Identifying and Capturing Markets Midterm

environmental factors

Social, economic, technological, competitive, regulatory

potential consumers

the market

discover consumer needs, concepts for products, satisfy consumer needs

research what consumers need, develop a product concept, design a marketing program that has the right combination of the 4p's to satisfy consumer needs.

4 P's

Product, Price, Promotion, Place

Target Market

break market into homogenous sub-groups with common needs. OR one or more specific groups of potential consumers toward which an organization directs its marketing program

consumer value proposition

cluster of benefits that an organization promises customers to satisfy their needs.

Customer Relationship Management (CRM)

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will chose them in the marketplace and become advocates after their purchase.

exchange

the trade of things of value between buyer and seller so that each is better off after the trade.

marketing concept

the idea that an organization should 1, strive to satisfy the needs of consumes, while also 2, trying to achieve the organization's goals.

marketing mix

the controllable factors: product, price, promotion, and place- that the marketing manager can use to solve a marketing problem

marketing program

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers

relationship marketing

links the organization to its individual consumers, employees, suppliers, and other partners for their mutual long term benefit.

What's in a visionary strategy?

Foundation- why are we here, Direction- what are we trying to accomplish, Strategies-how do we do it?

foundation

core values, mission/vision, culture

direction

business, business model, goals/objectives

strategies

by level (corporate, SBU, function, by product

SWOT analysis

strengths, weaknesses, opportunities, threats

Business Portfolio Analysis (BCG)

-studies a firm's strategic business units (SBUs) as though they were a collection of separate investments

Star: high share of growing market; invest (iPhone)

Question mark: low share of growing market; invest (Apple watch)

Cash cow: high share of slowing market; invest or pull out (iPad)

Dogs: low share of slowing market; pull out (iPod)

strategy development tool

SWOT, BCG, Diversification analysis

diversification analysis

a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

three stages of strategic marketing process

Planning phase, Implementation Phase, Evaluation phase

planning phase

step 1: Situation (SWOT) analysis

step 2: Market-product focus and goal setting

step 3: Marketing program

implementation phase

when a marketing plan is applied

evaluation phase

the results

business portfolio analysis

a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUs) as though they were a collection of separate investments

goals/objectives

statements of an accomplishment of a task to be achieved, often by a specific time

marketing metric

a measure of the quantitative value or trend of a marketing action or result

marketing plan

a road map for the marketing action of an organization for a specified future time period, such as one or five years.

marketing strategy

the means by which a marketing goal is to be achieved, usually by a specific target market and a marketing program to reach it.

marketing tactics

the detailed day-to-day operational marketing cations for each element of the marketing mix that contribute to the overall success of marketing strategies.

mission

a statement of the organization's function in society that often identifies its customers, markets, products and technologies.

points of difference

those characteristics of a product that make it superior to competitive substitutes.

profit

the money left after a for-proft organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing is offerings.

situation analysis

taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.

SWOT analysis

an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

strategic marketing process

the approach whereby an organization allocates its marketing mix resources to reach its target markets.

factors affecting ethical marketing

-societal culture and norms

-business culture and industry practices

-corporate and culture and expectations

-your personal moral philosophy

Ethics of exchange (Consumer Bill of Rights)

-safety

-be informed

-chose

-be heard

Ethics of Competition

-economic espionage (spying on competition)

-bribery

Corporate culture and expectations

-code of ethics

-ethical behavior of top management and co-workers

moral idealism

Considers individual rights or duties as universal, regardless of outcome

Utilitarianism

focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavoir

ethical maxims

The Golden Rule:

Act in the way you would expect others to act toward you.

The Utilitarian Principle:

Act in a way that results in the greatest good for the greatest number.

Kant's Categorical Imperative:

Act in such a way that the action taken under the circumstances could be a universal law or rule of behavior.

The Professional Ethic:

Take only actions which would be viewed as proper by a disinterested panel of professional colleagues.

The TV Test:

A manager should always ask: "Would I feel comfortable explaining to a national TV audience why I took this action?"

