Marketing exam 1

chapter 1,3,4,5

What is marketing

process by which companies create value for customers and strong customer relations

The marketing concept

market —— customer needs —— integrated marketing —- profits through customer satisfaction

marketing concept

is the philosophy that prioritizes understanding and meeting the needs and desires of customers to drive business success and profitability.

sales concept

is the approach focused on maximizing sales volume through aggressive selling techniques and promotions, often regardless of customer satisfaction or market needs. (make product and then try to promote it)

production concept

consumers will prefer products that are widely available and affordable, so a company should focus on producing goods efficiently and at a low cost.

product concept

consumers will favor products that offer the highest quality, best performance, or most innovative features.

Marketing myopia

short-sighted thinking where a company concentrates on selling its products instead of understanding what customers really need.

societal marketing concept

The societal marketing concept is the idea that a company should make marketing decisions by considering:

1. Customers' wants

2. The company's profits

3. The long-term well-being of society

The marketing mix (the 4 P’s)

Product, place, price, promotion

product

The goods or services being sold

place

Where and how the product is sold

price

The amount consumers pay

promotion

Activities used to inform and persuade customers.

marketing process model

series of steps companies use to create value for customers and build strong customer relationships.

step 1: Understand the marketplace and the customer needs and wants

step 2: design a customer driven market strategy

step 3: construct an integrated marketing program

step 4: build profitable customer relationships

step 5: capture value from the customers

customer equity

total lifetime value of all the customers of a company

consumer generated marketing

marketing created by consumers through reviews, social media posts, videos, blogs, and other content

customer relationship groups

different types of relationships a company builds with its customers

butterflies

high profitability, low loyalty ( buy a lot, but only for a short time)

customer evangelists

loyal customers who voluntarily tell others about a brand and encourage them to buy its product

true friends

high profitability, high loyalty

barnacles

low profitability, high loyalty ( stays with the company for a long time but doesn’t generate much product)

strangers

low profitability, low loyalty (not a good fit for the companies offerings)

Marketing environment

everything that influences a company’s marketing decisions and ability to serve customers

actors in the enviroment

the company, suppliers, marketing intermediaries, competitors, customers, publics

forces in the macro environment

larger societal forces that affect the entire marketplace

demographic forces

age, population, gender

economic forces

income, inflation , recessions

natural forces

weather, resources

technological forces

new inventions

political and legal forces

laws and regulations

cultural forces

values and lifestyles

hyper tasking

multitasking in overdrive

ergonomics

craving recognition of individuality

mass mingling

digital technologies affect online mingling

cacooning

spending more time at home

down aging

comfort in familiar practice from decades past

clanning

validating ones own belief system by belonging to a group that shares common beliefs

LOHAS

general concern for the natural world

renewed spirituality

less “materialism” greater “meaning of life”

marketing information system

system for collecting and using information to support marketing planning, implementatiom, and decision making

internal databases

information from within the company

marketing intelligence

information about competitors and changes in the marketplace

marketing research

information collected for a specific marketing problem

marketing decision support system

tools and software that help managers analyze data and make decisions

exploratory research

gathers preliminary information that will help define the problem and suggest hypothesis

descriptive research

describes things ( market potential for a product, demographic , attitude)

casual research

tests hypothesis about cause and effect relationships

primary data

collects specific info, directly applicable, costly

secondary data

rely on existing data, not as applicable, less expensive

observational research

gathering of primary data by observing relavant people, actions, and situations

ethnographic research

observation in a “natural” environment

mechanical observation

on device meters, checkout scanners, eye camera

survey research

most widely used for method for primary data collection, best for gathering information

personal interview

used for surveys and experiments, some observational research ( pros: highly flexible, good control of sample cons: high cost per respondent, subject to bias

phone

mostly used for serveys, some experiments, gathers info fast, flexible, higher costs, bias

mail

mostly for questionare, inexpensive, saves time on data processing, not good response rate

cultural factors

basic cause of persons wants and behaviors

subculture

culture of a group of people who share beliefs based on common life experiences

social classes

societys relatively permanet and ordered divisions whose members share similar beliefs

cultural shifts

marketers try and spot cultural shifts to determine what new products may be wanted

social factors

reference groups include groups that a person wants to identify with ot doesnt want to (aspirational/ dissociative)