Marketing 301 - Exam 1

market

people with both the desire and ability to buy a specific offering

customer value proposition

benefits an organization promises customers to satisfy their needs

relationship marketing

creating an ongoing exchange of value with customers, employees, suppliers, and partners

customer value

benefits received relative to cost

increase value - more products options, lower prices, better access

strategic marketing principles

customers are different

customers change

competitors change and react

organizational resources are limited

SWOT analysis

internal - strengths, weaknesses

external - opportunities, threats

BCG growth-share matrix

star - high growth, high market share

question mark - high growth, low market share

cash cow - low growth, high market share

dog - low growth, low market share (ipod)

market penetration

selling more existing products in existing markets

implementation phase

defines specific tasks, responsibilities, and deadlines

environmental scanning

continually gathering information about events outside an organization to identify and interpret threats

pure monopoly

a market in which only one firm sells the product

ethics

moral principles guiding right and wrong

laws

social standards enforceable through courts

consumer bill of rights

includes the right to be informed and the right to choose

sherman antitrust act (1890)

first major US federal law aimed at monopolies and anticompetitive practices

social responsibility

triple bottom line - people, planet, profit

green marketing - environmentally friendly products/promotions

cause marketing - tying a brand to a social cause

purchase decision process

1. problem recognition

2. information search

3. alternative evaluation

4. purchase decision

5. postpurchase behavior

attitude

learned predisposition to respond to something in a consistently favorable or unfavorable way

behavioral learning

drive

cue

response

reinforcement

groupthink

holding back concerns or disagreement to avoid seeming negative or disloyal to the team

market segmentation

grouping potential buyers who share common needs and respond similarly to marketing actions

geographic segmentation

basis - location

demographic segmentation

basis - characteristics such as age and income

psychographic segmentation

basis - activities, interests, and lifestyle

organizational market segmentation

basis - statistical area, NAICS industry code, number of employees, and usage rate

head-to-head positioning

competing directly against alternatives on similar benefits

differentiation positioning

highlighting what makes a product distinctive (Zappos Adaptive Shopping Experience)

marketing research

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

five step approach

1. define objectives and research needs

2. develop the research plan

3. collect relevant information

4. develop findings

5. take marketing actions

exploratory research

used to discover insights into an issue (LEGO interviews and focus groups)

primary data

information collected firsthand for the particular purpose

secondary data

information already in existence, such as previously prepared financial statements

Likert scale

multi-choice rating scale often used to measure agreement

semantic differential scale

a scale measuring responses between opposing descriptions

consumer products

1. convenience

2. shopping

3. specialty

4. unsought

convenience consumer products

bought frequently with little effort

ex: toothpaste

shopping consumer products

alternatives compared on price

ex: furniture

specialty consumer products

strong preference for a specific product

ex: luxury watch

unsought consumer products

not typically considered until need arises

ex: funeral service

continuous innovation

improves an existing product with limited changes in consumer behavior (Airpods pro)

discontinuous innovation

major innovation potentially changing consumer habits (first-gen iphone)

commercialization

final stage/seventh stage of new-product development process

introduces the new product to the market

four I’s of services

1. intangibility

2. inconsistency

3. inseparability

4. inventory

service intangibility

cannot physically touch a service

service inconsistency

service quality may vary from person to person

can be reduced by standardization and training

service inseparability

production and consumption are often linked

can’t separate the service experience from the brand

service inventory

services can not be stored for later sale

brand equity

additional value attributable to a brand name (consumers prefer a Dunkin’ labeled latte)

multiproduct branding

one brand used across multiple products (Toro snowblowers, lawn mowers, garden hoses)

multibranding

a company uses multiple distinct brands

private branding

a retailer markets products under it own brand name

B2B marketing

a business markets its own products to another business

globalization

economic, cultural, political, and technological interdependence

joint venture

businesses share ownership, control, and profits

dumping

selling products abroad at low prices for surplus disposal or market-share objectives

gray market

genuine products sold through unauthorized distribution channels

product extension

retain the product for an overseas market

product adaptation

change the product for an overseas market

communication adaptation

adjust communication or promotion for a new market

customer lifetime value

estimates the financial contribution of an ongoing customer relationship