mark midterm

P1 CH1 - Marketing management

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

P1 CH1 - 10 things marketed

Goods, services, events, experiences, persons, places, properties, organizations, information, ideas

P1 CH1 - 8 demand states

Negative, nonexistent, latent, declining, irregular, full, overfull, unwholesome

P1 CH1 - Demand states: memory groups

Not much demand: negative, nonexistent, latent. Changing: declining, irregular. Enough or too much: full, overfull. Bad: unwholesome

P1 CH1 - Latent demand

A strong need that no existing product satisfies

P1 CH1 - Nonexistent demand

Consumers are unaware of or uninterested in the product

P1 CH1 - Irregular demand

Purchases vary by season, month, week, day, or hour (woolen clothing in winter)

P1 CH1 - Needs vs. wants vs. demands

Needs = basic requirements; wants = specific objects that might satisfy a need; demands = wants backed by ability to pay

P1 CH1 - 5 types of needs

Stated (says it), real (what they actually need), unstated (expects it, doesn't say it), delight (pleasant extra, like GPS), secret (reluctant to say it, wants to look savvy)

P1 CH1 - Target market

The market you have chosen to reach

P1 CH1 - Segmentation

Identifying distinct groups of buyers by demographic, psychographic, and behavioral differences

P1 CH1 - Positioning

Placing the offering in buyers' minds as delivering a key benefit (Volvo = safety)

P1 CH1 - Disintermediation

Cutting out the middleman, going online only (eBay, Amazon)

P1 CH1 - Reintermediation

Going from online-only to bricks-and-mortar, adding the middleman back

P1 CH2 - Value delivery process

1. Choosing the value (STP: segment, target, position). 2. Providing the value (features, prices, distribution). 3. Communicating the value (ads, internet, sales force)

P1 CH2 - Core competency (3 criteria)

A source of competitive advantage; applies in a wide variety of markets; difficult for competitors to imitate

P1 CH2 - 4 ways to grow and close the planning gap

Intensive, integrative, diversification, downsizing/divesting older businesses

P1 CH2 - Intensive growth

INtensive = growing INside current businesses: market penetration, market development, product development (ESPN)

P1 CH2 - Integrative growth

INTEGrating with others in your industry: backward, forward, or horizontal (Merck)

P1 CH2 - Backward / forward / horizontal integration

Backward = buy a supplier; forward = buy a distributor or retailer; horizontal = buy a competitor

P1 CH2 - Diversification growth

Adding attractive businesses outside the present ones (Disney into theme parks, cruises, ABC)

P1 CH2 - Downsizing and divesting

Pruning, harvesting, or selling tired businesses to free resources (American Express, AIG)

P1 CH2 - Marketing plan (7 parts)

Executive summary, table of contents, situation analysis, marketing strategy, marketing tactics, financial projections, implementation controls

P1 CH2 - SWOT

Strengths and weaknesses are INTERNAL; opportunities and threats are EXTERNAL

P1 CH6 - 5 psychological processes that influence consumer response

Motivation, memory, perception, emotions, learning

P1 CH6 - Maslow (bottom to top)

Physiological, safety, social, esteem, self-actualization

P1 CH6 - Selective attention

We screen out most stimuli and notice those related to a current need

P1 CH6 - Selective distortion

We interpret information to fit our preconceptions

P1 CH6 - Selective retention

We remember information that supports our attitudes and beliefs

P1 CH6 - Entry point marketing

Reaching people at the right life stage and need state to be receptive (first car, first apartment, insurance)

P1 CH6 - 5-stage buying process

Problem recognition, information search, evaluation of alternatives, purchase decision, postpurchase behavior

P1 CH6 - 6 perceived risks

Functional, physical, time, financial, psychological, social

P1 CH6 - What each perceived risk means

Functional = doesn't perform; physical = health threat; time = cost of finding another product; financial = not worth the price; psychological = emotional well-being; social = embarrassment

P1 CH6 - Low involvement

Buyers don't care much and see no big brand differences (salt, lightbulbs)

P1 CH6 - Variety-seeking buying

Low involvement with big brand differences, so lots of switching (cookies, clothing, beverages)

P1 CH6 - Variety seeking: leader vs. challenger

Leader encourages loyalty and avoids out-of-stocks; challenger encourages switching with deals, pricing, and promotions

P1 CH9 - Market segment

A group of customers who share a similar set of needs and wants

P1 CH9 - 4 segmentation bases

Geographic, demographic, psychographic, behavioral

P1 CH9 - 4 loyalty groups

Hard-core loyals (one brand always), split loyals (2-3 brands), shifting loyals (move between brands), switchers (no loyalty)

P1 CH9 - Behavioral variables

Occasions, user status, usage rate, loyalty status, readiness stage, attitude

P1 CH9 - User status and usage rate

User status: nonuser, ex-user, potential, first-time, regular. Usage rate: light, medium, heavy

P1 CH9 - Attitudes toward a product

Enthusiastic, positive, indifferent, negative, hostile

P1 CH9 - 7 steps of segmentation

Needs-based segmentation, segment identification, attractiveness, profitability, positioning, acid test, marketing-mix strategy

P1 CH9 - 5 criteria for effective segments

Measurable, substantial, accessible, differentiable, actionable

P1 CH9 - Substantial vs. differentiable

Substantial = big and profitable enough to serve; differentiable = responds differently to marketing mix elements

P1 CH10 - Positioning

Designing the offering and image to occupy a distinctive place in the target market's mind

