mk201 final

Marketing - the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

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

Barter - Exchange goods without involving money.

Market - people with both the desire and the ability to buy a specific product

market segments - Relatively homogeneous groups of prospective buyers that

(1) have common needs and

(2) will respond similarly to a marketing action.

Target Market - One or more specific groups of potential customers toward which an organization directs its marketing program.

The 4 P's - Product, Price, Place, Promotion

Product - Good, service, or idea designed to satisfy customers' needs.

Price - What is exchanged for the product—usually money.

Place - Distribution channel used to get the product to the customer.

Promotion - Communication between the seller and buyer—including advertising, public relations, sales promotions, and personal selling.

Promotional Mix (7P's)- Product, Price, Promotion, Place, People, Physical environment, process

Customer Value - The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

Core Values - The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

Mission - A statement of the organization's function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision.

Organizational Culture - The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

Market Share - The ratio of the firms sales revenues or unit sales to those of the industry (Competitors plus firm itself)

Customer value proposition - The cluster of benefits that an organization promises customers to satisfy their needs.

Points of difference - Those characteristics of a product that make it superior to competitive substitutes.

Product Positioning - The place a product occupies in customers' minds on important attributes relative to the competition.

Environmental Scanning - The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends

Environmental Forces - The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

Gross Income - The total amount of money made in one year by a person or household.

Disposable Income - The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

Macroeconomic - Consitions related to the marketplace

Microeconomic - factors such as consumer income

discretionary income - The money a consumer has left after paying for taxes and necessities to put towards savings and to purchase luxuries.

Social Responsibility - The idea that organizations are part of a larger society and are accountable to that society for their actions.

3 Concepts of Social responsibility - (1) profit responsibility,

Stakeholder (2) responsibility, and (3)societal responsibility.

Triple Bottom Line - The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

percieved risk - The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

Strategies to reduce perceived risk -Seals of approval -Endorsements from influential people -Free trials -Extensive usage instructions -Warranties and guarantees

brand loyalty - A favorable attitude toward and consistent purchase of a single brand over time.

Lifestyle - Mode of living—how people spend their time and resources, what they consider important in their environments, and what they think of themselves and the world around them.

What does psychographics refer to? - The analysis of consumer lifestyles.

How is psychographics useful in marketing? - It provides insights into consumer needs and wants.

In marketing, how can psychographics help with consumer segmentation? - It is useful in segmenting and targeting consumers for new and existing products.

Opinion leaders - Individuals who exert direct or indirect social influence over others.

influencer marketing - The recruitment of individuals to advocate for products and brands rather than focusing exclusively on prospective buyers.

Word of mouth - Influencing of people during conversations.

Buzz - Popularity created by consumer word of mouth.

industrial firms - Companies that reprocess products before selling them to the next buyer.

Resellers - Wholesalers and retailers that buy products and resell them without any reprocessing.

Government agencies - Units of federal, state, and local governments that buy products to serve their constituents.

marketing research - The process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions.

Data - facts and figures related to the project

secondary data - facts and figures recorded prior to the project

Primary Data - Facts and figures newly collected for the project

Internal secondary data - Data collected by the individual company for accounting purposes or marketing activity reports

External secondary data - Data collected by outside agencies such as the federal government, trade associations, or periodicals

Observational data(primary) - Personal observation, mechanical methods and neuromarketing techniques

Questionnaire data - facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

Open- ended questions - Questions that allow respondents to express opinions and ideas or describe behaviors in their own words.

What are closed-ended questions? - Questions that require respondents to select one or more response options from a set of predetermined choices.

What are dichotomous questions? - Questions that have only two response options (e.g., yes/no).

What are semantic differential questions? - Questions that use a scale with opposite adjectives at each end to measure attitudes or feelings.

What are Likert scale questions? - Questions that ask respondents to indicate the extent to which they agree or disagree with a statement.

Sales forecast - The total sales of a product that a firm expects during a specified time period under specified conditions and its own marketing efforts.

What are the common sales forecasting techniques that involve judgments of the decision-maker? - Direct and Lost Horse

Which groups are involved in sales forecasting techniques through surveys? - Buyers and Salesforce

What statistical method is commonly used in sales forecasting? - Trend extrapolation

Market segmentation - Aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Product differentiation - A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

Segmentation for consumer markets -One product for multiple market segments -Multiple Product Branding -Multiple products for multiple market segments - Mass customization (or segments of one)

Product Repositioning - Changing the place an offering occupies in consumers' minds relative to competitive products

Product Positioning - The place a product occupies in consumers' minds based on important attributes relative to competitive products.

Head-to- head positioning - Competing directly with competitors on similar product attributes in the same target market.

Differentiation positioning - Targeting a less competitive, smaller market niche with unique product benefits.

What is a perceptual map? - Visual representation of the locations of products in the minds of consumers relative to competing products.

Why is it important to identify important attributes for a product class? - To determine how target customers perceive competing products on those attributes.

Product positioning statement - A succinct written statement derived from the company's customer value proposition that directs the company's overall marketing strategy.

Product line - A group of closely related products sold by one company that share similar characteristics and serve similar customer needs.

Product Item - A specific product with a unique brand, size, or price. (SKU or Stock Keeping Unit)

Product mix - All the product lines offered by an organization.

Marketing reasons for new product failures

1. Insignificant point of difference

2. Incomplete market and product protocol before product development starts

3. Not satisfying customer needs on critical factors

4. Bad timing

5. No economical access to buyers

6. Poor product quality

7. Poor execution of the marketing mix: brand name, package, price, promotion, distribution

8. Too little market attractiveness

Product Line extension - Addition of a new product to an existing product line.

brand extension - Using an existing brand name in a new product category.

Radical Innovation - Revolutionary new product

New-product Development Process - A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization

Closed innovation - Relying primarily on its internal resources, research, and development teams to create new products and technologies.

Open innovation - Collaborating with external stakeholders, including customers, suppliers, research institutions, startups, and even competitors, to access a broader pool of ideas and resources.