Marketing Exam 1

Marketing Mix from Buyers Pointview:

1. Acceptability- the extent to which the product exceeds customers expectations (product) 2. affordability- the extent to which customer are willing and able to pay the product's price (price) 3. accessibility- the extent to which customers can readily acquire the product (place) 4. awareness- the extent to which customers are informed about the product's features, persuaded to try it, and reminded to purchase (promotion)

Distinguishes between Services and Goods

1. Intangible: services are non physical and can't be directly touched makes it challenging for marketers to convey benefits through description images, symbols, and cues are used to convey benefit/ value of service 2. inseparable- services are produced and consumed at the same time can't try before buy lower risk by offering guarantees or warranties can't return 3. heterogenous: services have greater variability especially with humans firms attempt to reduce variability with goal of delivering consistent service 4. perishable: services can't be stored for future use some services are irreversible and disappear once rendered service many only be available during a specific time period potential for large loss of revenue

Managing the Marketing Effort Reacquire the Five Marketing Management Functions

1. Marketing analysis- complete analysis of the company's situation (swot analysis) 2. market planning- choosing marketing strategies that will help the company attain its overall strategic objectives marketing strategy- consists of specific strategies for target markets 3. marketing implementation- the process that turn marking plans into marketing actions to accomplish strategic marketing objectives 4. marketing department organizations functional organization- different marketing activities are headed by a functional specialist geographic organization- assigning sales and marketing people to specific countries, regions, and districts product management organization- used with companies that have very diff products and brands market or customer management organization- for companies that sell one product line to many different types of markets and customers who have different needs and preferences 5. marketing control- evaluating results and taking corrective action to ensure that the objectives are attained; 4 steps 1. set specific marketing goals 2. measures performances in marketplace 3. evaluates the cases of any differences between expected and actual performance 4. management takes corrective action to close the gaps between goals and performances operating control- involves checking outgoing performance against the annual plan and taking corrective action strategic control- involves looking at whether the company's basic strategies are well matched to its ooprtunties

Five Step Consumer Decisions Making Process

1. Problem Recognition - triggers the rest of the steps; occurs when consumer perceives difference between current state and ideal state need recognition (actual state moves downward; running out of a product, product breaks, etc.), perception of actual state change opportunity recognition- ideal state moves upward, exposed to different/ better quality products (new standard of comparison) become aware of new products/ innovations 2. information search search for brands, attributes, evaluations, attitudes, experiences internal search- scanning memory to assemble product alternative information external search- information obtain from retailers, marketer dominated media, interpersonal sources, independent media, experiential search 3. evaluation of alternatives if extended the evaluation of several brands, limited problem solving consider multiple brands, in routine consider few/ no brands goal is consideration set determinant attributes- features we use to differentiate among our choices 4. purchase decision rules of thumb: brand loyalty, courtly of origin, price vs quality, its what mom used 5. post purchase - then process begins again like a cycle customer satisfaction/ dissatisfaction ultimately affects future decisions and word of mouth communication

Where do Firms Get New Products?

1. acquisition 2. new product development

Stages in Adoption Process

1. awareness 2. interest 3. evaluation 4. trial 5. adoption

Brand Value Determined by 4 Factors

1. brand awareness- measure of # of consumers who are fmailiar with the brand and what it stands for (awareness improves likelihood of purchase) important for low involvement products, brands that dominate category can become synonymous with product itself 2. perceived brand value- relation between products benefits and its costs (usually determined in relation to competitors) 3. brand associations- mental and emotional links that consumers make between a brand and its key product attributes (usually created through ad and promotional efforts) 4. brand loyalty- not just repeated brand purchase, but also refusal to purchase other bands important source of value for firms: marketing costs of reaching loyal customers are much lower (dont need as much persuasion or incetivization), loyal customers spread positive WOM, insulate firms from the competition

Building Strong Brands

1. brand positioning 2. brand name selection 3. brand sponsorship 4. brand development

Steps in Strategic Planning

1. define the company mission mission statement- statement of the organizations' purpose; what it wants to accomplish; acts as invisible hand that guides people int he organizations should be market oriented and defined in terms of satisfying a customer need 2. setting company objectives and goals 3. designing the business portfolio 4. planning marketing and other functional strategies

Customer Segmenting Groups

1. geographic 2. demographic 3. behavioral 4. psychogrpahic

3 Key Differences in B2B Marketing vs B2C

1. number of customers: B2C firms may have 100x as many customer for similar amount of revenue 2. multiple levels within a B2B customer; three levels in B2B (users, influencers, and decision makers) 3. domain knowledge; B2B buyers have expertise and experience that most consumers don't have business markets are more complex (longer and more formalized), more professional purchasing effort, buyer and seller more dependent

Business Buyer Decision process

1. problem recognition 2. general need description 3. product specifications- components studies carefully to determine if they can be redesigned, standardized, or made less costly 4. supplier search 5. proposal solicitation 6. supplier selection 7. order routine specification- includes final order with chosen supplier and lists items 8. performance review

Product and Service Attributes

1. product quality (quality level, performance quality, conformance quality) 2. product features 3. product style and design style- appearance of product design- skin deep; good design contributes to a products usefulness

Millennials

9/11, rise of social media, great recession cell phone, texting Mark Zuckerberg echo boomers most financially strapped generation higher unemployment and more debt comfort with digital tech and engage with brands through social media frugal, practical, connected, mobile and impatient seek authenticity and opportunities to shape their own brand experience

Secondary Data Advantages and Disadvantages

Advantages: lower cost and available now Disadvantages: may not be relevant, accuracy may be questionable, method may not be appropriate, data spruces may be biased

Primary Data Advantages and Disadvantages

Advantages: specific to objective, offer behavioral insights not available from secondary research, can examine casualty Disadvantages: costly, time consuming, requires most sophisticated training and experience to design study and collect data

Family

Apart of social factors that influence consumer behaviors family members can strongly influence buyer behavior; most important consumer buying organization in society buying roles change with evolving consumer lifestyles; has been changing between husband and wife involvement shifting roles single a new marketing reality the nations kids and tweens influence up to 80% of al households purchases

Boomers

Apollo Moon Landing, cold war, woodstock television, phone Bill Gates post WWII wealthiest generating in US history and account for 26% of population but have 70% of the nations disposable income fastest growing shopper demogrpahic online appeal to youthful thinking rather than advancing age fastest growing social media users

What is the BCG Matrix and how why would you use it?

