

Mode of living, including how people spend their time and resources.

Psychographics

The analysis of consumer lifestyles for insights into needs and wants.

Opinion leaders

Individuals who exert direct or indirect social influence over others.

Influencer marketing

Recruitment of individuals to advocate for products and brands.

Word of mouth

Influencing people during conversations.

Associative group

A group that a person is a member of.

Dissociative group

A group that a person does not want to be associated with due to differences.

Brand community

A group of consumers sharing a common passion for a particular brand.

Social class

The relatively permanent, homogeneous divisions in a society used to group people.

Organizational buyers

Manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services.

Business-to-business marketing

The marketing of products to organizational buyers.

Derived demand

Demand for industrial products driven by the demand for consumer products.

Reciprocal arrangement

Agreement between two organizations to purchase each other's products.

New Buy, Modified Buy, Straight Re-buy

Industrial Buy Classes

Traditional auction

A seller puts an item for sale and buyers bid in competition with each other.

Reverse auction

A buyer communicates a need and potential suppliers bid in competition.

Market Research

The process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions

Research Objectives

Specific, measurable goals the decision maker seeks to achieve in conducting the marketing research

Measures of Success

Criteria or standards used in evaluating proposed solutions to the problem.

Constraints

In research, Restrictions placed on potential solutions to a problem—often time or money.

Concepts

Ideas about products or services.

Observational Data

Facts and figures obtained by watching how people behave, using personal observation, mechanical methods, or neuromarketing techniques.

Questionnaires

Research that asks people about their attitudes, awareness, intentions, and behaviors.

Sampling

The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested in.

Statistical inference

Using statistical methods to generalize the results from a sample to the population of interest

Secondary data

Facts and figures recorded prior to the research project

Primary data

Facts and figures newly collected for the research project

Ethnography

Systematic observation of people in their natural settings.

Neuromarketing

Field of marketing research that focuses on understanding how the brain responds to nonconscious, marketing stimuli. Eye tracking, Biometric monitoring, Emotional-response facial coding

Questionnaire data

Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

Focus Group

A qualitative research method that involves bringing together a small group of individuals—typically 6 to 10 participants—for a structured discussion led by a moderator.

Open-ended questions

Questions that allow respondents to express opinions and ideas or describe behaviors in their own words.

Closed-end questions

Questions that require respondents to select one or more response options from a set of predetermined choices.

Dichotomous questions

Questions that have only two possible response options—usually “yes” or “no”.

Semantic differential questions

Questions that measure the perceptions associated with a concept using pairs of opposing adjectives.

Likert scale questions

Questions that measure respondents' attitudes, opinions, or perceptions by asking them to rate statements on a scale from “Strongly Agree” to “Strongly Disagree”.

Big Data

Vast amount of data collected from various sources and analyzed with an increasingly sophisticated set of technologies.

Data mining

The practice of examining large databases to find statistical relationships between consumer purchasing patterns and marketing actions.