Principles of marketing Exam 1

Marketing

Process by which companies engage customers, build relationships, and create value in order to make a profitable return

Macro environment

the larger societal forces that affect the microenvironment

Undifferentiated Marketing

a company targets the entire market

Differentiation

actually differentiating the market offering to create superior customer value

competitive advantage

advantage over competitors offering consumers more value

Publics

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

descriptive research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

Exploratory Research

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

Marketing Concept

philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired products

Factors of Macro Environment

demographic, economic, natural, technological, political, cultural

Market Targeting

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

Types of publics

financial, media, government, citizen-action, local, general, internal

marketing intermediaries

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

Marketing Research

helps business learn more about customers

primary data

information collected for the specific purpose at hand, First hand information

Secondary Data

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

ethnographic research

involves sending trained observers to watch and interact with consumers in their natural environment

Customer Insight

marketing information based on the understanding of customers and the marketplace

Micro environment

the actors close to the company that affect its ability to serve its customers

The 5 Marketing orientations

1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept

5 Step 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

Citizen- action public

A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups.

Target Market

A set of buyers who share common needs/ characteristics that a company decides to serve

Factors of a Micro Environment

Company, Supplies, intermediaries, customer markets, competitors, Publics

production Concept

Consumers will favor cheap and available products

Selling Concept

Consumers will not buy enough products unless the company promotes them

Product Concept

Consumers will value product with the highest quality

customer perceived value

Customers evaluation of the differences/ benefits of a marketing offer compared. to competing ones

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Different ways to segregate a market

Geographic, demographic, Psychographic, behavioral

societal marketing concept

Idea in which a company's marketing decisions should consider consumers wants, companies capabilities, and long term interests

Casual Research

Marketing research to test hypotheses about cause-and-effect relationships

Ways to gather primary data

Observation, Survey, Experiment

Marketing Information System

People and procedures dedicated to assessing information needs and helps decision makers

Federal Cigarette Labeling and Advertising Act

Requires cigarette packages to carry a warning label from the Surgeon General

Marketing Plan

Shows how an organizations objectives can be achieved through marketing

Marketing Myopia

The mistake of paying to much attention to a specific product then the benefits/ experience from these products

Positioning

The way consumers define/ rank companies or products

Concentrated Marketing

company goes after one company or few segments

Differentiated Market

company targets several separate markets

value proposition

the unique value that a product or service provides to its customers and how it is better than and different from those of competitors