Marketing 2800

What are the four factors required for marketing to occur?

1) two or more parties (individuals or organizations) 2)a desire and an ability on their part to be satisfied 3)a way for the parties to communicate and 4) something to exchange

What is a need?

A need occurs when a person feels deprived of basic necessities such as food, clothing, and shelter

Marketing Strategy

A strategy is a larger, overall plan that can comprise several tactics, which are smaller, focused, less impactful plans that are part of the overall plan

Define SBU

A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.

What is a want?

A want is a need that is shaped by a person's knowledge, culture, and personality.

What are the five elements of the promotional mix?

Advertising, personal selling, public relations, sales promotion, direct marketing

Core values

An organization's core values are the fundamental, passionate, and enduring principles that guide its conduct over time

Mission

By understanding it's core values, an organization can take steps to define its mission, a statement of the organization's function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision.

What type of consumer good is toothpaste?

Convenience

What are the different categories of consumer goods/products?

Convenience, specialty, shopping, unsought

What is a customer value proposition?

Customer value proposition is a cluster of benefits that an organization promises customers to satisfy their needs. I.e. Walmart's customer value proposition can be described as "everyday low prices for a broad range of products that are always in stock in convenient locations."

What is a demand curve?

Demand curve shows a maximum number of products customers will demand/buy at a given price

What are the two central marketing concerns?

Discovering and satisfying customer needs

Ansoff's Matrix: New Market/New Product

Diversification

What are two different ways to position products?

Head-to-head, differentiation positioning

Boston Consulting Group model focused on planning for small business units (Portfolio Matrix)

High MG/High MS: Stars High MG/Low MS: Problem Children Low MG/High MS: Cash Cows Low MG/Low MS: Dogs

demographic segmentation

I.E. More than half of all U.S. homes are made up of only one or two people

Four I's of service

Intangibility, inconsistency, inseperability, inventory

What type of problem solving would be used when choosing a restaurant to eat at?

Limited problem solving

Ansoff's Matrix: New Market/Present Product

Market Development

Ansoff's Matrix: Present Market/Present Product

Market Penetration

What does marketing mean?

Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and sociey at large. Marketing is far more than simply advertising or personal selling.

Segmentation

Marketing segmentation involves aggregating prospective buyers into group that 1) have common needs and 2) will respond similarly to a marketing action

What is cognitive dissonance?

Post purchase tension or anxiety, when you regret your buying decision. To alleviate it, customers often search for information to reinforce their purchase decision.

Primary data

Primary data are the facts and figures that are newly collected for the project and is categorized into observational data, questionnaire data and other sources.

Ansoff's Matrix: Present Market/New Product

Product Development

What type of problem solving would be used when buying groceries?

Routine problem solving

What are Porter's Generic Strategies?

Scope vs. Source of Competitive Advantage: Broad/Cost: Cost leadership (Walmart) Broad/Differentiation: Differentiation(Kia) Narrow/Cost: Cost focus(Staples) Narrow/Differentiation: Differentiation focus (Subaru)

Secondary data

Secondary data are facts and figures that have already been recorded before the project at hand and is categorized as internal and external data depending to whether the data come from inside or outside the organization needing the research

Intangibility

Services are a performance rather than an object

Marketing tactic

Smaller plan to achieve a strategy

Inventory

The cost of maintaining the ability to deliver a service

Market Share:

Total revenue compared to all revenue from firms in that market

Multi product branding

a company uses one name for all its products in a product class

price lining

a firm that is selling not just a single product but a line of products may then price them at a number of different specific pricing points, which is called price lining

Competitive advantage

a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.

sales promotion

adv: effective at changing behavior in short run, very flexible dis: easily abused, can lead to promotion wars, easily duplicated

Advertising: promotional mix

adv: efficient for reaching masses dis: high absolute costs, difficult to receive good feedback

personal selling

adv: immediate feedback, very persuasive, dis: extremely expensive per exposure, messages may differ between sales people

public relations

adv: often most credible source in consumer mind dis: difficult to get media cooperation

consumer oriented sales promotions

also known as simply consumer promotions, are sales tools used to support a company's advertising and personal selling

selective distribution

at selective places

direct marketing

avdv: messages can be prepared quickly, facilitates relationship with customer dis: declining customer response, database management is expensive

What is product repositioning

changing the place a product occupies in a consumer's mind relative to competitive products

5 environmental forces

competitive, legal and regulatory, societal, technological, economic

Types of sales promotions

coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point of purchase displays, rebates, product placements

Depth of a product

depth of a product line store carries a a large assortment of each item

Forms of nonstore selling

direct mail and catalogs, television home shopping, online retailing, telemarketing, direct selling

pull strategy

directing the promotional mix at ultimate consumers to encourage them to ask a retailer for a product

Push strategy

directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product

Marketing metric

each display in the marketing dashboard displays a marketing metric which is a measure of the quantitative value or trend of a marketing activity or result

What type of problem solving would be used when purchasing a car?

extended problem solving

What are the stages of the product life cycle?

introduction, growth, maturity, decline

multibranding

involved giving each product a distinct name. Multibranding is a useful strategy when each brand is intended for a different market segment

head to head positioning

involves competing directly with compeititors on similar product attricbutes in the same target market

differentiation positioning

involves seeking a less competitive, smaller market niche in which to locate a brand

prestige pricing

involves setting a high price so that quality or status conscious consumers will be attracted to the product and buy it.

odd-even pricing

involves setting prices a few dollars or cents under an even number.

personalization

is the consumer initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences

behavioral segmentation:

microfridge markets a fridge/microwave combo for college students with low budgets and not a lot of room

psychographic segmentation

people of similar lifestyle tend to live together

Geographic segmentation

people who like similar things live in the same location

price elasticity of demand

percentage change in quantity demanded/percent change in price

Pricing objectives

pricing objectives involve specifying the role of price in an organization's marketing and strategic plans

indirect marketing channels

producer to agent to wholesaler to retailer to customer

Direct marketing channels

producer to consumer

target pricing

results in the manufacturer deliberately adjusting the composition and features of a product to achieve the target price to consumers

Elastic demand

sensitive price, change in demand is greater than change in price

inseparability

services are difficult to separate from the deliverer of the service

penetration pricing

setting a low initial price on a new product to appeal immediately to the mass market

Skimming pricing

setting the highest initial price that customers really desiring the product are willing to pay

What type of consumer good is clothes?

shopping

What are the criteria for forming successful market segments and selecting target markets?

simplicity and cost effectiveness of assigning potential buyers to segments, potential for increased profit, similarity of needs of potential buyers within a segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment

External factors that influence consumer decision making are:

situational, sociocultural, marketing mix, psychological

Intensive distribution

sold everywhere

exclusive distribution

sold very few places

what type of consumer good is a rolex watch?

specialty

yield management pricing

the charging of different prices to maximize revenue for a set amount of capacity at any given time

Bundle pricing

the marketing of two or more products in a single package price

What does publicity mean?

the notice or attention given to someone or something by the media

dynamic pricing

the practice of changing prices for products and services in real time in response to supply and demand conditions

breadth of a product line

the variety of different items a store carries

Marketing dashboard

the visual computer display of the essential information related to achieving a marketing objective

What type of consumer good is a thesarus?

unsought

value pricing

value pricing is the practice of simultaneously increasing product and service benefits and maintaining or decreasing price

Inconsistency

variability in the quality of service due to the variability of the people who deliver the service

brand extension

when you use an existing brand name or trademark on new products, so as to increase sales