Mgmt 323 Purdue - Exam 1 Flashcards

Marketing

Activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing Plan

Specifies the marketing activities for a specific period of time. Written document.

Value

Reflects the relationship of benefits to costs, or what you get for what you give.

Value Cocreation

Creative way to provide value to customers is to engage in this. The customers act as collaborators to create the product or service.

Exchange

The trade of things of value between the buyer and the seller so that each is better off as a result.

Four P's of Marketing (also known as marketing mix)

Product, Place, Price, Promotion

Product

Crating value by developing a variety of offerings.

Place

Delivering the value proposition; Represents all the activities necessary to get the product to the right customer, at the right time.

Price

Capturing value; Is everything the buyer gives up (money, time, or energy) in exchange for the product.

Promotion

Communicating the value proposition; Is the communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and provoke a response.

Goods

Items you can physically touch.

Services

Intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

Idea

Includes thoughts, opinions, and philosophies.

Supply Chain Management

The set of approaches and techniques that firms employ to efficiently and effectively integrate those involved in the transaction.

Business-to-Consumer Marketing (B2C)

Process by which businesses sell to consumers.

Business-to-Business Marketing (B2B)

Process of selling merchandise or services from one business to another.

Consumer-to-Consumer Marketing (C2C)

Consumers sell to other consumers.

Relational Orientation

Marketers have begun to develop this as they have realized that they need to think about their customers in terms of relationships rather than transactions. To build relationships, firms focus on the lifetime profitability of the relationship, not how much money is made during each transaction.

Customer Relationship Management (CRM)

Is an approach that is also a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.

Marketing Strategy

Defines (1) a firm's target market(s), (2) a related marketing mix (its four Ps), and (3) the bases on which the firm plans to build a sustainable competitive advantage.

Sustainable Competitive Advantage

An advantage over the competition that is not easily copied and can be maintained over a long period of time. Acts like a wall that the firm has built around its position in a market. The wall makes it hard for outside competitors to contact customers inside (the marketer's target market).

Four macro strategies to develop sustainable competitive advantage

Customer Excellence, Operational Excellence, Product Excellence, Locational Excellence

Customer Excellence

Focuses on retaining loyal customers and excellent customer service.

Operational Excellence

Achieved through efficient operations and excellent supply chain and human resource management.

Product Excellence

Having products with high perceived value and effective branding and positioning.

Locational Excellence

Having a good physical location and Internet presence.

5 Steps to a Marketing Plan

1. Planning Phase. 2. Evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success. 3. Implementation Phase. 4. Implementing the marketing mix using the 4 Ps. 5. Control Phase.

Planning Phase

Marketing executives, in conjunction with other top managers, define the mission and/or vision of the business.

Implementation Phase

Marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning or STP.

Control Phase

Entails everything the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions.

Steps to analyzing a marketing situation

1. Define the business mission. 2. Conduct a situation analysis. 3. Identify and Evaluate Opportunities Using STP. 4. Implement marketing mix and allocate resources. 5. Evaluate Performance using marketing metrics.

Mission Statement

A broad description of a firm's objectives and the scope of activities it plans to undertake, and attempts to answer two main questions: What type of business are we? What do we need to do to accomplish our goals and objectives? These must be answered by senior management.

Situation Analysis

What a firm would perform using a SWOT analysis.

SWOT Analysis

It assess both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.

CDSTEP

Cultural, Demographic, Social, Technological, Economic, and Political forces

STP

Segmentation, Targeting, and Positioning

Market Segement

Is a group of consumers who respond similarly to a firm's marketing efforts.

Market Segmentation

Process of dividing the market into groups of customers with different needs, wants, or characteristics, who therefore might appreciate products or services geared especially for them.

Target Marketing or Targeting

After a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue using these processes.

Market Positioning

Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Integrated Marketing Communications (IMC)

Represents the fourth P, promotion, which is a variety of communication disciplines.

Metric

Is a measuring system that quantifies a trend, dynamic, or characteristic. Used to explain why things happened and also project the future.

Market Share

Percentage of a market accounted for by a specific entity and is used to establish the product's strength in a particular market.

Relative Market Share

Special type of market share metric and is used to provide managers with a product's relative strength, compared to others.

Market Penetration Strategy

Employs the existing marketing mix and focuses the firm's efforts on existing customers.

Market Development Strategy

Employs the existing marketing offering to reach new market segments, whether domestic or international.

Product Development Strategy

Offers a new product or service to a firm's current target market.

Diversification Strategy

Introduces a new product or service to a market segment that currently is not being served. Can be related or unrelated.

Related Diversification

The current target market and/or marketing mix shares something in common with the new opportunity. So, the firm is able to purchase from existing vendors.

Unrelated Diversification

New business lacks any common elements with the present business. This does not capitalize on either core strengths associate with markets or with products. This view can be very risky.

Social Media

Refers to content distributed through online and mobile technologies to facilitate interpersonal interactions.

4E Framework of Media

1. Excitement (excite the customers with relevant offers) 2. Education (educate them about the offering) 3. Experience (Help them experience products, whether directly or indirectly) 4. Engagement (give them an opportunity to engage with their social network)

3 types of social media marketers rely on

1. Social networking site, 2. Media-sharing sites, 3. Thought sharing sites (or blogs)

Objectives that are achieved through social media

1. Members promote themselves to gain more friends. 2. Sites promote to get more members. 3. Outside companies promote their products and services to appeal to the potential consumers who are active on the sites.

