Marketing Flashcards: Pre- and Post-Midterm Combined

Product development strategy

Growth strategy that offers new products or services to the firm's current target market

mobile marketing

marketing through wireless handheld devices

Complexity and Trialability

products that are relatively less complex are also relatively easy to try -- These products generally diffuse more quickly and lead to greater, faster adoption than things that aren't as easy to try

Key three elements in an IMC strategy

The consumer, the channels through which the message is communicated, and the evaluation of the results from that communication

Attitude

enduring positive or negative evaluation of an object or event -- Three components: cognitive, affective, and behavioral -- Attitudes are pervasive and slow to change, but marketers see them as things to be influenced and tweaked by persuasive communications and experiences

Branding and Brand Awareness

-- Companies live or die based on brand awareness - consumers can't buy products if they don't know the products exist -- Branding is a way for a firm to differentiate its product offerings from its competitors

Factors for Establishing a Relationship with Retailers

1. Choose retail partners -- assess how likely it is for certain retailers to carry their products 2. Identify types of retailers: where do customers want to find their products? 3. Develop a retail strategy 4. Managing an omnichannel strategy

The Five Cs of successful pricing strategies

1. Company Objectives 2. Customers 3. Costs 4. Competition 5. Channel members

Freemium apps

Apps that are free to download, but include in-app purchases that enable the user to enhance the app

Paid apps with in-app purchases

Apps that require the consumer to pay initially to download the app, then offer the ability to buy additional functionality

7C framework 1: core goals

Basis of a marketing strategy -- Main goal of a website: engage its users by encouraging them to spend time viewing and interacting with the content --> more specific goal might be to engage customers in commerce, or to educate the customer about the product

4E framework: experiencing the product or service

Being able to experience the product/service before buying it expands the market significantly

cognitive component of attitude

Beliefs or knowledge about a specific object of interest.

Physiological (safety) risk

Fear of actual harm should the product not perform properly

Social risk

Fears that consumers suffer when they worry others might not like what they buy

Determinant attributes

Features of the product or service that are important to the buyer, on which competing brands are seen to differ

7C framework for online marketing

Framework encompasses 7 critical elements that marketers have to consider carefully when devising an online marketing strategy, websites, blogs, etc. to target and appeal to both potential and existing customers -- Core goals, context elements (design and navigation), content, community, communication, commerce, connection

Ethics versus social responsibility

Framework for ethical decision-making can help people work towards common ethical goals

Empowerment

In the context of service delivery, allowing employees to make decisions about how service is provided to customers -- Empowering employees improves service quality, empowerment is more important when the service is more individualized

just-in-time (JIT) inventory system

Inventory management system designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise "just in time" for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods; also known as quick response (QR) inventory system in retailing.

Pricing: competition

Levels of price competition diagram -- Monopoly: only one firm provides service or support in a particular industry -- Oligopolistic competition: competition that happens when just a few firms dominate the market -- Price war: Situation of competition that happens when two or more firms compete mainly by lowering prices -- Predatory pricing: firm sets a really low price for 1+ items, seeking to drive the competition out of business -- Monopolistic competition: competition that occurs when there are lots of firms that may sell related, but not homogeneous, products that could be viewed as substitutes but aren't perfectly so -- Pure competition: competition that happens when different companies sell commodity products that consumers see as substitutable, price set based on laws of supply and demand

reach

Measure of consumers' exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once.

pioneers aka breakthroughs

New product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; also called breakthroughs. -- Not all pioneers succeed, often imitators capitalize on the weaknesses of pioneers and get an advantage (pioneering brands have faced all the uphill work of establishing the market alone) -- Pioneer designs are often less sophisticated in design and might be priced higher -> leaves room for better and lower-priced competition -- High failure rate for new products: due to not assessing the market properly by neglecting to do appropriate testing, targeting the wrong segment or poor positioning

Consumer decision process model step 3: evaluating alternatives

Once the problem has been recognized and possible outcomes explored, sift through available choices and consider alternatives

event sponsorship

Popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors.

