MK201 Final

social forces

(demographic shifts, cultural changes) the demographics and its cultural characteristics of the population

4 types of diversification analysis

- market penetration - market development - product development - diversification

three types of organizations

1) For-profit business firms 2) Nonprofit organizations 3) Government agencies

consumer journey map steps

1) problem recognition 2) information search 3) alternative evaluation 4) purchase decision 5) post purchase behavior

brand loyalty

A favorable attitude toward and consistent purchase of a single brand over time.

lost-horse forecast

A forecast made by starting with the last known value of the item, listing the factors that could cause changes in that value, estimating the degree of impact that each of those factors would have, and adjusting the base level to arrive at the final amount.

product differentiation

A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

idea

A mental concept or thought that can lead to an action. (concept or opinion)

focus group

A qualitative research method that involves bringing together a small group of individuals—typically 6 to 10 participants—for a structured discussion led by a moderator. - The purpose is to gather insights, opinions, and perceptions about a research topic.

mission

A statement of the organization's function in society that often identifies its customers, markets, products, and technologies. *Often used interchangeably with vision.

consumer journey map

All of the touchpoints a consumer goes through before, during and after a purchase

strategy

An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.

product

Bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

product repositioning

Changing the place a product occupies in consumers' minds relative to competitive products

promotion

Communication between the seller and buyer—including advertising, public relations, sales promotions, and personal selling.

80/20 Rule

Concept that 80 percent of a firm's sales are obtained from 20 percent of its customers

demographics

Describing a population on characteristics such as age, gender, ethnicity, income, and occupation.

place

Distribution channel used to get the product to the customer.

secondary data

Facts and figures recorded prior to the project

need

Feeling deprived of basic a necessity such as food, clothing, or shelter.

oligopoly

Few sellers control the majority of sales

Product

Good, service, or idea designed to satisfy customers' needs.

SWOT Analysis

Identify the critical factors that impact the firm and then: - Build on strengths - Correct weaknesses - Exploit opportunities - Avoid threats

economic forces

Income, expenditures, and resources that affect the cost of running a business and household. - Macroeconomic conditions related to the marketplace. - Microeconomic factors such as consumer income.

opinion leaders

Individuals who exert direct or indirect social influence over others.

word of mouth

Influencing of people during conversations.

service

Intangible activity or benefit that an organization provides to satisfy consumers' needs. (intangible item)

market segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

organization

Legal entity that consists of people who share a common mission.

pure competition

Many sellers with similar products

monopolistic competition

Many sellers with substitutable products in a price range

want

Need that is shaped by a person's knowledge, culture, and personality. - Effective marketing can shape a person's needs into product-specific wants.

cause marketing

Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

target market

One or more specific groups of potential consumers toward which an organization directs its marketing program.

target market

One or more specific groups of potential customers toward which an organization directs its marketing program.

buzz

Popularity created by consumer word of mouth.

Marketing Mix (4P')

Product, Price, Place, Promotion

open-ended questions

Questions that allow respondents to express opinions and ideas or describe behaviors in their own words.

closed-ended (or fixed alternative) questions

Questions that require respondents to select one or more response options from a set of predetermined choices. - Likert scale questions

Market segments

Relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

consumer behavior

The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

core values

The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.

Business-to-Business Marketing

The marketing of products to organizational buyers that buy products for their own use or for resale.

discretionary income

The money a consumer has left after paying for taxes and necessities to put towards savings and to purchase luxuries.

disposable income

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

product positioning

The place a product occupies in consumers' minds based on important attributes relative to competitive products.

marketing research

The process of defining a marketing problem or opportunity, systematically collecting and analyzing information, and recommending actions.

usage rates

The quantity of a product consumed (or number of visits to a store) during a specific period.- Frequency marketing focuses on usage rate.

triple bottom line

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

influencer marketing

The recruitment of individuals to advocate for products and brands rather than focusing exclusively on prospective buyers.

culture

The set of values, ideas, and attitudes that are learned and shared among the members of a group.

organizational culture

The set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.

gross income

The total amount of money made in one year by a person or household.

sales forecast

The total sales of a product that a firm expects during a specified time period under specified conditions and its own marketing efforts.

consumer value

The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

societal marketing concept

The view that an organization should satisfy the needs of consumers in a way that also provides for society's well being

direct forecast

Type of forecast that involves estimating the value to be forecast without intervening steps.

price

What is exchanged for the product—usually money.

consumer lifetime value (CLV)

a metric that represents the total net profit a company can expect to generate from a customer throughout their entire relationship.