Blogs

Also known as "weblog" was originally confined to a journal or diary in a person's room but now the internet has allowed us to make our thoughts open to the world through thought-sharing websites.

Corporate Blogs

Created by companies themselves, have the highest control due to the large degree, they can control the content posted on them. Allows customers to respond to posts.

Professional Blogs

Those written by people who review and give recommendations on products and services.

Personal Blogs

Written by people who receive no products or remuneration for their efforts. Marketers have the lowest level of control over this type.

Microblog

This differs from a traditional blog in size, short sentences, short videos, or individual images. Twitter is the most popular microblog. Allows for an easy two way communication.

Seven primary needs that apps meet

1. "Me time" 2. Socialize 3. Shop 4. Accomplish 5. Prepare 6. Discover 7. Self-express

Showrooming

Is a process that enables customers to scan a product in a store and instantly compare the prices online to see whether a better deal is available.

Ad-support apps

Free to download, but places ads on the screen when using the program to generate revenue. This type does not generate much revenue.

Freemium apps

Apps that are free to download but include in-app purchases to enhance an app or game.

Paid apps

Charge the customer an upfront price to download the app (usually $0.99) but offer full functionality once downloaded.

Paid apps with in-app purchases

Require the consumer to pay initially to download the app and then offer the ability to buy additional functionality.

Three stage process to engage customers through social and mobile media

1. Listen 2. Analyze 3. Do

Sentiment Anlaysis

A technique that marketers can analyze the content found on sites like Facebook, Twitter, and online blogs and reviews to assess the favorableness or unfavorableness of the sentiments. Allows marketers to analyze data from these sources to collect consumer comments about companies and their products.

Hits

Is a measure used for the purpose that is the total requests for a page and the amount of visits.

Page Views

The number of times any page gets viewed by any visitor.

Bounce Rates

Is a metric that refers to the percentage of times a visitor leaves the site almost immediately, such as after viewing only one page.

Click Paths

This is done by the visitor and shows how users proceed through the information

Keyword Analysis

Firms can use this to determine what keywords people use to search on the internet for their products and services.

Campaign steps

1. Identify strategy and goals. 2. Identify target audience. 3. Campaign. 4. Develop a budget. 5. Monitor and change.

Macroenviornmental Factors

Those that operate in the external environment. The factors for this are CDSTEP.

Culture

Has shared meanings, beliefs, morals, values, and customs of a group of people. Is transmitted by words, literature, and institutions, culture is passed down from generation to generation and learned over time.

Country Culture

Culture that goes with the country associated with it. Visible nuances of a country's culture.

Regional Culture

Region in which people live in a particular country and that affects many aspects of people's lives.

Demographics

Indicate the characteristics of human populations and segments, especially those used to identify consumer markets.

Generational Cohort

A group of people of the same generation that have similar purchase behaviors because they have shared experiences and are in the same stage of life.

Generations (youngest to oldest)

1. Generation Z (Gen Z or the Digital Natives), anyone born after 2000

2. Generation Y (Gen Y, or the Millennials), people born from 1977 to 2000

3. Generation X (Gen X), people born between 1965 to 1976

4. Baby Boomers, people born between 1946 to 1964

Green Marketing

Involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.

Greenwashing

Where a firm is questioned by the consumer if it is spending more money and time advertising being green and operating with consideration for the environment than actually spending the resources to be green.

Technological Advances

These have accelerated during the past decade, improving the value of both products and services.

Inflation

Refers to the persistent increase in the prices of goods and services. Increasing prices cause the purchasing power of the dollar to decline.

Interest Rates

Represent the cost of borrowing money.

Consumer process decision model (5 steps)

1. Need recognition

2. Information search

3. Alternative evaluation

4. Purchase

5. Post-purchase

Internal Search for Information

Is where the buyer examines his or her own memory and knowledge about the product or service gathered through past experiences.

External Search for Information

Where the buyer seeks information outside his or her personal knowledge base to help make the buying decision.

3 main factors that affect the consumers' search processes

1. Perceived benefits versus perceived costs of search

2. The locus of control (internal or external)

3. The actual or perceived risk (5 types of risk)

Internal Locus of Control

People that believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.

External Locus of Control

Consumers believe that fate or other external factors control all outcomes. They believe it doesn't matter how much information they gather.

5 types of risk

1. Performance Risk

2. Financial Risk

3. Social Risk

4. Physiological Risk or Safety Risk

5. Psychological Risk

Performance Risk

Involves the perceived danger inherent in a poorly performing product or service.

Financial Risk

Risk associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service.

Social Risk

Involves the fears that consumers suffer when they worry others might not regard their purchases positively.

Physiological Risk or Safety Risk

Where performance risk involves what might happen if a product does not perform as expected.

Psychological Risk

Those risks associated with the way people will feel if the product or service does not convey the right image.

Universal Sets

Includes all possible choices for a product category, but because it would be not good for a person to recall all possible alternatives for every purchase decision, marketers tend to focus on only a subset of choices (retrieval or evoked sets).

Retrieval Set

Those brands or stores that can be readily brought forth from memory.

Evoked Set

Comprises the alternative brands or stores that the consumer state he or she would consider when making a purchase decision.