basic marketing exam 1

Marketing

-          A set of activities, involving organizations / processes for creating, communicating, & delivering something of value for exchanges between shareholders.

Value

-          a function of benefit and cost

rule for exchanges

-          must have at least two parties with each having something of value

Production orientation

-          (most prevalent after industrial revolution)

-          management philosophy

-          inward focus ie what you're good at

Sales Orientation

-          (more prevalent after WW2)

-          aggressive selling techniques

Market orientation

-          (early 90's)

-          customer orientated (focus on customers)

Societal Orientation

-          Concerned about the environment and society as a whole etc

controllable factors

-          product, price, promotion (type of advertisement), place (distribution)

uncontrollable factors

-          customer preferences / trends

-          economy / technology / competition

-          regulations / laws

Strategy

-          managerial process for creating a fit between:

o   objectives

o   resources

o   evolving market opportunities

Market penetration

-          increase market shares among existing customers

Market development

-          appeal new customers to existing products

product development

-          create new products for existing customers

product-market development

-          new products for new markets

market

-          potential customers

-          people or organizations with (needs, ability to buys and willingness to spend/buy)

SWOT analysis

-          strengths, weaknesses, opportunities, threats

competitive advantage

-          significantly superior in terms of benefits offered by competitions

-          better than competition and meaningful to customers (unique)

SCA

-          sustainable competitive advantage

o   patents

o   copyrights

o   Research & development (R&D)

Elements of the marketing mix

-          product, price, promotion, place

portfolio matrix

-          how to allocate resources based on market shares and growths

market share

-          how dominant your brand is in the market

market growth

-          future potential of the product

Star

-          High market share and growth (dominating the market)

problem child

-          high market growth, low market share

dog

-          low market growth, low market share

cash cow

-          low market growth, high market share

Build (BCG)

-          Star or potential to be a star

Hold (BCG)

-          Cash cow - keep doing what you're doing

Harvest (BCG)

-          getting whatever you can out of the product

o   problem child

o   dogs

Divest (BCG)

-          stop production or sales

o   pc or dogs

target market

-          different company appeal to diff groups

nich positioning

-          focus on small market segment

5 steps to decision making / consumers behavior

-          identify / recognize needs

-          info search

-          evaluate alternatives

-          purchase

-          post purchase

Maslov's Hierarchy of Needs

-          physiological

-          safety

-          social

-          esteem

-          self-actualization

info search

-          internal ( memory / past experience )

-          external ( marketing driven (advertising) / non marketing driven (peers etc.))

cognitive dissonance

-          mental uneasiness after purchase

CLV

-          score businesses give to customers (not public) based on:

o   $ spent

o   future spending

o   complaint rate

routine decision making

-          buy without thinking much (ie buying eggs, milk etc)

limited decision making

-          put some thought into the decision

extensive decision making

-          putting a lot of effort and thinking into it (buying cars, houses expensive vacations etc)

decision making influences

-          cost (time / money)

-          consequential

-          involvement

factors that influence customer's behaviors

-          cultural

-          social

-          individual

-          psychological

cultural factors

-          shared set of believe / values

social factors

-          family, reference groups, opinion leaders

individual factors

-          gender, age, life cycle

-          personality, self-concept, lifestyle

psychological factors

-          mind related, selective attention, selective retention

Market Segment

-          subgroup of market with similar characteristics &/or preferences

Market Segmentation

-          the process of dividing a market into meaningful, relatively similar, and identifiable groups

criteria for good segmentation

-          identifiable

-          measurable

-          accessible

-          responsiveness

bases of segmentation

-          to increase profit

-          serve customers needs

How to do segmentation

-          demographics

-          geographical (climate / pop density)

-          psychographics

-          benefits sought

-          usage rate

demographics

-          age, ethnicity, race, gender, income, education level

psychographics

-          personality, lifestyle, geo-demographics

undifferentiated target market strategy

-          one product for everyone

multiple segment / brands

-          divide market into subgroups & have different product / brand names to satisfy each subgroup

undifferentiated advantages/disad

-          cost less for marketing and productions

-          needs not satisfied in an optimal manner

multiple segment adv/disad

-          more customized offerings

-          brand cannibalization / higher expenses

positioning

-          how a brand is perceived

repositioning

-          trying to change customers perception of brand

perceptual map

-          display different brands on 2+ dimensions based on different attributes