AEM 1200

studied byStudied by 0 people
0.0(0)
get a hint
hint

4Ps of Marketing

1 / 99

Tags and Description

Business

100 Terms

1

4Ps of Marketing

• Product: Basic design of the product/service • Price: How much the purchaser pays • Placement (or distribution): Where and how the productis available or sold • Promotion (or communications): Influencing consumerpurchase decisions through information, persuasion, and branding

New cards
2

10-K report

Required annual report filed with the SEC by publicly held firms

New cards
3

ALDI's Strategy

Limited selection (1400 vs 40,000 items) Private label (few name brands) Quarter-deposit carts No shelf-stocking Super-sized or multiple barcodes No bagging, no bags Small footprint (12,000 vs 145,000ft2) Cross-trained employees (3-5 at time, 15-20 overall)

New cards
4

Asset

A useful or valuable thing, person, or quality Both Tangible and Intangible Assets

New cards
5

BHAG

Big Hairy Audacious Goal "clear and compelling and serves as a unifying focalpoint of effort, often creating immense team spirit. It has a clear finish line, so the organization can know when it has achieved the goal .... A BHAG should not be a sure bet ... but the organization must believe 'we can do it anyway Example: Microsoft - A computer on every desk and in every home, all running our software Facebook - Connect the world

New cards
6

BHAG Siblings

• Strategic intent • Stretch goal • 10X goal • Moonshot • Aspirational goal • Aspirational OKR

New cards
7

Brand Definitions

The image your customers have of your business or product Your product 's identity/personality that sets it apart from the competition An intangible business/marketing concept that helps people identify a company or product

New cards
8

Brand Equity

A brand's value The power of a brand to make you choose that product or service A value premium a company generates from a product with a recognizable name when compared to a generic equivalent

New cards
9

Business Model Basics

Value Proposition - Why customers will buy from you Cost Structure - How you will make money

New cards
10

Business Products

Purchased to use either directly or indirectly in the production of other products• Installations and accessory equipment• Maintenance, repair, and operating products• Raw materials, processed materials, and businessservices

New cards
11

Capability

Ability to perform actions

New cards
12

Coca Cola's Globalization

•WWII and the Army's support was crucial•In Mexico: Deep distribution and millions of sales points was key.

New cards
13

Competitive Rivalry

Switching CostsIndustry Growth Rate

New cards
14

Convenience vs Shopping Goods

Convenience: Staple goods, impulse goods, or emergency goods Shopping: Goods purchased after comparing price, quality, and style

New cards
15

Core Competence

An activity that a company performs quite well & is central to its strategy & competitiveness

New cards
16

Corporate Governance

System of rules, practices, and processes by which a firm is directed and controlled. •Balance the interests of the company's stakeholders(Stakeholders, senior management, suppliers, customers, financiers, the government, community) •A company's board of directors is the primary force influencing corporate governance

New cards
17

Corporation

Definition: Legal entity separate from its owners Pros•Limited Liability•Permanence•Ease of transfer of ownership•Ability to raise capital•Can Use Specialized management Cons•Complexity of formation and operation•Double Taxation•Paperwork and Regulation•Conflicts of Interest (Mgmt & Stockholders)

New cards
18

CSR

Corporate Social Responsibility Managing Stakeholder's expectations EX: Shareholders (Owners) •Maximize Profits Employees •Maximize compensation, safety, tenure, stability Customers •Great Value, convenience, transparency, and value-alignment Public/Government •Be a "good citizen", pursue the "greater good"

New cards
19

Customer Relationship Management (CRM)

Ongoing process of acquiring, maintaining, and growing profitable customer relationships function and set of processes for: • Customer satisfaction: When customers perceivethat a good or service delivers value above andbeyond their expectations • Customer loyalty: When customers buy a productfrom the same supplier again and again

