M370 Midterm

Targeting

"Target market selection involves evaluating each market segment's attractiveness and selecting one or more" HBR, p 176

Customer Profitability

"firms need to systematically estimate the profitability associated with [customer knowledge]..." know the given costs of retaining customers and attracting them Need Acquisition Cost Could Determine Break-even point Determine Customer Lifetime Value Strategic Implications see reading

CLV calculation

(M - C / (1-r + i)) - Aq where M is margin C is cost incurred r is retention rate i is interest rate To find margin take revenue and multiple it by the margin percent

2 types of quality

(level and consistency level being performance quality and consistency mean conformance quality, is it free from defects)

Product development flow chart

1.Ideation $ 2 Screening $$ 3 Concept Testing $$$ 4 Marketing Strategy Development $$$ 5 Business Analysis $$$ 6 Product Development $$$$ 7 Test Marketing $$$$ 8 Commercialization $$$$$

Implications for Marketing Strategy

After CLV make decision 1)Firing Customers getting rid of those not profitable 2)Reward customers to lead to loyalty 3)identify cross-selling opportunities, additional or related products

Personal Factors

Age and Life-Cycle Stage People change the goods they buy over their lifetimes. Occupation Occupation influences the purchase of clothing and other goods. Economic Situation Some goods and services are especially income-sensitive.

3 customer myths

All customers are not all the same 1)it costs less to serve loyal customers in fact they are more expensive and demand more like discounts 2)Loyal customers pay higher prices for the same bundle of goods No, in fact they pay lower and are more price sensitive because they believe loyal customers deserve lower prices 3)loyal customers market the company who knows because maybe they just buy them at same place because its convenient and never say anything KNOW WHEN TO LOSE A CUSTOMER

Acquisition Cost calculation

Aq = (number or X to get one customer ) * (cost of one X) eg cost of one / click thru rate * conversion rate see practice

adoption process steps

Awareness interest evaluation trial adoption

Brand origination (sponsorship)

...

Knowing when to lose a customer Turning Friends into True Believers Enjoying Butterflies Smoothing Barnacles p98

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What are benefits of this segmentation

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What makes a good segment? p164

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four ideas that can help firms build customer value by Theodore Levitt

1)There are no commodities; all products can be differentiated. 2) Products are problem solving tools. Consumers think more about holes and thirst, not drill bits and colas. 3) There is a bias toward the measureable (sales, profit, etc). Firms should also attempt to measure more difficult phenomenon, like customer satisfaction, fun, and friendliness. 4) Make the intangible (reputation and brand equity or the power of the brand) more tangible to consumers.

4 perils of CRM

1)implementing CRM before creating customer strategy No customer strategy 2)rolling out CRM before changing organization to match No organizational change 3)assuming more CRM technology is better Technology focus 4)stalking customers, not wooing them

What types of segmentation will businesses use?

ALL OF THEM

Customer relationship groups

Butterflies True Friends Barnacles Strangers in clock order p23 know what to do with each

how to choose a differentiation and positioning strategy?p174

By, 1) identifying a set of differentiated competitive advantages where you can build a position 2) choose right competitive advantage, 3)select overall positioning strategy

opinion leader example

CAN ONLY BE ONE a person who influences others' attitudes or behaviors. Page 47 They are valuable information sources because they are: knowledgeable about a product category, among the first to buy new products, and likely to tell both positive and negative information about product performance.

Product layers and examples

Core benefit : basic benefits, like phone for talking Actual product: features, package, brand, quality color style augmented product: warranty, instructions, delivery something more than product like apps for iphone

balance and relations between all four

Cows and Stars throw off cash to help question marks grow. Many firms use cash to keep Dogs alive. Cash Flows vary across the 4 types of products l Balancing the numbers of SBUs of each type is essential for long-term financial health know when to build, hold, harves, divest

Culture examples

Culture is learned from family, church, school, peers, colleagues. Culture reflects basic values, perceptions, wants, and behaviors. Cultural shifts create opportunities for new products or may otherwise influence consumer behavior.

how to manage new product development types

Customer Centered Is there a real customer for the product? Team Based Does the organization have the scientific and technological ability to develop the product. Systematic Is the potential for such a product large enough to offer the promise of profitability?

