marketing

Customer-engagement marketing

*new marketing* fostering direct and continuous customer involvement in shaping brand conversations, brand experiences, and brand community

supply chain

describes a longer channel, stretching from raw materials to components to final products that are carried to final buyers

environmental sustainability

developing strategies and practices that create a world economy that the planet can support indefinitely

Economic Environment

economic factors that affect consumer purchasing power and spending patterns

4 Ps

product price place promotion

systems selling

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

real-time marketing

by which marketers can engage consumers in the moment by linking brands to important trending topics, real-world events, causes, personal occasions, or other important happenings in consumers' live

Internal databases

collections of consumer and market information obtained from data sources within the company network advantages: info can be assessed quickly and economically disadvantages: data ages rapidly and may be incomplete, maintenance and storage of data is expensive

market segment

consists of consumers who respond in a similar way to a given set of marketing efforts. for EXAMPLE: In the car market, consumers who want the biggest, most comfortable car regardless of price make up one market segment. Consumers who care mainly about price and operating economy make up another segment.

cultural environment

consists of institutions and other forces that affect a society's basic values, perceptions, and behaviors institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors

marketing analytics

consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.25 Marketers apply marketing analytics to the large and complex sets of data they collect from Web, mobile, and social media tracking; customer transactions and engagements; and other big data sources. For example, Netflix maintains a bulging customer database and uses sophisticated marketing analytics to gain insights, which it then uses to fuel recommendations to subscribers, decide what programming to offer, and even develop its own exclusive content in the quest to serve its customers better

attraction

creating market offerings and messages that engage consumers rather than interrupt them as an alternative to previous method of intrusion they launch their own blogs, mobile apps, online microsites, and consumer-generated review systems, all with the aim of engaging customers on a more personal, interactive level. Hence, most marketers now combine their mass-media marketing efforts with a rich mix of online, mobile, and social media marketing that promotes brand-consumer engagement and conversation.

Marketing Implementation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

portfolio analysis

whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones.

partner relationship management

working closely with others inside and outside the company to jointly engage and bring more value to customers.

marketing return on investment

A measure of the firm's effectiveness in using the resources allocated to its marketing effort. the net return from a marketing investment divided by the costs of the marketing investment

online focus groups

A primary qualitative Internet-based research approach is online focus groups. For example, online research firm FocusVision offers its InterVu service, which harnesses the power of the Internet to conduct focus groups with participants at remote locations, anywhere in the world, at any time. Using their own Webcams, InterVu participants can log on to focus sessions from their homes or offices and see, hear, and react to each other in real-time, face-to-face discussions.17 Such focus groups can be conducted in any language and viewed with simultaneous translation. They work well for bringing together people from different parts of the country or world at low cost. Researchers can view the sessions in real time from just about anywhere, eliminating travel, lodging, and facility costs. Finally, although online focus groups require some advance scheduling, results are almost immediate.

Generation Z (Gen Z)

Also known as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the Internet and social networks. 2001-2014

business portfolio planning

Business portfolio planning involves two steps. First, the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. Second, it must shape the future portfolio by developing strategies for growth and downsizing.

sample determining questions

First, who is to be studied (what sampling unit)? The answer to this question is not always obvious. For example, to learn about the decision-making process for a family automobile purchase, should the subject be the husband, the wife, other family members, dealership salespeople, or all of these? Second, how many people should be included (what sample size)? Large samples give more reliable results than small samples. However, larger samples usually cost more, and it is not necessary to sample the entire target market or even a large portion to get reliable results. Finally, how should the people in the sample be chosen (what sampling procedure)?

which differences to promote

Important. The difference delivers a highly valued benefit to target buyers. Distinctive. Competitors do not offer the difference, or the company can offer it in a more distinctive way. Superior. The difference is superior to other ways that customers might obtain the same benefit. Communicable. The difference is communicable and visible to buyers. Preemptive. Competitors cannot easily copy the difference. Affordable. Buyers can afford to pay for the difference. Profitable. The company can introduce the difference profitably.

online marketing research

Internet and mobile surveys, online panels, experiments, and online focus groups and brand communities.

focus group interviewing

Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues. Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues.

