MARKMAN-REVIEWER-MIDTERM

Marketing

The process of creating, communicating, and delivering value to customers and managing customer relationships.

Scope of Marketing

Deals with identifying and meeting human and social needs.

Social Definition of Marketing

A societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services.

Marketing Management

The art and science of choosing target markets and getting, keeping, and growing customers through creating superior customer value.

Exchange

The process of obtaining a desired product by offering something in return.

Transaction

A trade of values between two or more parties.

Four Ways to Obtain a Product

Self-produce, use force, beg, offer something in return.

Goods

Tangible products that can be bought or sold.

Services

Intangible products that are performed for customers.

Events

Occasions or occurrences that are planned and organized.

Experiences

The feelings and emotions associated with a product or service.

Persons

Individuals who are marketed, such as celebrities or public figures.

Places

Physical locations that are marketed, such as tourist destinations.

Organizations

Companies or institutions that are marketed.

Information

Data or knowledge that is marketed, such as news or research findings.

Ideas

Concepts or beliefs that are marketed, such as social causes or political campaigns.

Market

A physical place where buyers and sellers gather to buy and sell goods.

Marketer

Someone who seeks a response from another party called the prospect.

Consumer Markets

Companies selling goods and services to individuals and households.

Business Markets

Companies selling goods and services to other companies.

Global Markets

Companies selling goods and services in the global marketplace.

Nonprofit and Governmental Markets

Companies selling their goods to non-profit organizations and government agencies.

Production Concept

Focuses on achieving high production efficiency and mass distribution.

Product Concept

Focuses on making superior products and improving them over time.

Marketing Concept

Focuses on creating, delivering, and communicating superior customer value to its chosen target market.

Holistic Marketing Concept

Based on the development, design, and implementation of marketing programs that recognize their breadth and interdependencies.

Marketing Mix

The combination of product, price, place, and promotion used to satisfy customer needs.

Four Ps

Product, price, place, and promotion.

Four Cs

Customer solution, customer cost, convenience, and communication.

Core Concepts

Needs, wants, and demands; target markets, positioning, and segmentation; offerings and brands; value and satisfaction; marketing channels; supply chain; competition; marketing environment; marketing planning.1. Marketing Management:The process of developing strategies and plans to connect with customers, build strong brands, shape market offerings, deliver value, communicate value, and create long-term growth.

Developing Marketing Strategies and Plans

The task of creating a plan to achieve marketing objectives and goals.

Capturing Marketing Insights

The task of gathering information and scanning the environment, conducting research, and forecasting demand.

Connecting with Customers

The task of creating customer value, satisfaction, and loyalty, analyzing consumer and business markets, and identifying market segments and targets.

Building Strong Brands

The task of creating brand equity, crafting brand positioning, and dealing with competition.

Shape Market Offerings

The task of setting product strategy, designing and managing services, and developing pricing strategies and programs.

Deliver Value

The task of designing and managing integrated marketing channels, managing wholesaling, retailing, and logistics.

Communicate Value

The task of designing and managing integrated marketing communication, managing mass communications, advertising, sales promotions, events and experiences, and public relations, and managing personal communications.

Create Long-term Growth

The task of introducing new market offerings, tapping into global markets, and managing a holistic marketing organization.

Customer Value

The difference between what a customer gets from a product and what they have to give in order to get it.

New Definitions of Value

From the customer's point of view, the company exists to create value for them and provide them with results.

Value Delivery Approach

A strategic approach to delivering value to customers.

The Value Chain

The series of activities that a company performs to create and deliver value to customers.

Core Business Processes

The essential processes that a company performs to deliver value to customers.

Core Competencies

The unique strengths and capabilities that a company possesses.

Strategic Planning

The process of assessing business strengths, establishing a strategy, and planning for growth opportunities.

Corporate Strategic Planning

The process of defining the corporate mission, establishing strategic business units (SBU), assigning resources to SBU's, and assessing growth opportunities.

Strategic Business Units (SBU)

A single business or collection of related businesses with unique competitors and a leader responsible for planning and profitability.

Assigning Resources

The task of allocating resources to different strategic business units.

Assessing Growth Opportunities

The task of evaluating potential growth opportunities for the company.

Intensive Growth

A growth strategy that focuses on expanding within existing product-market combinations.

Integrative Growth

A growth strategy that involves vertical or horizontal integration.

Diversification Growth

A growth strategy that involves entering new industries or markets.

Opportunity Matrix

A matrix that identifies potential opportunities for a company to pursue.

Threat Matrix

A matrix that identifies potential threats to a company's success.

SWOT Analysis

An analysis that assesses a company's strengths, weaknesses, opportunities, and threats.

Goal Formulation

The process of setting specific goals and objectives for the company.

Strategy Formulation

The process of developing strategies to achieve the company's goals and objectives.

Porter's Generic Strategies

Different strategies that a company can use to gain a competitive advantage, such as lowest cost or differentiation.

Strategic Alliances

Collaborations between companies to achieve mutual benefits, such as product or service alliances, promotional alliances, and logistic alliances.1. Program Formulation and Implementation:Ensuring that all the pieces fit together in a marketing program and examining the cost to justify the expense.

Feedback and Control

Being aware of changes in the market and having the willingness to change course.

Product Planning

The process of creating marketing plans, including an executive summary, situation analysis, marketing strategy, financial projections, and implementation controls.