BCG Matrix- graph a firm's strategic business units (or products or brands) Answers the questions of Where are we Now? compares markets share and market growth stars- high share and high growth, company wants this; eventually turns into cash cow; need investments cash cows- high share, low growth; supply funds for future growth, companies need this; little investment ?- low share, high growth, have to decide to prioritize or divest; goal it to invest into stars or phased out puppy- low share, low growth; kill these off use to find out what customers we have now

Building the Right Relationships with the Right Customers

Comparing potential profitability with projected loyalty strangers- low profitability, short term loyalty; little fit between customers offerings and their needs; dot invest in them butterflies- high profitability, short term loyalty true friends- long term loyalty with high profitability barnacles- long term loyalty with low profitability

Idea Screening and Concept Test

Idea Screening: the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new product strategy or are inappropriate for some other reason Concept Test: a test with consumers to evaluate a new product idea, usually before nay prototype has been created

Type of Adopters

Innovators- try new ideas at some risk 2. early adopters- guided by respect (are opinion leaders and adopt new ideas carefully) 3. early mainstream- are deliberate (adopt new ideas before the average person) 4. late mainstream - skeptical (adopt innovation onyl after majority) 5. lagging adopters - tradition bound

Psychological Factors that Influence Consumer Behavior

Motivation- a need become a motive when it is aorused to a sufficient level of intensity motive or drive- need that is sufficiently pressing to direct the person to seek satisfaction sigmund freud (a person's buying decision are affected by subconscious motives that even the buyer may not fully understand) abraham maslow- human needs are arranged in a hierarchy from the most pressing at the bottom to the least pressing at the top (top- self actualization needs, esteem needs, social needs, psyiological needs- bottom) Perception: perception- is the process by which people, select, organize, and interpret information to form a meaningful picture; (brands try to teach us postiive brand associations); in marketing perception involves assigning meaning to things learning- describes changes in an individual's behavior arising from experience beliefs- is a descriptive though that a person holds about something (if beliefs are wrong an prevent purchase marketer will want to launch a campaign to correct them) attitude- describes a persons relatively consistent evaluations, feelings, and tendencies toward an objects or idea (diffuclt to change and fit into a pattern) company should try to fit its product into existing attitudes rather than trying to change them

Segmenting, Targeting, and Positioning

Segmenting- identify customer needs and segment market; informed by market research and analysis of customer data target marketing- evaluate and select target segments; informed by demand analysis positioning- identify proposition for each segment; informed by competitor analysis and internal analysis planning- deploy resources to achieve the plan; uses 4 Ps process doesnt end with implementation of 4 Ps you must constantly evaluate and revise as needed

Different Curves

Style: a basic and distinctive mode of expression two humps in a graph like a wave Fashion (Cycle): currently accepted or popular style in a given field looks like a mound Fad: temporary periods of unusually high sales driven by consumers enthusiasm and immediate popularity sharp increases and sharp decrease looks like upside down V

Model of Consumer Behavior

The environment --> buyer's black box --> buyer response the environment is the marketing stimuli the $ Ps and the broader macro environment the black box is the buyers characteristics and buyers decision process buyer response is the buying attitudes and preferences, purhcase behavior; brand and company relationship behavior

Brand Licensing

a contractual arrangement between firms, in which one firm allows another to use its brand, logo, symbols, characters, etc. for free

Differentiated Markting segmented marketing

a firm decides to target several market segments and designs separate offers for each by offering product and marketing variations hope for higher sales and strong reposition within each market segment increases the costs of doing businesses must weigh increased sales against increased costs when deciding on a differentiated marketing strategy targeting broadly better for differentiated marketing

Undifferentiated Marketing mass marketing

a firm might decide to ignore market segment differences and target the whole market with one after focuses on what is common in the needs of consumers rather on what is different designs a product and marketing programs that will appeal to largest number of buyers targeting broadly better for uniform products better for new product better if most buyers have same tastes

Product Mix Strategies

a firm's entire range of products Mars offers candy, pet food, food, and drinks Strategic mix decisions usually relate to the width of the product mix how many different product lines are produced by the firm?

Product Line Strategies

a firm's total product offerings designed to satisfy a single overarching need for target customers products within the line can stress different characteristics or benefits products within the line are closely related Strategies: full line vs limited line (length decision = # of items) changing lines: filling out vs contracting (adding more items within present rang or cutting items from within current range) line stretch: upward, downward, or two way (expanding range) down less premium up more premium (often higher price)

Company Mission (firm's mission)

a mission may being with questions like What business are we in? What customers should we serve? How should we develop the firm's capabilities and focus its efforts? meant to guide how you run your company and how you do your business

Brand

a name, term, symbol, or any other unique element of a product that identifies on firm's products and sets it apart from competitors it is a signal or a promise to a consumer hopefully of quality brands should be memorable, have a positive connotation, convey a certain image

Services

a product that consists of activities, benefits, or satisfcation that is essentially intangible and does not result in the ownership of anything

Quasi Experiment

a test market

Packaging as a Brand Element

although often overlooked as a marketing tool, packaging influences consumer behavior and can reinforce the brand's image- thereby helping to determine the success of a product important brand element particularly because it is tangible in some cases, the package has become synonymous with the brand itself other functions: protect the product provide specific information (label) sometimes mandated by law make the package more user friendly

Word of Mouth influence

apart of social factors can have a powerful impact on consumer buying behavior; personal words and recommendations of trusted friends, family, associates, and other consumers tend to be more credible

Groups and Social Networks

apart of social factors groups- small groups that influence a person's behavior membership groups- groups that have a direct influence and to which a person belongs reference groups- serve as direct face to face interaction or indirect points of comparison or reference in forming a person's attitudes or behavior aspirational groups- is a group to which the individual wishes to belong

buzz marketing

apart of social factors involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company' product

online social network

apart of social factors online communities where people socialize or exchange information and opinion

opinion leaders

apart of social factors people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others

Roles and Status

apart of social factors that influence buyer behavior the persons position in each group can be defined in terms of both role and status role- consists of the activities people are expected to perform according to the people around them; each role carries a status reflecting the general esteem given to it by society people usually choose products appropriate to their roles and status

Simulated Test Markets

are events where the firm will create a shopping environment and note how many consumers buy the new product and competing products provides measure of trial and the effectiveness of promotion researchers can interview consumers

