Marketing Test 1

Marketing

The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

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’ 5 senes can perceive

Durable Good

Permanent Good

Non-Durable Good

Consumed in 1 or a few uses

Service

Intangible item

Idea

Concept or opinion

Organizational Buyers

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

Environmental Forces

The uncontrollable forces that affect a marketing decision: Social, Economic, Technological, Competitive, Regulatory

Need

Feeling deprived of a basic necessity such as food, clothing or personality

Want

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

Market

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

Market Segment

Relatively homogenous groups of prospective buyers that: have common needs and will respond similarly to an action

Target Market

One or more specific groups of potential customers towards which an organization directs its marketing program

Customer Value

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

Customer Lifetime Value

A metric that represents the total net profit of 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 customers while trying to achieve the organization goals

Consumer Products

Products purchased by the ultimate consumer

Three Types of Organizations

For-profit firms, Nonprofit firms, and government agencies

Profit

Revenue - expenses

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

Strategic Business Units (SBUs)

A subsidiary, division, or unit of an organization that markets a set of related products to distinct target markets

Core Values

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

Mission

A statement of the organization’s functions in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision

Organizational Culture

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

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, such as one year or five years

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

(Market penetration: current products in current markets)

(Product development: new products in current markets)

(Market development: current products in new markets)

(Diversification: new products in new markets)

Boston Consulting Group Portfolio Analysis

Question mark: high growth, low market share

Stars: high growth, high market share

Cash cow: low growth, high market share

Dogs: low growth, low market shate

Phases of Strategic Marketing Process

Planning: situational assessment, products focus, and marketing program

Implementation: Gain recourses, define tasks and execute the marketing program)

Evaluation: Review and adjust as needed

SWOT Analysis and Actions

Strengths, Weaknesses, Opportunity, Threats

Build on strengths, correct weaknesses, exploit opps, avoid threats

Market Segmentation (Demographics, psychographics, geographic)

Aggregating prospective buyers into grosp that have common eeds, will respond similarly to market actions

Points of Difference

Those characteristics of a product that make it superior to competitive substitues

Product Positioning

The place a product occupies in customers’ minds on important attributes relative to the competition

Marketing Strategy

A means by which a marketing long-term goal is to be achieved, usually characterized by a specific target market and a marketing program to achieve it

Environmental Scanning

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

Environmental Forces

Social, economic, technological, competitive, regulatory

Social forces

The demographic and its cultural characteristics of the population (demographics/culture)

Culture

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

Economy

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

• microeconomic conditions: marketplace

• microeconomic factors: consumer income

Consumer Income

Comprised of gross, disposable and discretionary income

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 such as food, housing, clothing and transportation

Discretionary Income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing and transporation

Electrionic Commerce

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

Internet of Things

The network of products embedded with connectivity-enabled electronics

Pure Competition

Many sellers with similar products (e.g. commodities)

Monopolistic Competition

Many sellers with substitable products in a price range

Oligopoly

Few sellers with substitutable products in a price range

Pure monopoly

Only one seller

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 Marketing Concept

The view that holds an organization should satisfy the needs of consumers in a way that also provides for societies well-being

Triple Bottom Line

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable long-term growth

1.) profit responsibility

2.) stakeholder responsibility

3.) societal responsibility

Sustainable Marketing

The effort to meet global economic, environmental and social needs without compromising the opportunity for future generations to meet theirs

Green marketing

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

Cause Marketing

Occurs when charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

Consumer Behavior

The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions

Purchase Decision Process

The five stages a buyer goes through in making decisions about what to buy:

Problem Recognition

Information Search

Alternative Evaluation

Purchase Decision

Post-purchase behavior

Extended Problem solving

High innvolvment purchase situations such as buying a house or an automobile

Limited Problem Solving

used for purchases that do not require a greal deal of time or effort such as buying clothing or small appliances

Routine-Problem solving

for products such as toothpaste or soap, consumers often recognize and problem and skip right to the purchase decision

Consumer Journey Map

All the touchpoints a consumer before during and after a purchase

Maslow’s Hierarchy of Needs

Psychological, Safety, Social, Personal, Self-Actualization Needs

Types of perception

Perception, Selective perception, subliminal perception

Perception

The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world

Selective Perception

Filtering of exposure, comprehension, and retention of information

Subliminal Perception

The process of seeing or hearing messages without being aware to them

Brand Loyalty

A favorable attitude toward and consitent purchase of a single brand over time

Lifestyle

Mode of living - how people spend their time and resources, what they consider important in their environments and what thet think of themselves and the world around them

Psychographics

The analysis of consumer lifestyles.

• Provides insight into consumer needs and wants.

• Useful in segmenting and targeting consumers for new and existing products

Opinion leaders

Individuals who exert direct or indirect social influence over others

Influencer Marketing

The recruitment of individuals to advocate for products and brands rather than focusing exclusively on prospective buyers

Word of Mouth

Influencing of 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 because of differences in values or behaviors

Brand Community

A group of consumers that share a common passion for a particular brand fellow customers of that brand and the product in use

Social Class

The relatively permanent, homogenous divisions in a society used to group people sharing similar values, interests and behaviors

Behavior Learning

The process of developing automatic responses to a situation built up through repeated exposure

Organizational buyers

Manufactures, wholesaler, retailers, service companies, organizations and agencies that buy products for their own use or resale.

B2B marketing

The marketing of products to organizational buyers that buy products for their own use or resale.

Organizational Markets

Industrial firms, resellers, government agencies

Industrial Firms

companies that reprocess products before selling them to the next buyer

Resellers

Wholesalers and retailers that buy products and resell them without any reprocessing

Government agencies

Units of federal, state and local government that buy products to serve their constituents

Derived Demand

Demand for industrial products that is driven by or derived from the demand for consumer products

Reciprocal arrangment

Agreement between two organizations to purchase each others products

Traditional Auction

A seller puts an item up for sale and potential buyers are invited to big in competition with each other

Reverse Auction

A buyer communicates a need for a product and potential suppliers are invited to bid in competition with each other

Buying Center

The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision

E-Marketplace

Online trading communities that bring together buyers and suppliers exchange information, money products and servicess