MKT msstate Exam 1

325 Million people

What is the US Population?

7.4 Billion people

What is the World Population?

art

marketing is as much an ____ as it is a science

satisfying customers needs

what is marketing?

Peter Drucker

"The aim of marketing is to make selling superfluous. The aim is to know and understand customers so well that products sell themselves."

~ ________ ____________

marketing

A philosophy, and attitude, a perspective, and management orientation PLUS a set of

activities including: products, pricing, promotion, place (distribution)

1. traditional

2. contemporary

what are the 2 forms of marketing?

traditional marketing

-View - Making a sale

-Abundance of products in the nearby shopping centers

-Advertising: Television, magazine, and direct-mail ads

contemporary marketing

-View - Satisfying customer needs

-Imaginative Web sites and mobile phone apps, blogs, online videos, and social media

-Reach customers directly, personally, and interactively

marketing defined

involves creating value for customers and building strong customer relationships in order to capture value from customers in return

1. Attract new customers by promising superior value

2. Keep and grow current customers by delivering satisfaction

what are the goals of marketing?

value

Marketing involves creating ______ for customers and building strong customer relationships in order to capture value from customers in return

1. UNDERSTAND the marketplace & customer needs and wants

2. DESIGN a customer-driven marketing strategy

3. CONSTRUCT an integrated marketing program that delivers superior value

4.BUILD profitable relationships & create customer delight

5. CAPTURE value from customers to create profits and customer equity

what are the 5 steps of the marketing process for creating and capturing customer value

1. needs, wants & demands

2. market offerings

3. value and satisfaction

4. exchanges and relationships

5. markets

what are the 5 core customer and marketplace concepts

deprivation

1. Physical needs-Food, clothing, warmth, and safety

2. Social needs- Belonging and affection

3. Individual needs

customer needs are the state of felt ____________

they include:

wants

Form taken by human needs when shaped by culture and individual personality (& marketing!)

demand

Human wants that are backed by buying power

market offerings

combination of products, services, persons, places, organizations, information, ideas, or experiences offered to a market to satisfy a need or want

marketing myopia

paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

value and satisfaction

Customers form expectations about the ________ and _________________ of market offerings

satisfied

dissatisfied

______________ customers buy again and spread the word.

________________ customers switch to competitors and criticize the product to others.

satisfaction

feelings of pleasure or disappointment resulting from comparing a product's perceived performance in relation to expectations

1. delighted

2. satisfaction

3. dissatisfied

expectations -> perceived performance -> ... (3)

value proposition

Is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

facebook

"connect and share with the people in your life"

youtube

"provides a place for people to connect, informs, and inspire others across the globe"

BMW

"the ultimate driving machine"

exchange

is the act of obtaining a desired object from someone by offering something in return

creating

maintaining

growing

Marketing consists of _______, _________, and __________ desirable exchange relationships with target audiences.

customer

Marketers build strong relationships by consistently delivering superior __________ value

market

the set of actual and potential buyers of a product or service

sellers

_________ must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them

consumers

search for products, interact with companies to obtain information, make purchases

customer-managed

_____________-____________ relationships are important as customers are empowered and marketing is made a two-way affair

marketing management

Choosing target markets and building profitable relationships with them (aka value proposition)

1. target market

2. value proposition

2 Basic factors to design a winning marketing strategy

demand

customer

marketing management= _____ management and _______ management

1. production concept (available/affordable)

2. product concept (quality/performance/features)

3. selling concept (large-scaling selling/promo)

4. marketing concept (needs & wants of customer)

5. societal marketing concept (needs/wants + society)

Marketing management orientations (5)

selling concept

focuses on existing products and heavy selling; selling what the company makes rather than making what the customer wants

marketing concept

takes an outside-in view that focuses on satisfying customer needs as a path to profits. It starts with a well-defined market, focuses on customer needs, and integrates all the marketing activities that affect customers

1. company profits

2. consumer wants

3. society's interest

what three considerations should companies balance when seting their marketing strategy

Marketing Mix or 4 P's

Set of marketing tools the firm uses to implement its marketing strategy

1. product

2. price

3. place

4. promotion

what are the major marketing mix tools

Customer relationship management (CRM)

is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

customer-perceived value

Customer's evaluation of the difference between all the benefits and costs of a marketing offer relative to those of competing offers

customer satisfaction

Extent to which a product's perceived performance matches a buyer's expectations

customer engagement marketing

involves fostering direct, continuous customer involvement in shaping brand conversations, experiences, and community

-it goes beyond just selling. The key is to find ways to enter consumers' conversations with engaging and relevant brand messages

attraction

intrusion versus ___________

consumer- generated marketing

refers to brand exchanges created by consumers by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

°Uninvited consumer-to-consumer exchanges

°Invitation of consumers by companies

→Asking for new product and service ideas

→Asking to play an active role in shaping ads

consumer-generating marketing occurs through.. (2)

customer lifetime value

Value of the entire stream of purchases a customer makes over a lifetime of patronage

defections

Customer _____________ can be costly. Losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage.

share of customer

Portion of the customer's purchasing that a company gets in its product categories

customer equity

-Total combined customer lifetime values of all of the company's current and potential customers (CLV1+CLV2+CLV3...)

