marketing management midterm

Marketing Penetration 

Persuading/getting your consumer to buy more (consumers you already have); Present products and present customers

Market Development

Getting new consumers (ex. Introducing product/service to a new country); Present products and new customers

Product Development 

Developing a new product to get new consumers → market development; New products and present customers

Diversification

Following a different approach (buying out a company, changing a product); New products and new customers

Marketing concept

Means that an organization should seek to make a profit by serving the needs of customer groups

Product

Designed to create exchange for tangible products.

Service

Designed to create exchanges for intangible products

Person

Designed to create favorable actions toward person

Strategic Planning

1. Helps prepare for inevitable changes in markets, technology, and competition, as well as in economic and political arenas. 

2. Includes all activities that lead to development of a clear organizational mission, objectives, and appropriate strategies

Objective vs. Strategy

Objective is the goal you want to reach; strategy is the plan you will utilize to achieve that goal

Mission Statements

Explains who you are in the world, what do you want to do in the world. It also explains who you are as a company now; the goal or mission could change over time. 

Market Growth Rate

The growth of the population

Market Share

The percentage of sales you have in a given market

Business Portfolio 

All different products and services that we have

Organizations can identify Strategic Business Units (SBUs) that:

1. Have a distinct mission

2. Have their own competitors

3. Are a single business or collection of related business

4. Can be planned independently of the other businesses

The components of Industry Attractiveness are:

1. Market size

2. Market growth (how the overall market is doing)

3. Profitability

4. Cyclicality (Do we make money during a certain time of year? ex. Christmas)

5. Ability to recover from inflation

6. World Scope

The components of Business Strength are:

1. Market position (that includes: market share, world market share, share growth, and share compared with leading competition) 

2. Market share (percentage of how much market there is in each region/department/etc.

Cash cow

1. Low-share of high-growth market

2. An establishment

3. Strategy: Maintain or harvest for cash to build STARS

Star

1. High-share of high-growth market

2. Relative growth rate

3. Strategy: Build into cash cow via investment

Question Mark

1. High-share of low-growth market

2. A problem with a product

3. Strategy: Build into STAR via investment or reallocate funding and let slip into DOG status

Dog

1. Low-share of low-growth market

2. When you accept the market is on its way out

3. Strategy: Maintain or divest

What does a BCG Growth-Share Matrix look like?

Star = high, high

Question mark = high, low

Cash cow = low, high

Dog = low, low

Consumer Generated Marketing

When people get influenced by others to get the products; this could be their friends, family, etc.

Marketing Research

Is the process by which information about the environment is generated, analyzed, and interpreted.

• Aids decision making and is not a substitute for it

• Reduces risk

• Vital for investigating the effects of various marketing strategies after implementation

5 Ps of the Research Process

1. Purpose of the research

2. Plan of the research

3. Performance of the research

4. Processing of the research

5. Preparation of the research

Primary Research vs. Secondary Research

Primary research is the research YOU do; secondary research is research SOMEONE ELSE does

Demographic Clip

Rates of people that are alive (Ex. Baby boomers, Gen X, Gen Z, Millennials, etc.)

Advertisement

Is meant to keep you reminded of the brand or product

What is the main consumer behavior question?

“Why do we buy what we buy?”

Factors Influencing Consumer Behavior

1. Culture

2. Social Class

3. Perception

4. Beliefs and Attitudes

Straight Rebuy

Buyer routinely reorders something without any modifcations

Modified Rebuy

Buyer wants to modify product specifications, prices, terms, or suppliers

New Task

Buyer purchases a product or service for the first time

Product Placement

When a movie or show sponsors products through scenes; The actors don’t speak about the product, but they use it

Corporate group vs. Management group

Corporate group is a group that states the goal; management group is a group that finds strategies to get to the goal