New cards
20

Customers Bargaining Power

Buyer ConcentrationUndifferentiated ProductsPrice Sensitivity

New cards
21

Defining your industry

Craft beer vs beer or alcoholic beverages

Your definition will determine who you consider competitors

New cards
22

Effectuation model

Process for the creation of artifacts (markets, firms, economies) Driven by an entrepreneur who does not commit his/her resources, but instead focuses primarily on what resources he/she can extract from others or the environment The entrepreneur is very flexible in terms of goals opportunity creation vs opportunity discovery

New cards
23

Fiduciary Responsibility

Acting on the behalf of a beneficiary

New cards
24

Hawthorne Studies Perspective on Business

The 1920s-30s Human relations •Organization as a system of interdependent humans

New cards
25

Important Ethical Frameworks

•Utilitarianism•Kant (Categorical Imperative)

New cards
26

Innovation vs. Reproduction

- Most entrepreneurs organize their activities in thesame way as their predecessors - Most entrepreneurs bring little or no new knowledgeto their industry - Innovators are likely to fail because new combinationsof resources are fatal or perceived as illegitimate - Continuum from reproducer to innovator is defined byoutcomes, not intentions

New cards
27

Intended VS Realized Strategies

because business environment is far from predictable ... Intended strategy -organizational decisions are determined only by analysis -rarely survives in its original form Realized Strategy - organizational decisions are determined by both analysis (deliberate) & unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences (emergent) - final realized strategy = combination of deliberate & emergent strategies intended strategy ---deliberate strategy---> realized strategy intended strategy -------->unrealized strategy emergent strategy -------> realized strategy

New cards
28

Intrapreneurship

manager within a company who promotes innovative product development and marketing change initiatives taken within a going concern by the people working in that organization act of behaving like an entrepreneur while working within a large organization

New cards
29

Kant (Categorical Imperative)

One ought to act such that the principle of one's act could become a universal law of human action in a world in which one would hope to live. (do onto others as you would have them to onto you...Golden Rule) One ought to treat others as having intrinsic values in themselves and not merely as a means to reach one's ends.

New cards
30

Kim & Mauborgne meet Porter

Broad Target & Low Cost - Red Ocean Strategy - KIABroad Target & Differentiation - Blue Ocean Strategy - IPADNarrow Target & Low Cost - King of the Pond StrategyNarrow Target & Differentiation - Deep Sea Strategy - Rolls Royce

New cards
31

Limited Liability Corporation (LLC)

Definition: Mix between corporation and partnership Pros•Limited Liability•Tax pass-through•Flexible Ownership•Ease of formation Cons•Complexity of formation•Annual franchise tax•Different State Laws (foreign status in other states)•Not all firms can be LLCs

New cards
32

Main point of strategy according to Porter

Making trade-offs Choosing what NOT to do or offer Avoid straddling Achieving fit among activities Consistency, reinforcement & optimization

Fit locks out competitors by creating a chain that is as strong as its strongest link

Summary of presentation example: Way of gaining a competitive advantage Advantage flows from establishing a unique position You establish a unique position by doing things differentlyand Choosing which trade-offs to make

New cards
33

Market Segmentation

Dividing potential customers into groups of similar people, or segments

New cards
34

Marketing

Organizational function and set of processes for: • Creating, communicating, and delivering value tocustomers • Managing customer relationships in ways thatbenefit the organization and its stakeholders Planning and executing the development, pricing, promotion and distribution of ideas, goods, and services

New cards
35

Marketing Functions

• Sales/selling • Pricing • Customer service • Advertising • PR (public relations)• Merchandising • Distribution • Customer financing • Market research

New cards
36

Marshmallow Activity Takeaways

Iteration vs planning-execution approach • Importance of frequent feedback Managing the process • Value of an able facilitator Teamwork is more important than "a plan" • Multiple contributions lead to unpredictable but potentially better solutions

New cards
37

Merchandising

Promoting the sale of goods by their presentation in retail outlets

New cards
38

Mission Statement

• Who we are, what we do, and why we are here • Often describes current business- Products- Markets- Identity

