MKT 291 exam 1

differentiation

what makes a product unique and stand out to customers above other products

exchange

a basic business function that takes place when a person or company satisfies a need by exchanging money for products or services

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

marketing management

the process of setting marketing goals, the planning and execution of activities to meet these goals, and measuring progress towards their achievement

marketing mix

the building blocks that a marketer can adjust to affect the overall marketing strategy of a product

people

encompasses the human actors who provide goods, services, and ideas to the customer

physical evidence

the tangible elements in the place that the good or service is sold

process

 the flow of activities involved in providing goods, services, and ideas to the customer

place

the means of getting the good, service, or idea to the customer

product

a good, service, or idea to satisfy a customer's needs

price

the amount that is being charged for the good, service, or idea

promotion

the means of communicating with the customer

the marketing concept

a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability

the selling concept

the tendency to focus on selling current products and services to customers

What is marketing responsible for?

• Ensuring that a firm understands its customer 

• Finding the best ways to reach customers

• Encouraging customers to purchase (persuasion) 

• Turning customers into brand loyalists

economic forces

all factors that influence the wealth or buying power of consumers, including inflation, income, employment, interest rates, and productivity, found in the external environment

environmental (natural) forces

elements of the climate, weather, or natural resources that affect production, purchasing, or other economic activity

environmental scanning

the process of gathering and interpreting data in the immediate and external environments to identify possible opportunities and threats and to develop strategic plans from them. (Observe Identify trends and patterns, Interpret, Predict, Analyze, Strategize)

external environment (macroenvironment)

uncontrollable forces which affect the company and all actors in the immediate environment and establish the surrounding context in which business is conducted

immediate environment (microenvironment)

actors (such as companies, people, groups, or organizations) that can directly influence a company's ability to market successfully

legal forces

the regulatory systems that affect business at the local, regional, national, and international levels, including health and safety laws and regulations for business formation

marketing environment

all of the forces that affect a company's ability to do business

political forces

cover the stability and general state of politics in the region

social forces

demographic characteristics and the culture of the population, including cultural values and personal values, found in the external environment

SWOT Analysis

a framework a marketer can use as a tool when environmental scanning

technological forces

anything that affects innovation, including technological advances, hardware and software capabilities, and the state of learning in general

attitudes data

measure consumers' feelings, convictions, or beliefs about a brand

awareness data

measure the knowledge consumers have of brands, products, and solutions

case analyses

intensive studies of representative examples (cases) of the subject under study

causal research

research that is quantitative in nature and focuses on discovering the cause-and-effect relationship between variables

data mining

the process of searching or "mining" for insights from the patterns, trends, and relationships within data sets

data scientist

someone trained to retrieve, manage, analyze, and interpret data to help assist in making business decisions

demographic / socioeconomic data

measure characteristics of consumers, such as income, gender, education level, marital status, social status, and many others; analysis of this data often reveals certain segments of consumers with strong affinity or loyalty to a brand

depth interviews

interviews with people who are knowledgeable about the general subject under investigation

descriptive research

quantitative in nature and focuses on determining how often something occurs or how two things are related to each other. Focuses on quantifying feelings, attitudes, or opinions, perceptions

exploratory research

focuses on gaining ideas or insights and is particularly helpful in funneling broad research questions into more precise ones

focus group

a set of individuals from whom a researcher wishes to gain insights using a structured interview process that is moderated by a facilitator

intention data

measure future, anticipated behaviors; this data help marketers predict demand for future consumption

literature search

a search for statistics and content in various blogs, books, newspapers, or magazines for data or insight into the research subject

marketing research

the process of collecting and analyzing information from and about consumers to influence marketing strategy and decisions

motivation data

measure the motives of consumers so as to understand what conditions drive behavior

net promoter score (NPS)

a specific type of survey, used by many marketers, to measure the experience customers have with brands; a brand's net promoter score is calculated by subtracting the percent of detractors in the survey from the percent of promoters

promoters (9-10)

customers who are loyal enthusiasts, tend to buy more, stay in relationships with brands longer, refer friends, and provide feedback and ideas

passives (7-8)

customers who are satisfied but not enthusiastic about the brand; they are vulnerable to competitive offerings

detractors (0-6)

customers who are unhappy and can hurt your brand through negative word-of-mouth communications

primary data

new data that marketers must collect when no data exist to help marketing researchers pursue answers to research. ex: Depth interview, Focus groups, Case analyses , Projective methods

projective methods

form of research that uses indirect methods - usually some sort of task - that causes study participants to reveal their feelings, thoughts, and opinions or express behaviors

psychographic / lifestyle data

measure personality traits, interests, opinions, or lifestyle characteristics of consumers; this data are frequently combined with demographic data to let marketers create a persona of the ideal consumer

qualitative research

the collection and analysis of non-numeric data to understand thoughts, ideas, and opinions. Qualitative research questions often begin with "who", "what", "how", or "why"

quantitative research

the collection and analysis of numeric data for the purpose of statistical analysis

secondary data

pre-existing data that was originally gathered for another purpose but is helpful for current research projects. ex: Lit search, Data mining

survey

a poll designed to gather input, information, or opinions from a specific population of people