Components of a Strategic Plan

1. Organizational mission

2. Organizational objectives

3. Organizational strategies

4. Organizational portfolio plan

Components of a Marketing Plan

1. Situation Analysis 

2. Marketing objectives

3. Target market selection

4. Marketing mix (Product, Promotion, Pricing, Place/Distribution)

Market standing

To make our brands number one in their field in terms of market share

Innovations

To be a leader in introducing new products by spending no less than 7 percent of sales for research and development

Productivity

To manufacture all products efficiently as measured by the productivity of the workforce

Physical and financial resources

To protect and maintain all resources—equipment, buildings, inventory, and funds

Profitability 

To achieve an annual rate of return on investment of at least 15 percent

Manager performance and responsibility

To identify critical areas of management depth and succession

Worker performance and attitude

To maintain levels of employee satisfaction consistent w/ our own and similar industries

Social responsibility

To respond appropriately whenever possible to societal expectations and environmental needs

Major Types of Marketing

1. Product

2. Service

3. Person

4. Place

5. Cause

6. Organization

Place

Marketing designed to attract people to places

Cause

Marketing designed to create support for ideas, causes, or issues or to get people to change undesirable behaviors

Organization

Marketing designed to attract donors, members, participants, or volunteers

General Electric Portfolio Model 

Industry Attractiveness (On the left of box): High, medium, low

Business Strength (On top of box): Strong, average, weak

Box is organized like this:

A A B

A B C

B C C

Experience Curve

Curve from cost to market share goes from high to low

Profit curve based on experience curve

Curve from ROI to market share goes from low to high

Implementation vs. Control

1. Implementation involves putting the marketing plan into action and performing tasks according to the predefined schedule

2. Controlling involves measuring results of implemented marketing plan; comparing results w/ objectives. It also is making decisions on whether plan is achieving objectives

Situation analysis can be divided into six major areas of concern…

1. Cooperative environment

2. Competitive environment

3. Economic environment

4. Social environment

5. Political environment 

6. Legal environment 

Marketing Management Process

The process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives

The Three Value Strategies

1. Best price

2. Best product

3. Best service

Qualitative data vs. Quantitative data

1. Qualitative data involves face-to-face interviews (ex. focus groups, long interviews, etc.)

2. Quantitative data are systematic procedures to obtain and analyze numerical data (Observational research, survey research, experimental research, and mathematical modeling research)

Internal information vs. External information

1. Internal information includes sales records, inventory data, or expenditure data

2. External information includes changes in environment that could influence marketing strategies

Buying Process

1. Social influences, marketing influences, and situational influences

2. Psychological influences

3. Consumer decision making

Cultural values are transmitted through three basic organizations…

1. Family

2. Religious organizations

3. Educational institutions

Primary reference groups vs. secondary reference groups

1. Primary reference groups include family and close friends

2. Secondary reference groups include fraternal and professional organizations

Consumer Decision-Making Process

1. Need recognition 

2. Alternative search

3. Alternative evaluation

4. Purchase decision

5. Post-purchase evaluation 

Maslow’s Hierarchy of Needs

1. Physiological needs

2. Safety needs

3. Belongingness and love needs

4. Esteem needs

5. Self-actualization needs

Cognitive dissonance

Inconsistency or disharmony with cognitions, or attitudes and beliefs after decision

Disconfirmation paradigm

Satisfaction with products and brands as a result of:

1. Pre-purchase product expectations

2. Difference between these expectations and post-purchase perception of product performance

Sole sourcing vs. Direct buying vs. Competitive bidding

1. Sole sourcing is a product purchased from a single vendor

2. Direct buying is a list of approved vendors for particular products

3. Competitive bidding is used for large, one-time purchases

Organizational need

Needs based on survivability and stated objectives of the organization

Vendor analysis

Search for, locate and evaluate potential providers of goods and services; rate them based on quality, on-time delivery, price, payment terms, and use of technology

B2B vs. B2C

1. B2B is when companies sell to other businesses

2. B2C is when companies sell directly to the consumer