Kaarten: Principles of Marketing | Quizlet

Market management operation: production concept

Consumers will favor products that are available and affordable. Company focusses on improving production/distribution.

What is Marketing?

Process by which companies engage customers, build strong customer-relationships and create customer value; in order to capture value from customers in return.

Describe the marketing process

1. Understand marketplace and customer needs

2. Design a customer-driven marketing strategy

3. Construct an integrated marketing program

4. Build profitable relationships with customers

5. Capture value from customers to create profits & equity

A customer´s need

A state of deprivation (tekortkoming)

A customer´s wants

A form of human needs, shaped by culture and individual personality.

A customer´s demands

Human wants that are backed by buying power (fe 500 to spend)

Market offerings

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

Exchange

Obtaining a desired object by offering something in return

Market

Set of all actual and potential buyers of a product or service

Marketing management

Arts and sciences of choosing target markets and building profitable relationships

Market management operation: product concept

Consumers will favor products that offer high quality, performance and features. Company focuses on product improvements.

The Selling Concept (idea mbt production)

the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort. (f.e. dropship)

The Marketing Concept

The idea that achieving goals depend on knowing the needs and wants of the target market.

Social Marketing Concept

A company considers:

a consumers want,

companys requirements,

long-term interest of consumers/society.

Product oriented (marketing)

Defines the product offered. F.e. Hotel: `We rent rooms´.

Marketing oriented (a way of marketing)

Defines the product based on satisfying customer´s needs. F.e.: Hotel: We offer a perfect relaxing bed´.

Business Portfolio

all products/service a company offers or has offered

CRM (Customer Relationship Management)

building and keeping customer relations by delivering customer value and satisfaction.

Customer-perceived value

A customer´s evaluation of the benefits and costs of a marketing offer, relative to competitors

customer satisfaction

A products´perceived performance that does or doesnt match a buyer´s expectation

Customer-engagement marketing

making a brand meaningful to a customer and shape brand conversations

Consumer-generated marketing

Brand exchanges by consumers due to experiences

Partner relationship management

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

customer lifetime value

Entire stream of purchases a customer makes over lifetime

Share of customer

portion each customer is buying

Customer equity

Total combined customer lifetime values of all the company´s customers.

Customer Relationship Groups

Butterflies: potential buyers, not loyal

Strangers: lowest profit, lowest loyalty potential

True Friends: profitable and loyal

Barnacies: Highly loyal, not profitable

Describe the steps in strategic planning

1. Defining a company´s misson

2. Setting company´s goals

3. Design business portfolio

4. Planning marketing- and other strategies

The Boston Consulting Approach (BCG)

Star: heavy investment for large growth, will slow down after time

Cash Cow: Produces lot of cash and does not need a lot investment to hold market share

Dogs: Low growth, low marketshar. Generates just enough cash to mainatin

Question Mark: Low share in high growing markets. Requires a lot of cash to get a higher share.

Product/market expansion grid

a portfolio-planning tool for identifying company growth opportunities through:

- market penetration (current products + market)

- market development. (new markets + current product)

- product development (current markets + new product)

- diversification (new market + new products)

Value chain

Series of internal departments that carry out value-creating activities.

Marketing Strategy

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

Market Segmentation

Dividing market into distinct groups with different needs

Market targeting

Select one market segment to focus on

Market differentiation

differentiating the market offering to create superior customer value

Market positioning

Creating a distinctive & desirable place for the product

Marketing Mix

A set of multiple strategies and combining them

4 P´s

Product, Price, Place, Promotion

SWOT analysis

Evaluation of:

Strengths and Weaknesses (internal)

Opportunities and Threats (external)

Marketing Return on Investment (ROI)

Net return from a marketing investment divided by costs of investment.

Micro environment (!)

Actors close to the company that affect its ability to service its customers (company, suppliers, competitors, distributors. (Internal)

Macro environment (!)

Larger societal factors that affect the micro environment (external)

Marketing Intermediaries

Firms that help promote, sell and distribute its products. (part of micro-env.)

Publics

Any group with (potental) interest or impact on an organization´s ability to achieve objectives. (part of micro-env.)

Think of finiancial publics, media publics, government publics, internal publics, general opinion.

PESTED model (macro environment)

Political

- laws/ governments/ agencies that pressure groups and limit various organisations/ individiuals.

Economic

- changing world order

- changes in consumer spending

- income distribution

Social/Cultural

- institutions that affect society´s basic values, perceptions, preferences

Technological

- new techonologies; new market opportunities

Ecological/Natural

- physical and natural resources that are needed

Demographical

- Study of human population

- Changing family structures

- Geographic shift in population

- Baby boomers, Gen X, Millenials, Gen Z

Model of Consumer Behavior

The environment, Buyer´s black box, Buyer´s response.