BCG Growth-Share Matrix

a portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share - star, question mark, cash cow, dog

For-profit business firms

a privately owned organization that serves its customers to earn a profit, so that it can survive ex. Target, Nike, Keurig

extended problem solving

a purchase decision process during which the consumer devotes considerable time and effort to the search for external information and evaluation of alternative - HIGH consumer involvement - MANY brands & sellers considered - MANY product attributes evaluated - MANY external information sources used - CONSIDERABLE time spent searching

comparison of consumer problem-solving variations

extended problem solving limited problem solving routine problem solving

opportunities

external & favorable

threats

external & unfavorable

primary data

facts and figures newly collected for the project

data

facts and figures related to the project

Government agencies

federal, state, or local unit that provides a specific service to its constituents ex. the Census Bureau

Bases of Segmentation for Consumer Markets

geography, demographics, psychographics, behaviors

star

high relative market share, high market growth rate - require cash to sustain rapid growth but will likely generate cash when growth slows

cash cow

high relative market share, low market growth rate - generate large amounts of cash which can be invested in other SBUs

strengths

internal & favorable

weaknesses

internal & unfavorable

technological forces

inventions or innovations from applied science or engineering research - Changing technology - Technology's impact on customer value - Technology-enabled data analytics

durable

long lasting

question mark

low relative market share, high market growth rate - require cash to maintain market share, even though that share is small

dog

low relative market share, low market growth rate - may generate enough cash themselves but are not considered current or future winners

Likert Scale Questions

measure respondents' attitudes, opinions, or perceptions by asking them to rate statements on a scale from "Strongly Agree" to "Strongly Disagree".

Nonprofit organizations

nongovernmental organization that serves its customers but does not have a profit as an organizational goal ex. Teach for America

intangible

not able to be touched; not material

behaviors

observable actions. (Usage rates, 80/20 Rule)

limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time - MEDIUM consumer involvement - SEVERAL brands & sellers considered - MODERATE product attributes evaluated - FEW external information sources used - LITTLE time searching

pure monopoly

only one seller

demographics

physical characteristics, measurable characteristics, and other classification attributes of individuals and households.

good

physical or tangible object

alternative forms of competition

pure competition monopolistic competition oligopoly pure monopoly

regulatory forces

restrictions and federal laws place on a business with regard to the conduct of its activities - laws protecting competition - Laws affecting marketing mix actions - Self-regulation - Ethics

market penetration

sell CURRENT products in CURRENT markets - least risky - promotional campaigns - price changes

market development

sell CURRENT products in NEW markets - moderately risky new markets: - new market segments - new distribution channels - new geographic areas

Diversification

sell NEW products in NEW markets - most risky - internal expansion - joint ventures - mergers/acquisitions

product development

sell NEW products to CURRENT markets - moderately risky new products: - new versions of existing products - new products in existing categories - new products in new categories

non durable

short-term use and typically need to be replaced frequently.

The 5 environmental forces

social economic technological competitive regulatory

psychographics

subjective mental or emotional attributes of prospective customers.

competitive forces

the alternative firms that could provide a product to satisfy a specific market's needs - Alternative forms of competition - Small business

environmental factors

the uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces.

tangible

touchable

routine problem solving

typically for low-priced, frequently purchased grocery products. The purchase process for such items is virtually a habit and typifies low-involvement decision making - LOW consumer involvement - ONE brand considered - FEW sellers considered - ONE product attribute evaluated - NO external information sources used - MINIMAL time spent searching

geography

where prospective customers live or work.