Differentiation in STDP

Find competitive advantage to differentiate along the lines of product, service, channels, people, or image determine unique selling position (USP) and stick to it and promote differences

Preventing Decline with product development

Find new uses for the product- aspirin to prevent heart attack, baking soda for odors. Change packaging, labels, quality-individual portions in food.

Question Marks and what to do with it

For "?" the question is whether the firm can develop a brand with major share and make their brand a "star" Low profits but potential star or cash cow; invest for growth or discontinue

When CRM works it allows companies to

Gather customer data swiftly Identify the most valuable customers Increase customer loyalty

Bases for segmentation

Geographic segmentation demographic Physchographic Behavioral or product use behavior also benefits

True Friends

Good fit between firm offerings and customer needs High Profitability and Loyalty approach softly, dont communicate often or they will ignore everything, reward them and grow them

Butterflies

Good fit with firm but are not loyal and go from place to place High Profitability but Low Loyalty Cherish them while they are there then forget milk the account, cease investing soon enough

types of differentiation

Horizontal- different products with same quality and price vertical differentiated: if one is better than the other but sold for same price

Dogs and what to do with it

If the brand has low share in a category that has low or no growth then it was classified a "Dog" This usually signifies the difficulty the firm has making profit from such brands. Produces poor profits; make the most of profits or discontinue

customer-centered new-product development

new-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

Product mix depth

number of versions offered for each product in the line

examples of behavioral segmentation

occasions, benefits, user status( first time etc) , usage rate, loyalty status

online social networks

online social communities - blogs, social networking Web sites, or even virtual worlds - where people socialize or exchange information and opinions

Multi-brands

only company holding many brands, like pepsi hold fritos and orange juice

internal marketing

orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction

Maslows theory of motivation

person tries to satisfy most important need first, see chart of pyramid

opinion leader

person within a reference group who, b/c of special skills, knowledge, personality, or other characteristics, exerts social influence on others

Business buyer process

problem recognition general need description product specification supplier search proposal solicitation supplier selection order-routine specification performance review

individual product decisions

product attributes (quality, features, style, design) branding packaging labeling product support services

Five life cycle stages of buyers from CLV

prospect first time buyers early repeat buyer, high risk of defection core customers, wont leave unless un satisfied core defectors, leave for compeition

e-procurement

purchasing through electronic connections between buyers and sellers - usually online

RFM

recency frequency monetary value

downsizing

reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy

social group

reference group family roles and status

influences on product adoption

relative advantage - superior? compatability - fits vales and experiences divisibility - degree to try on limited basis complexity communicability - innovation can be seen

social class

relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors

idea screening

screening new-product ideas in order to spot good ides and drop poor ones as soon as possible Potential Cost Degree of Difficulty Competitive Fit Barriers to Entry Longevity

Preventing Decline with Market Development Strategy

Increasing the number users- new customers. Increase distribution-regional beer going national Pork it's the new white meat-taking business from beef and chicken.

Categories of adopters

Inovators early adopters early majority late majority laggards, shape of bell curve

What is Product Growth measurement used by Boston Consulting Group

Is the product category growing in sales volume? What percent growth? The FIRM must determine what % of growth constitutes HIGH vs. LOW growth determining these then classifying them as cash cows, srars, ect

The marketing process

Know needs of customer Understand the marketplace and customer needs and wants. Design a customer-driven marketing strategy. Construct a marketing program that delivers superior value. Build profitable relationships and create customer delight. Capture value from customers to create profits and customer quality leading to firm success should always start with the customer

Barnacles

Limited fit and only come when it benefits them Low profitability but high Loyalty cross sell and up-sell, know size of wallet

Brand development strategies

Line extension Brand Extension Multibrands New Brands

Metrics for firms with more than one brand!

Market Share/Market Growth Matrix (BCG approach) Product/Market Expansion

market penetration calculation

Market penetration (%) = # users of our brand / Total population* *define the geographical area or unit (ex: U.S.) Companies can decide how to measure like using th population or only population above a certain age

Preventing Decline with penetration

Marketers want to keep products from reaching the "Decline Stage" in PLC. They try to extend the PLC in the early maturity stage by: Increasing frequency of use-creatively using advertising and promotion to increase the number of times consumers use the product.

