Marketing mid term test

Importance of marketing = to attract and retain customers at a profit

Marketing defined = a process which individuals and groups get what want through creating and exchanging products and value with others

 Customer = the focal point of marketing

Product = anything that has value

Benefits = the outcome sought by a consumer that motivates buying behaviour

Features = the physical products

Marketing myopia = When firms fail to recognize the broad scope of their business

  successful marketing exchange = two or more groups with something of value desired by the other, both benefit

 Value = consumers assessment of the utilities or benefits provided based on perceptions of what is received and what is given

Form utility = creation of product,

 place utility = accessability,

 Time utility = availability when needed,

possession utility = transfer of ownership, use or access,

Image utility = emotional or psycological

Marketing concept = the achievement of corporate goals through meeting and exceeding customer needs better than competition

Expanded marketing mix = Product, price, place, promotion, people, process, physical evidence

Strategic planning = annual plans and long range, plans that are adapting to opportunities in faast changing environment which start with a mission statement

Market-orientated mission = an market orientated organisations purpose

Marketing goal = a statement of what is to be achieved through marketing activites, SMART (specific, measurable, actionable, relevant and timebound)

Business portfolio = the collection of business and products that make up a company

SBU’s (strategic business units) = key businesses evaluated on the attractiveness of the industry and strength of their position in the industry

Market penetration = increase sales without changing product

Market Development = develop new market segments for the same product

Product Development = different products, same market segment

Diversification = starting up or acquiring businesses

Market segmentation = dividing the market into distinct groups

Market targeting = evaluating market segments attractiveness and selecting one or more to serve

Positioning = arranging for a product to occupy place in the minds of target consumers relative to competing products

Differentiation = differentiating our product from competitive so that it gives consumers more value

marketing mix = a set of controllable tactical marketing tools to produce a response from the market

SWOT analysis (strengths, weaknesses, opportunities and threats) used for evaluation of companies internal affairs.

Marketing planning, deciding on the marketing strategies that will help the overall strategic objectives

Marketing Implementation = process that turns marketing actions to accomplish strategic marketing objectives

Function organisation = different activities are headed by a functional specialist

Geographical organisation = used by companys that sell across the country or internationally

Product Management Organisation = used by companies with many different brands, implements a complete strategy or program for a specific product or brand

market/customer management organisation = sell one product line to many different types of markets and customers that have different needs and preferences

Marketing ROI = net return from a marketing investment divided by the costs of the marketing investments, measures the profits generated by investments in marketing activities

Marketing success = building relationships

Marketing intermediaries = businesses that help promote, sell and distribute its products to final buyer

Companies macroenvironment = Demographic, Economic, Natural, Technological, political and cultural.

Demographic = study of human population

Economic environment = factors that affect consumer purchasing power

Natural environment = people are making more environmentally friend choices so need to be aware of what the product is doing to the environment

Technological environment = new innovations offering new opportunities, need to know if they are safe or not

Political/Societal environment = the governments role in the business’ ability to operate

Cultural environment = institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviours

Consumer buying behaviour = buying behavoiour of the customer that buys the good for personal consumption

consumer market = all individuals or house holds that aquire goods or services for consumption

Marketing stimuli = place, price, promotion, product

Other stimuli = economical, technological, social and cultural

Characteristics affecting consumer behaviour are culture, social factors, personal factors, brand personality.

Culture, the basic values and perceptions we have learnt

Social factors, roles and status, family influence, online personalities, refernece groups (groups people want to be associated with)

Personal factors, age, life cycle, occupation, education, economic situation, lifestyle, personality, self concept

Brand personality, a mix of human traits that cna be attributed to a brand

Phycological factors, 4 main ones, motivation, perception, learning, beliefs and attitudes

Haslow’s heirarchy of needs : Physiological, Safety, social, esteem and self actualisation

Perception; the way in which people select, organise and interpret infromation to form a meaningful picture of the world

learning - changes that arise in peoples behaviour due to experience

belief - discriptive thought that people have about something

attitude - persons favourable or unfavourable evaluations, feelings and tendencies

Buyers decision process, 1. Need recognition, 2. Information search, 3. Evaluation of alternatives, 4. Purchase decision, 5. Post-purchase behaviour

involvement : degree of interest in the product and the importance that a consumer places on the product

3 types of problem solving, Routinised response, limited problem solving and extended problem solving.

routinised response = used when buying frequent purchases

limited problem solving - used when buying products occasionally or from unfamiliar brands

extended problem solving - used when purchasing unfamiliar or expensive products

Roles in the buying process, Initiator, influencer, decider, buyer and consumer

Adoption process: 1. awareness, 2. Interest, 3. Evaluation, 4. Trial, 5. Adoption

5 types of adopters : 1. innovators, 2. early adopters, 3. early majority, 4. Late majority, 5. laggards

Business markets : when an individual or group purchases a product with the intention of reselling or using in another product/general operations, dependent on customer demand

Reseller Markets: businesses that resell the product, retailers

Producer markets: individuals or organisations that purchase products with the intention of using them in the production of their own product for a profit

government markets: governments that buy goods and services to support their internal operations

Institutional markets: organisations with charitable, educational, community or other non-business goals

e procurement = online trading exchanges

Marketing analysis is the use of tools and technologies to make good marketing decisions, they lead to effective outcomes and return on marketing investment

customer insights are the understanding of customers and marketplace derived from marketing information

Marketing information system helps analyse and use information to develop customer insights, make marketing decisions and manage customer relationships

Internal Data = information obtained from internal data sources

competitive marketing intelligence = systematic monitoring, collection and analysis of publicly avaliable information in the marketing environment that can help gain insight into customer feedback

Marketing research = systematic gathering, recording and analysing of data about problems relating to marketing

Exploratory research = unknown space so finding preliminary research

Descriptive research = describing problems, situations or markets

Casual research = testing hypothesis about cause and effect relationships

Qualitative research = descriptive and used in exploratory research

Quantitative research = used in both exploratory research and experimental reseach

Primary data = collected for the specific purpose at hand

Secondary data = data that has already been collected for another reason

methods of primary data research = Observational, survey and experimental

probability sampling = every element has a known chance of being selected

non-probability sampling = no way to calculate the likelihood of an element being chosen

Sampling plan = sampling unit, size and procedure

online marketing = speed cost and accessability advantages

Market = group of people that have a need for a particular product with the willingness, ability and authority to purchase

Homogeneous market = large portion of customers have similar needs (e.g. bottled water market)

Heterogeneous market = made up of individuals with diverse needs in the same product class (e.g. used car market)

Segmentation = Demographical, Geographical, psychological and behavioural

inter-market segmentation= customers with similar needs and buying behaviour even though they are located in different countries

Target market = set of buyers sharing common needs or characteristics that the company decides to serve

undifferentiated marketing = go after the whole market with one offer

differentiated marketing = firm decides to target several segments and has seperate offers for each

niche marketing = goes after a large share of one or a few segments

micro marketing = marketing to specific individuals/ local customer segments

Product position = how the customer feels about the product compared to competing products

price positioning = exclusivity of product due to price

problem positioning = emphasises the problem and provides a solution

celebrity driven positioning = emphasis on endorsement of a product

Quality positioning = emphasis on qualitiy

benefit positioning = emphasises the benefits of the product

competitor based positioning = emphasises making a direct comparison to the competitors

three steps in the differentiation and positioning task = identifying, choosing, selecting

position statement = statement that summaries company or brand positioning