Marketing 2080

exam 1

marketing

an organizational function and set of processes for creating, capturing, communicating, delivering, exchanging, and offering that has value for customers, clients, partners, and society at large

marketing strategy

which customers you are going after and how you will change their beliefs about your products and services and to get them to act

Production Oriented era

20th century no choices, no competition, all customers the same, believed product would sell itself

market oriented era

50-60s, LOTS of competition, customers not the same with different budgets, had to figure out target market

discovered marketing

sales oriented era

1920-1950s, door-to-door, too much inventory as a liability, GD and WWII caused overproduction, personal selling/advertising

Value based era

Now, more choices and access to information about products, expect greater value of service for product, unique customers

B2B marketing

process of buying and selling products to be used in production of other products, for consumption by the buying organization, or for resale by wholesalers and retailers

B2C marketing

businesses selling to consumers

C2C marketing

consumers selling to consumers. individuals can market themselves (research new firms, resume, dress and conduct)

Customer Relationship Management (CRM)

business philosophy and set of strategies, programs, and systems that focus on identifying and buying loyalty among the firm’s most valued customers

relational oriententation

method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

value

reflects relationships of benefits to cost, or what customer gets for what they give

seek fair return in products for hard-earned money and scarce time

customer excellence

one macro strategy for competitive advantage. knowing target and marketing mix. Strong customer service

ex: Disney

operational excellence

one macro strategy for competitive advantage. supply chain, processes, efficiencies in business

ex:Aldi

product excellence

one macro strategy for competitive advantage. efforts ($) revolve around high perceived value of products

ex: apple

Locational excellence

one macro strategy for competitive advantage. physical presence and online (digital) presence

ex: Starbucks

steps in marketing strategy

1. target market → 2. marketing mix → 3. sustainable competitive advantage

segmentation

create similar groups distinctive from other segments in target markets

targeting

evaluation process of each segment and which has highest return (marketing mix different)

positioning

clear, distinct, positive understanding of offering for customers in their eyes using 4 Ps.

conspicuous consumption

people believe something about you based on products you use

stars

high growth and high market share, most investment to grow

ex: burgers and filet o fish

?

high growth and low market share, spend money for more market share

ex: Mc D flurries and hashbrowns

Dogs

low growth and low market share, not in demand, no leaders, Phase out

ex: Mc D apple pie

Cash Cows

low growth and high market share, not expanding market, but have share so not spending resources. High margins to reallocate resources

ex: Mc D Fries

market penetration

growth strategy that employs the existing marketing mix and focuses on the firm’s efforts on existing consumers

existing markets and existing products

product development

growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international. The

existing market and new products

market development

growth strategy that offers a new product or service to a firm’s current target market

new markets in existing products

diversification

growth strategy whereby a firm introduces a new product or service to a market segment that it doesnt currently serve- expanding internally

Conscious marketing

approach to marketing that acknowledges 4 key principles: a higher purpose, stakeholders, conscious leadership, and a conscious culture

corporate social responsibility (CSR)

refers to voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stake holders

stakeholders

people affected by business decisions. employees and their families, current and potential customers, marketplace (partners and competition), and society (community and environment)

need recognition

first step in consumer decision making process- internal or external stimuli. Functional or psychological needs

information search

second step in consumer decision making process- start internally (memory) for regular purchases

Perceived benefit vs perceived cost

what is my time worth?

internal locus of control

more time searching leads to optimal product decision. actions lead to outcome

external locus of control

not personal responsibility, what is available now- i have no influence

actual or perceived risk of consumer

all in eyes of consumer. Financial, physiological/safety, performance, psychological, social

evaluation of alternative consideration set

third step in consumer decision making process

universal set

everything that exists

retrieval set

what kind comes to mind

evoked set

brands you consider buying

compensatory decision rule

here’s important criteria, pros outweigh cons

noncompensatory decision rules

1 important rule, if not allowed not bought, 1 criteria outweighs rest

purchasing and consumption

fourth step in consumer decision making process-

buying experience is important

post purchase

fifth step in consumer decision making process-

marketers want customer loyalty and to set appropriate expectations

purchase situation

gift for someone else vs self

sensory situation

visual, tactile, olfactory, taste, auditory

temporal state

state of mind at time of purchase

establish strategy or objectives

1st step in stp process- awareness of environment (competition, trends) and research sales demographics/data

segmentation

2nd step in stp process- demographics, geographic, psychographic, behavioral, benefits sought

