MKTG 337 midterm

customer lifetime value

-the value of the business of a single customer over a lifetime -creates loyalty and retention

outside in (marketing concept)

STARTING POINT: market FOCUS: customer needs MEANS: integrated marketing END: profits through customer satisfaction

mission statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment (identity)

competition is determined by

customers' perceptions, behaviors, beliefs

customer perceptions exceed customer expectations

delight

value proposition

differentiates one brand from another

secondary data

existing data not collected for the problem at hand but for some other purpose, collected before or in place of primary data

marketing concept

focus on satisfying customer needs and wants better than competitors can

intermediaries

help company promote, sell, and distribute

what was coca-colas mistake?

poor problem definition

marketing mix

product, price, place, promotion

customer perceptions equal customer expectations

satisfaction

needs

states of felt deprivation

competition is often defined by

the need or value that a products serves

marketing

the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return

value chain

the set of activities through which a product or service is created and delivered to customers.

competitor analysis steps

-identifying key competitors -assessing their objectives, strategies, strengths and weaknesses, and reaction patterns -selecting which competitors to attack or avoid

customer equity

-the total combined customer lifetime values of all the company's customers -equals measure of future value of a company's customer base -also affected by share of customers

approaches to marketing strategies and practice often pass 3 stages

1. entreprenural 2. formulated 3. intrapreneurially

marketing consists of

actions taken to create, maintain, and grow

publics

any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives

macroenvironment

broader, external forces that affect how companies do business (demographic, economic, natural, technological, political, cultural)

marketing myopia

focusing on existing wants and losing sight of underlying consumer needs

2 types of value

functional and psychological

cultural environment

society's basic values, perceptions, traditions, preferences, and behaviors

market

the set of all actual and potential buyers of a product or service

what did they learn from old spice?

women choose men's body wash

types of customer markets

1. consumer markets 2. business markets 3. reseller markets 4. government markets 5. international markets

steps in strategic planning

1. defining the company mission 2. setting company objectives and goals 3. designing the business portfolio 4. planning marketing and other functional strategies

marketing research process

1. defining the problem and research objectives 2. developing the research plan for collecting information 3. implementing the research plan - collecting and analyzing the data 4. interpreting and reporting the findings

contents of a marketing plan

1. executive summary 2. current marketing situation -market description -product review -review of competition -review of distribution 3. threats and opportunities analysis 4. objectives and issues 5. marketing strategy 6. action programs 7. budgets 8. controls

characteristics of good objectives

1. measurable/specific/concrete 2. realistic 3. time specific

five marketing management concepts

1. selling concept 2. marketing concept 3. societal marketing concept 4. production concept 5. product concept

the marketing process

1. understand the marketplace and customer needs and wants 2. design a customer-driven marketing strategy 3. construct an integrated marketing program that delivers superior value 4. build profitable relationships and create customer delight 5. capture value from customers to create profits and customer equity

inside out (selling concept)

STARTING POINT: factory FOCUS: existing product MEANS: selling and promoting END: profits through sales volume

boston consulting group matrix

a framework that classifies each product or product line within a firm's "product portfolio"

value delivery network

a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

grow share matrix

a portfolio planning method that evaluates a company's SBUs in terms of market growth rate and relative market share

competitive advantage

an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

product attributes

are the benefits of the product or service -quality -features -style and design

info about competitors must be

collected, interpreted, distributed, then used (competitive intelligence system)

market offerings

combination of products, services, information, or experiences offered to a market to satisfy a need or want

benchmarking

comparing themselves to other firms

brand experience

comprehensive strategic, unified, integrated, creative program for a brand including every graphic design and advertising application for that brand with an eye and mind on how consumers and individuals experience the brand or group as each interacts with it

product/market expansion grid

device for identifying growth opportunities

greenwashing

dishonestly spinning products/policies as being environmentally friendly

customer perceptions do not exceed customer expectations

dissatisfaction

marketing segmentation

dividing potential customers into groups of similar people, or segments

strategic group

firms follow same strategy

selling concept

focus on aggressive techniques for overcoming customer resistance

product concept

focus on continuous product improvement

production concept

focus on improving production and distribution efficiency

societal marketing concept

focus on satisfying customer needs and wants while enhancing individual and societal well being

demands

human wants that are backed up by buying power

managers need:

information about the environment in order to make good marketing decisions

given wants and resources, people demand _______________________

market offerings

product market expansion grit

market penetration: existing markets existing products market development: new markets existing products product development: existing markets new products diversification: new markets new products

generational marketing

marketing to members of a generation, who tend to share the same outlook and priorities

primary data

new data collected specifically for the research purpose at hand and collected by the researcher

marketing occurs when

people decide to satisfy their needs and wants through exchange relationships

competitors need to:

position their offering strongly against competitors in the minds of target consumers

the scope of marketing (types of product offerings)

products, services, experiences, organizations, people, ideas, actions

cohesive markering program

promotion, product, price, place

suppliers

provide the resources needed by the company to produce its goods and services

competitive marketing strategies

strategies that strongly position the company against competitors and give it the greatest possible competitive advantage

SWOT analysis

strengths, weaknesses (internal) opportunities, threats (external)

marketing environment

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

microenvironment

the actors close to the company that affect its ability to serve its customers (relatively narrow sphere: other company departments, suppliers, marketing intermediaries, competitors, publics, customers)

business portfolio

the collection of businesses and products that make up the company

customer perceived value

the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

psychological value

the extent to which a product allows consumers to express themselves or feel better

customer satisfaction

the extent to which a product's perceived performance matches a buyer's expectations

wants

the form human needs take as they are shaped by culture and individual personality

portfolio analysis

the process by which management evaluates the products and businesses that make up the company

market targeting

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

marketing research

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

customer value

the relationship between benefits and the sacrifice necessary to obtain those benefits

demography

the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

functional value

this type of value is what an offer does, it's the solution an offer provides to the customer

natural environment

-sustainability -growing segment of "green" consumers who are highly influenced by whether they feel a firm manages its responsibility to the environment well

trends in the changing marketing landscape

-technology -economic environment -growth of non for profit marketing -globalization -sustainability

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 the company

customer engagement

-two way communication -customers are involved in shaping brand experiences and brand community -customers play an active part in shaping the relationship (attractions vs intrusion)

goals of marketing

1. attract new customers by promising superior value 2. keep and grow current customers by delivering satisfaction

gathering customer insights

-an "investment" to reduce uncertainty -can help guide decisions on: -whether to enter -product characteristics -promotional strategy -positioning -must weigh costs and benefits of research: -money -time

customers insight

-are information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships -important, but difficult to obtain: -needs and buying motives not obvious -customers often can't tell you what and why

consumer generated marketing

-brand exchanges created by consumers themselves - both invited and uninvited - by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers -uninvited (social media posts) -invited (ad or product idea competition)

market nicher strategies

-by customer, market, quality, price, service -multiple niching

basic competitive strategies

-cost leadership -differentiation -focus

customer relation management building blocks

-customer perceived value -customer satisfaction

inflation

-economic factor -rate at which the general level of prices for goods and services is rising, affects purchasing power

interest rates

-economic factor -the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets

market leader strategies

-expand total market -protect market share -expand market share

market follower strategies

-follow closely -follow at a distance

company objectives

-follow from the company mission -can be organized in a hierarchy

market challenger strategies

-full frontal attack -indirect attack

government/ legal environment

-legal and political decisions can have a major effect on a variety of products and on the method used to market these products. -laws are primarily designed for any one of 3 purposes: 1. protection of business organizations from each other 2. protections of customers from unfair business practices 3. protection of society from business interest that may be harmful to society

competitive positions

-market leader: largest market share -market challenger: runner up and fighting to increase market share -market follower: wants to hold its share -market nicher: small, overlooked

potential negative effects of NOT being environmentally proactive:

-negative attitudes towards brand/product -lower likelihood of repurchase -negative word of mouth

technological environment

-new technologies can create new opportunities (and threats) -new technology internally can create a long-term competitive advantage -external technology -new / improved products -new forms of communication -new retail channels