Gaining customer insight

regular market research gives marketers a competitive edge edge

characteristics of a research question

Drives the research effort, Usually made to target a specific problem, Seek feedback from consumers, Can be very clear or lazy

top of mind awareness

brands that a consumer first recalls from memory

Market segmentation

the process of breaking down large groups into smaller groups based on meaningful characteristics and shared needs

Steps to creating a meaningful market segment

Choose meaningful characteristics, Choose the number of characteristics to include, Determine if the segment is a desirable market segment

Demographic

Uses statistics such as age, gender, income, ethnicity, and education

Geographic

uses geographic location

Psychographic

Uses consumer activities, values, interests, and opinions

Usage behavior

Uses how often a consumer uses or how a consumer uses a product. When? How? How often?

Identifiable target market

if a marketer can clearly identify the segments and can describe the traits or characteristics of that segment

Sizeable target market

when there are enough consumers within the group to support profitable product sales. Too little? Too many?

stable target market

if it is predictable in its purchasing ability and behavior

Accessible target market

if a marketer can reach the consumers for marketing and for sales of the product

Congruent target market

A segment should also have congruence with the company, meaning it aligns with the company’s objectives and resources

Undifferentiated Marketing (mass marketing)

When a marketer uses only one strategy or marketing mix for the entire market.

differentiated Marketing

When a company targets more than one market segment and develops a unique marketing mix to target each segment separately

Concentration Marketing

When a marketer selects one target market and customizes a marketing mix for that target market only

buyer persona

representation of a marketer’s market segment

Position

the space in the market for which a product is ideally suited

Positioning

the strategic process of developing a market position

positioning statement

a succinct expression of a product's market position.

For (target audience), Product/Service is (concise description). It is ideal for (best use or application) because (primary benefit or differentiation).

unique selling proposition (USP)

an adaptation of the product positioning statement for use in sales dialogues and communications

In the absence of any other input, what do customers judge quality based on?

price

Being First (Positioning Strategy)

Those who are the first to accomplish something earn awareness. This can mean earning credit, free marketing, or fame

Positioning as a Follower (Positioning Strategy)

Any positioning for a product that is preceded by a similar product. Usually benefits from working with a niche market. Finding differentiation is the most important piece of this strategy

Repositioning (Positioning Strategy)

Done when a current position no longer appeals to the ideal or target customer. Done to take advantage of a competitor’s weakness.

Use for positioning matrix

To see where a “hole” or need is or to justify current positioning

Buyer Behavior Process

helps marketers understand what a customer goes through during a purchase

Need Recognition BBP

consumer recognizes that he/she has a need

Information Search BBP

consumer searches for information

Evaluation of Alternatives BBP

consumer looks at the different available and viable options, then weighs the upsides and downsides of each

Purchase BBP

consumer decides to purchase, including where and how to purchase

Reaction (Post-purchase Behavior) BBP

consumer has consumed the “product,” be it a physical product or service, and is pleased or displeased

Consumption

using a good or service to fill a need

Self actualization needs

needs for finding enjoyment and purpose in life; achieving one's potential

Esteem needs (ego)

include both internal esteem needs (self-respect, autonomy, and achievement) and external esteem needs (status and recognition)

Social needs

needs for belonging, community, friendship, relationship

Safety needs

needs for shelter and protection from harm

Physiological needs

basic needs for food, sleep, etc.

Internal cues

Comes from within a person, can be hunger or thirst

external cues

Comes from the environment, can be an advertisement

Low Involvement Purchase

A purchase that doesn’t cost much or the decision isn’t risky if the customer makes a purchase mistake, simpler, frequently made

Routine Purchases (habitual purchases)

items that are regularly purchased by a consumer

Impulse Purchases

purchases made with very little thought or planning

High-involvement Purchases

Purchases of greater consequence to the consumer. It is helpful for marketers to provide additional needed information to consumers. Assurances such as warranties or money-back guarantees are helpful

Services Buyer Behavior Process

Need recognition, information search, purchase, evaluations of alternatives, reaction

How to Market for Services Buying Process

By communicating elements of credibility and trustworthiness

How to Market for Low-involvement Purchases

Make sure that the items are available and stocked where consumers shop & promotions such as advertising and coupons