Controlled Test Markets

are panels of stores that have agreed to carry new products for a fee in general they are less expensive than standard test market, faster thanstadarc test markets, but competitors gain access to the new product

Standard Test Markets

are small representative markets where the firm conducts a full marketing campaign and uses store audits, consumer and distributor surveys, and other measures to gauge product performance results are used to forecast national sales and profits, discover product problems, and fine tuning the marketing program

Building profitable relationships and create customer delight

aspire to delight your customers not just satisfy them expectancy disconfirmation model

Business Analysis of New pRoduct Development

asses how the new product will fit into the firm's total product mix evaluate whether the product can be a profitable contribution for the organization's product mix

Why do we care so much about developing new products or product innovation?

because INNOVATION is the ENGINE THAT DRIVES GROWTH

Developing New Products

benefits: ehances product mix risks: expensive to develop creates risk of market failure (80% of new products fail) but loos of market share without new products?

Survey Research

best fro descriptive information primary data best for knowledge, attitudes, preferences most widely used primary data collection observations can be difficult to interpret, flexible, cost effective challenges: can be unable or unwilling to answer, can give misleading or pleasing answers, privacy concerns, consumers lie because of social desirability type of questions: open ended or close ended questionnaire construction: can be multiple choice or scaled response Qualtrics mechanical instruments

Value of Brands for the Firm

brand equity- set of assets and liabilities linked to a brand that impact the value provided by the product or service are legally protected through trademarks and copyrights brands are owned; they are assets a firm can build

Brand / Line Extension

brand extension- using same brand name in different product line (increases product mix breadth) ex) snickers ice cream line extension- using same brand name wihtin the same product line (increases product line depth) ex) snickers hazelnut Benefits: spend less on building brand awareness, spillover effects from brand to extensions (and extensions to brand), synergistic effects with complementary products can boost sales Beware: extensions can dilute brand equity brand dillution- when brand extensions adversely affects consumer perceptions about attribtues of the core brand

Qualitative Research

broad open ended responses (observations, in depth interview, focus group, social media)

Designing the Business Portfolio

business portfolio- the collection of business and products that make up a company best portfolio is the one that best fits the company's strengths and weaknesses to opportunities in the environment 1. Where are we now? analyze current portfolio and determine which business should receive more, less, or no investment portfolio analysis --> identify SBU --> assess the attractiveness of SBUS and decides how much support each deserves (evaluates on market or industry and strength of the SBU position in that market) use BCG Matrix 2. Where do we want to go? must shape the future portfolio by developing strategies for growth and downsizing product growth matrix Planning Steps:

B2B Marketing

business to business marketing like Boeing selling their services to another business

B2C marketing

business to consumers political campaigns

Business Markets

buy goods and services for further processing or use in their production processes

Reseller Markets

buy goods and services to resell at a profit

Classifying Products

by how long they last: durable vs nondurable by how they are used: consumer, industrial (materials and parts, capital, raw materials) for consumer goods by how consumer buys them: convenience, shopping, specialty, unsought

Corporate Image Marketing

campaigns to market themselves and polish their images

Setting Company Objectives and Goals

characteristics of good objectives: 1. measurable/ specific 2. realistic 3. time specific SBU and functional marketing objective must support the overall priorities of the firms

New Task

company buying a product or service for th first time

Team Based New Product Development

company department work closely together in cross functional teams, overlapping the steps in the product development process to save times and increase effectiveness

Product Mix

complete set or products and services offered by a firm; has various product lines

Product Mix

complete set or products and services offered by a firm; has various product lines width - number of diff product lines the company carries length- total number of times a company carries within its product lines depth- refers to number of versions offered by each product consistency

Types of Buying Decision Behavior

complex buying behavior: high invovlmenet and significant differences between brans variety seeking buying behavior: low involvement and significant difference between brands dissonance reducing buying behavior- high involvement and few differencess between brands habitual buying behavior: low involvement and few differences between brands

Organization marketing

consists of activities undertaken to create or change the attitudes and behavior of target consumers toward an organization

Person Marketing

consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people

Government Markets

consists of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them

Consumer Markets

consists of individuals and households that buy goods and services for personal consumption

Culture/ Broad Social Factors

consists of institutions and other forms that affect a society's basic values, perceptions, preferences, and behaviors people grow up in a society that shapes their beliefs and values and absorb worldview that defines their relationships to others peoples core beliefs and values have a high degree of persistence; share more specific attitudes and behaviors found in everyday life secondary beliefs and values are more open to change: people vary in their emphasis on serving themselves or serving others people's view of others (alone together) todays tech have launched an era of mass mingling but also groups of people who are together but in their own tech bubble shared meanings, beliefs morals, values, and customers of a group country culture (easy to spot, dress, language; values, social trends) broad social trends in the US: 1. health and wellness concerns 2. greener cosnumers 3. thrift 4. privacy concerns 5. less leisure people have decrease confidence and loyalty towards business and political organizations work is not a source of satisfaction but a chore people have different view on society patriots bfs malcontents (want to leave) and reformers people have been dropping religious conviction but increase in spirituality increase in people recognizing nature as finite and frail; renewed love of things natural

Marketing Information System

consists of people and procedure dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and marketing insights must design effective ones that give managers the right information, in the right form, at the right time, and help them to use this information to create customer value, engagement, and strong customer relationships

Institutional Markets

consists of schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care differ from one another in their sponsors and their objectives has different buying needs and resources many are characterized by low budgets and captive patrons marketers set up separate divisions to meet the special characteristics and needs of institutional buyers

Marketing Environment

consists of the actors and forces outside marketing that affect marketing managements ability to build and maintain successful relationships with target customers; consists of micro and macro environment

Microenvironment

consists of the actors close to the company that affects its ability to engage and serve its customers the company, suppliers, marketing intermediaries, customer markets, competitors, and publics aim of the entire value delivery system is to serve target customers and create strong relationships with them Successfully Leveraging Company Capabilities: (core competency; existing knowledge, facilities, patents applied to new markets, new products) Competitors and Corporate Partners: Competitors (know strengths and weaknesses and proactive rather than reactive strategy) Corporate Partners (few firms operate in isolation, align with competitors, suppliers, etc; JIT delivery system) marketing intermediaries- help the company promote, sell, and distribute its products to final buyers publics- is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives

International Markets

consists of these buyers in other countries, including consumers, producers, resellers, and governments

Social Marketing

consists of using traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well being involves more than just advertising because it involves a broad range of marketing strategies and marketing mix tools designed to bring about beneficial social change

Specialty Products

consumer products and services with unique characteristics or brand identification for whic a significant group of buyer is willing to make a special purchase effort consumers insist upon a particular item and will not accept substitutes brand names very important psedo specialty products? Jif PB and Hallmark designer clothes, shoes, accessories, gourmet food, specific medical specialist

C2C marketing

consumer to consumers EBay Etsy

Routine Problem Solving

consumers are cognitive users motivation is low choices made with little/ no conscious effort efficient decision: minimal time and energy little to no comparison of brands/ attitudes may only consider one or two brands not going through all 5 steps make decision using rule of thumb or heuristics brand loyalty buy the cheapest buy the one the kids ask for

Factors Influencing Consumer Behavior

culture (includes social class) social personal psychological

Changes in Economic Environment

customer emphasizes more value for the dollar; emphasize on value growth of non profit marketing rapid globalization sustainable Marketing

Customer Needs, Wants, and Demands

customer needs- states of deprivation 1. physical- food, clothing, warmth, safety 2. social- belonging and affection 3. individual- knowledge and self expression customer wants- form that needs take as they are shaped by culture and individual personality customer demands- wants backed by buying power

Expectancy Disconfirmation Model: customer satisfaction and delight

customer satisfaction = customer perceptions (actual) - customer expectations if CP < CE dissatisfaction if CP = CE satisfaction if CP > CE delight don't over promise and under deliver under promising and over deliver can be risky because if you under promise too much you may not attract customers at all train employees to pick up on opportunities for moments of delight (putting mints on hotel pillows, making towel animals)

Secondary Data

data compie both inside and outside the orgnization for some purpose other than current research project internal secondary data: data warehouse and big data, databases of consumer information (loyalty card, purchase history, demographics, comments), databases of financial information (stocks, sales, profit margins), databases of online and social media information, and data mining --> using statistical tools to extract patterns and relationships from big data external secondary data: public and inexpensive data (census), syndicated data (purchased from commercial research firms), scanner data (UPC data from scanner systems), panel data (tracks surveys or purchases from groups of consumers over time) general rule of thumb use secondary firs then turn to primary data only if you need it

Primary Data

data observed and recorded or collected directly from respondents for the purpose of the current research project main types: observational ethnograhic focus groups survey research experiments quasi experiments

The Demographic Environment

demography- is the study of human populations in terms of size, density, location, age, gender, race, occupation, other statistics business must keep a close eye on trends and developments in their markets typically have same purchase behavior's because shared experiences and same stage of life same formative experiences notable tech, preferred communication, and business icons Changing Trends in US household: 1. delayed marriage 2. voluntarily childless household 3. cohabitation 4. dual career families 5. single person households 6. same sex households 7. sandwich families (extended families living togethers) 8. boomerang families (college kids going back home) Generational Marketing --> focus more precise age specific segments; defining by birth date less effect than by their lifestyle, life stage, or common values

Marketing Strategy for New Product Development

develop a marketing strategy that can be used to introduce the product to the marketplace identify the target market/ estimate its size positing, pricing, distribution, and promotion necessary for rollout

Economic Importance of Service

developed economies are increasingly service oriented increasingly specialized services desired --> production cheaper in other countries --> high value on convenience and leisure --> increasingly specialized services desired

psychogrpahic segmentation

divides buyers into different segments based on lifestyle or personality characteristics use personality variables to segment markets

Behavioral Segmentation

divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product occasion segmentation- dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item Benefit segmentation- dividing the market into segments according to the different benefits that consumers seek from the product user status usage rate loyalty status multiple segmentation bases

Demographic Segmentation

divides the market into segments based on variables (life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation) Age and Life-Cycle Segmentation- offering different products or using different marketing approaches for different age and life-cycle groups have to be careful to guard against stereotypes

Geographic Segmentation

dividing the market into different geographical units (nations, regions, states, counties, cities, or neighborhoods) localizing their products, services, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and other localities

Value Chain

each department carries out value creating activities to design, produce, market, deliver, and support the firm's products a company's value chain is only as strong as its weakest link success depends on how well each group performs its work of adding customer value and on how the company coordinates the activities of various functions

Value Delivery Network

entire value delivery network created by these competitors; companies partnering with other members of the supply chain

Casual Research

experiments is to test a hypothesis about cause and effect relationships

Product Life Cycle PLC

explains how features change over the life of a product concept that seeks to describe a product's sales, competitors, customers, and marketing emphasis from its beginning until it is removed from the market marketing strategies must change and evolve as a product moves through the PLC intro stage- no profits because company recovering R&D costs growth stage- profits increase and peak maturity stage- sales peak, profit margins narrow decline stage- market shrinks (sales fall), profit falls

Macro Environment

external, larger societal forces includes the natural environment, demographics, technology, economic, political/ legal, and culture

Value of Brands for the Customer

facilitate purchasing: identification of preferences, quick decisions, enables differentiation establish loyalty: learn to trust brands, develop strong preferences, consider additional brand offerings signaling who we are

Gen Xers

fall of berlin wall, end of cold war, HIV personal computer, email Jeff bezos less materialist; shadow of the bomers prize experience not acquistion; family first sensible shoppers who research before buying quality over quantity less receptive to marketing pitches most educated and possess hefty annual purchasing power prime target segments

Marketing Management Orientations (five alternative concepts)

five alternative concepts under which organization design and carry out their marketing strategies 1. production concept- holds that consumers will favor products that are available and affordable; focus on improving production and distribution efficiency, can lead to marketing myopia 2. product concept- consumers will favor products that offer the most in quality, performance, and innovating features; focus on making continuous product improvements; can lead to marketing myopia 3. selling concept- consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotion effort; practiced with unsought goods; carries high risks because focuses on sales rather than building long term customer relationships 4. marketing concept- holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors 5. societal marketing concept- whether pure marketing concept overlooks possible conflicts between consumers short run wants and consumer long run welfare; calls for sutaibaee marketing; preach shared value which focuses on creating economic value in a way the creates value for society

Marketing Process Model

five step process for creating value and capturing customer value 1. understand the market place and customer needs and wants by market research 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 customer to create profits and customer equity