4 Factors Influencing Consumer Behavior

1. Cultural (basic values, subculture/social class)

2. Social (groups, word of mouth, opinion leader, online)

3. Personal factors (lifestyle, personality)

4. Psychological factors (motive, perception, learning)

4 types of decision/ buyer behaviour

1. Complex buying behaviour

high involvement, difference in brands

2. Variety-seeker behaviour

low involvement, difference in brands

3. Habitual buying behaviour

low involvement, same brands

4. Dissonance-reducing buying behaviour

high involvement, same brands

Describe the buyer decision process

1. Need recognition

2. Information Search

3. Alternative information

4. Purchase decision

5. Post- Purchase behaviour

Cognitive dissonance

Buyer´s discomfort after buying due to conflict.

Describe the adoption process

= Mental process from hearing about to buying

1. Awareness

2. Interested/information

3. Evaluation

4. Trial

5. Adoption

Influence of product characteristics on rate of adoption (new technologies)

- Relative advantages

- Compatibility

- Complexity

- Divisibility

- Communicability

Major influences on business buying behaviour: Environmental

Economy,

Supply conditions,

Technology,

Politics,

Competition,

Cultural.

Major influences on business buying behaviour: Organizational

Objectives,

Strategies,

Structure,

Systems,

Procedure

Major influences on business buying behaviour: Interpersonal

influence,

expertise,

authority,

dynamics

Major influences on business buying behaviour: individual

Age,

personality,

education,

job position

Geographic Segmentation

Dividing markets into different groups based on nations, states, regions, countries

Demographic segmentation

Dividing markets into different groups based on age, life-cycle, stage, gender, education, religion, etc.

Name some requirements for segmentation

Measurable

Accesible

Substantial

Diffentiable

Actionable

Undifferentiated marketing

Firm decides to ignore market segmentation, focuses on whole market

Differentiated marketing

Firm targets several market segments and designs separate offers for them

Concentrated (niche) marketing

Firm goes after a large share of one or a few segments/ niches

Micro marketing

Tailoring products and marketing to needs and wants of specific individual.

Product positioning

The way a product is defined by consumers & the place it occupies in consumer´s head.

Value propositioning

the full positioning of a brand - the full mix of benefits on which it is positioned. More benefits = higher price, etc.

Positioning statement

A statement that summerizes company´s position:

To (target segment it´s needs..) our (brand) is (concept) that (point of difference)

F.e.: To target women´s nails, our GelPolish will make their nails pretty that they will receive a lot of compliments.

Consumer product

bought for personal consumption

Convenience product

bought frequently, minimal comparizon

Shopping product

process of selecting, compared to price/quality/suitability

specialty products

unique items that the consumer makes a special effort to search out and buy

unsought products

unwanted items that consumer doesnt know about

Industrial products

bought for further processing or conducting in a business

Social marketing

The use of traditional marketing concepts to encourage behaviours of buying

Name four product and service decisions

Product quality

Brand

Packaging

Labelling & logos

Product line

Closely related products that function in a similar way, know same customers, marketed in the same way, etc.

Name four nature + characteristics of a service

Intagibility

Inseperability

Variability

Perishability

Intagibility

Cant be seen, tasted, heared, before being bought

Inseperability

Sevice that cant be separated for their providers

Variability

Quality depends on the provider, where, when, how

Perishability

Service can´t be stored for later

Name the 5 factors of the Service Profit Chain

1. Internal service quality

2. Satisfied and productive service employees

3. Greater service value

4. Satisfied customers

5. Healthy service, profits, growth.

Internal marketing

Motivating (customer-contact) employees and supporting them to work as a team

interactive marketing

Training employees in interacting with customers and their needs.

Name three steps of branding strategy

1. Brand positioning

2. Brand nameselection

3. Brand sponsorship

Brand equity

effect that knowing about the brand has on customer response

Private brand

created and owned by a reseller of a product or service

Co branding

2 existing brand names on a new product

Name the four options in brand development

Line extension (existing brand and product)

Brand extension (existing brand new product)

Multi brands (new brand, same product)

New brands (new brand, new product)

Name all the steps of product development (10 steps) big answer!

Idea generation (systemic search new ideas)

Crowd sourcing (inviting communities in process)

Idea screening (dropping bad ideas, select good ones)

Product concept (detailed version of new idea)

Concept testing (testing product concept)

Marketing strategy development (designing)

Business analysis (review of sales, costs, profits)

Product development (physical product)

Test marketing (product and marketing test)

Commercialization (introducing new product)

ICI PC MBP TC

Customer-centered new product development

new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

Team-based new product development

new product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

Describe the product life cycle (PLC)

1. Product development (finding of a new product)

2. Introduction (available for sale)

3. Growth stage (sales increase rapidly)

4. Maturity (sales slow down)

5. Decline stage (sales fade away)

Fad

usually temporary, high sale growth due to popularity

Big data

Huge data sates generated by information generation/ collection/ storage/ analysing technologies

Customer insights (data)

Marketing information based understandings of customers.

Marketing Information System (MIS)

people and procedures dedicated to assessing and developing information.

Internal database

Collections of consumer & market information

Competitive marketing intelligence

The systemic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment