MKT332 Final

Seller's market

A market in which there are more buyers for fewer goods and services.

Buyer's market

A market in which there are more goods and services than people willing to buy them

BCG matrix

A market share/market growth matrix that plots market share against market growth potential

Steps in the marketing planning process

1. define the misison of the organization 2. determine organizational objectives 3. Assessing organizational resources and evaluating environmental risks and opportunities 4. formulate strategy 5. implement strategy through operating plans 6. monitor and adapt strategies when necessary based on feedback

Sales orientation

Belief that consumers will resist purchasing nonessential goods and services, with the attitude toward marketing that only creative advertising and personal selling can overcome consumers' resistance and persuade them to buy

marketing mix variables

Blending product, distribution, promotion, and pricing to fit needs and preferences of a specific target market

Consumer orientation

Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them

Production orientation

Business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that a good product will sell itself

Transaction-based marketing

Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between the parties

Interactive marketing

Buyer-seller communications in which the customer controls the amount and type of information received from a marketer

Eight universal marketing functions

Buying Selling Transporting Storing Standardizing & Grading Financing Risk Taking Securing marketing information

Exchange functions

Buying and selling

Organization marketing

Marketing efforts of mutual-benefit organizations, service organizations, and government organizations that seek to influence others to accept their goals, receive their services, or contribute to them in some way

Mobile marketing

Marketing messages transmitted via wireless technology.

Event marketing

Marketing of sporting, cultural, and charitable activities to selected target markets

Social responsibility

Marketing philosophies, policies, procedures, and actions that have the enhancement of society's welfare as a primary objective.

Not-for-Profit marketing

Marketing strategy is adopted to meet service objectives Not-for-profit organizations form alliances with business firms for mutual benefit Does not focus on bottom line Markets to multiple audiences

Ethics

Moral standards of behavior expected by a society.

Transporting

Moving products from their point of production to locations convenient for purchasers

Converting new customers to advocates

New customer -> Regular purchaser -> Loyal supporter -> Advocate

___________ often raise awareness and funds through strategic partnerships.

Not-for-profit organizations

examples of weaknesses

Too narrow a product line Lack of management depth High-cost operation due to high labor costs and obsolete production facilities Inadequate financing capabilities Weak market image

Selling

Using advertising, personal selling, and sales promotion to match products to customer needs

Storing

Warehousing products until needed for sale

Place

Availability of goods and services at convenient locations

Time

Availability of goods and services when consumers want them

Ownership (possession)

Ability to transfer title to goods or services from marketer to buyer

Marketing

Activity, set of institutions, and processes for: creating, communicating delivering & exchanging offerings and managing customer relationships in ways that have value for customers, clients, partners, and society at large

examples of opportunities

Add to product line Enter new markets Acquire firms with needed technology

Planning

Anticipating future events and conditions and determining the best way to achieve organizational objectives Includes Identifying objectives and determining the actions Creates a blueprint for everyone in the organization

BCG: high relative market share/low industry growth rate

Cash cows Generate strong cash flow Strategy: Milk profits to finance growth of stars and question marks

examples of threats

Changing buyer tastes Likely entry of new competitors Adverse government policies

Securing marketing information

Collecting information about consumers, competition, competitions, and channel members foe use in making marketing decisions.

Marketing concept

Companywide consumer orientation with the objective of achieving long-run success.

external dimensions that affect the marketing mix variables

Competitive Social-Cultural Technological Economic Political-Legal

Form

Conversion of raw materials and components into finished goods and services

examples of strengths

Cost advantage Financial resources Customer loyalty Modern production facilities Patents

strategic window requires a thorough analysis of

Current and projected external environmental conditions Current and projected internal company capabilities How, whether, and when the firm can reconcile environmental conditions and company capabilities

Risk taking

Dealing with uncertainty about future customer purchases

strategic planning

Determining an organization's primary objectives Adopting courses of action that will achieve these objectives Provides long-term direction for its decision makers

Relationship marketing

Development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit

BCG: low relative market share/low industry growth rate

Dogs Generate little profits Strategy: Consider withdrawing

Buying

Ensuring that product offerings are available in sufficient quantities to meet customer demands

Standardizing and grading

Ensuring that product offerings meet quality and quantity controls of size, weight, and other variables

business portfolio analysis

Evaluation of a company's products and divisions to determine the strongest and weakest

Person marketing

Marketing efforts designed to cultivate the attention and preference of a target market toward a person

Four types of utility

Form Time Place Ownership (possession)

tactical planning

Guides the implementation of activities specified in the strategic plan Addresses shorter-term actions

Cause marketing

Identification and marketing of a social issue, cause, or idea to selected target markets

How does an organization create a customer?

