Marketing Final Review

Flashcards for reviewing marketing Final

Marketing

The process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.

Creating Value

Developing products or services that meet customer needs and provide benefits.

Communicating Value

Using promotion and advertising to inform customers about the value of offerings.

Delivering Value

Using efficient distribution and supply chain management to get products to customers.

Exchanging Value

The transaction where customers pay a price for the benefits received.

Value

Value is subjective and varies by customer (e.g., the same meal at a restaurant can be valued differently).

Product/Service

Goods or services offered (e.g., iPhone hardware + software).

Price

Monetary cost or alternative payments (e.g., frequent-flier miles).

Promotion

Communication (ads, social media, PR).

Place/Distribution

How the product reaches the customer (e.g., retail stores, online).

Production Era

Focus on efficiency and low-cost production

Selling Era

Aggressive sales tactics (e.g., door-to-door vacuum sales).

Product Era

Innovation and differentiation (e.g., Procter and Gamble’s Product variations).

Marketing Era

Customer-centric approach

Value/One-to-One Era

Personalized relationships (e.g., Amazon’s recommendations).

Service-Dominant Logic

Value delivered through products, services, or both

Strategic Planning Process

Long-term process to allocate resources and capitalize on market opportunities

Situation Analysis

Evaluate internal (micro) and external (macro) environments.

Set Objectives

Realistic, measurable goals

Develop Strategies

Game plans to achieve objectives

Implement Marketing Mix

Execute tactics (4 Ps) to support strategies.

Company Resources

Financial, brand reputation, patents, corporate culture.

Corporate Partners

Suppliers, distributors

Competitors

Direct (e.g., Canada Dry vs. Schwepps) and indirect (e.g., ginger ale vs. water).

Political/legal Factors

Regulations

Economic Factors

Inflation, unemployment, and consumer spending.

Socio-Cultural Factors

Demographics (aging population), trends (health consciousness).

Technological Factors

Digital Communication, e-commerce.

Competitive Factors

Industry rivalry

SWOT Analysis: Strengths/Weaknesses

Internal, Controllable (e.g., Strong brand reputation).

SWOT Analysis: Opportunities/Threats

External, uncontrollable (e.g., government incentives on electric cars).

Competitive Rivalry

Intensity of competition.

Threat of Substitutes

Alternative products.

Threat of New Entrants

Barriers to entry.

Supplier Power

Control over inputs.

Buyer Power

Customer influence.

Market Penetration

Selling more existing products in existing markets (e.g., coupons).

Market Development

Entering new markets with existing products (e.g., international expansion).

Product Development

Introducing new products to existing markets (e.g., Gatorade Zero).

Diversification

Entering new markets with new products (e.g., Google’s failed Picasa).

Locational Excellence

Many locations (e.g., Tim Horton’s Dense store network).

Operational Excellence

Efficient processes (e.g., Walmart’s low-cost supply chain).

Product Excellence

High perceived value (e.g., Supreme’s limited edition branding).

Customer Excellence

Loyalty/service (e.g., Apple’s customer support).

Market Growth Rate

Industry Growth

Relative Market Share

Market share vs. competitors.

Stars

High growth, high share (invest; e.g., Apple Watch).

Cash Cows

Low growth, High share (milk profits; e.g., iPhone).

Question Marks

High growth, low share (decide to invest/divest; e.g., Amazon Fire Tablet).

Dogs

Low growth, low share (divest; e.g., obsolete products).

Corporate-Level Strategic Planning

Overall Company goals

Business-Level Strategic Planning

SBU strategies

Functional-Level Strategic Planning

Department plans

Need/Want Recognition

Triggered by internal or external stimuli

Information Search

Internal (past experiences) or external sources (friends, reviews, brands)

Evaluation of Alternatives

Use evaluative criteria to compare options

Purchase Decision

Select product, retailer, and payment method

Post-Purchase Evaluation

Satisfaction or cognitive dissonance (buyer’s remorse)

High-Involvement Decisions

Expensive, risky, infrequent decisions

Low-Involvement Decisions

Cheap, routine, low-risk decisions

Limited Problem-Solving

Moderate research decisions

Situational Factors

Physical environment, time, social norms

Social/Cultural Factors

Culture (shared beliefs), subcultures (ethnic groups, hobbies), and social class.

Reference Groups

Aspirational or dissociative groups

Demographics

Age, gender, life stage

Psychographics

Activities, values and self-concept (ideal vs. actual self).

Motivation

Maslow’s hierarchy

Perception

Selective exposure/attention/retention/distortion

Learning

Classical and operant conditioning

Attitudes

Hard to change; shaped by beliefs

Qualitative

Focus Groups, depth interviews, ethnography (e.g., observing shoppers).

Quantitative

Surveys with closed-ended questions (e.g., rating satisfaction 1-5).

Causal Primary Research Methods

Experiments

Secondary Research

Existing data (e.g., government reports, industry stats)

Steps in Research

Define the problem, design research, collect data, analyze and report findings

Linear Economics

Produce → Use → Dispose

Circular Economy

Reduce waste via recycling, reuse

B2B Markets

Fewer buyers, larger orders, complex products, derived demand, and more personal selling.

B2C Markets

Many individual buyers, smaller orders, simpler products, and mass marketing.

Producers

Buy goods to transform into other products

Resellers

Sell products without changing them

Governments (B2G)

Large purchasers of goods/services

Institutions

Nonprofits like hospitals or universities

Need Recognition

Someone identifies a problem

Product Specification

Details like quantity, quality, and delivery are defined.

Supplier Search

RFPs (Request for Proposals) are sent to potential vendors.

Proposal Analysis

Vendors are evaluated using scorecards (e.g., price, reliability, service).

Order Specification

Final agreement on terms (price, delivery, warranties)

Performance Assessment

Post-purchase review (e.g., survey users for feedback).

Initiator

Starts the process

User

Uses the product

Influencer

Provides expertise

Gatekeeper

Controls access to decision-makers

Decider

Makes the final call

Straight Rebuy

Routine reorder (no changes).

Modified Rebuy

Adjustments to past orders (e.g., new leather colour).

New Buy

First-time purchase (most complex).

Autocratic

One decider

Consultative

Decider consults team

Democratic

Majority vote