Baby Boomers and Marketing

The baby boomers are the wealthiest generation in U.S. history, what one analyst calls "a marketer's dream." Today's baby boomers account for about 35 percent of the U.S. population but control an estimated 70 percent of the nation's disposable income and half of all consumer spending. The 78 million people born during the baby boom, following World War II and lasting until the early 1960s born between 1946-1964 Target for cars, housing, travel, entertainment, recreation equipment, motor homes Heavy consumers of financial services Gourmet fast food Comfortable clothing Anti-aging products

Marketing Environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

buying center

The decision-making unit of a buying organization is called its

market segmentation

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

Demography

The scientific study of population characteristics.

customer value driven marketing strategy

This process involves market segmentation, market targeting, differentiation, and positioning. To succeed in today's competitive marketplace, companies must be customer centered. They must win customers from competitors and then engage and grow them by delivering greater value. But before it can satisfy customers, a company must first understand customer needs and wants. Thus, sound marketing requires careful customer analysis.

differentiation

Thus, effective positioning begins with differentiation—actually differentiating the company's market offering to create superior customer value. Once the company has chosen a desired position, it must take strong steps to deliver and communicate that position to target consumers. The company's entire marketing program should support the chosen positioning strategy.

Big Data

a broad term for datasets so large or complex that traditional data processing applications are inadequate. the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data

consumer-generated marketing

a growing form of customer-engagement marketing by which consumers themselves are playing a bigger role in shaping their own brand experiences and those of others This might happen through uninvited consumer-to-consumer exchanges in blogs, video-sharing sites, social media, and other digital forums. But increasingly, companies themselves are inviting consumers to play a more active role in shaping products and brand content. some ask consumers for product ideas PepsiCo's Doritos brand has held a "Crash the Super Bowl" contest in which it invites 30-second ads from consumers and runs the best ones during the game.

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

Consumer Market

all the individuals and households that buy or acquire goods and services for personal consumption

management process

analysis, planning, implementation, organization, and control.

public

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

butterflies

are potentially profitable but not loyal. There is a good fit between the company's offerings and their needs. However, like real butterflies, we can enjoy them for only a short while and then they're gone. An example is stock market investors who trade shares often and in large amounts but who enjoy hunting out the best deals without building a regular relationship with any single brokerage company. It should create satisfying and profitable transactions with them, capturing as much of their business as possible in the short time during which they buy from the company. Then it should move on and cease investing in them until the next time around.

social classes

are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Social scientists have identified the seven American social classes: upper upper class, lower upper class, upper middle class, middle class, working class, upper lower class, and lower lower class. Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

adoption process

as the mental process through which an individual passes from first learning about an innovation to final adoption. Adoption is the decision by an individual to become a regular user of the product. Awareness. The consumer becomes aware of the new product but lacks information about it. Interest. The consumer seeks information about the new product. Evaluation. The consumer considers whether trying the new product makes sense. Trial. The consumer tries the new product on a small scale to improve his or her estimate of its value. Adoption. The consumer decides to make full and regular use of the new product.

Millenials (Generation Y)

born between 1977 and 2000 Facing higher unemployment and saddled with more debt, many of these young consumers have near-empty piggy banks. Still, because of their numbers, the Millennials make up a huge and attractive market, both now and in the future. technology is a way of life

true friends

both profitable and loyal. There is a strong fit between their needs and the company's offerings. The firm wants to make continuous relationship investments to delight these customers and nurture, retain, and grow them. It wants to turn true friends into true believers, who come back regularly and tell others about their good experiences with the company.

responsive marketing

finds a stated need and fills it

marketing intermediaries

firms that help the company to promote, sell, and distribute its goods to final buyers