Customer Centered New Product Development

focuses on finding new ways to solve customer problems and create more customer satisfying experiences most successful new products are ones that are differentiated, solve major customer problems, and offer a compelling customer value proposition

International Marketing Research

follows same steps as domestic researchers but face more and different problems often must collect their own primary data which is harder to obtain cultural differences from courtly to courtly cause additional problems even though costs and problems associated with international research are high the costs of not doing it might be even higher

Customer Insight

fresh understandings of customers and the marketplace derived from marketing information that become the basis for creative customer value and relationships 4 Steps to Gain Customer insights: 1. what do you want to know; define the problem and research objectives 2. plan the design (2 types of data) 3. Collect Data and Analyze It 4. What is the real insight and how do we use it?; prepare formal written document (executive summary and technical report) and then implement actions based on insights

Family Roles

gatekeeper - household member who collects and control information important to the decider influencer- household member who try to express their opinion and influence the decision decider- the person who actually determines what will be chosen buyer- person who physically acquires the product user- household member who consumer product

Economic Environment

general economic conditions affect the way consumers allocate their money consumer confidence (extent to which people are optimistic or pessimistic about the future health of the economy) discretionary spending- is the money available to a household over and above that required for a comfortable standard of living value marketing is more prominent and marketers are looking for ways to offer today's more financially frugal buyers greater value pay attention to income distribution as well as income levels distortion of income has created a tiered market changes in major economic variables lie in income, cost of living, interest rates, and savings and borrowing patterns have a large impact on marketplace

Segmenting International Markets

geographic location economic factors political and legal factors cultural factors intermarket segmentation- they form segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Digital Natives/ Generation Z

global warming cloud computing 2016 election smart phone, tablet, social media represent tomorrow's markets they are forming brand relationships that will affect their buying well into the future fluency and comfort with digital tech shop both online and in stores despite youth research products beforehand key is to engage these young consumers and let them help to define their brand experiences but do so responsibly

How do an organizations goals relate to its mission?

goals or objectives measures how well the organizations mission is being accomplished

Shopping Products

good or service fro which consumers will spend time and effort gathering information on price, attribute, and product quality shopping products marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts

Convenience Products

good or service that consumers purchase frequently with a minimum of comparison and effort low price, widely available Target, Kroger, Giant Eagle, Vending Machines, Fast Food

Social Factors Affecting Consumer Behavior

groups and social networks family roles and status

Product Lines

groups of associated items that consumers tend to use together or think of as part of a group of similar products or services Coco Cola: water drinks, juice drinks, soft drinks

Focus Groups

groups of respondents discuss a marketing problem by responding and reacting to each other is expense and can't generalize from small group only exploratory data consumers not always open and honest one on one depth interviews shop alongs online focus groups purpose of exploratory qualitative research is to understand attitudes and not to measure them be careful not to make misleading generalizations using sample sizes too small to be representative

Extended Problem Solving

high involvement long time spent on decision high typical cost of product internal and external information search many number of alternatives considered high motivation

Value Proposition

how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments product position- is the way a product is defined by consumers on important attributes (the place the product occupies in consumer's minds relative to competing products)

A difference is worth establishing and promoting if it satisfies the following criteria:

important- delivers highly valued benefit to target buyers distinctive superior communicable preemptive- competitors cannot easily copy affordable profitable

Social Classes

includes in cultural aspects affecting consumer behavior are society's relatively permanent and ordered division whose members share similar values, interests, and behaviors measured by a combination of occupation, income, education, wealth, and the variables occupation prestige is the single best indicator of social class IN US line between classes are not fixed people within a given social class tend to exhibit similar buying behavior working class less likely to experiment with new products and sales affluent people focus on appearance and body image; diet foods, gym, modern furniture

Why are needs important?

increase motivation if a product is consistent with needs (makes it personally relevant) deeper processing of ads and other information about the product greater likelihood of remembering ad/ product info stronger attitudes toward that product most needs can be reached by a number of specific wants type of needs: physical psychological utilitarian (functionality) hedonic (style/ fun)

Consumer Conversion

increase was of purchase, reduce wait time (actual or perceived), create perceived scarcity (time or quantity), send reminder emails about abandoned carts generally conversion is lower in internet channels because of ease of search, comparison, and delaying purchase

Maturity Stage

increased promotion and R&D (to create better versions of profits) to support sales and profits prices and profits fall sales continue to increase but at a decreasing rate marketplace is approaching saturation product lines are often extended (get longer) marginal competitors drop out normally last longer than previous stages most products today are in this phase most marketing manegement deals with mature products

Concentrated Marketing (niche)

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 storing market position because of its greater knowledge of consumers needs in the niches and the special reputation it acquires market more effectively and efficiently since the internet it is even more profitable to serve seemingly small niches can be highly profitable but involves higher than normal risks targeting narrowly better when limited resources better fro new products

Cognitive Dissonance

internal conflict arising from inconsistency between beliefs, behavior, or a combo of both buyers remorse often occurs when consumer questions appropriateness of purchase likely for products that are expensive, infrequently purchased, dont work as intended, associated with high risk marketers often attempt to minimize this with after sale contact, measuring letter in the package, warranties and guarantees, firm's advertising

Services Marketing

internal marketing: employees and company; firm shave to suport and motivate employees external marketing: company and customers; communicate brands value proposition interactive marketing: employees and customers: service quality depends on buyer seller interaction want to increase service differentiation, service quality, and service productivity

Place Marketing

involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places

market targeting

involves evaluating each market segments attractiveness and selecting one or more segments to enter should target segments in which it can profitably generate the greatest customer value and sustain it over time

Product Development

involves the creation and testing of one or more physical version by the R&D or engineering departments requires an increase in investment shows whether the product idea can be turned into a workable product a prototype

The Natural Environment

involves the physical environment and the natural resources that are needed as inputs by markets or that are affected by marketing actives growing segment of green consumers that will be very influenced by whether they feel a firm manages its responsibility to the environment well more companies providing program to help consumers dispose of products in an environmental friendly manner producing packaging that creates less waste potential negative effects of NOT thinking about natural environment: 1. negative attitudes towards brand/ product 2. not want to buy 3. negative word of mouth is greenwashing an issue? greenwashing- dishonestly spinning products/ policies as environmentally friendly trend of be aware of: 1. shortages of materials 2. increased pollution 3. increased gov intervention basic level is the physical environment that you can't prepare for like natural occurrences but should be prepared to deal with them

