Marketing 341 Exam 1 (BOOK)

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

understand marketplace and customer needs and wants

first step in the marketing process:

design a customer value driven strategy

second step in the marketing process:

engage customers, build profitable relationships, and create customer delight

fourth step in the marketing process:

construct a marketing program that delivers superior value

third step in the marketing process:

capture value from customers to create profits from customer equity

fifth and final step in the marketing process:

market offerings

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

marketing myopia

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

market

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

marketing management

the art of science of choosing target markets and building profitable relationships with them

market segmentation

dividing the market into segments of customers

target marketing

deciding which segments it will go after

value proposition

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

differentiate

value propositions _______________ one from another

production concept

idea that consumers will favor products that are available and highly affordable, therefore the organization should focus on improving production and distribution efficiency

operations, satisfying

a risk of the production concept includes focusing too narrowly on their own ______________ __and losing sight of__ _____________ consumers wants and needs

product concept

idea that consumers will favor products that offer the most quality, performance, and features, therefore, the organization should devote its energy to making continuous product improvements

attractively

a con of the product concept includes “a better mousetrap will not sell unless the manufacturer designs, packages, and prices it _____________, places it in convenient distribution channels, brings it to the attention of people who need it, and convinces buyers that it is a better product

selling concept

idea that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort

relationships

risks of the selling concept include, focusing on sales transactions rather than __________________

marketing concept

a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

customer-centered

the marketing concept is _____________-______________

better

the marketing concept includes understanding consumers needs/wants _________ than they do themselves, an example of this is smartphones, 24-hour online buying, digital video and music streaming, all-electric vehicles

societal marketing concept

idea that a company’s marketing decisions should consider consumer’s wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests

product, price, place, and promotion

the four p’s of marketing are…

customer relationship management

overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

customer perceived value

customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

customer satisfaction

extent to which a product’s perceived performance matches a buyers’ expectations

customer engagement marketing

making the brand a meaningful part of customers conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

customer brand advocacy

actions by which satisfied customers initiate favorable interactions with others about a brand

consumer 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

partner relationship management

working closely with partners in other departments and outside the company to jointly bring great value to customers

customer lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage

share of customer

the portion of the customers purchasing that a company gets in its product categories

customer equity

the total combined lifetime values of all the company’s customers

internet of things

a global environment where everything and everyone is digitally connected to everyone and everything else

digital and social media marketing

using digital marketing tools such as websites, social media, mobile apps, online video, email, and blogs to engage consumers anywhere, at anytime

strategic planning

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

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

portfolio analysis

the process by which management evaluates the products and businesses that make up the company

growth-share matrix

a portfolio planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share

product/mansion expansion grid

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

market penetration

company growth by increasing sales of current products to current market segments without changing the product

market development

company growth by identifying and developing new market segments for current company products

product development

company growth by offering modified or new products

diversification

company growth through starting up or aquiring businesses outside the company’s current products and markets

value chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products

value delivery network

a network composed of the company, suppliers, distributors, and, ultamitely, customers who partner with each other to improve performance of the entire system in delivering customer value

marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

market segmentation

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

a group of customers who respond in similar ways to a given set of marketing efforts

market targeting

evaluating each market segment’s attractiveness and selecting one or more segments to serve

positioning

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

differentiation

actually differentiating the market offering to create superior customer value

marketing mix

the set of tactical marketing tools- product, price, place, and promotion that the firm blends to produce the response it wants in the target market

acceptability, affordability, accessibility, awareness

the four As inclue

product, place, price, promotion

the four Ps include

SWOT analysis

an overall evaluation of a companies strengths, weaknesses, opportunities, and threats

marketing implemation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

marketing control

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure the objectives are achieved

marketing return on investment

the net return from a marketing investment divided by the costs of the marketing investment

marketing environment

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

microenvironment

actors close to the company that affect its ability to serve its customers - the company suppliers, marketing intermediaries, customer markets, and publics

macroenvironment

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

marketing intermediaries

firms that help the company promote, sell, and distribute its goods to final buyers

public

any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives (financial, media, government, citizen-action, internal, general, local)

company, suppliers, intermediaries, competitors, publics, customers

what makes up the microenvironment?

demography

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

baby boomers

the _____ ___________ have been one of the most powerful forces shaping the marketing environment

economic environment

economic factors that affect consumer purchasing power and spending patterns

natural environment

the physical environment and the natural resources that are needed inputs by marketers or that are affected by marketing activities

environmental sustainability

developing strategies and practices that create a world economy that the planet can support indefinetly

technological environment

forces that create new technologies, creating new product and market opportunities

political environment

laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

cultural environment

institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors

big data

the huge and complex data sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies

customer insights

fresh marketing information-based understandings of customers and the marketing that become the basis for creating customer value, engagement, and relationships

marketing information systems

people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer market insights

internal databases

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

competitive marketing intelligence

systematic monitoring, collection, and analysis of publicly avaliable information about consumers, competitors, and developments in the marketing environment

exploratory research

marketing research to gather preliminary information that will help define problems and suggest hypothesis

descriptive research

marketing research to better describe marketing problems, situations, or markets, such as market potential for a product or the demographics and attitudes of consumers

casual research

marketing research to test hypotheses about cause-and-effect relationships

secondary data

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

primary data

information collected for the specific purpose at hand

observational research

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

ethnographic research

a form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments”

survey research

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

experimental research

gathering primary data by selecting matched groups of participants, giving them different treatments, controlling related factors, and checking for differences in group responses

focus group interviewing

personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization… the interviewer “focuses” the group discussion on important issues

immersion groups

small groups of consumers who interact directly and informally with product designers without a focus group moderator present

online market research

collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities

online focus group

gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behaviors

behavioral targeting

using online consumer tracking data and analytics to target advertisements and marketing offers to specific consumers

sample

a segment of the population selected for marketing research to represent the population as a whole

customer relationship management

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

marketing analytics

the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing preformance

artificial intelligence

technology which machines think and learn in a way that looks and feels human but with a lot more analytical capacity