Psychological factors heirarchy

Maslows hierarchy 1)Self Actualization Self-fulfillment 2)Ego Needs Prestige, status 3)Belonging Love, friendship, acceptance by others 4)Safety Security, shelter, protection 5)Physiological water, sleep, food WORK BOTTOM UP Most marketing needs are in 2-4

How to extend product life in mature phase

Modify the "market" = market development Increase use among current customers = penetration Modify the product = product development Modify the marketing mix (service, price, distribution, promotion) if same customers use penetration if different use market development strategy

What is a brand?

Name Term Sign Symbol Design That identifies the product of one marketer to distinguish from another

Buyer decision Process, and example

Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase can be short or long. Short eg if need water Car is old What can I afford? What best fits me? This is it! Hey, was this right?

Licensing

One firm sells another the right to use a brand name for a specific purpose and for a specific time period. Examples: Jurassic Park movie Jurassic Park candy, key chains & toys. Oreo Cookies, Oreo Cereal If another name is there it is co-branding, if just one and getting paid to use then it is licensing

product or a brand can be

Organization People Ideas places

Strangers

Poor fit with firm offerings and customer needs Low Profitability and Loyalty identify early and invest nothing make profit on every transaction

Slides

Slides

Customer Lifetime Value Analysis

The total expected 'margin' stream arising from each customer over his/her relationship with the Brand/Firm. Understand the potential value of customers Learn more about patterns of individuals or groups of customers

Stars and what to do with it

This results in a matrix where firms with products in growing product categories (market growth) and major share are called "Stars" Produces high profits; invest to keep as a star and to eventually turn into cash cow

growth-share matrix

This tool helps decide product potential a portfolio-planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative market share on bottom. SBUs are classified as satrs, question marks, cash cows or dogs in clock wise p41 packet

social factors

Those we interact with Family Reference groups Opinion leaders (1 person) Social networks Roles - professional, clergy, students...

co branding

Two brand names on one package Example: DQ Oreo Cookies and Cream Blizzard. 2 (or more) brands on one product package (often involving 2 firms)

unit market share

Unit Market Share = Brand Units Sold (#) / Total Market Units Sold (#)* The firm must define the market and the competitors in that market or category Given the UMS formula then Brand Unit Sales = Total Market Unit Sales x Brand Unit Market Share & Total Market Units Sold = Brand Units Sold (#) / Brand Unit Market Share (#)

How to match products with segments?

Use a Perceptual Map or positioning map X and Y axis are attributes usually the worst ideas fall in the middle

Types of differentiation and what are they p12455

Vertical: different products with same brand at different price and benefit points Product line stretching: Upward Downward Both Horizontal: same product but different varieties Product line filling horizontal

positioning statement requirements

Who are the customers? What is the set of needs this product fulfills? Why is the product the best option to satisfy needs?

style

a basic and distinctive mode of expression

store brand (or private brand)

a brand created and owned by a reseller of a product or service

new task

a business buying situation in which the buyer purchases a product or service for the first time

straight rebuy

a business buying situation in which the buyer routinely reorders something without any modifications

modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

convenience product

a consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort ex Toothpaste, magazine, beer

unsought product

a consumer product that the consumer either does not now about or knows bout but does not normally think of buying ex Life insurance, innovative introductions

shopping product

a consumer product that the customer, in the process of selection and purchase, usually compares in such bases as suitability, quality, price, and style ex Television, phones, clothing

specialty product

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort ex Rolex, Mercedes, Gucci

fashion

a currently accepted or popular style in a given field

belief

a descriptive thought that a person holds about something

product concept

a detailed version of the new-product idea stated in meaningful consumer terms Explain Show Inquire

new product

a good, service, or idea that is perceived by some potential customers as new

market segment

a group of consumers who respond in a similar way to a given set of marketing efforts

subculture

a group of people with shared value systems based on common life experiences and situations

product line

a group of products that are closely related b/c they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall w/in given price ranges

service inseparability

a major characteristic of services - they are produced and consumed at the same time and cannot be separated from their providers

service intangibility

a major characteristic of services - they cannot be seen, tasted, felt, heard, or smelled before they are bought