Identifying needs in the marketplace Finding out which needs the organization can profitably serve Developing goods and services to convert potential buyers into customers

marketing planning

Implementing planning activities devoted to achieving marketing objectives

rule of three

In any industry, the three strongest, most efficient companies dominate between 70 and 90 percent of a market

Factors that have extended economic views

Increase in international trade agreements Growth of electronic business Interdependence of the world's economies

Using social marketing to build relationships

Increase lifetime value Interactive marketing Takes place on social media sites

Wholesalers

Intermediaries that operate between producers and resellers.

strategic window

Limited periods when key requirements of a market and a firm's particular competencies best fit together

How did the views of marketing vs. selling shift in the marketing era?

Marketing and selling would no longer be considered synonymous terms.

Place marketing

Marketing efforts designed to attract visitors to a particular area; improve consumer images of a city, state, or nation; and/or attract new business

Strategic alliances

Partnerships in which companies combine resources and capital to create competitive advantages in the market

strategic implications of marketing in the 21st century

Planning becoming vital as technology advances Marketers must consider: a changing, diverse population & the boundary-less business environment created by the Internet Planning reduces risk and worry of bringing new goods and services to the market

top management: positions, planning emphasized, examples

Positions: Board of directors, Chief executive officer, Chief operating officer, Chief financial officer planning emphasized: strategic examples: organization-wide objectives; fundamental strategies; long-term plans; total budget

Forms of alliances

Product development partnerships Vertical alliances

Five Eras of Marketing History

Production Sales Marketing Relationship Social

Sustainable products

Products that can be produced, used, and disposed of with minimal impact on the environment.

Financing

Providing credit for channel members (wholesalers and retailers) and consumers

BCG: low relative market share/high industry growth rate

Question Marks Have potential to become stars or cash cows Strategy: Either invest more funds for growth or consider disinvesting

Bottom line

Reference to overall company profitability

BCG: high relative market share/high industry growth rate

Stars Generate considerable income Strategy: Invest more funds for future growth

target market

The group of people toward whom the firm directs its marketing efforts and merchandise

Social marketing

The use of online social media as a communications channel for marketing messages.

Exchange process

activity in which two or more parties give something of value to each other to satisfy perceived needs

An example of interactive marketing would be:

buyer-seller communication through the Internet and virtual reality kiosks.

Sally Myers, head of marketing at Sally's Salon, serviced six new customers over the past two weeks. Through a feedback form, Sally learned that all of them had acted upon the opinions of their friends and family members. What Sally encountered is an example of:

buzz marketing

Phoebe was asked to bring a can of food for the local food bank as the "price of admission" for a certain ceremony. This is an example of _____

cause marketing

distribution strategy

ensure that consumers find their products in the proper quantities at the right times and places

Mission

essential purpose that differentiates one company from others

As an official sponsor of the Olympics, The Coca-Cola Company engages in _____ marketing

event

The NBA Sacramento Kings play their home games in the Arco Arena. The naming of their stadium is an example of which one of the five types of nontraditional marketing?

event marketing

ACB Ltd. provides credit to dealers, as well as buyers of Alfresco Automobiles. The marketing function performed in this case is:

financing

To convert needs into wants, marketers:

focus on the benefits of goods and services

The future growth of a company is endangered when management:

is committed to maintaining a product-oriented philosophy.

strategic business units (SBUs)

key business units within diversified firms

Marketing myopia

management's failure to recognize the scope of its business

pricing strategy

methods of setting profitable and justifiable prices

Porter's Five Forces

model developed by strategy expert michael porter that identifies 5 competitive forces that influence planning strategies 1. The potential of new entrants 2. The bargaining power of buyers 3. The bargaining power of suppliers 4. The threat of substitute products 5. Rivalry among competitors

An alliance between a not-for-profit organization and a for-profit organization:

often benefits both parties

Marketing strategy

overall, companywide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix

Melissa is campaigning for Janet, her friend, who is contesting for the presidency of the student council at Riverdale Junior College. Melissa's effort is an example of _____ marketing.

person

middle management: positions, planning emphasized, examples

positions: General sales manager, Team leader, Director of marketing research planning: tactical examples: Quarterly and semiannual plans; business unit budgets; divisional policies and procedures

supervisory management: positions, planning emphasized, examples

positions: Regional sales manager, Supervisor-telemarketing office planning: operational examples: Daily and weekly plans; unit budgets; departmental rules and procedures

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:

reduce the threat of new entrants.

SWOT analysis

review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats

product strategy

satisfaction of all consumer needs in relation to a good, service, or idea

Which of the functions of marketing involves advertising?

selling

factor that contributed to the transition from the production era to the sales era

sophisticated production techniques

Assume you want to increase the number of customers by applying the marketing concept. Which strategy would be most consistent with this approach?

target markets

Utility

the want-satisfying need of a good or service

first mover strategy

theory advocating that the company first to offer a product in a marketplace will be the long-term market winner

second mover strategy

theory that advocates observing the innovations of first movers and then improving on them to gain advantage in the marketplace

promotion strategy

varied ways to send messages about goods, services, and ideas to buyers