Technological Environment

forces that create new technologies, creating new product and market opportunities

barnacles

highly loyal but not very profitable. There is a limited fit between their needs and the company's offerings. An example is smaller bank customers who bank regularly but do not generate enough returns to cover the costs of maintaining their accounts. Like barnacles on the hull of a ship, they create drag. Barnacles are perhaps the most problematic customers. The company might be able to improve their profitability by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be "fired."

strangers

how low potential profitability and little projected loyalty. There is little fit between the company's offerings and their needs. The relationship management strategy for these customers is simple: Don't invest anything in them; make money on every transaction.

customer-managed relationships

in which customers connect with companies and with each other to help forge their own brand experiences.

groups

influence a persons behavior

secondary data

information that already exists somewhere, having been collected for another purpose

market targeting

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

observational research

involves gathering primary data by observing relevant people, actions, and situations

digital and social media marketing

involves using digital marketing tools such as Web sites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers anywhere, anytime via their computers, smartphones, tablets, Internet-ready TVs, and other digital devices. These days, it seems that every company is reaching out to customers with multiple Web sites, newsy Tweets and Facebook pages, viral ads and videos posted on YouTube, rich-media emails, and mobile apps that solve consumer problems and help them shop.

sample

is a segment of the population selected for marketing research to represent the population as a whole. Ideally, the sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger population.

mission statement

is a statement of the organization's purpose—what it wants to accomplish in the larger environment. A clear mission statement acts as an "invisible hand" that guides people in the organization. What is our business? Who is the customer? What do consumers value? What should our business be?

Positioning

is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets.

price

is the amount of money customers must pay to obtain the product. For example, Ford calculates suggested retail prices that its dealers might charge for each Escape. But Ford dealers rarely charge the full sticker price. Instead, they negotiate the price with each customer, offering discounts, trade-in allowances, and credit terms. These actions adjust prices for the current competitive and economic situations and bring them into line with the buyer's perception of the car's value.

culture

is the most basic cause of a person's wants and behavior. Human behavior is largely learned. Growing up in a society, a child learns basic values, perceptions, wants, and behaviors from his or her family and other important institutions. A child in the United States normally is exposed to the following values: achievement and success, freedom, individualism, hard work, activity and involvement, efficiency and practicality, material comfort, youthfulness, and fitness and health. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from both county to county and country to country.

perception

is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

customer equity

is the total combined customer lifetime values of all of the company's current and potential customers. As such, it's a measure of the future value of the company's customer base. Clearly, the more loyal the firm's profitable customers, the higher its customer equity. Customer equity may be a better measure of a firm's performance than current sales or market share. Whereas sales and market share reflect the past, customer equity suggests the future.

descriptive research

is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product

causal research

is to test hypotheses about cause-and-effect relationships.

Political Environment

laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

behavioral targeting

marketers use the online data to target ads and offers to specific consumers. For example, if you place an Apple iPad in your Amazon.com shopping cart but don't buy it, you might expect to see some ads for that very type of tablet the next time you visit your favorite ESPN site to catch up on the latest sports scores.

Exploratory Research

marketing research to gather preliminary information that will help define problems and suggest hypotheses

product

means the goods-and-services combination the company offers to the target market. Thus, a Ford Escape consists of nuts and bolts, spark plugs, pistons, headlights, and thousands of other parts. Ford offers several Escape models and dozens of optional features. The car comes fully serviced and with a comprehensive warranty that is as much a part of the product as the tailpipe.

marketing control

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved

natural environment

natural resources that are needed as inputs by marketers or that are affected by marketing activities the physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities

place

ncludes company activities that make the product available to target consumers. Ford partners with a large body of independently owned dealerships that sell the company's many different models. Ford selects its dealers carefully and strongly supports them. The dealers keep an inventory of Ford automobiles, demonstrate them to potential buyers, negotiate prices, close sales, and service the cars after the sale.

cognitive dissonance

or discomfort caused by postpurchase conflict. After the purchase, consumers are satisfied with the benefits of the chosen brand and are glad to avoid the drawbacks of the brands not bought. However, every purchase involves compromise. So consumers feel uneasy about acquiring the drawbacks of the chosen brand and about losing the benefits of the brands not purchased. Thus, consumers feel at least some postpurchase dissonance for every purchase.