P1 CH10 - Positioning statement

To [target audience], Brand X is the brand of [competitive frame of reference] that is the [point of difference]

P1 CH10 - Competitive frame of reference

Which other brands a brand competes with and so should be the focus of competitive analysis

P1 CH10 - Point of difference (POD)

What consumers strongly associate with a brand, like, and believe they can't find to the same extent in a competitor

P1 CH10 - Point of parity (POP)

Associations not necessarily unique to the brand; shared with other brands

P1 CH10 - 3 POD criteria

Desirable, deliverable, differentiating

P1 CH10 - Brand mantra

A 3-5 word articulation of the heart and soul of the brand; internal, not a slogan

P1 CH10 - What a brand mantra should do

Communicate, simplify, inspire

P1 CH11 - 5 roles of brands for consumers

Set and fulfill expectations, reduce risk, simplify decision making, take on personal meaning, become part of identity

P1 CH11 - 5 roles of brands for firms

Simplify product handling, organize inventory and accounting, legal protection, create loyalty, competitive advantage

P1 CH11 - 10 branding options

Brand extension, category extension, sub-brand, brand line, parent brand, brand mix, master/family brand, branded variants, line extension, licensed product

P1 CH11 - Brand portfolio

All brands and brand lines a firm offers for sale in a category or market segment

P1 CH11 - Brand portfolio roles

Flankers, cash cows, low-end entry level, high-end prestige

P1 CH11 - Brand extension

Launching new products under a firm's strongest existing brand name

P2 PAIR - Intensive vs. integrative

Intensive = inside current businesses. Integrative = integrating with suppliers, distributors, or competitors

P2 PAIR - Disintermediation vs. reintermediation

Cutting out middlemen vs. adding them back

P2 PAIR - Latent vs. nonexistent demand

Latent = strong need, no product yet. Nonexistent = unaware or uninterested

P2 PAIR - Stated, real, unstated, delight, secret needs

Says it / actually needs / expects it but doesn't say / pleasant extra / won't say it

P2 PAIR - Selective attention vs. distortion vs. retention

Notice / interpret / remember

P2 PAIR - Social risk vs. psychological risk

Social = embarrassment in front of others. Psychological = the user's own emotional well-being

P2 PAIR - Point Of Difference vs. Point Of Parity

POD = unique to you. POP = shared with others

P2 PAIR - Brand mantra vs. slogan

Mantra = internal 3-5 words (Authentic Athletic Performance). Slogan = external (Just Do It)

P2 PAIR - Line extension vs. category extension

Line = new flavor or size in the same category (Tide pods). Category = a new category (Swiss Army watches)

P2 PAIR - House of brands vs. branded house

House of brands = individual names (P&G: Tide, Downy). Branded house = corporate name with sub-brands (Mercedes)

P2 PAIR - Brand equity vs. customer equity

Brand equity = added value of a brand. Customer equity = sum of lifetime values of all customers

P2 PAIR - Product vs. market specialization

Product = one product sold to several segments. Market = many products sold to one customer group

P2 APPLY - Coffee chain buys its own coffee farms

Integrative growth, backward (the farms are suppliers)

P2 APPLY - Clothing maker opens its own retail stores

Integrative growth, forward (retailers are ahead of you)

P2 APPLY - Retailer buys a competing retailer

Integrative growth, horizontal

P2 APPLY - Disney moves from films into theme parks and cruises

Diversification growth

P2 APPLY - Shampoo gets current customers to use it more often

Intensive growth, market penetration

P2 APPLY - Shoppers have never heard of a new product

Nonexistent demand

P2 APPLY - Commuters want a cheap clean-energy car that doesn't exist

Latent demand

P2 APPLY - A new parent notices every baby ad and ignores car ads

Selective attention

P2 APPLY - Buyer worries friends will laugh at a gadget

Social risk

P2 APPLY - Buyer worries a blender isn't worth the price

Financial risk

P2 APPLY - Furniture ads aimed at people signing their first apartment lease

Entry point marketing

P2 APPLY - Segment too small to be profitable

Fails the substantial criterion

P2 APPLY - Married and single women respond identically to a promotion

Fails the differentiable criterion

P2 APPLY - Customer buys one soda brand every time

Hard-core loyal

P2 APPLY - Swiss Army knives maker starts selling watches

Category extension

P2 APPLY - Cheap model meant to bring new buyers into a car brand

Low-end entry level brand

P3 EXTRA - 4 strategic alliances

Product/service, promotional, logistics, pricing collaborations

P3 EXTRA - Value chain

Primary: inbound logistics, operations, outbound logistics, marketing and sales, service. Support: procurement, technology, HR, infrastructure

P3 EXTRA - Porter's 5 forces

Segment rivalry, new entrants, substitutes, buyer power, supplier power

P3 EXTRA - Most attractive segment barriers

High entry barriers and low exit barriers

P3 EXTRA - 5 buying roles

Initiator, influencer, decider, buyer, user

P3 EXTRA - VALS motivations

Ideals, achievement, self-expression

P3 EXTRA - Levels of segmentation

Full coverage, multiple segment specialization, product specialization, market specialization, single segment, niche, individual (one-to-one)

P3 EXTRA - Share of market, mind, heart

Share of the target market; first company named; company they would prefer to buy from

P3 EXTRA - Examples to know

Nike (Authentic Athletic Performance / Just Do It), Disney (diversification), Volvo (safety), Xerox (market orientation), Hertz and Domino's (value propositions)