Three concepts of social responsibility

1. profit responsibility (stockhodlers)

2. stakeholder responsibility (consumers, employees, etc)

3. societal responsibility (green marketing, cause marketing)

cause marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

code of ethics

a formal statement of ethical principles and rules of conduct

Consumer Bill of Rights

an outline presented by JFK in 1962 that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard

economic espionage

the clandestine collection of trade secrets or proprietary information about a company's competitors

Ethics

moral principles that govern a person's or group's behavior

green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

laws

society's values and standards that are enforceable in the courts

Tripple Bottom Line

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth

Utilitarianism

a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

Whistle-blowers

employees who report unethical or illegal actions of their employers

moral idealism

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

purchase decision process

1. problem recognition (perceiving a need)

2. information search (seeking value)

3. alternative evaluation (assessing value)

4. purchase decision (buying value)

5. post purchase behavior (consuming/using value)

Influences on Consumer Behavior

- marketing mix

- social influences

- internal (psychological) influences

- situational influences

pyschological influences

motivation and personality, consumer perception, consumer learning, values beliefs and attitudes

sociocultural influences

personal influence, reference groups, family influence, social class, culture and subculture

attitude

a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way

Beliefs

a consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people

brand loyalty

a favorable attitude toward and consistent purchase of a single brand over time

consumer journey map

a visual representation of all the touchpoints a consumer comes into contact with before, during, and after a purchase

opinion leaders

individuals who exert direct or indirect social influence over others

reference group

people to whom an individual looks as a basis for self-appraisal or as a source of personal standards

Perception

the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world

what are the two perspectives on entrepreneurship

prediction and creation

Theory of Effectuation

because the future is unpredictable yet controllable, entrepreneurs can "effect" the future

5 skills for entrepreneurship

play, experimentation, empathy, creativity, reflection

Practice of Entrepreneurship

-identify your desired impact on the world

-start with means at hand

-describe your idea today

-calculate affordable loss

-take small actions

-network and enroll others in journey

-build on what you learn

-reflect and be honest with yourself

mindset

the established set of attitudes held by someone

fixed mindset

perceive talents and abilities as set traits

growth mindset

believe that their talents and abilities can be developed through dedication and hard work

behavior focused strategies

-self-observation

-self-goal setting

-self-reward

-self-punishment

-self-cueing

natural reward strategies

make aspects of a task more enjoyable building in certain features

constructive thought patterns

Forming productive ways of thinking that can benefit our performance.

creativity

the capacity to use information and/or abilities in a new and original way

Barriers to creativity

fear, fixed habits, dependence on authority, perfectionism, problems with social networks

Business-to-business (B2B)

the marketing of goods and services to organizations rather than consumers.

-industrial/business (physcial goods 25% services 75%

-reseller marker (wholesalers and retailers

-government markets

NAICS (North American Industry Classification System)

classification system that allows you to search market sizes, growth rates and companies within segments.

organizational buying criteria

quality specifications, delivery schedules, past performance, production facilities/capacity, warranty/claim policies, technical capability, price

Stages in the buying process

problem recognition, information search, alternative evaluation, purchase decision, post purchase behavior

buying center

the group of people typically responsible for the buying decisions in large organizations and share common goals, risk, and knowledge important to a purchase decision.

derived demand

the demand for industrial products and services is driven by or derived from, the demand for consumer products and services

buy classes

consist of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.

dynamics of world trade

2/3 of world trade is between China, Japan, Western Europe and Canada

BRIC countries

Refers to Brazil, Russia, India, and China are expected to be the top economies by 2050 because of population country size and GDP potential

competitive advantage of nations

firms that succeed globally first succeed in intense domestic competition that requires continuous improvement, innovation and change

factor conditions

natural resources, education and skill levels, wage rates

Company strategy, structure, and rivalry

number of companies in an industry, intensity of competition, public or private ownership

Demand Conditions

size of market, sophistication of consumers, media exposure of products

related and supporting industries

existence of supplier clusters

international firm

extension of home marketing strategy

Multinational Firm

multi-domestic marketing strategy

transnational firm

global marketing strategy

aspects of culture

values, customs, symbols, language

back translation

The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.

balance of trade

the difference between the monetary value of a nation's exports and imports

Countetrade

the practice of using barter rather than money for making global sales

culture symbols

things that represent ideas or concepts in a specific culture