Subculture

or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions. Many subcultures make up important market segments, and marketers often design products and marketing programs tailored to their needs. Examples of three such important subculture groups are African American, Hispanic American, and Asian American consumers.

Marketing Information System (MIS)

people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights gather analyze and assess info

opinion leaders

people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others. Some experts call this group the influentials or leading adopters. When these influentials talk, consumers listen. Marketers try to identify opinion leaders for their products and direct marketing efforts toward them. utilized for buzz marketing

promotion

refers to activities that communicate the merits of the product and persuade target customers to buy it. Ford spends nearly $2.6 billion each year on U.S. advertising to tell consumers about the company and its many products.14 Dealership salespeople assist potential buyers and persuade them that Ford is the best car for them. Ford and its dealers offer special promotions—sales, cash rebates, and low financing rates—as added purchase incentives. And Ford's Facebook, Twitter, YouTube, Instagram, and other social media platforms engage consumers with the brand and with other brand fans.

consumer buyer behavior

refers to the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption. All of these final consumers combine to make up the consumer market.

caring capitalism

setting themselves apart by being civic minded and responsible. They build social and environmental responsibility into their company value and mission statements. For example, Ben & Jerry's, a division of Unilever, has long prided itself on being a "values-led business," one that creates "linked prosperity" for everyone connected to the brand—from suppliers to employees to customers and communities Patagonia timberland Ben & Jerry's

4 relationship groups

strangers, butterflies, true friends, barnacles

SWOT analysis

strengths, weaknesses, opportunities, threats

experimental research

studies that seek clues to cause-effect relationships by manipulating one or more factors (independent variables) while controlling others (holding them constant) gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

generation x

the Gen Xers are a more skeptical bunch. They tend to research products heavily before they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches. They are more likely to be receptive to irreverent ad pitches that make fun of convention and tradition. A term coined by artist and author Douglas Coupland to describe people born in the United States between the years 1965 and 1980. This post-baby-boom generation will have to support the baby boom cohort as they head into their retirement years.

Microenvironment

the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

business portfolio

the collection of businesses and products that make up the company. The best business portfolio is the one that best fits the company's strengths and weaknesses to opportunities in the environment.

customer insights

the collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain their customers fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships

5 major developments in marketing landscape

the digital age the changing economic environment the growth of not-for-profit marketing rapid globalization the call for sustainable marketing practices.

Macroenvironment

the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces

survey research

the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes

total marketing strategy

the practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing. An example is general-market commercials for Cheerios and Swiffer that feature interracial families.10 A total market strategy appeals to consumer similarities across subcultural segments rather than differences.

strategic planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Marketing Research

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

Value Chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

marketing mix

the set of tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to engage consumers and deliver customer value. The many possibilities can be collected into four groups of variables—the four Ps

share of customer

the share they get of the customer's purchasing in their product categories. Thus, banks want to increase "share of wallet." Supermarkets and restaurants want to get more "share of stomach." Car companies want to increase "share of garage," and airlines want greater "share of travel. To increase share of customer, firms can offer greater variety to current customers ex:amazon

ethnographic research

the study of human behavior in its natural context; involves observation of behavior and physical setting a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"

competitive marketing intelligence

the systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

customer lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage Stew Leonard & Lexus.

positioning statement

to (target segment and need) our (brand) is (concept) that (point of difference).

Customer Relationship Management (CRM)

to manage detailed information about individual customers and carefully manage customer touch points to maximize customer loyalty. CRM consists of sophisticated software and analysis tools from companies such as Salesforce.com, Oracle, Microsoft, and SAS that integrate customer and marketplace information from all sources, analyze it, and apply the results to build stronger customer relationships. CRM integrates everything that a company's sales, service, and marketing teams know about individual customers, providing a 360-degree view of the customer relationship. For example, MetLife recently developed a CRM system that it calls "The MetLife Wall":23