-Helps to measure the future value of the company's customer base

-Increases when the loyalty of the firm's profitable customers increases

-Better measure of a firm's performance than current sales or market share

1. Digital age

2. Changing economic environment

3. Growth of not-for-profit marketing

4. Rapid globalization

5. Call for more ethics and social responsibility

Five major developments that are changing the marketing landscape and challenging marketing strategy

Digital and social media marketing

Engaging consumers via their digital devices using digital marketing tools and social media

Mobile marketing

Using mobile channels to stimulate immediate buying, make shopping easier, and enrich the brand experience

marketing

Blending the new digital approaches with traditional marketing creates a smoothly integrated __________ strategy and mix.

Great Recession

The ________ _______________ from 2008 to 2009 undermined consumer confidence.

-Post-recession era

->Consumers have become more frugal.

->New consumer spending values emphasize simpler living.

->Marketers are focusing on practicality and durability in their product offerings and marketing pitches.

not-for-profits

face stiff competition for support and membership.

Sound marketing can help them attract membership, funds, and support.

Industry

Competitors

Opportunities

Managers around the world are taking both local and global views of the company's: (3)

ethics

Corporate ______ and social responsibility have become important for every business.

strategic planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

1. Provides a guiding philosophy

Marketing concept—company strategy should create customer value and build profitable relationships with the key customers

2. Provides inputs to strategic planners

what are the 2 roles of marketing in strategic planning?

value chain

Series of internal departments that carry out value-creating activities

activites

Firm's success depends on how well departments coordinate their ____________

value

Marketers should ensure all the departments are customer-focused and develop a smooth functioning _______ chain.

Leonard L. Berry

The most important contribution the marketing department can make is to be...

"exceptionally clever in getting everyone else in the organization to practice marketing."

~ ________ __________

Value delivery network

Made up of the company, its suppliers, its distributors, and its customers who partner with each other

1. defining the company mission

2. setting company objectives and goals

3. designing the business portfolio

4. planning marketing and other functional strategies

4 steps in strategic planning

mission statement

-Statement of the organization's purpose

->What it wants to accomplish in the larger environment

-Market oriented and defined in terms of satisfying basic customer needs

-Emphasizes the company's strengths

-Focuses on customers and the customer experience the company seeks to create

objectives

The mission should be converted to supporting ____________ at each level of management.

business portfolio

Collection of businesses and products that make up the company

1. Analyze the firm's current business portfolio

2. Develop growth strategies and downsizing to shape the future portfolio

steps in business portfolio planning:

portfolio analysis

the process by which management evaluates the products and businesses that make up the company.

1. Identifying the strategic business units (SBUs)

2. Assessing SBU attractiveness

2 steps for analyzing portfolios

direct resources toward more profitable businesses while phasing out or dropping weaker ones.

purpose of portfolio analysis

stars

high-growth, high-share businesses or products

-Dominant market share and good growth prospects

cash cows

low-growth, high-share businesses or products.

-Dominant market share and low growth prospects

question marks

low-share business units in high-growth markets

-Small market share of a growing

market; require significant cash to build market

dogs

low-growth, low-share businesses and products.

-Subordinate market share and low growth prospects

downsizing

Reduces the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy

1. Rapid growth of the company

2. Lack of experience in a market

3. Change in market environment

4. Decline of a particular product

reasons for downsizing (4)

market penetration

product/market expansion grid:

existing product/ existing market

market development

product/market expansion grid:

existing products/new market

product development

product/market expansion grid:

new product/ existing markets

diversification

product/market expansion grid:

new product/ new markets

marketing strategy

Marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

marketing mix

Integration of product, place, price, and promotion

1. Marketing analysis

2. planning

3.implementation

4. control

Activities for best marketing strategy and mix involve: (4 steps)

Segmentation and Targeting

Which customers will we serve?

Differentiation and Positioning

How will we create value for them?

market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

market segment

Group of consumers who respond in a similar way to a given set of marketing efforts

market targeting

Evaluating each market segment's attractiveness and selecting one or more segments to enter

positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

differentiation

Differentiating the market offering to create superior customer value

marketing

The entire __________ program should support the chosen positioning strategy.

strengths

include internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives.

weaknesses

include internal limitations and negative situational factors that may interfere with the company's performance