New cards
39

Most Profitable Industries since 1980s

PharmaceuticalsToiletries/CosmeticsSoft Drinks

New cards
40

Nascent Entrepreneur

someone who starts serious activities intended to culminate in a viable business startup - Does not follow a fixed sequence of activities• Does not have a plan - 15 months between initial "serious thought" and first real attempt• Has to gather courage - Some conduct activities before giving serious thought• Stumbles upon a business - Start with little capital, no employees• It's me, myself, and I

New cards
41

Opportunities and Threats

Result from a change in the environment- Evolving consumer tastes - Changes in laws - New competitors entering a market Focus on the change- "Intense competition" is not a threat unless it's growingmore intense

New cards
42

Organizational Emergence

- Almost half of adults are "entrepreneurs" (or self-employed) at some point in their lives - 4-6% of adult population actively trying to start newventures - Only half of entrepreneurs manage to launch anorganization - Fewer than one in ten new ventures grow - Most foundings imitate existing organizational forms

New cards
43

Partnership

Definition: Agreement between co-owners of for-profit business Pros•Can pool financial resources•Share responsibilities•Complimentary skills opportunity•Ease of formation Cons•Unlimited liability•Potential for disagreements•Difficulty in withdrawing•Loss of Control

New cards
44

Pattern

Consistency in behavior- What is consistent about Apple's decision-making throughout its history?

New cards
45

Perceptions of Business Over Time

• Managerial view (up to 1960s)Focus on production • Shareholder view (1960-1980s)Focus on financial performance • Stakeholder view (Since-1990s)Focus on serving multiple constituencies Truth of this is debated

New cards
46

Perspective

Ingrained way of perceiving the world- If Google were an undergraduate student, what would its major be?

New cards
47

Placement

Distribution and Product Placement

New cards
48

Plan

Consciously intended course of action; guideline to deal with a situation- Made in advance- Developed consciously & purposefully

New cards
49

Ploy

Maneuver intended to outwit a competitor- What could Gimme Coffee have done to discourage Starbucks from entering the Ithaca market?

New cards
50

Porter's Definition of Strategy

Strategy is about achieving a competitive advantage What gives a firm an advantage? Strategy is about creating a unique position Which is the most profitable restaurant on the Commons? Strategy is about doing things differently Why do most small restaurants fail? Strategy is about outcompeting or having nocompetitors

New cards
51

Porter's Five Forces

Threat of entryThreat of substituteSupplier powerBuyer powerCompetitive rivalry

New cards
52

Position

Niche, location in the environment

New cards
53

Price

Value pricing - Set prices according to what customers think our product is worth Competitive pricing - Set prices according to what competition is charging Cost-plus pricing - Add a certain percentage to production cost Penetration pricing - Set prices below the competition to gain market share Dynamic pricing - Constantly change your prices to match demand

New cards
54

Product

Anything an organization offers to satisfy customers' needs and wants: • Pure goods: Products that do not include any service • Pure services: Products that do not include anygoods • Consumer products: Purchased for personal use- Convenience & shopping goods- Specialty & unsought products

New cards
55

Product Line

A group of related products all marketed under a single brand

New cards
56

Product Mix

The total number of product lines and individual products or services offered by a company

New cards
57

Promotion (communication)

Advertising - Marketing communication using an openly sponsored, non-personal message to sell a product Personal selling - Face-to-face interactions in which a salesperson tries to convince a customer to buy a product Public relations (PR) - Non-product communications for raising awareness and improving the reputation of an organization Direct marketing- Marketing communication presented to target customer without using an advertising middleman Sales promotions - Temporary efforts to drive sales (contests, coupons, prizes, free samples, rebates, influencer posts, etc.)