4 Ps changes based on

evaluation of segments

3rd step in stp process- segment attractiveness (substantial, reachable, responsive, profitable, identifiable)

selecting a target market

4th step in stp process- undifferentiated/mass marketing, differentiated marketing, concentrated marketing, micromarketing

undifferentiated/mass marketing

more in common than different, not changing marketing messaging much, less expensive, one message for loads of people

differentiated marketing

different marketing mix for each segment, sophisticated yet complex, expensive to manage, able to target multiple segments, profitable, diversify

concentrated marketing

grow share in smaller market, consumers feel “that firm get’s me” all in one segment

micromarketing

individualized marketing, sell directly to you, expensive, privacy violations, customized

positioning

5th step in stp process- coming up with marketing mix so that target segment has clear distinct understanding of product (customer perception)

positioning statement

4 Ps based on positioning

talking ABOUT customers

value proposition

unique value that a product or service provides to its customers and how it is better than and different from those competitors

Talking TO customers

perceptual map

the position of products or brands in the consumers mind

Resellers

marketing intermediaries that resell manufactured products without significantly altering their form

wholesaler

type of reseller, firms engaged in buying, storing, taking title to, and physically handling goods in large quantities, then selling the goods (usually in smaller quantities) to retailers or industrial or business users

distributor

type of reseller, that resells manufactures products without significantly altering their form. often buy from manufacturers and sell to other businesses like retainers in a b2b transaction

institutions

hospitals, educational organizations, and religious organizations engaged in b2b to fulfill needs for capital construction equipment, supplies, food and janitorial services

government

most country’s largest purchaser of goods/services

need recognition

first step in b2b buying process, recognizes unmet need through internal or externam sources

product specification

second stop in b2b buying process, firms describing what they want

request for proposal (RFP) process

third step in b2b buying process, process through which buying organizations invite alternative suppliers to bid on supplying their required components

proposal analysis, vendor negotiation, and selection

fourth step in the b2b buying process, evaluate proposals received in response to its RPF, negotiate with vendors and select best fit

order specification

fifth step in the b2b buying process, company places order with suppliers providing a detailed description of goods, prices, delivery date, and penalties for noncompliance. Supplier then sends acknowledgement of received order

vendor performance assessment using metrics

sixth step in the b2b buying process, a formal and objective analyzation of a vendor’s performance to make decisions about future purchases

buying center

a group of people typically responsible for the buying decisions in the large organizations

initiator

recognizes needs

ex: barre3 corporate

influencer

may have an impact on decisions

ex: instructors, clients, and sales reps

decision maker

they make ultimate decisions, not usually job to write checks

ex: barre3 studio manager

buyer

people who write the checks

ex: barre3 studio manager

user

end users

ex: clients and instructors

gatekeeper

they stock the flow of information

ex: bookkeper

new buy

b2b setting, a purchase of a good/service for the first time; the buying decision is likely to be quite involved because the buyer/buying organization does not have any experience with the item

modified rebuy

refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options and so forth

straight rebuy

refers to when the buyer simply buys additional units of products that have previously been purchased

what are 5 factors affecting globalization

demographic characteristics, sociocultural factors, geographic characteristics, political and legal factors, and economic factors

global product/service

global market strategy, straight product extension (NO CHANGE), product adaptation (MODIFY BASED ON COUNTRY), product invention (NEW PRODUCT)

global pricing

global market strategy, making sure value exchange is fair, exchange rate

global distribution

global market strategy, hire new distributors and retailers

global promotion

global market strategy, modify global communications/marketing for cultures

export

global entry strategy, shipping products to a new country (lowest risk, simple)

joint venture

domestic firm partners with local firm for solution to expanding internationally (making more investments, partnership)

direct investment

starting operations in a new country, going all in (vertical integration, risky and expensive, more personalized and more relationships)