New Product

is a good, service, or idea that is received by some potential customers are new adoption process- the mental process through which an individual passes from first learning about an inncation to final adoption

Buying Center

is all of the individual and units that partiticpate in the business decision making processs is not a fixed or formally identified unit but instead is a set of buying roles assumed by different people for different purchases

Total Quality Management

is an approach in which all the companys people are involved in constantly improving the quality of products, services, and business processes

Service

is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed

Product

is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need for want can be tangible or intangible can be called an offering to differentiate their offers, beyond simply making products and delivering services, more companies are focused on creating and managing customer experiences with their brands or company

Customer Segmentation

is the practice of dividing a customer base into groups of individuals who are similar in specific ways relevant to marketing, such as age, gender, interests, and spending habits market segmentation —> target market selection —> product positioning

Micromarketing

is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and local customer segments; include local and individual marketing local marketing- involves tailoring brands and promotions to the needs and wants of local customers individual marketing- tailoring products and marketing programs to the needs and preferences of individual customers ; mass customization

Idea Generation

is the systematic search for new product ideas sources: internal sources (formal R&D, entrepreneurial programs) external- customers, competitors, distributors, suppliers, outside design firms crowdsourcing and open innovation programs: inviting broad communities of people- customers, employees, independent scientists, and even the public at large into the new product innovation process

Buying Center is a Problem for Marketers because

it is not fixed and not formally identified

Product Stewards

job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems

Commercialization

launch the product full scale production distribution advertising sales promotion and more

Culture Affecting Consumer Behavior

learned set of meanings, rituals, norms, and traditions that are shared among members of an organization or society include beliefs, attitudes goals, values, behaviors, customs is the most basic cause of person's wants and behavior behavior is largely learned from family or other institutions marketers try to spot cultural shifts so as to discover new products that might be wanted can affect all aspects of consumer behavior (expectations, perceptions, views of morality or ethics) subcutlure- each culture contains group of people with shared value systems based on common life experience and situations

Government and Political Environment

legal and political decisions can have a major effect on a variety of products and on the method used to market these products government passes laws and then determines the degree of enforcement of these laws laws designed for 3 purposes: 1. protection of business orgs from each other 2. protection of customers from unfair business practices 3. protection of a society from business interest that may be harmful to that society FTC= federal trade commission (protects consumers from unfair or deceptive advertising and marketing practices that raise health and safety concerns); brings law enforcement actions to stop fraudulent advertising practices public policy- government developed set of laws and regulations that limit business for the good of society as a whole and guides commerce increased emphasis on ethics and socially responsible actions cause related marketing --? exercise social responsibility and build more positive images linking companies to worthwhile causes

Continuum of Consumer Decision Making

low motivation to high motivation

Brand Ownership

manufacture/ national brands: owned, produced and managed by manufacturer, most brands marketed in US; manufactures retian control over marketing strategy retailer/ store/ private label brands: products developed by retailers, retailers can manufacture buts sometime just design and develop, recent growth and attempts to establish distinctive identitiy

What is customer driven marketing?

marketing has changed from trying to maximize profit but now it is to maximize long run profit from each customer relationship focus of marketing is to capture value from customer and focusing on customer needs and wants all about customer satisfaction

Marketing Strategy

marketing logic by which the company hopes to create this customer value and achieve these profitable relationships decides which customers it will serve and how designs integrated marketing mix made up of factors under its control ( 4 Ps)

Marketing Return on Investment marketing ROI

marketing performance measure; is the net return from a marketing investment divided by the costs of the marketing investment; measures the profits generated by investments in marketing activities marketing dashboards- meaningful sets of marketing performance measures in a single displace used to monitor strategic marketing performance

Co Branding

marketing two or more brands together on same package, promotion, store, etc. can signal unobservable quality can appeal to diverse market segmetns can be risky if customer profiles are too different

Uses for Customer Segmentation

maximizing your firm's understanding of customers identifying high value customers predicting future purchases behaviors identify new product opportunities

Requirements for Effective Segmentation

measurable accesible substantial differentiable actionable

Limited Problem Solving

more straightforward and simple lower risk and lower involvement less search limited number of brands considered limited number of attributes evaluated limited shopping times and venues might go through all 5 steps but not as much effort put into each one MEDIUM Motivation

Asian American Consumers

most affluent US demographic segment, well educated, second fastest growing subsegment after Hispanic they are diverse group shop frequently and are the most brand conscious of all the ethic groups fiercely brand loyal

Technological Advances

most dramatic face now shaping our markets tech impacts every aspect of marketing (new products, new forms of communication, new retail channels, more efficient operations) can generate long term competitive advantage may render existing products/ services obsolete targeting will become more precise relationship with existing technology can transform use RFID to track products and customers at various points distribution channels gov regulations against unsafe product

Partner Relationship Management

must work closely with partners in other company departments to form an effective internal value chain that serves customers the must partner effectively with other companies in the marketing system to form a competitively superior external value delivery network

Customer Engagement Marketing

new marketing; fostering direct and continuous customer involved in shaping brand conversations, brand experiences, and brand community goal is to make the brand a meaningful part of consumers conversations and lives

Why Do New Products Fail

no discernible benefits poor match between features and customer desires overestimation of market size incorrect positioning price too high or too low inadequate distribution poor promotion inferior product 80% of all new products fail

Personal Factors that Influence buyer Behavior

occupation- affects the goods and services bought; marketers try to identify the occupational groups that have an above average interest in their products and services age and life stage: people change the goods and services they buy over their lifetimes buying also shaped by the stage of the family life cycle; life stages changes usually result form demographics and life changing events marketers often define their target marketers in terms of life cycle stage and develop appropriate product and marketing plans for each stage; life stage segmentation provides a powerful marketing tool for marketers in all industries to better find, understand, and engage customers Economic Situation: watch trends in spending, personal income, savings, and interest rate (today has more value conscious consumers) lifestyles: is a person pattern of living as expressed in his or her psychographics, a persons whole pattern of acting and interacting with the world involves measuring consumers major AIO dimensions (activity, interest, opinions) personality and self concept: personality- refers to the unique psychological characteristics that distinguish a person or group (brands have personalities and consumers are likely to choose brands with personalities similar to their own) brand personality- specific mix of human traits that may be attributed to a particular brand self concept- self image; the idea is that peoples possessions contribute to and reflect their indentities