New cards
58

Pros and Cons of Free Trade

Pros•Comparative Advantage/Ricardian Theory - Everyone benefits, we all get richer Cons•Race to the bottom, exploitation, homgenization (loss of identity)

New cards
59

Purpose of a business

To create a customer

New cards
60

Quasi-Entrepreneur

Wheeler-dealer (or bricoleur)Architect of temporary arrangements Accidental entrepreneurA deal becomes a company Small business ownerControls/manages all aspects of firm

New cards
61

Quibi Example

Short-form streaming platform for mobiles devices- Raised $1.75b- Launched April 2020, got about 500,00 subscribers- Shut down on October 2020 (6 months)- In 2021, Roku acquired Quibi for less than $100m

New cards
62

Resource-based View (RBV)

RBV thinks of the firm as a "bundle of resources"

New cards
63

Review Coffee Industry Stuff on Class 4 Slide 30s

New cards
64

Ricardian Theory

a country exports that commodity in which it has a comparative labor productivity advantage

New cards
65

Scope of Marketing

PlaceEventsIdeas

New cards
66

Social-Network Context

Social network context Our network determines our "opportunity structure" Rich network positions =more opportunities Diversity vs tie strength Strong ties (trust, predictability, voice) Weak ties (opportunism, uncertainty, exit) Half of startups are solo efforts, a third are of "family teams", the rest are of unrelated individuals

New cards
67

Sociology & entrepreneurship

What are organizations?- Goal-directed boundary-maintaining activity systems- Constructed by people to accomplish things they can't do on their own • Organizations as means to an end Most organizations are copycats

New cards
68

Sole Proprietorship

Definition: Single owner who manages the company Pros•Ease of Formation•Retention of Control•Pride of Ownership•Retention of Profits Cons•Limited Financial Resources•Unlimited liability•Limited ability to attract talent•Heavy Workload and Responsibility

New cards
69

Southwest Trade offs and fit

Short-haulNo baggage transferNo mealsPoint-to-point serviceProprietary reservation systemNo assigned seatsStandardized fleetFast turnarounds Little customer SegmentationLow fares

New cards
70

Specialty Goods

Purchased as unique products that require buyers to make a special purchasing effort

New cards
71

Stakeholder Tension with CSR

Finding the proper balance between CSR and profit

New cards
72

Strategic Intent

how a firm's energy and resources are channeled into a focused and unified overall goal. It is a statement of design for creating a desirable future.

New cards
73

Suppliers Bargaining Power

Supplier ConcentrationSwitching CostsForward Integration Threat

New cards
74

SWOT analysis

strengths, weaknesses, opportunities, threats S&W are INTERNALO&T are EXTERNAL Power of a SWOT analysis is in matching the internalstructure to external environment

New cards
75

Target of Market

Group of people who are most likely to buy a particular product/service:• Consumer marketers (B2C): Direct their effortstoward people who buy products for personalconsumption• Business marketers (B2B): Direct their efforts towardpeople who buy products to use directly or indirectlyto produce other products

New cards
76

Taylor's Perspective on Business

The 1910s Scientific management •Organization as a machine (bricklayers)

New cards
77

Textbook Definition of Strategy

A company's strategy consists of the competitive moves and business approaches that managers employ to attract and please customers, compete successfully, capitalize on opportunities, to grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance Summarized:•How to please customers •How to compete against rivals•How to seize opportunities•How to respond to changes in the market •How to meet performance targets

New cards
78

The academic entrepreneur: Osvel Hinojosa

Ph.D. in wildlife ecology Head of Pronatura Noroeste (an NGO) Created/managed research & conservation projects Poached by the Cornell Lab of Ornithology to lead its Coastal Solutions Fellows Program

New cards
79

The born entreprenuer: Tono Fernandez

Never worked for anyone else Never stopped trying different ideas/ businesses Eventually landed on a moneymaker; cannot avoid growing/diversifying Does not know how to delegate

New cards
80

The Five Ps of Strategy

PatternPlanPerspectivePloyPosition

New cards
81

The one-track entrepreneur: Hector Velasco

Great intra-preneur Accomplished business consultant Persisted on a single business idea for years Ultimately failed

New cards
82

The serial entrepreneur: Kevin McGovern

Co-founded over 25 companies Six have become category leadersDiverse industries Nutraceuticals, water purification, skin care productsTrained as a lawyer

