Principles of Marketing- Exam 1

Difference between marketing mix and marketing strategy

-marketing mix: 4 P's (the controllable variables the company puts together to satisfy the target market)

-marketing strategy: 4 P's and target market (Specifies a target market and a related marketing mix.)

4 P's

Price

Product

Promotion

Place

Target Market

-center of circle

-a fairly homogeneous (similar) group of customers to whom a company wishes to appeal

Product decisions:

• Physical good

• Service

• Features

• Benefits

• Quality level

• Accessories

• Installation

• Instructions

• Warranty

• Product lines

• Packaging

• Branding

Place decisions:

• Objectives

• Channel type

• Market exposure

• Kinds of intermediaries

• Kinds and locations of stores

• How to handle transporting and storing

• Service levels

• Recruiting intermediaries

• Managing channels

Promotion decisions:

• Objectives

• Promotion blend

• Salespeople: Kind, Number, Selection, Training, Motivation

• Advertising: Targets, Kinds of ads, Media type, Copy thrust, Prepared by

• Publicity

• Sales promotion

Price decisions:

• Objectives

• Flexibility

• Level over the product life cycle

• Geographic terms

• Discounts

• Allowances

Mass marketing

The typical production-oriented approach that vaguely aims at everyone with the same marketing mix.

Multichannel distribution

When a producer uses several competing channels to reach the same target market—perhaps using several intermediaries in addition to selling directly.

Marketing plan

-A written statement of a marketing strategy and the time-related details for carrying out the strategy.

-details of everything in circle

-marketing strategy + time related details and control = marketing plan

product line

-a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

-A set of individual products that are closely related.

individual product

A particular product within a product line.

Product depth

INTERNET SAYS:

refers to the number of variations—such as sizes, colors, features, or styles—offered within a single product line, allowing a company to meet diverse customer needs.

Marketing program (in slides one objective says know difference between marketing strategy, marketing plan, and marketing program)

Blends all of the firm's marketing plans into one big plan.

Product assortment

The set of all product lines and individual products that a firm sells.

SWOT analysis

Identifies and lists the firm's strengths and weaknesses and its opportunities and threats.

4 basic types of opportunities:

-market penetration

-market development

-product development

-diversification

market segmentation

A two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

market positioning

INTERNET SAYS: the practice of defining the unique place your brand or product occupies in the mind of your target customer relative to competitors, shaping how they perceive and choose you

market segment

A relatively homogeneous group of customers who will respond to a marketing mix in a similar way.

What makes for a good market segment?

INTERNET SAYS:

-homogenoues

-clearly defined group of customers who share similar characteristics, needs, or behaviors, and who are likely to respond in a predictable way to a specific marketing strategy

Demographic segmentation is

-income, gender, age, marital status, occupation, social class, family life cycle, ethnicity, dwelling, geographic area, family size and education

- (quizlet answer): dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Maslows hierarchy of needs

top to bottom:

-societal and global needs

-personal needs

-social needs

-safety needs

-physiological needs

Selective exposure

Our eyes and minds seek out and notice only information that interests us.

Selective perception

People screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.

Selective retention

People remember only what they want to remember.

Culture

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people.

extensive problem solving

-high involvement

-infrequently purchased

-expensive

-high risk

-much information desired

routinized response behavior

-low involvement

-frequently purchased

-inexpensive

-little risk

-little information needed

limited problem solving

in between routinized response behavior and extensive problem solving

low-involvement purchases

Purchases that have little importance or relevance for the customer.

reference group

The people to whom an individual looks when forming attitudes about a particular topic.

Opinion leader

A person who influences others.

ethnic group? (could be social class or culture maybe?) social class is:

A group of people who have approximately equal social position as viewed by others in the society.

Steps in decision making process:

brand familiarity

How well customers recognize and accept a company's brand.

Levels of brand familiarity:

1. rejection

2. nonrecognition

3. recognition

4. preference

5. insistence

6. evangelism

brand rejection

Potential customers won't buy a brand unless its image is changed.

brand nonrecognition

Final customers don't recognize a brand at all—even though intermediaries may use the brand name for identification and inventory control.

brand recognition

Customers remember the brand.

brand preference

Target customers usually choose the brand over other brands, perhaps because of habit or favorable past experience.

brand insistence

Customers insist on a firm's branded product and are willing to search for it.

brand evangelism

customers so enthusiastic about a brand that they actively spread positive word-of-mouth.

dealer brand

-aka private brands

-brands created by intermediaries

generic brand/products

Products with no brand other than identification of their contents and the manufacturer or intermediary.

local brand? (maybe family brand or license brand or individual brands?)

family brand

A brand name that is used for several products.

licensed brand

A well-known brand that sellers pay a fee to use.

individual brands

Separate brand names used for each product.

Homogeneous; homogenous shopping products

similar; Shopping products the customer sees as basically the same and wants at the lowest price.

Heterogenous; heterogeneous shopping products

highly varied; Shopping products the customer sees as different and wants to inspect for quality and suitability.

Product classes:

-convenience products: staples, impulse products, emergency products

-shopping products: homogeneous, heterogeneous

-specialty products

-unsought products: new unsought, regularly unsought

Product life cycle

The stages a new-product idea goes through from beginning to end.

Product life cycle stages:

1. market introduction

2. market growth

3. market maturity

4. sales decline

market introduction

A stage of the product life cycle when sales are low as a new idea is first introduced to a market.

market growth

A stage of the product life cycle when industry sales grow fast—but industry profits rise and then start falling.

market maturity

A stage of the product life cycle when industry sales level off and competition gets tougher.

sales decline

A stage of the product life cycle when new products replace the old.

Direct channel

directly to customer (services are always direct)

Indirect channel

ex: nike selling shoes in shoe sensation

Personal selling is

the most expensive form of communication

Combiner

aims at 2 or more submarkets with the same marketing mix

Differentiation

•How the marketer tries to distinguish her or his offering in the marketplace—how it is set apart from the competition.

•What really matters is that the consumer perceives the marketer's product to be different.

Positioning

•How customers think about proposed and/or present brands in a market.

•Marketing research techniques are designed to collect information about consumer perceptions and determine differences among competing products in the mind of the consumer.

In the introduction phase one of your primary objectives is to

inform

Success factor/what leads to success in product development?

top management support