Government Market

offers large opportunities for many companies, both big and small to succeed in the government market, sellers must locate key decisions makers, identify the factors that affect buyer behavior, and understand the buying decision process usually require suppliers to submit bids and then award the contract to the lowest bidder tend to favor domestic suppliers over foreign suppliers are affected by environmental, organizational, interpersonal, and individual factors because spending decisions are subject to public review, government organizations require considerable documentation from suppliers government buying has emphasized price

unique selling proposition

one for each brand and stick to it; pick an attribute and tout itself as number one in that attribute

E-procurement

online purchasing; where marketers can connect with customers online to share marketing information, sell products and services, provide customer support services, and maintain ongoing customer relationships reverse auctions- put their purchasing request online and invite suppliers to bid trading exchange- companies work collectively to ciliate the trading process company buying sites extranet links with key suppliers

Customer Relationship Management

overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Conversion Rate

percentage of consumers who buy a product after viewing it when consumer intentions translate into purchase and consumption behavior

Targeting

picking a segment

African American Subculture

population growing in affluence and sophistication more price conscious, highly motivated by quality and selection; brands are important heavy users of digital and social media

Positioning

position offer to appeal to just that targeted segment important consideration is: is there enough demand? is that targeted segment bug enough to be profitable? contains the 4 Ps

Market Differentiation and Positioning

positioning- arranging for a product to occupy a clear distinctive, and describes place relative to competing products in the minds of target consumers effective positioning begins with differentiation- actually differentiating the company's market offerings to create superior customer value

4 Ps of Marketing

price, product, place, promotion

In Depth Interviews

primary data conducted face to face with one respondent with the objective of exploring the subject matter in detail

Ethnographic Research

primary data involves sending trained observers to watch and INTERACT with consumers in their natural environment anthropologists of consumers (observes consumers at home or in store) qualitative

Experimental Research

primary data tests cause and effect relationships while controlling for all other variables determines extent to which changes in one variable cause changes in another variable controlled manipulation of the independent variables by experimenter random assignment A/ B Testing: have two groups (splitting sample) one group is control one group is variation

Observation Research

primary data; involves gathering primary data by observing relevant people, actions, and situations any technique in which researchers observe how consumers behave in real world surroundings questionare

Segmenting

process of grouping customers by needs such as those within a group will respond similarly to the offering and those in different groups will respond different mutually exclusive and collectively exhaustive

Making a Product

product attribution --> branding --> packaging --> labeling and logos --> product support services

Service Product Continuum

product dominant <-----> service dominant most offerings lie somewhere in the middle offering service with product (customer support, cause marketing)

What is the product growth matrix? how why would you use it?

product market growth matrix- illustrates different growth strategies two dimensions opportunities for growth in existing or new markets; allocating resources into existing products or new products four strategies result use to find out where you want to go what you want to do 1. market penetration- emphasis on existing products, existing markets; seek to increase sales in existing products 2. product development- emphasis on new products in existing markets; create a growth by selling new products in existing markets 3. market development- emphasis on exisiting products in new markets; introduce existing products to new market 4. diversification- emphasis on new products in new markets to achieve growth

4 Ps

product- includes physical unit, package, warranty, service, brand, image, and value; can be tangible goods, ideas, and services price- most flexible, competitive weapon, what buyer must give up to obtain a product place- product availability, all activities from raw materials to finish product, can go producer to consumer, producer to retailer to consumer, and producer to wholesaler to retailer to consumer promotion- advertising falls under this; bring about exchanges with target markets by informing, educating, persuading, and reminding; any type of communication with consumers; includes personal selling, advertising, sales promotion, public relations, and online marketing

Product Complexity (Layers of Product Concept)

profits are more than their physical characteristics and basic functions; they are more complex includes: core customer value- basic problem solving benefits consumers are seeking; marketing is about supplying benefits/ value not products actual products- marketers convert core customer vlaue into actual product; the physical good or delivered service that supplies the core benefit the augmented product- nonphysical aspects and associated services of the product (warranty, credit, delivery, installation, repair, financing, customer experience) each level adds more customer vlaue but have to start wiht the core

Growth Stage

promotion emphasizes brand advertising and comparative ads wider distribution sales grow at an increasing rate many competitors enter market large companies may acquire small pioneering firms profits are healthy toward end of growth stage, prices fall sales volume creates economies of scale- promotion and manufacturing costs spread over large volume

Introduction Stage

promotion focused on product awareness and to stimulate primary demand intensive personal selling to retailers and wholesalers full scale launch of new product into marketplace sales are low, high failure rate little competition frequent product modification limited distribution high marketing and product costs —> profits negative or low

Business Buyer Behavior

refers to teh buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others

Hispanic Subculture

represent large, fast growing market; growing population with a large youthful segment deeply family oriented and make shopping a family affair older generation is brand loyal younger generation show increas price sensitivity and willingness to switch brands more active on digital media

Market Research

research groups, focus groups, depth interviews, observational research, experiments, test markets Columbus us a popular test market goal of market research is to understand the marketplace and customer needs

Customer Dissatisfaction, Satisfaction, and delight

satisfied customers buy again and tell others about their good experiences dissatisfied customers often switch to competitors and disparage the product to others if set expectations too low they may satisfy those who buy but fail to attract enough buyers if set expectations too high buyers will be dissapotined aspire to delight your customers not just satisfy them

Brand Value Proposition

set of benefits or values the brand promises to deliver to consumers to satisfy their needs (part of positioning) company must decide how it will serve targeted customers and how it will differentiate and position itself in the market place

Marketing Mix

set of marketing tools that work together to engage customers, satisfy customer needs, and build customer relationships the 4Ps all make up positioning product, price, place, promotion

Perceptual Positioning Maps

show consumer perceptions of their brands versus those of competing products on important buying decision the position of each circle on the map indicates the brands perceived positioning on two dimensions (price and orientation) aka luxury vs performance the size of each circle indicates the brands relative market share