New cards
83

Thompson's Perspective on Business

The 1960s Contingency theory•Organizational structure aligned to the environment

New cards
84

Threat of Entry

Economies of ScaleProduct DifferentiationCapital RequirementsAccess to Distribution Channels

New cards
85

Threat of Substitute

Switching CostsPrice/performance differentialsTech Trends

New cards
86

Types of BHAG's

Target orientedCompetitiveRole modelInternal Transformation

New cards
87

Types of Business Organization

•Sole Proprietorship•Partnership•Limited Liability Company (LLC)•Corporation

New cards
88

Types of Entrepreneur

Builder of organizations-Sociological approach (Aldrich) Innovator-Market disrupter (Schumpeter) Opportunity discoverer-Exploiter of market imperfections (Kirzner) Agent of social change-Social entrepreneurship, Ashoka model Broker, network entrepreneur -Bridger of structural holes Champion-Catalyzer of social movements

New cards
89

Utilitarianism

Produce the greatest good for the greatest number

New cards
90

Vision

• Describes an organization's particular direction • Distinctive & specific - Graphic - Directional ("where we are going") - Focused - Some flexibility - Feasible (can be "stretch") - Unique • Short, powerful, memorable

New cards
91

Vision vs. Mission

• Some distinguish them temporally - Future vs present • Many people don't make the same distinction - Visions & missions & BHAGs & strategic intents overlap Few firms are truly mission or vision-driven

New cards
92

VUCA Business Context

V•Volatility - Unpredictable ChangeU•Uncertainty - Don't know the significance of ChangeC•Complexity - Many Moving interconnected partsA•Ambiguity - Don't understand cause and effect relationship

New cards
93

VUCA Covid Example

Volatility - Changes in demand (Netflix, Zoom) VUCAUncertainty - Effects of changes in demand (will gyms die?)Complexity - Chips used in electronics, household goods, and carsAmbiguity - Car manufacturers cancel chip orders, leads to high car prices

New cards
94

Weber's Perspective on Business

The 1900s

Bureaucratic structure •Task/responsibility differentiation •Strict hierarchy •Standardized rules/procedures •Vertical separation of planning and execution

New cards
95

What is Learning

Changing the way you think. - Learn by doing

New cards
96

What isn't strategy according to Porter

Operational effectiveness Benchmarking, Lean Manufacturing, TQM,best practices, etc.

New cards
97

What makes a resource valuable?

Inimitability - Can someone copy it? Durability - How long does it last? Appropriability - Who gets the benefits? Substitutability - Can someone use a different resource for the same purpose? Competitive superiority - Is our resource better than our competitors?

New cards
98

When is a focused differentiation strategy attractive?

When the niche is large enough to be profitableWhen there is low competition - Industry leaders overlook it

New cards
99

When is a focused low-cost strategy attractive?

When your are toad!When you are stuck in a pond!Low cost capabilities usually favor large scales and highvolumes, then why stay in the pond?

New cards
100

When is a low cost strategy attractive

High price competitionLow switching costsIdentical productsCustomers don't care about differentiationHigh buyer power

New cards

Explore top notes

note Note
studied byStudied by 17 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 9879 people
Updated ... ago
4.8 Stars(32)
note Note
studied byStudied by 19 people
Updated ... ago
5.0 Stars(3)
note Note
studied byStudied by 13 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 174 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 14 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 7 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 18 people
Updated ... ago
5.0 Stars(1)

Explore top flashcards

flashcards Flashcard54 terms
studied byStudied by 5 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard253 terms
studied byStudied by 66 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard46 terms
studied byStudied by 20 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard25 terms
studied byStudied by 233 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard57 terms
studied byStudied by 9 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard30 terms
studied byStudied by 31 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard134 terms
studied byStudied by 34 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard873 terms
studied byStudied by 4 people
Updated ... ago
5.0 Stars(1)