service variability

a major characteristic of services- their quality may vary greatly, depending on who provides them and when, where, and how

service perishability

a major characteristic of services- they cannot be stored for later sale or use

undifferentiated (mass) marketing

a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

differentiated (segmented) marketing

a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

concentrated (niche) marketing

a market-coverage strategy in which a firm goes after a large share of one or a few segments

brand

a name, term, sign, symbol, design, or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

motive (drive)

a need that is sufficiently pressing to direct the person to seek satisfaction of the need

attitude

a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea

lifestyle

a person's pattern of living as expressed in his or her activities, interests, and opinions

product/market expansion grid

a portfolio-planning tool for identifying company growth opportunities through market penetration, product development, diversification or market development clock wise p131

consumer products and types packet

a product bought by final consumers for personal consumption Convenience Shopping Specialty Unsought

industrial product

a product bought by individuals and organizations for further processing or for use in conducting a business

business analysis

a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives is it profitable??

target market

a set of buyers sharing common needs or characteristics that the company decides to serve

mission statement

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

positioning statement

a statement that summarizes company or brand positioning - it takes this form: to (target segment and need) our (brand) is (concept) that (point-of-difference)

market development

a strategy for company growth by identifying and developing new market segments for current company products

market penetration

a strategy for company growth by increasing sales of current products to current market segments w/out changing the product

product development

a strategy for company growth by offering modified or new products to current market segments

diversification

a strategy for company growth through starting up or acquiring businesses outside the company's current products and markets

fad

a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

differentiation

actually differentiating the market offering to create superior customer value

personal group

age and life cycle occupation economic situation personality and self concept (like confident, aggressive)

consumer market

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

buying center

all the individuals and units that play a role in the purchase decisions-making process

service

an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not results in the ownership of anything

competitive advantage

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

team-based new product development

an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development to save tie and increase effectiveness

SWOT analysis

an overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T)

product

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

positioning

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

customer 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 word of mouth

branding challenges

brand positioning( attributes, benefits, beliefs and values), name selection, brand sponsorship ( co brand, manufacturer, private, licensing), and brand development

derived demand

business demand that ultimately comes from (derives from) the demand for consumer goods

systems selling (or solutions selling)

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

value analysis

carefully analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value

learning

changes in an individual's behavior arising from experience

steps in strategic planning

define company mission set objectives, goals design business portfolio plan marketing and other strategies

marketing strategy statement

describe target market, planned value proposition, and projected sales, market share etc

marketing strategy development

designing an initial marketing strategy for a new product based on the product concept

product development

developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering DO IT STAGE

Brand strength factors from Young and Rubicam

differentiation, relevance- how consumers feel about it meeting needs, knowledge - how much consumers know of brand, esteem - how respected is brand high on all four is high brand equity

age and life-cycle segmentation

dividing a market into different age and life-cycle groups

geographic

dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods

income segmentation

dividing a market into different income segments

gender segmentation

dividing a market into different segments based on gender

psychographic segmentation

dividing a market into different segments based on social class, lifestyle, or personality characteristics

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

behavioral segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product

market segmentation

dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes

behavioral or product use behavior segmentation

dividing a population into groups based on purchase frequency and usage level.

demographic segmentation

dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

benefit segmentation

dividing the market into segments to the different benefits that consumers seek from the product like e commerce shoppers seek conveinence

occasion segmentation

dividing the market segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

Geographic segmentation

dividing the overall market into groups based on geography. Most products derive the majority of their sales from a very small number of regions.

Business buyer behavior influences

environmental(tech, competition, politics) organizational interpersonal (authority, expertise, influence) individual

line extension

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

brand extension

extending an existing brand name to new product categories

positioning strategy with differentiation

focus on horizontal say that consumers differ in taste while vertical also focuses that consumers are different in taste but also take advantage in their willingness to pay for quality also use marketing mix for differentiation

intermarket segmentation

forming segments of consumers who have similar needs and buying behavior even though they are located in different countries

reference group

groups of people (uppeclass etc) that have a significant effect on an individual's evaluations, aspirations, or behavior. Can cause conformity where a person changes as a reaction to real or imagined group pressure. Some of the strongest pressures to conform come from our gender roles. Examples: fraternities, clubs, church groups, school classes

demands

human wants that are backed by buying power, luxury

types of phychographic segments

ideals thinkers, believer achievement achievers,strivers buy jaguar to show achievement self expression experiences, makers like paintings

