Marketing - The Core Chapter 1-7

marketing

The activity for creating , communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large.

exchange

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

market

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

target market

One of more specific groups of potential customers towards which marketing is directed.

product

Good, service, or idea to satisfy needs.

price

Exchange for product.

promotion

Means of communication between buyer and seller.

place

Means of getting product to consumer.

marketing mix

Controllable factors (4 P).

Environmental forces

Uncontrollable, social, economic, tech, competitive, and regulatory.

customer value

The unique combo of benefits received by target buyers (quality, convenience, price, etc.

relationship marketing

Links organizations to individuals, employees, suppliers, and other partners for mutual long-term benefit.

marketing program

A plan that integrates the marketing mix to provide a good, service, or idea.

marketing concepts

Idea that an organization should strive to satisfy needs while trying to achieve the organizations goals.

marketing orientation

Collecting info about needs, sharing info across departments, using info to create customer value.

customer relationship management (CRM)

Process of identifying buyers, understanding them, and developing relationships with them.

societal marketing concept

View that an organization should discover and satisfy needs in a way that also provides for society's well being.

utility

Benefits customer value received by users of the product.

form utility

Production, pick and choose features.

place utility

Having available where needed.

time utility

When needed, available.

possession utility

Easy to purchase (take various forms of money, call other branches).

marketing process

1. Understand customers needs and wants. 2. Design a marketing strategy. 3. Construct a marketing program. 4. Build profitable relationships.

Customer value proposition

A cluster of benefits that an organization promises customers to satisfy their needs.

Profit

the money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings

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/Vision

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

Organizational Culture

consists of the set of values ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

Business

the clear, broad, underlying industry or market sector of an organization's offering

Goals/Objectives

the statements of an accomplishment of a task to be achieved, often by a specific time

Market Share

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Marketing Dashboard

the visual computer display of the essential information related to achieving a marketing objective (i.e. website traffic)

Marketing Metric

a measure of the quantitative value or trend of a marketing activity or result, measures the value of an activity or result

Marketing Plan

a road map for the marketing activities of an organization for a specified future time period, such as one year or five years

Business Plan

a road map for the entire organization for a specified future time period

Business Portfolio Analysis

a technique that managers use to quantify performance measures and growth targets to analyze their firms strategic business units (SBUs) as though they were a collection of separate investments

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

Strategic Marketing Process

the approach whereby an organization allocates its marketing mix resources to reach its target markets

Situation Analysis

involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external factors and trends affecting it

SWOT Analysis

describes an organization's appraisal of its internal Strengths Weaknesses Opportunities and Threats

Market Segmentation

involves aggregating prospective buyers into groups, or segments, that 1) have common needs and 2) will respond similarly to a marketing action

Points of Difference

those characteristics of a product that make it superior to competitive substitutes

Marketing Strategy

the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it

Marketing Tactics

the detailed day-to-day operational decisions essential to the overall success of marketing strategies

market shares

Successful organizations have a portfolio or range of offerings (products and services) that possess different growth rates and ________________ within the industry which they operate

market growth rate

the annual rate of growth of the SBU's industry

Relative market share

the sales of the SBU divided by the sales of the largest firm in the industry

Question marks

SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it

Stars

SBUs with a high share of high-growth markets that may need extra cash to finance their own rapid future growth

Cash Cows

SBUs that generate large amounts of cash, far more than they can use

Question marks, stars, cash cows, dogs

The four quadrants in its growth-share matrix

Dogs

SBUs with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they may no longer be or may not become real winners for the organization.

Questionmark

An organization's SBU often starts as a _______________________ and go counterclockwise to become stars, then cash cows and finally dogs.

Growth share matrix

Suggests which SBUs will be cash producers and cash users in the future.

Market penetration

a marketing strategy to increase sales of current products in current markets

Market development

marketing strategy to sell current products to new markets

Product development

marketing strategy of selling new products to current markets

Diversification

A marketing strategy of developing new products and selling them in new markets

Planning, implementation, and evaluation

Strategic marketing process is divided into 3 phases:

Identify trends in the organizations industry

Analyze the organizations competitors

Assess the organization itself

Research the organizations present and prospective customers

The SWOT analysis is based on an exhaustive study of four areas that form the foundation upon which the firm builds its marketing program

Product, price, promotion, place

The four Ps of marketing

Four Ps

The ___________ elements of the marketing mix must be blended to produce a cohesive marketing program

Step 2

Activities in ____________ tell the marketing manager which customers to target and which customer needs the firms product offerings can satisfy .- the who and what aspects of the strategic marketing process

Planning phase of marketing

Involves developing the programs marketing mix (4 p's) and it budget

(1) Obtaining resources

(2) designing the marketing organization

(3) defining precise tasks, responsibilities, and deadlines

(4) actually executing the marketing program designed in the planning phase

Four components of the implementation phase

human and financial resources

A key task in the implementation phase of the strategic marketing process is finding adequate __________________________ to execute the marketing program successfully

Action item list

an aid to implementing a marketing plan, consisting of four columns: (1) the task (2) the person responsible for completing that task (3) the date to finish the task and (4) what is to be delivered

Gantt chart

a graph of a program schedule invented by Henry L Gantt

Marketing tactics

Writing ads and setting prices for new product lines are examples of ___________________-

Planning gap

the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place

cash cow or star

To reach aggressive growth targets in sales revenues, firms must continuously look for a new BCG SBU

Organization

a legal entity that consists of people who share a common mission

For Profit

Non Profit

Government Agency

3 Types of Organizations

For Profit Organization

privately owned organization that serves its customers to earn a profit so that it can survive

Non profit Organization

A non governmental organization that serves it's customers but does not profit as an organizational goal

Government agency

federal, state, county, or city that provides a specific service to its constituents

offerings

Organizations that develop similar _________________ create an industry

strategy

A ______________ is an organizations long term course of action designed to deliver a unique customer experience while achieving it's goals

Corporate level

Strategic Business level

Functional level

Large organizations consist of 3 organizational levels whose strategies are linked to marketing

Corporate level

where top management directs overall strategy for the entire organization

CEO

highest ranking officer and usually on the board of directors

Strategic business unit level

At the _______________ managers set more specific strategic direction for their business to exploit value creating opportunities.

Functional level

where groups of specialists actually create value for the organization (departments)

Cross Functional Teams

Consist of a smaller number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals

Founders

A firms _____________________ or senior members develop core values

Stakeholders

employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers

Business Model

the strategies an organization develops to provide value to the customers it serves

Goals

Convert an organizations mission and business into longterm and shorterm performance targets

Profit

Sales

Marketshare

Quality

Customer Satisfaction

Employee Welfare

Social Responsibility

Different types of business goals

Market share

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Marketing Dashboard

With a _______________ a marketing manager glances at a graph or table and makes a decision whether to take action or to analyze the problem further

Data visualization

presents information about an organization's marketing metrics graphically so marketers can quickly (1) spot deviations from plans during the evaluation phase and (2) take corrective actions

Competencies

Customers

Competitors

Asking an organization where it is at the present time involves identifying it's ________________, ________________, and ________________

Competencies

special capabilities—the skills, technologies, and resources—that distinguish it from other organizations and provide customer value

Competitive advantage

a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation

Business portfolio analysis

The purpose of this tool is to determine which SBU or offering generates cash and which one requires cash to fund the organization's growth opportunities.

Environmental scanning

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

Social forces

the demographic characteristics of the population and its culture

Demographics

describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation