MAR 255 Midterm
baby boomers
74 million baby boomers in the US right now born post WW2 from 1946-1964. 22% of US population, but 42% of the spending power. They are the wealthiest generation in US history. They are outspending the younger generation 2 to 1 for online shopping.
Robinson-Patman Act
Amends the Clayton Act to define price discrimination as unlawful. Empowers the FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotionally allowance except when made available on proportionally equal terms,
Millenials
Born between 1981-1997. They were the first generation to have technology including iPads, iPods, social media, iPhones, satellite TV, and laptops. Millennials want authenticity when buying their products. The Fifth Third Bank started a campaign called "No Wait" to show millennials that there is not wait when it comes to banking because their lifestyles are so fast-paced.
Generation Z
Born between 1997-2016. They spend $43 Billion to $143 billion of their own money and influence $333 billion of their family's spending.
The Selling Concept
Consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
Product Oriented Mission Statement
Just says what is being sold
Causal Research
Marketing research to test hypotheses about cause-and-effect relationships
Sherman Antitrust Act (1890)
Prohibits monopolies and activities (price-fixing, predatory pricing) that restrain trade or competition in interstate commerce
consumer relationship management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Differentiated marketing
a firm decides to target several market segments and designs separate offers for each. For P&G markets at least 6 different laundry detergent brands on the US, which compete with each other on supermarket shelves. Companies hope for higher sales and a stronger market segment . Developing a stronger position within several segments creates more total sales tha undifferentiated marketing across all segments
Undifferentiated (mass) marketing
a firm might decide to ignore market segment differences and target the whole market with one another. Such a strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyer
ethnographic research
a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"
Product (4 P's)
a good, service, or idea to satisfy the consumer's needs and target market. Variety, quality, designn, features, brand name, packaging, services, acceptability
sample
a segment of the population selected for marketing research to represent the population as a whole
Mission Statement
a statement of the company's purpose, mission statements should be market oriented
The Marketing Concept
achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
Promotion (4 P's)
activities that communicate the merits od the product and persuade target customers to buy it advertising, personal selling, sales promotion, public relations, direct and digital, awareness
Strategic Business Unit (SBU)
an be a company division, product line within a division, or sometimes a single product or brand. Then the company assesses the attractiveness of its various SBUs and decides how much support each deserves. Looks ar rge attractiveness of the SBUs market or industry and the strength of the SBU position in that market or industry
Positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
experimental research
best suited for gathering casual information. It involves selecting matched groups of subjects, giving them different treatments, controlling unrelated factors and checking for the differences in group responses. Experiment research tries to explain cause-and-effect relationships.
Generation X (Gen X)
born between 1965-1980. A skeptical generation, they do research before they buy anything. They are the most educated generation. They are the target for home and health marketers because a lot of them (82%) own their homes.
Internal databases
collections of consumer and market information obtained from data sources within the company network
Market Segment
consists of consumers who respond in a similar way to a given set of marketing efforts
primary data
consists of information collected for the specific purpose at hand
The Production Concept
consumers will favor products that are available and highly affordable
Cultural Environment
core beliefs and values, secondary beliefs and values
Market Oriented Mission Statement
defines the business in terms of satisfying basic customer needs. creates a whole experience
descriptive research
describe things, such as the market potential for a product or demographics and attitudes of consumers who buy the product
Psychographic
divides buyer into different segments based on lifestyle or personality characteristics. People in the same demographic group can have very different psychographic characteristics
subculture
each culture contains smaller subcultures or groups with shared value systems based on common life experiences and situations. Include nationalities, religions, racial groups, and graphical regions. These make up important market segments and marketers design products tailored to the needs of subcultures
Probability sampling
each population member has a known chance of being included in the sample, and researchers can calculator confidence limits for sampling error Simple random sample→ every member of the population has a known and equal chance of selection Stratified random sample→ the population is divided into mutually exclusive groups (such as age), and random samples are drawn from each group Cluster (area) sample→ the population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview
Economic Environment
economic factors that affect consumer purchasing power and spending power. Economic environments have a huge impact on customer buying and spending behavior. Many companies are trying to show how people can pay less. For example, Target really pushing the "expect more, pay less" slogan for its more cost-conscious customers to show the value by shopping at their store.