What difference to promote when differentiating

important - good value distinctive - unique superior communicable - visible to buyer preemptive - cannot be easily copied affordable profitable

4 things that make up a service

intangible perishable, example cant store it like airline ticket variable inseperable

Service profit chain links

internal service quality satisfied and productive service employees greater service value satisfied and loyal customers healthy service profits

commercialization

introducing a new product into the market

Product line stretching p204 horizontal stretching is called filling

line filling will add extra products in the same line, line stretching is when it lengthend its line beyond current range, downward or upward to attack comeptitors

customer-manged relationships

marketing relationships in which customers, empowered by today's new digital technologies, interact w/ companies and with each other to shape their relationships with brands

Why stretch product line up and down

may add low end products to appeal to poor or upward to add prestige to current products

requirements for effective segmentation phv

measurable accessible substantial differentiable actionable

Psychological group

motivation perception learning beliefs and attitude

How to evaluate a market segment

segment size and growth structure attractiveness company objectives and resources

two types of segments generally

segments based on benefit sought by customer segments based on observable characteristics of customer

major marketing tasks for services

service differentiation service quality service productivity, work more for less or faster

market offerings

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

needs

states of felt deprivation, water

style design eastures

style is appearance design is product made

culture group

subculture social class ( upper class rich etc)

supplier development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supple of products and materials for use in making products or reselling them to others

local marketing

tailoring brands and promotions to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores

individual marketing

tailoring products and marketing programs to the needs and preferences of individual customers - also labeled "one-to-one marketing," "customized marketing," and "markets-of-one marketing"

concept testing

testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

exchange

the act of obtaining a desired object from someone by offering something in return

packaging

the activities of designing and producing the container or wrapper for a product

marketing management

the art and science of choosing target markets and building profitable relationships with them

consumer buyer behavior and types

the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption characteristics that affect it are Culture Social Personal Psychological p44

business buyer behavior

the buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit

service-profit chain

the chain that links service firm profits with employee and customer satisfaction

product quality

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

business portfolio

the collection of business 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

brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing like McDonalds saying if every asset was gone they would still make a come back because of their brand

customer satisfaction

the extent to which a product's perceived performance matches a buyer's expectations balance product performance =,>,< buyers expectations

wants

the form human needs take as shaped by culture and individual personality, coffee

value proposition

the full positioning of a brand - the full mix of benefits upon which it is positioned

societal marketing concept

the idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

product concept

the idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements

selling concept

the idea that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion event

marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

marketing concept

the marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions

adoption process

the mental process through which an individual passes from first hearing about an innovation to final adoption

marketing myopia

the mistake of paying more attention to the specific products a company offers to the benefits and experiences produced by these products

return on marketing investment (or marketing ROI)

the net return from marketing investment divided by the costs of the marketing investment

value delivery network

the network made up of the company, suppliers, distributors, and, ultimately customers who partner with each other to improve the performance of the entire system

customer relationship management

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Build and maintain profitable customer relationships Deliver 'superior' customer value + satisfaction Use Information about customers Acquire and retain customers

share of a customer

the portion of the customer's purchasing that a company gets in its product catgories

micromarketing

the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments - includes local marketing and individual marketing

co-branding

the practice of using the established brand names of two different companies on the same product

marketing

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

portfolio analysis

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

perception

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

strategic planning

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

market targeting (targeting)