Environmental Scanning

Analyzing the internal and external factors that affect a business, including SWOT/TOWS analysis, PEST analysis, industry analysis, market analysis, customer analysis, and competitor analysis.

SWOT Analysis

A business tool originated by Albert S. Humphrey in the 1960s, used to identify strengths, weaknesses, opportunities, and threats in order to carve a sustainable niche in the market.

Strengths

Abundant financial resources, well-known/respected brand name/image, number rank in the industry, economies of scale, proprietary technology, patented products or processes, lower costs, superior management talent, better marketing skills, superior product quality, alliances with other firms, good distribution skills, committed employees.

Weaknesses

Lack of strategic direction, limited financial resources, weak spending on R&D, very narrow product line, limited distribution, higher costs, out-of-date products/technology, internal operating problems, internal political problems, weak market image, poor marketing skills, alliances with weak firms, limited management skills, undertrained employees.

Opportunities

Rapid market growth, complacent rival firms, changing customer needs/tastes, opening of foreign markets, mishap of a rival firm, new product or process discoveries, economic boom/downturn, government deregulation, new technology, demographic shifts, other firms seeking alliances, high brand switching.

Threats

Entry of foreign competition, introduction of new substitute products, product life cycle in decline, evolving business models in the industry, changing customer needs/tastes, declining customer confidence, rival firms adopting new strategies, increased government regulation, economic boom/downturn, change in Federal Reserve policy, new technology, demographic shifts, foreign trade barriers, poor performance of ally firm, international political turmoil, weakening currency exchange rates.

TOWS Analysis

A variant of SWOT Analysis that helps identify strategic alternatives by considering the relationships between strengths, weaknesses, opportunities, and threats.

TOWS Strategic Alternatives Matrix

A matrix that helps in identifying strategic alternatives based on the combinations of strengths, weaknesses, opportunities, and threats.1. PEST Analysis:Identifying "Big Picture" Opportunities and Threats. It stands for Political, Economic, Social, and Technological factors that affect business.

Political Trends

Government regulations and policies related to technology, data privacy, and cybersecurity.

Economic Factors

Overall economic stability and growth rates influencing consumer purchasing power and investment in technology.

Socio-Cultural Trends

General attitudes of society towards the industry, company, and products. Changing consumer preferences and behavior towards technology products and services.

Technological Factors

Areas of government and educational institution research focus. Infrastructure changes affecting work patterns. Existing technological hubs.

Industry Analysis

Tool that facilitates a company's understanding of its position relative to other companies producing similar products or services.

Porter's Model

Companies should position themselves where forces are weakest, exploit changes in the forces, and design those forces to their advantage.

Business Implications of Five Competitive Forces

Threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat from substitutes, and competitive intensity.

Market Analysis

Market size (current and future), market growth rate, and market profitability.1. Industry cost structure:The overall expenses and costs associated with operating in a specific industry.

Distribution channels

The various methods and channels used to distribute products or services to customers.

Market trends

Identifying shifts in consumer behavior, technological advancements, regulatory changes, and other factors that impact the market's dynamics.

Key success factors

Factors that contribute to the success of a business, such as brand reputation, product quality, customer service, innovation, or cost leadership.

Customer analysis

The process of identifying customers' segments, motivations, and unmet needs.

Customer segments

Different groups of customers with distinct needs, characteristics, or behaviors.

Competitor analysis

Assessing the strengths and weaknesses of current and potential competitors.

Target market selection

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

Core strategy (Positioning)

The central strategy that defines how a product or service is positioned in the market relative to competing products.

Supporting Marketing Mix

The elements of the marketing mix (pricing, promotion, distribution, product/service capabilities) that support the core strategy.

Market segmentation

Dividing a market into distinct groups with distinct needs, characteristics, or behavior.

Target marketing

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Market positioning

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

Bases for segmenting consumer markets

Different criteria used to divide consumer markets into groups, such as psychographic, geographic, demographic, behavioral, occasion, and benefit.

Benefits of market segmentation

The advantages of segmenting a market, including better understanding of customer needs, focused product development, profitable pricing strategies, and allocation of marketing resources.

Bases for segmenting business markets

Different criteria used to divide business markets into groups, such as macrosegmentation and microsegmentation.

Requirements for effective segmentation

Criteria that segments must meet to be effective, including measurability, accessibility, substantiality, differentiability, and actionability.

Evaluating market segments

Factors used to evaluate different market segments, including size and growth, segment structural attractiveness, and company objectives and resources.

Undifferentiated Marketing or Mass Marketing

A marketing approach that ignores different market segments and targets the entire market as a whole.1. Differentiated Marketing:A marketing strategy where a firm targets different market segments and designs separate offers for each segment.

Segmented Marketing

A marketing strategy where a firm enters different market segments and designs separate offers for each segment.

Concentrated Marketing

A marketing strategy where a firm targets a smaller market niche with few competitors.

Niche Marketing

A marketing strategy where a firm targets a smaller market niche with one or few competitors.

Micromarketing

A marketing strategy where products and marketing programs are tailored to suit the tastes of specific individuals and locations.

Socially Responsible Target Marketing

The consideration of ethical issues when targeting vulnerable and disadvantaged segments, such as children, the elderly, and the less educated, with potentially harmful products.