Business Chapter 11-13
Marketing – an organizational and a set of process for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
Utility- the ability of goods and services to satisfy consumer wants
Marketing concept – a business philosophy that makes customer satisfaction – now and in the future – the central focus of the entire organization
Customer relationship management (CRM) - the ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value
Value – a customer perception that a product has a better relationship than its competitors between the cost and the benefits
Customer satisfaction – when customers perceive that a good or service delivers value above and beyond their expectations
Customer loyalty – when customers buy a product from the same supplier again and again – sometimes even paying more for it than they would for a competitive product
Marketing plan – a formal document that defines marketing objectives and the specific strategies for achieving those objectives
Marketing segmentation – dividing potential customers into groups of similar people or segments
Target marker – the group of people who are most likely to buy a particular product
Comsumer marketers (B2C) - marketers who direct their efforts toward people who are buying products for personal consumption
Business marketers (B2B) - marketers who direct their efforts toward people who are buying products to use either directly or indirectly to produce other products
Demographic segmentation – dividing the market into smaller groups based on measurable characteristics about people such as age, income, ethnicity, and gender
Geographic segmentation – dividing the market into smaller groups based on where consumers live. Examples include countries, cities, or population
Psychographic segmentation – dividing the market into smaller groups based on consumer attitudes, interests, values, and lifestyles
Behavior segmentation – dividing the market based on how people behave towards various products
Marketing mix – the blend of marketing strategies for product, price, distribution, and promotion
Enviornmental scanning – the process of continually collecting information from the external marketing environment
Marketing share – the percentage of a market controlled by a given marketer
Consumer behavior – description of how people act when they are buying, using, and disgarding goods and services for their own personal consumption. Explore the reason behind people’s actions
Cognitive dissonance – consumer discomfort with a purchase, decision, typically for a higher priced item
Business buyer behavior – describes how people act when they are buying products to use either directly or indirectly to produce other products
Marketing research – the process of gathering, interpreting, and applying information to uncover marketing opportunities and challenges to make better marketing decisions
Secondary data – existing data that marketers gather or purchase for research project
Primary data – new data that marketers compule for a specific research project
Observation research – marketing research that does not require the researcher to interact with the research subject
Survey research – marketing research that requires the researcher to interact with the research project
Green marketing – developing and promoting environmentally sound products and practices to gain a competitive edge
Mass customization – the creation of products tailored for individual consumers on a mass basis
CH. 12
Product – anything that an organization offers to satisfy customers' needs and wants (goods and services)
Pure goods – products that do not include any services
Pure services – products that do not include any goods
Consumer products – products purchased for personal use or consumption
Business products – products purchased to use either directly or indirectly in the production of other products
Products differentiation – the attributes that make a good or services different from other products that compete to meet the same or similar customer needs
Quality level – how well a product performs its core functions
Product consistency – how reliably a product delivers its promised level of quality
Product features – the specific characteristics of a product
Customer benefit – the advantage that a customer gains from a specific product feature
Product line – a group of products that are closely related to each other, either in terms of how they work or the customers they serve
Product mix – the total number of product lines and individual items sold by a single firm
Cannibalization – when a producer offers a new product that takes sales away from its existing production
Brand – a products identity including product name symbol, design, reputation, and image that it sets apart from other players
Brand equity – the overall value of a brand to an organization
Line extensions – similar products offered under the same name brand
Brand extension – a new product into a category, introduced under an existing brand name Licensing – purchasing the right to use another's company’s brand name or symbol
Cobranding – when established brands from different companies join forces to market the same product
National brands- brands that the producer owns and markets
Store brands – brands that the retailer both produces and distributes (also called private label brands)
Product life cycle - a pattern of sales and profits that typically changes over time
Promotion – marketing commination designed to influence consumer purchase decisions through information, persuasion, and reminders
Integrating marketing communications – the coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product
Positionaing statement – a breif statement that articulates how the marketer would like the target marketer would like the target market to envision a product relative to the competition
Promotional channels – specific marketing communication vehicles including traditional tools such as advertising, sales promotion, direct marketing and personal selling and newer tools such as product placement advergaming, and internet minimovies
Product placement – the paid integration of branded products into movies, television, and other media
Advergaming – video games created as a marketing tool, usually with a brand awareness as the core goal
Buzz marketing – the active simulation of word of mouth via unconventional, and often relatively low-cost tactics
Sponsorship – a deep association between a marketer and a partner which involves promotion
Advertising – paid, nonpersonal communication, designed to influence a target audience with regard to a product, service, organization or idea
Sales promotion – marketing activities designed to stimulate immediate sales activity through specific short term programs aimed at either consumers or distributors
Consumer promotion – marketing activities designed to generate immediate consumer sales, using tools such as premiums, promotional products, samples, coupons, etc.
Trade promotion – marketing activities designed to stimulate wholesalers and retailers to push specific products more aggressively over the short term
Public relations (PR) - the ongoing effort to create positive relationships with all of a firm’s different “publics” including customers, employees, suppliers, the community, general public, and the government
Publicity – unpaid stories in the media that influence perceptions about a company or its products
Personal selling – the person to person presentation of products to potential buyers
Push strategy – a marketing approach that involves motivating distributors to heavily promote or PUSH a product to the final consumers, usually though heavy trade promotion and personal selling
Pull strategy- a marketing approach that involves creating demand from the ultimate consumers so that they “pull” your products through the distribution channels by actively seeking them
CH 13
Distribution strategy – a plan for delivering the right product to the right person at the right place and time
Channel of distribution – the network of organizations and processes thar links producers to consumers
Physical distribution – the actual, physical movement of products along the distribution pathway
Direct channel – a distribution process that links the producer and the consumer with no intermediaries
Channel intermediaries – distribution organizations that facilitate the movement of products from the producer to the consumer
Retailers- distributors that sell products directly to the ultimate users, typically in small quantities, that are stored and merchandized on the premises
Wholesalers- distributors that buy products from producers and sell them to other business or nonfinal users such as hospitals, nonprofits, and the government
Independent wholesaling business – independent distributors that buy products from a range of different business and sell those products to a range of different customers
Merchant wholesalers – independent distributors who take legal possession, or title, of the goods they distribute
Agent/brokers - independent distributors who do not take title of the goods they distribute
Multichannel retailing – providing multiple distribution channels for consumers to buy a product
Wheel of retailing – a classic distribution theory that suggests that retail firms and retail categories become more upscale as they go through their life cycles
Multilevel marketing – involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commissions
Supply chain – all organizations, process, and activities involved in the flow of goods from the raw materials to the final consumer
Supply chain management (SCM) - planning and coordinating the movement of products along the supply chain, from the raw materials to the final product
Logistics – a subset of supply chain management that focuses largely on the tactics involved in moving products along the supply chain
Modes of transportation – the various transportation options – such as planes, trains, and railroads for moving products through the supply chain
Penetration pricing – a new product pricing strategy that aims to capture as much of the market as possible through rock – bottom prices
Everyday – low pricing (EDLP) - long term discount pricing, designed to achieve profitability through high sales volume
High/low pricing – a pricing strategy designed to drive traffic to retail stores by special sales on a limited number of products, and higher everyday prices on others
Loss-leader pricing – closely related to high/low pricing, loss-leader pricing means pricing a handful of items – or loss leaders – temporarily below cost to drive traffic
Skimming pricing – a new product pricing strategy that aims to maximize profitability by offering by offering new products at a premium price
Breakeven analysis – the process of determining the number of units a firm must sell to cover all costs
Profit margin – the gap between the cost and the price of an item on a per product basis
Odd pricing – the practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value