MKTG 3101

Winning Strategies

-overall cost (low) leadership -differentiation -focus

Market Follower

A firm that follows developments of the market leader and market challenger but does not threaten either of them.

Concentrated (niche) Marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

Blue Ocean Strategy

An approach where firms seek to create and compete in uncontested "blue ocean" market spaces, rather than competing in spaces and ways that have attracted many, similar rivals.

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

5 stages in Adoption process for a new product:

Awareness Interest Evaluation Trial Adoption (customer decided to use the product and make full use of it)

Competitive marketing intelligence

Collection of analysis of publicly available information about consumers and competitors in marketplace

3 factors for causation: ON EXAM******

Correlation X must occcur before Y No third factor driving both

Causation vs correlation on exam

Correlation: Evidence of relationship between two variables Causation: one variable producing an effect in another variable (x must occur before y and no other 3rd factor is driving both)

Factors that influence consumer behavior

Culture Social Personal Psychological

Descriptive Research

Finding information about situations impacting market

Intermarket Segmentation

Forming segments of customers who have similar needs and buying behaviors even though they are located in different countries.

Value Proposition

Full package of benefits of what a company is offering with their product

Mechanical Instruments in Marketing

GPS, Checkout scanners

Survey research

High flexibilty, can be used to obtain differnt types of information in different situations

Abraham Maslow

Humanistic psychologist known for his "Hierarchy of Needs"

Steps to Analyze Competitors

Identify the companies competitors Assess their strategies, strengths, weaknesses, and patterns Select which companies to attack or avoid

Consumer relationship management

Managing selected information about consumers, then managing touch points to increase loyalty

Marketing is best described as

Marketing is engaging customers and managing profitable customer relationships.

Market segments must be:

Measurable Accessible Substantial Differentiable Actionable

Micro vs Macro environment:

Micro (who are suppliers, comeptitors) vs Macro (what is the demographic, economics, technology, political, cultural)

Stages of buying process:

Need recognition Information search Evaluation of alternatives purchase decision post purchase behavior

Marketing information system

People and procedures to assess information needs, developing information about consumers and competitors in marketplace

Four P's of Marketing

Product, Price, Place, Promotion

5 Characteristics of innovation rate of adoption:

Relative advantage Compatibility Complexity Divisibility (innovation may be tried on limited basis ex. Test drive) Communicability

Secondary then primary research

Secondary research already exists from databases, primary information is extracted

Ethnographic Data

Sending trained observers to watch and interact with customers in natural environment

Focus group interviewing

Small groups of people gather to talk about important issues

Strengths and Weaknesses are what? Opportunities and Threats are what?

Strengths and weaknesses are Internal Opportunites and threats are External

Micromarketing

Tailoring products to needs and wants of specific individuals and local customer marketing

Example of Behavioral tracking

Targeted ads

societial 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.

Marketing Research

The process of planning, collecting, and analyzing data relevant to a marketing decision

Four steps of marketing process

Understand the marketplace and customer needs and wants designing a customer value-driven marketing strategy, constructing a marketing program designing a customer value-driven marketing strategy, and constructing a marketing program

product/price positioning

What should we offer/how should we price our offerings?

Competitor-centered company

a company whose moves are mainly based on competitors' actions and reactions

Differentiated marketing:

a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

Opinion Leader

a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

Marketing Concept

a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Benchmarking

a process by which a company compares its performance with that of high-performing organizations

customer value analysis

an analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers

Spurious correlation

artificial, fake

Complex buying behavior

consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands

Dissonance-reducing buying behavior

consumer buying behavior in situations characterized by high involvement (ex. expensive) but few perceived differences among brands

habitual buying behavior

consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences (salt)

Pyschographic segmentation:

dividing a market into different segments based on social class, lifestyle, or personality characteristics

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

Targeting/segmentation

do you want to target businesses or consujemrs

Intraprenurial marketing

formulated marketing by big companies using stuff like nielson ratings and market research

Segments of Consumer markets:

geographic, demographic, psychographic, behavioral

Reference groups

groups to which an individual compares herself

Total market strategy

integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

Formulated Marketing

involves developing formal marketing strategies and following them closely

Entreprenurial Marketing

involves visualizing an opportunity and constructing and implementing flexible strategies; beginning stages

Hyperlocal social marketing:

location-based targeting down to local communities or neighborhoods using social media.

Variety seeking buying behavior

low involvement, significant differences between brands

Value Disciplines

operational excellence, customer intimacy, product leadership

Cognitive dissonance

post buying discomfort about a product

Marketing analytics

the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance

Marketing Management

the art and science of choosing target markets and building profitable relationships with them

Big Data

the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies

Production Concept

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency

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

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

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Market targeting

the process of evaluating each market segment's attractiveness and selecting one or more segments to enter

Mass marketing

using a single market plan to reach all customers