Principles of Marketing Final Melissa Moore Mississippi State University

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

wants backed by buying power

market offerings

some combination of products, services, information, or experiences offered to a market to satisfy a need or a want

market myopia

paying more attention to the specific products they offer than to the benefits and experiences produced by these products

exchange

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

market

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

value proposition

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

The Production Concept;
The Product Concept;
The Selling Concept;
The Marketing Concept;
The Societal Marketing Concept

what are the 5 marketing management orientations

Perceived Customer Value

the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers

customer lifetime value

To keep customers coming back

share of wallet

the share they get of the customer's purchasing in their product categories

strategic planning

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

mission statement

acts as an "invisible hand" that guides people in the organization; a statement of the organization's purpose

value chain

each department carries out value-creating activities to design, produce, market, deliver, and support the firm's products

value delivery network

companies partnering with other members of the supply chain—suppliers, distributors, and, ultimately, customers—to improve the performance

market segmentation

The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

market segment

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

targeting

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

differentiation

differentiating the company's market offering to create superior customer value

positioning

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

market mix

the set of tactical marketing tools that the firm blends to produce the response it wants in the target market

Product
Price
Place
Promotion

What are the 4 P's

SWOT analysis

strengths, weaknesses, opportunities, threats

marketing environment

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

macroenvironment

larger societal forces that affect the microenvironment—demographic, economic, natural, technological, political, and cultural forces

microenvironment

consists of the actors close to the company that affect its ability to engage and serve its customers—the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

demographic,
economic,
natural,
technological,
political,
cultural

what are the elements of macroenvironment

company,
suppliers,
marketing intermediaries,
competitors,
publics,
customers

what are the elements of microenvironment

changing age and family structures,
geographic population shifts,
educational characteristics,
population diversity

what are the key demographic trends

changing age structure
Primarily because of falling birthrates and longer life expectancies

what is the most important demographic trend in the US? And what are the reasons for it?

Hispanics 28%,
African Americans 14%,
Asians 9%

What are estimated demographic percentages for 2060

philanthropic,
ethical,
legal,
economic

From top to bottom, what is the order of the Pyramid of Corporate Social Responsibility

code of conduct

Formalized rules and standards that describe what the company expects of its employees

MIS (Marketing Information Systems)

Consists of people and procedures to assess information needs, develop the needed information, help decision makers to use the information to generate and validate actionable customer and market insights

the company's marketing and other managers

Who does the MIS primarily serve?

marketing research

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

internal data

collections of consumer and market information obtained from data sources within the company's network

competitive intelligence

the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketplace

exploratory research

Used to gather preliminary information; helps to define problems and suggest hypotheses

descriptive research

Used to better describe the market potential for a product or the demographics and attitudes of consumers

causal research

Used to test hypotheses about cause-and-effect relationships

defining the problem and research objectives;
developing the research plan for collecting information;
implementing the research plan-collecting and analyzing data;
interpreting and reporting the findings

what are the steps of marketing research

primary data

Information collected for the specific purpose at hand

observational research

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

sample

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

CRM

to manage detailed information about individual customers and carefully manage customer touch points to maximize customer loyalty

consumer behavior

refers to the buying behavior of final consumers

consumer market

All the individuals and households that buy or acquire goods and services for personal consumption

culture,
social,
personal,
psychological,
buyer

what characteristics affect the CB

subcultures

groups of people with shared value systems based on common life experiences and situations

culture

the most basic cause of a person's wants and behavior

social class

society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors

reference groups

serve as direct or indirect points of comparison or reference in forming a person's attitudes or behavior

opinion leaders

people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others

self-actualization needs;
esteem needs;
social needs;
safety needs;
physiological needs

What is the order of Maslow's Hierarchy of Needs from top to bottom

need recognition,
information search,
evaluation of alternatives,
purchase decision,
post purchase behavior

What are the steps in the Buyer Decision Process

innovators;
early adopters;
early mainstream;
late mainstream;
lagging adopters

List the adopter categories

relative advantage;
compatibility;
complexibility;
divisibility;
communicability

List the 5 factors that influence the rate of adoption

business market

huge and involve more money and items than consumer markets

derived demand

Business demand that comes from the demand for consumer goods

straight rebuy;
modified rebuy;
new task

List the 3 major types of buying situations

geographic;
demographic;
psychographic;
behavioral

List the variables for segmentation

undifferentiated mass marketing;
differentiated segmented marketing;
concentrated niche marketing;
micromarketing and local or individual marketing

List the target marketing strategies

product position

the way a product is defined by consumers on important attributes

positioning map

show consumer perceptions of their brands versus those of competing products on important buying dimensions

competitive advantage

To the extent that a company can differentiate and position itself as providing superior customer value

product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

service

a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything

convenience;
shopping;
specialty;
unsought

What are the 4 consumer products

product attributes;
branding;
packaging;
labeling;
product support services

List the individual product decisions

product quality

one of the marketer's major positioning tools that affects product or service performance

features

a competitive tool for differentiating the company's product from competitors' products

style

describes the appearance of a product

packaging

involves designing and producing the container or wrapper for a product

labeling

send for identification, promotional, informational, and legal purposes

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

mix

consists of all the product lines and items that a particular seller offers for sale

length

refers to the total number of items a company carries within its product lines

width

refers to the number of different product lines the company carries

filling

present range

stretching

beyond the range

intangibility;
variability;
inseparability;
perishability

List the 4 special service characteristics

brand equity

the differential effect that knowing the brand name has on customer response to the product and its marketing

development

Can influence customers' attitudes toward a product

line extension

occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category

brand extension

extends a current brand name to new or modified products in a new category

multibrands

offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share

idea generation;
idea screening;
concept development and testing;
marketing strategy development;
business analysis;
product development;
test marketing;
commercialization

List the Major Stages in New Product Development

product life cycle

the rewards of fast and flexible product development far exceed the risks

marketing channel

form a vital link between the firm and its customers

direct marketing

No intermediary levels

indirect marketing

one or more intermediary levels

conventional distribution channel

consists of one or more independent producers, wholesalers, and retailers

vertical marketing system

conflict occurs between different levels of the same channel

Disintermediation

Occurs when product or service producers cut out marketing channel intermediaries or when radically new types of channel intermediaries displace traditional ones

logistics

physical distribution; involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit

reverse logistics

reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers

forecasting;
information systems;
purchasing;
production planning;
order processing;
inventory;
warehousing;
transportation planning

What are the major logistic functions?