Marketing 3000 Exam 1 BGSU
Sustainable Marketing Principles
1. Consumer-oriented marketing 2. Customer value marketing 3. Innovative marketing 4. Sense-of-mission marketing 5. Societal marketing
Steps in the Strategic Planning Process
1. Defining the company mission 2. Setting company objectives and goals 3. Designing the business portfolio 4. Planning marketing and other functional strategies
Marketing Process
1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity
Business portfolio steps
1. the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. 2. it must shape the future portfolio by developing strategies for growth and downsizing.
Marketing Mix (4 P's)
1.Product, 2.Price, 3.Place, 4.Promotion
Product Oriented
An approach to business that centers on capturing business by focusing on creating and manufacturing better products at lower prices.
Managing Marketing
Analysis Planning - Develop strategic plans, develop marketing plans Implementation- carry out the plans Control - measure results, evaluate results, take corrective action
Chapter 3
Analyzing the Marketing Environment (PART 2: UNDERSTANDING THE MARKETPLACE AND CONSUMER VALUE)
Cash Cows (BCG Matrix)
Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.
promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response constitutes of 4 As: Awareness
Chapter 2
Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships
Maslow's Hierarchy of Needs
(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization
Stars (BCG Matrix)
High-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
Demands
Human wants that are backed by buying power
real-time marketing
Marketers can engage consumers in the moment by linking brands to important trending topics, real world events, causes, personal occasions, or other important happenings in consumers' lives
Question Marks (BCG Matrix)
Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.
geographic organization
Sales and marketing people are assigned to specific countries, regions, and/or districts
price
The amount of money exchanged for a good or service, constitutes of 4 As: Affordability
customer relationship management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
Management
The process of accomplishing the goals of an organization through the effective use of people and other resources.
downsizing strategy
There are many reasons that a firm might want to abandon products or markets. A firm may have grown too fast or entered areas where it lacks experience. The market environment might change, making some products or markets less profitable.
Weaknesses (SWOT)
These are internal factors about a business that can be seen as negative factors. Weaknesses might include a poorly trained workforce, limited production capacity, ageing equipment or poor cash flow. This information would also have been obtained from an internal audit.
matrix approach disadvantages
They can be difficult, time consuming, and costly to implement.
digital and social media marketing
Using digital marketing tools such as Web sites, social media, mobile apps and ads, online video, e-mail, and blogs that engage consumers anywhere, at any time, via their digital devices.
Sense-of-mission marketing
a company should define its mission in broad social terms rather than narrow product terms
customer value marketing
a company should put most of its resources into customer value-building marketing investments
Consumer-oriented marketing
a company should view and organize its marketing activities from the consumer's point of view
Strategic Business Unit (SBU)
a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives
market segment
a group of consumers who respond in a similar way to a given set of marketing efforts
value delivery network
a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value
market oriented
a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept
Product/market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
innovative marketing
a principle of sustainable marketing that requires a company to seek real product and marketing improvements
Mission Statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment. mission statements should be market-oriented and defined in terms of satisfying basic customer needs. Products and technologies eventually become outdated, but basic market needs may last forever.
Boston Consulting Group Matrix
an analysis method of a firm's product portfolio regarding its market share and market growth
Positioning
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets.
true friends
both profitable and loyal
Consumer-generated marketing
brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
operating control
checking ongoing performance against the annual plan and taking corrective action when necessary
greater consumer empowerment
companies can no longer rely on marketing by intrusion. Instead, they must practice marketing by attraction—creating market offerings and messages that engage consumers rather than interrupt them. Hence, most marketers now combine their mass-media marketing efforts with a rich mix of online, mobile, and social media marketing that promotes brand-consumer engagement, brand conversations, and brand advocacy among customers.
market development
company growth by identifying and developing new market segments for current company products
market penetration
company growth by increasing sales of current products to current market segments without changing the product. It can spur growth through marketing mix improvements—adjustments to its product design, advertising, pricing, and distribution efforts.
product development
company growth by offering modified or new products to current market segments
Diversification
company growth through starting up or acquiring businesses outside the company's current products and markets
strategic control
consists of monitoring the execution of strategy and making adjustments, if necessary
Threats (SWOT)
current and emerging external factors that may challenge the company's performance. Examples include new competitors entering the market, globalisation driving down prices, changes in regulations or economic policy.
Maximize
customer-centered firm seeks to deliver high customer satisfaction relative to competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its prices or increasing its services. But this may result in lower profits. Thus, the purpose of marketing is to generate customer value profitably.
frequency marketing programs
direct marketing programs that provide concrete rewards to frequent customers. Airlines offer frequent-flier programs, hotels give room upgrades to frequent guests, and supermarkets give patronage discounts to "very important customers."
Segmentation
dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
Targeting
evaluating each market segment's attractiveness and selecting one or more segments to enter
Opportunities (SWOT)
external factors that the company may be able to exploit to its advantage
marketing intermediaries
firms that help the company to promote, sell, and distribute its goods to final buyers
financial intermediaries
firms, such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers
distribution firms
help the company stock and move goods from their points of origin to their destinations
Barnacles
highly loyal but not very profitable
SWOT analysis
identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
Strengths (SWOT)
internal capabilities that may help a company reach its objectives
Production concept
is the idea that consumers will favor products that are available and highly affordable, therefore the organization should focus on improving production and distribution effects
The marketing concept
is the philosiphy in which according organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
strangers
low potential profitability and little projected loyalty
Differentiation
making a product different from other similar products to create superior customer value. If a product is perceived to be exactly like others on the market, consumers would have no reason to buy it.
place
making goods and services available in the right quantities and locations, when customers want them, constitutes of 4 As: Accessibility
Customer-engagement marketing
making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
marketing dashboards
meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance
marketing control
measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
butterflies
potentially profitable but not loyal
full partnerships
relationships that have close working relations, trust, mutual respect, and highly integrated operations. For example, P&G sales representatives work closely with Walmart, Kroger, and other large retailers that sell Tide.
Customer-Driven Marketing Strategy
segmentation, targeting, differentiation, positioning
caring capitalism
setting themselves apart by being civic minded and responsible
sustainable marketing
socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Market Offerings
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Needs
states of felt deprivation that consist of Maslow's heirarchal needs
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
Marketing Management
the art and science of choosing target markets and building profitable relationships with them
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
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
product concept
the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements
Selling Concept
the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
Macroenviornment
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 customer value and achieve profitable customer relationships, This is guided by the four Ps
Marketing services agencies
the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets
Marketing Myopia
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
product
the need-satisfying offering of a firm, constitutes of 4 As: Acceptability
Marketing Return on Investment (ROI)
the net return from a marketing investment divided by the costs of the marketing investment
share of customer
the portion of the customer's purchasing that a company gets in its product categories
Marketing
the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
business portfolio analysis
the process by which management evaluates the products and businesses that make up the company
Strategic Planning
the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
market
the set of actual and potential buyers of a product or service
value proposition
the set of benefits or values it promises to deliver to consumers to satisfy their needs
Marketing Mix
the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
customer equity
the total combined customer lifetime values of all of the company's customers
customer's lifetime value
the value of the entire stream of purchases a customer makes over a lifetime of patronage
Marketing Implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Partner relationship management (PRM)
working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Functional Organization
Departmentalization around specialized activities such as production, marketing, and human resources.
Dogs
Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
Value
Due to the changing economic environment, marketers are increasingly emphasizing this