FBLA marketing 3

Marketing

is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.

Marketing mix

Product, place, price, promotion

Value

Benefits

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Costs

Marketing concepts

To which a firm's goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants

Relationship marketing

Marketing activities that are aimed at developing and managing trusting and long-term relationships with larger customers

In relationship marketing

Customer profile, buying patterns, and history of contacts are maintained in a sales database, and an account executive is assigned to one or more major customers to fulfill their needs and maintain the relationship.

Environmental scanning

Collecting information about the marketing environment

Environment analysis

Concerned with assessing information about the marketing environment

Probability sampling

Every element has a known chance of being selected for study

Random sampling design

Gives every member of the population an equal chance of appearing in the sample

Two types of markets

Consumer and business

Three purposes that someone in a business market would purchase products

Resale, wholesale, and use in producing other products

Four types of business markets

Producer, reseller, government and institutional

Cause related marketing

A mutually beneficial collaboration between a corporation and a nonprofit in which their respective assets are combined to create shareholder and social value, connect with a range of constituents, communicate the shared valued of both organizations

Quota

A government imposed trade restriction that limits the number, or in certain cases the value, of goods and services that can be imported or exported during a particular time period

Embargo

An official ban on trade or other commercial activity with a particular country

Wholesale

The selling or goods in large quantities to be retailed by others

Economic responsibilities

A company needs to be primary concerned with turning a profit

Legal responsibilities

It follows the law

Ethical responsibilites

Responsibilities that a company puts on itself because it's owners believe it's the right thing to do not because they have the obligation to do so(fair wages, environmentally friendly)

Philanthropic responsibilities

Going above and beyond what is required and is right (donating money to charities, donating services to organizations)

Mobile commerce

The delivery of electronic commerce capabilities directly into the customers hand, anywhere, via wireless technology

Reactive response

Change in your marketing mix in response to environmental changes

Proactive response

Try to change the environment (lobbying)

Competitive response

Is a move that is taken to counter the effects of a competitors action

E-commerce

Electronic commerce

Marginal cost

The rate at which total cost changes as the amount produced

Two most common uses of marketing research

Diagnostic analysis and opportunity analysis

Diagnostic analysis

To understand the market and and the firms current performance

Opportunity analysis

To define any unexploited opportunities for growth

Marketing research studies include...

Consumer studies, distribution studies, semantic scaling, multidimensional scaling, intelligence studies, projections, and cojoint analysis

Conjoint analysis

Infers the relative importance of attributed by presenting consumers a set of features of two hypothetical products and asking them which product they prefer. This question is repeated over several sets of attribute values

Variable costs

Are costs that change in proportion to the good the good or service that a business produces

Variable costs are also...

The sum of marginal costs over all units produced

Semantic scaling

A very simple rating of how consumers perceive the physical attributes of a product, and what the ideal values of those attributed would be. (Not very accurate)

Multidimensional scaling (MDS)

Addresses the problems associated with semantic scaling by polling the consumer for pair-wise comparisons between products or between one product and the ideal. Consumers can report perceptions of similarities between brands

Skimming strategy

Seeks to be the first to introduce a product with very good performance, selling it to the innovator market segment and charging a premium price for it. It makes as much profit as possible, then moves on when the competition arrives. (Short term)

Penetrating strategy

Seeks to gain market share by sacrificing short-term profits, and increasing the price over time as market share is gained

Exchange controls

Government restrictions on the amount of a particular country's currency that can be bought or sold

Balance of trade

Difference in value between a nation's export and it's imports

Undifferentiated strategy

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix

The purpose of market segmentation is to...

Divide a total market to enable a marketer to develop a more precise marketing mix

Segmentation

The process of dividing a total market into market groups because people within each group have relatively similar product needs

Level of involvement

Is the importance and intensity of interest in a product in a particular situation

Routinized response behavior is what a consumer does when

Buying frequently purchased, low-cost items that need little effort

Producer markets

Individuals and business organizations that purchase products for making a profit either by using the products to produce other products or by using them in their operations

Reseller markets consist mainly of

Wholesalers and retailers

Institutional markets

Are consumers who but products for their own use

Reseller markets

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the products

Product

Anything the customer receives in an exchange

Market

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to but such products

Concept testing

The phase of new product development in which a small sample of potential buyers are presented with a product idea in order to determine their attitudes and initial buying intentions regarding the product

Brand

Name, term, sign, symbol, design, or combination of these that identified a sellers product

Demand

The quantity of product consumers are willing and able to purchase at a specific price

Personal selling is the most effective method of...

Specialized or high priced consumer goods

Secondary data

Information already collected for another purchase that can be used to solve the current problem

Primary data

Information that is gathered to address a specific issue or problem at hand

Disintermediation

The increasing move towards selling directly to customers rather than through intermediaries

Descriptive ethics

Involves studying and characterizing morality as it is

Brander's goal

Relationship with customer (complete life because you are in it)

Marketing research process

1) define the problem

2) determine research design

3) identify data types and sources

4)design data collection forms and questionnaires

5) determine sample plan and size

6) collect data

7) analyze and interpret the data

8) prepare the research report

Market share

The portion of a market controlled by a particular company or product

Clout

Strong influence

Price elasticity of demand

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price, with all other factors held constant