Marketing test 1 melissa moore

What is the population of the world? US?

why did we discuss frito lay?

Frito lay was the first company to study customers who like certain chips like:
-customers of flat chips are seen as affectionate, irresistible, casual, and fun member of family
-customers of rigged chips are are dedicated as expensive, aware, confident, enough to make a personal statement
-customers of Tostitos are trendy, cutting edge, issue-conscience, and change-oriented

What is marketing in 3 words?

satisfying customers needs

Read the First Stop: Amazon

Amazon does much more than just sell goods online. It engages customers and creates satisfying customer experiences. "The thing that drives everything is creating genuine value for customers," says Amazon founder Jeff Bezos.

Marketing

the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return

needs

states of felt deprivation

wants

the form human needs take as they are shaped by culture and individual personality

demands

Human wants that are backed by buying power

Define market offering.

•Combination of products, services, information, or experiences

Define marketing myopia

•Paying more attention to the specific products than to the benefits and experiences produced

satisfactionf

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

value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product

Define exchange

-exchange: act of obtaining a desired object by offering somethin

relationships

marketing consists of creating, maintaining, and growing desirable exchange of relationships; built by consistently delivering superior customer value

What are the conditions for exchange (see notes from class or look online)?

-at least 2 parties
-each party has something that might be of value to other party
-capable of communication and delivery
-free to accept or reject
-each party believes it is appropriate or desirable to deal with other party

criteria for an exchange

two or more parties, something of value, willingness to work together, and ability to walk awayvalue propisition

value propisition

set of benefits or values company promises to deliver to consumers to satisfy their needs

marketing process

1. Understand the marketplace and 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 and create customer delight
5. Capture value from customers to create profits and customer equity

customer relationship groups

butterflies, true friends, strangers, barnacles

butterflies

potentially profitable but not loyal

strangers

neither loyal nor profitable

true friends

both profitable and loyal

barnacles

highly loyal but not profitable

marketing management orientations

production concept, product concept, selling concept, marketing concept, societal marketing concept

production concpet

orientation focused on affordability and availability

product concept

orientation focused on quality and performance

selling concept

orientation focused on large scale selling and promotions (what the company already has)

marketing concept

orientation focused on needs and wants of customers

customer relationship management (CRM)

delivering superior customer value and satisfaction to build and maintain profitable customer relationships

customer engagement marketing

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

customer generated marketing

brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

target market

refers to which segment of the market to go after

strategic planning

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

steps in strategic planning

1. Defining the company mission
2. Setting company objectives and goals
3. Designing the business portfolio
4. Planning marketing and other functional strategies

mission statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

business portfolio

the collection of businesses and products that make up the company

bcg matrix

evaluating strategic business units on the basis of their business growth rates and their share of the market

star

high market growth rate, high relative market share

question mark

high market growth rate, low relative market share

cash cow

low market growth rate, high relative market share

dog

low market growth rate, low relative market share

product market expansion grid

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

market penetration

existing products, existing markets

product development

new products, existing markets

market development

existing products, new markets

diversification

new markets, new products

4 P's

Price, Product, Place, Promotion

market segmentation

dividing markets into segments based on location, gender, age, race, etc.

product differnetiation

marketing strategy that refers to making one of a kind produts

positioning

A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer

marketing mix

4 P's

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

marketing ethics

corporate marketing ethics policies should be developed by firms as guidelines for handling various issues and dilemmascorporate marketing ethics policies should be developed by firms as guidelines for handling various issues and dilemmas

corporate social responsibility pyramid

1. Philanthropic Responsibilities
2. Ethical Responsibilities
3. Legal Responsibilities
4. Economic Responsibilities

marketing environment

outside forces that affect marketing management's ability to build and maintain successful relationships with target customers

microenvironment

the actors close to the company that affect its ability to serve its customers

macroenvironment

the larger societal forces that affect the microenvironment

parts of the microenvironment

1. Company
2. Suppliers
3. Intermediaries
4. Customer Markets
5. Competitors
6. Publics

parts of the macroenvironment

1. demographic
2. economic
3. natural
4. technological
5. political
6. cultural

marketing information system

1. asses information needs
2. developing market information
3. analyzing and using the information

marketing research

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

steps in marketing research process

1. Defining the problem and research objectives
2. Developing the research plan for collecting information
3. Implementing the research plan - collecting and analyzing the data
4. Interpreting and reporting the findings

research design

specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed

primary data

information collected for the specific purpose at hand

secondary data

information that already exists somewhere, having been collected for another purpose

types of data collection

1. observational research
2. survey research
3. experimental research
4. ethnographic research

observational research

gathering primary data by observing relevant people, actions, and situations

survey research

asking people questions about their knowledge, attitudes, preferences, and buying behavior

ethnographic research

sending trained observers to watch and interact with consumers in their natural environments

experimental research

selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

sample

a segment of the population selected to represent the population as a whole

sustainable marketing

socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs

sustainable marketing matrix

marketing concept
strategic planning concept
societal marketing concept
sustainable marketing concept

marketing concept

(now, now)
the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

strategic planning concept

(now, future)

societal marketing concept

(future, now)
the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

sustainable marking concept

(future, future)

criticisms of marketing

1. impact on individual consumers
2. impact on other businesses
3. impact on society

impact on customers

high prices, deceptive practices, high pressure selling, unsafe products, poor service, planned obsolense

impact on business

acquisition of competitors, unfair marketing practices, marketing practices that create barriers of entry

impact on society

false wants and too much materialism, too few social goods, cultural pollution

consumerism

organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers

environmentalism

organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment

Societal Classification of Products

deficient products
pleasing products
salutary products
desirable products

deficient products

low immediate satisfaction
low long run consumer benefit

desirable products

high immediate satisfaction
high long-run benefits

salutary products

low immediate satisfaction
high long run consumer benefit

pleasing products

high immediate satisfaction
low long run consumer benefits

today greening

pollution prevention and product stewardship

tomorrow greening

new clean technology and sustainability vision

internal

pollution prevention and new clean technology

external

product stewardship and sustainability vision

baby boomers

1946-1964

generation X

1965-1976

generation Y

1981-1997

generation Z

1997-current

convenience sample

a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives

categories of products

convenience, shopping, specialty, unsought

demography

study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics

Companies have responded to consumers' back-to-basics sensibility in their lifestyle and spending patterns through_____.

value marketing