Technological Environment
forces that create new technologies creating new product and market opportunities. Disney made a website and app for people to use so they could plan their trips to Disney World.
survey research
gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
observational research
gathering primary data by observing relevant people, actions, and situations
Membership group
groups that have a direct influence and to which a person belongs
Core Beliefs and Values
have a high degree of persistence. Passed on from parents to children and are reinforced by schools, businesses, religious institutions, and government. Ex. A lot of Americans believe in hard work, freedom, getting married, achievement and success.
Market Development
identifying and developing new markets for its current products
Place (4 Ps)
includes company activities that make the product available to target consumers supply chains, channel coverage, channel management, logistics, transportation, accessibility
secondary data
information that already exists somewhere, having been collected for another purpose
Concentrated (niche) marketing
instead of going after a small share of a large market, a firm goes after a large share of one or a few smaller segments or niches. The firm achieves a strong market position because of its greater knowledge of consumer needs in the niche it serves and the special reputation it acquires. It can be more effective by finetuning its products, prices, and programs to the needs of carefully defined segments. It can also make the market the most profitable by targeting it towards people that will actually buy it
Market Targeting
involves evaluating each market segment's attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitablt generate the greatest customer value and sustain over time
Children's Television Act
limits the number of commercials aired during children's television programs.
market penetration
making more sales in its to its current customers without changing its original products
portfolio analysis
management evaluates the products and businesses that make up the company
Exploratory Research
marketing research to gather preliminary information that will help define problems and suggest hypotheses
Secondary Values and Beliefs
more open to change. Ex. believing people should get married is a core belief, but believing people should get married young is a secondary belief. Marketers can change secondary values, but not core values.
Buyer Decision Process
need recognition→ buyer recognizes a problem or need information search→ may or may not search for information, receive information about products from commercials evaluation of alternatives→ how consumers process information purchase decision→ consumer ranks brands and forms purchase intentions. Two factors help determine if someone buys a product. The first factor is the attitude of others and the second is unexpected situational factors, these could be the economy changing
Product Development
offering modified or new products to current markets
Opinion Leaders
people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others
Nutrition Labeling and Education Act
requires food labels to provide detailed nutritional information.
reference group
serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior.
Marketing Mix
set of tactical marketing tools that the firm blends to produce the response it wants in the target market
social class
society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. There are 7 American social classes: upper-upper class, lower-upper class, upper-middle class, middle class, working class, upper-lower clss, and lower-lower class. Social class is measured by a combo of occupation, income, education, wealth, and other variables.
Market Offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Diversification
start up or buying businesses beyond its current products and markets
Needs
states of felt deprivation
Exchange
the act of obtaining a desired object from someone by offering something in return
Marketing Environment
the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
Microenvironment
the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Price (4 P's)
the amount of money customers need to pay to obtain the product list price, discounts, allowances, payment period, credit terms
post-purchase behavior/cognitive dissonance
the behavior of someone after they purchase the product is decided based on the customer's expectations, and the product's perceived performance. If the product does not meet the customer's expectations, they are disappointed. If it meets the expectations, they are satisfied, and if it is better than their expectations, it exceeds it. The bigger gap between expectations and performance the more the customer is dissatisfied.
Consumer buyer behavior
the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption
Business Portfolio
the collection of businesses and products that make up the company
customer perceived value
the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
Wants
the form human needs take as they are shaped by culture and individual personality
The Societal Marketing Concept
the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
Macro-environment
the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces
marketing strategy
the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships
Market Myopia
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
Marketing
the process by which companies engage customers, build strong relationships and create customer value in order to capture value to satisfy customers
Strategic Planning
the process of developing and maintaining a strategic fit bewtween the organization's goals and capabilities and its changing marketing opportunities. Strategic plans involve adapting the firm to take advantage of opportunities and its constantly changing environment
Market Segmentation
the process of dividing a markett into distinct groups of buyer who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Market
the set of all actual and potential buyers of a product or service
culture
the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and important institutions. the most basic cause of person's wants and behavior
Demography
the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
Marketing Research
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Growth Share Matrix
the vertical axis is relative market share which is a measure of attractiveness. The horizontal axis is the relative market share serves which shows the company's strength in the market. Stars are high growth. Cash cows are low growth. Question marks are low share business units in high-growth markets. Dogs are low growth markets.
non-probability sampling
when probability sampling costs too much or takes too much time, researchers use non-probability samples, even though they cannot measure the errors Convenience sampling→ the researcher selects the easiest population members from which to obtain information Judgment sampling→ the researcher uses his or her judgement to select population members who are good prospects for accurate information Quota sample→ the researcher finds and interviews a prescribed number of people in each of several categories