Decline Stage

signaled by a long run drop in sales rate of decline is governed by how rapidly consumer tastes change or how rapidly substitute products are adopted falling demand forces many out of market few specialty firms left management decision: maintain product? reposition and reinvigorate drop product? sell or liquidate usually tech product harvest product? reduce costs, keep running

digital and social media marketing

social media marketing helps with real time marketing mobile marketing uses mobile channels to stimulate immediate buying key is to blend new digital approaches with traditional marking to create a smoothly integrated marketing strategy and mix

Market Offerings

some combination of products, services information, or experiences offered to a market to satisfy a need or want; fulfill customer needs and wants

Strategic Business Unit

some firms have multiple multiple products and brands are incorporated under one brand P&G having Olay, Pantene, Pampers, Tampax, Tide

Descriptive Research

surveys generalize from sample to larger group describe things, such as market potential for a product or the demographics and attitudes for consumers who buy the product

Supplier Development

systematically developing networks of supplier partners to ensure a dependable supply of the products and materials that they use in making their own products or reselling to to others

Marketing management

the art and science of choosing target markets and building profitable relationships with them to design a customer driven marketing strategy use the STP segmenting, targeting, positioning

Systems Selling or Solutions Selling

the business that provides the most complete system for meeting a customers needs and solving its problems; often key marketing strategy for winning and holding accounts

Straight Rebuy

the buyer reorders something without any modifications; usually handled on a routine basis by the purchasing department suppliers try to maintain customer engagement and quality find new ways to add value or exploit dissatisfaction so buyers will consider them

Modified Rebuy

the buyer wants to modify product specifications, prices, terms, or suppliers suppliers may become nervous or pressured to put their best foot froward to protect account suppliers may see modified rebuy situation as an opportunity to make a better offer, gain new business

Consumer Buying Behavior

the buying behavior of final consumers, individuals and households, who buy goods and services for personal consumption

What is a Positioning Statement

the positioning statement is an internal document; ti is not a tagline or slogan it is a promise of the value to a customer group; the positioning statement guides eh development of marketing communications to reach target segments Key Elements 1. target market 2.brand name 3. frame of reference/ competition 4. value proposition 5. supports for the value proposition (customers reason to believe) for (target market), (brand name) is the brand of (frame of reference) that (value proposition) because (reason to believe)

Total Marketing Strategy

the practice of integrating ethnic themes and cross cultural perspectives within their mainstream marketing appeals to consumer similarities across subcultural segments rather than differences insights used from ethnic consumer segments can influence their broader markets

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities; sets the stage for the rest of planning involve adapting the firm to take advantages of opportunities in its constantly changing enrionemnt

market segmentation

the process of dividing a market into distinct group of buyers who have different needs, characteristics, or behaviors and how might require separate marketing strategies or mixes

marketing mix

the set of tactical marketing tools that the firm blends to produce the response it wants in the target market; consists of everything the firm can do to engage consumers and deliver customer value; 4 groups 4 Ps

Competitive Marketing Intelligence

the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and development sin the marketplace goal is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors, provide nearly warnings of opportunities and threats

Major Stages in New PRoduct Development

think of as funnel with the generation being the widest and throughout the process funneling to the bottom until finally comes to a small point at the bottom creating a new product 1. idea generation 2. idea screening 3. concept development and testing 4. marketng strategy development 5. business anlysis 6. product devlopment 7. test marketing 8. commercialization

Unsought Products

those for whcih consumers have little awareness or interest all brand new products start as this require a good deal of advertising or personal selling funeral services, retirement savings, insurance

What is Marketing

to create value for customers in order to capture value from customers in return the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return engaging customers and managing profitable customer relationships social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with other goal is to attract new customers by promising superior value and keep and grow current customers by delivering value and satisfaction marketing must be understood not in the older sense of making a sale but in the new sense of satisfying the customer aim of marketing is to make selling unnecessary

Market Testing

try out the complete marketing plan (product, price, place, and promotion) in a small geographic area that is similar to larger target market traditional test marketing is expensive and gives competition a chance to evaluate the new product disadvantage is having competitors view what you are doing and they can replicate before you put it out on the market simulated test markets (in company owned lab stores) eliminate competitive viewing and cost less but are not as accurate a test as a traditional test market

Public Policy and Ethics in Marketing Research

two major public policy and ethic issues in marketing research 1. intrusions on consumer privacy 2. misuses of research findings

Define Customer Equity and Customer Lifetime Value

ultimate goal of customer relationship management produce high customer equity customer equity- combined customer lifetime values of all the company's customers customer lifetime value = lifetime revenue - operating expenses - cost of acquisition - implementation and devilry costs

Customer Loyalty and WOM

ultimately satisfaction impacts customer loyalty and worth of mouth communication customer loyalty- not just frequency but refusal of alternatives; exclusive place in consumers evoked set WOM- consumer sharing of information and attitudes regarding product, service, firm, brand, etc. negative WOM more likely to be shared than positive WOM

When competitors use differentiated or concentrated marketing you HAVE to

use it too when competitors use undifferentiated marketing a firm can gain advantage by using differentiated or concentrated marketing

Participants in the Business Buying Process

users- those that will use the product or service influencers- help define specifications and provide information for evaluating alternative buyers- have the formal authority to select the supplier and arrange terms of the purchase deciders- have the formal or informal power to select and approve the suppliers gatekeepers- controll the flow of information

Exploratory Research

uses observational research, ethnography, collaging, focus groups gather preliminary information that will help define the problem and suggest hypotheses

Quantitative Research

uses structured responses that can be statistically tested experiments, survey, scanner, panel

B to B Digital and Social Media marketing

using a wide range of digital and social media marketing approaches to engage business customers and manage customer relationships anywhere, anytime can create greater customer engagement and interaction the new digital approaches facilitate anytime, anywhere connections between a wide range of people in the selling and customer organizations

Family Brands

using corporate nam to brand all product lines and products each individual brand benefits from family name

individual brands

using separate names for each product

Should Firms Test Market?

when firms test market: new product with large investment uncertainty about product or marketing program when firms may not test market: simple line extension copy of competitor product low costs management confidence

Marketing Myopia

when sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products only focus on existing wants and lose sight of underlying customer needs ex) people don't way to buy a quarter inch drill they want a quarter inch hole

Service Profit Chain

which links service firm profits with employee and customer satisfaction; consists of 5 links 1. internal service quality- superior employee selection and training, a quality working environment, and strong support for those dealing with customers results in the following 2. satisfied and productive service employees 3. greater service value 4. satisfied and loyal customer 5. healthy service profits and growth