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

market targeting

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

marketing control

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

marketing implementation

the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives

decline stage

the product life-cycle stage in which a product's sales decline

growth stage

the product life-cycle stage in which a product's sales start climbing quickly

maturity stage

the product life-cycle stage in which sales growth slow or level off, profits peak

introduction stage

the product life-cycle stage in which the new product is first distributed and made available for purchase profits are negative but innovators are buying, no competitors or few

value chain

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

market

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

product mix (or product portfolio)

the set of all product lines and items that a particular seller offers for sale, like pepsi sell soda, orange juice, gatorade, chips ect

culture

the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions THE MOST BASIC cause of a persons wants and behavior includes subculture and social class

marketing mix

the set of controllable tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market

test marketing

the stage of new product development in which the product and marketing program are tested in realistic market settings

idea generation

the systematic search for new-product ideas Internal External customers Suppliers Crowdsourcing

production concept

the the idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency

customer equity

the total combined customer lifetime values of all the company's customers

personality

the unique psychological characteristics that distinguish a person or group

social marketing

the use of commercial marketing concepts and tools in programs designed to influence individuals behavior to improve their well-being and that of society

customer life time value

the value of the entire stream of purchases that the customer would make over a lifetime of patronage

product position

the way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products

interactive marketing

training service employees in the fine art of interacting with customers to satisfy their needs

Value positioning, selecting overall positioning strategy

true positioning is in the mind of the consumer but 5 types clockwise in top and far right boxes More for More More for same More for Less Same for Less Less for much less X = price Y= benefits

What do we do with barnacles?

try to make them profitable through selling more or raising fees, if nor fire them

group

two or more people who interact to accomplish individual or mutual goals

major development changing marketing

uncertain economic environment (recession) digital age rapid globalization call for more ethics and social responsibility - sustainable marketing growth of non for profit marketing

selecting a target market strategy

undifferentiated (mass) marketing (market to everyone like COKE) differentiated (segmented) marketing (market to segments, different products to different segments like clothing) concentrated (niche) marketing (market to only one segment) Micro Marketing (market to individual customer)

Marketing Metrics

unit market share revenue market share relative market share market penetration

phychographic segmentation

variables - dividing the population into homogeneous groups based on behavioral and lifestyle profiles developed by analyzing consumer activities, interests, and opinions (AIO) and values, attitudes, and lifestyles (VALS) through surveys.

good positioning statement includes

who customers what needs to satisfy why our product is the best option

partner relationship management

working closely with partners in other company departments and outside the company to jointly bring greater value to customers

4P's and 4C's

Product Price Place Promotion Customer solution, customer cost, convenience, communication

How can brands be arranged?

Product line: closely related one brand name and category products. Like coke offering soda but many flavors or product mix

Product Life cycle PLC

Products have a limited life They pass through distinct stages Profits vary by stage Products require different management at different stages Introduction innovation growth maturity decline

Cash cows and what to do with it

Products of major share in slow growing markets are called "Cash Cows" Produces good cash flow; use to support question mark or star

What is a product or brand?

Quality Features/attributes Style and Design Brand image Packaging Labeling Product Support

relative market share

Relative Market Share (I) (%) = Brand's Market Share (# or $) / Largest Competitor's Market Share (# or $) Note: this can also be calculated using actual sales instead of share always use next largest competitor, if we are it then use the next best DONT USE ALL OTHER OR STORE BRANDS

Branding Strategies

Retailers Have Several Options When Deciding What Brands to Sell 1)National Brands Manufacturers' Brands Coca-Cola 2)Retailer/Store Brands Private Label Brands Brands That Are Owned & Sold by a Retailer Sam's Cola also include licensing, co branding

Revenue Market Share

Revenue Market Share = Brand Sales Revenue ($) / Total Market Sales Revenue ($)* Given this RMS formula then Brand Sales Revenue = Total Market Sales Revenue x Brand Revenue Market Share & Total Market Sales Revenue = Brand Sales Revenue ($) / Brand Revenue Market Share ($)

cross sell

SELLING SOMETHING TO SOMEONE WHEN THEY ARE BUYING SOMETHING ELSE, LIKE AMAZON RECOMMENDING THINGS

STDP

Segmentation Targeting Differentiation Positioning p47 diagram

Market share

is sales $ Proportion (%) *of total sales ($ or quantity) *in a market. i.e.. geography, industry, other definition of measure (by the competitors or a research firm) *held by each competitor Example: Coke may have 20% of the carbonated soft drinks $ business in the U.S. while perhaps Pepsi has 18%

segmenting steps

know benefits consumer seeks segment market, develop profiles based on customer benefits find observable variables, like demographic that can discriminate among benefit segment

Sigmund Freud motivation theory

largely people are unconscious about the psychological forces that shape their behavior, buying decisions are affected by subconscious motivations