Financial risk

Risk associated with monetary outlay, includes initial cost of the purchase as well as the costs of using the item or service

direct marketing channel

a marketing channel that has no intermediaries, manufacturer sells directly to the buyer -- People increasingly use online channels to purchase consumer goods

lift

additional sales caused by advertising

customer service

human or mechanical activities firms undertake to help satisfy their customers' needs and wants -- Good customer service allows firms to add value to their products

Personal selling step 4: Closing the sale

obtaining a commitment from the customer to make a purchase -- Losing a sale isn't terrible: salespeople who are in a relationship with their customers can view any specific sales presentation as part of the progression towards ultimately making the sale or building the relationship over time -- Good salespeople listen carefully to what potential customers say and note their body language - reading signals well -> earlier close

Sampling

offers potential customers the opportunity to try a product or service before they make a buying decision

Political/legal environment

political parties, government organizations, legislation and laws -- marketers have to understand and comply with any laws that affect them, like fair competition and consumer protection laws -- Laws have also been enacted to protect consumers: marketers can't do false or misleading advertising, manufacturers can't use harmful things in their products, organizations have to stick with fair and reasonable business practices when engaging with consumers

convenience products/services

products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase

Instrumental support

providing the equipment or systems needed to perform a task in a job setting (the physical support to provide a service) -- Instrumental and emotional support must be consistent and coherent across organization -- Reward employees for their service: develops a service reputation by ensuring employees are recognized for noticing the value the firm puts on customer service

Procedural fairness

refers to the customer's perception of the fairness of the process used to resolve complaints about service -- Customers prefer efficient complaint procedures over those whose outcomes they influence -- Tend to believe they've been treated fairly if the service providers follow specific company guidelines, but rigid adherence to the rules can be bad

Maturity stage

stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them -- Adoption by late majority and intense competition for market share among firms -- Market gets more saturated, lower prices and increased marketing costs start eating away at profits

decline stage

stage of the product life cycle when sales decline and the product eventually exits the market -- Laggards enter market here

Channel structure

the level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated, the degree to which the manufacturer has a strong brand or is otherwise desirable in the market, and the relative power of the manufacturer and the retailer

Derived demand

the linkage between consumers' demand for a company's output and its purchase of necessary inputs to manufacture or assemble that particular output -- Demand for B2B sales is often derived from B2C sales in the same supply chain

market saturation

the longer a product exists in the marketplace, the more likely it is that the market will become saturated -- Without new products or services, the value of the firm will ultimately decline

Learning

the process of acquiring new and relatively enduring information or behaviors -- Thought process or behavior that comes from experience and takes place throughout the consumer decision process

Perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

behavioral component of attitude

the way a person acts with respect to something

Secondary package

the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package

Radio Frequency Identification (RFID)

tiny computer chips that automatically transmit to a special scanner all the information about a container's contents or individual products

Service recovery

when a service provider fails to meet customer expectations, try to make amends and learn from the experience - chance to demonstrate customer commitment

customer loyalty

when customers buy a product from the same supplier again and again - sometimes paying even more for it than they would for a competitive product

legitimate power

A type of marketing channel power that occurs if the channel member exerting the power has a contractual agreement with the other channel member that requires the other channel member to behave in a certain way. This type of power occurs in an administered vertical marketing system.

Wheel of Social Media Engagement

Acts as a unifying framework -- Fundamental drivers of social media engagement, represented as five related effects -- Hub: repository of past and current social media engagements, spokes are the five effects that drive social media

Factors that affect the marketing environment

Consumers at the core -- Consumers are influenced directly: immediate actions of the focal company, company's competitors, corporate partners of the company, and physical environment -- Consumers are influenced indirectly: impacts of culture, demographics, social + technological + economic + political/legal factors -- Firm needs to consider the entire business process from the consumer's POV

Integrated Marketing Communications (IMC)

Represents the promotion dimension of the four Ps; encompasses a variety of communication disciplines—general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media—in combination to provide clarity, consistency, and maximum communicative impact.

Value

The relationship of benefits to costs - all about what you get for what you give

Developing a marketing plan, Step 2: do a situation analysis

Use a SWOT analysis (strengths, weaknesses, opportunities and threats) to assess the environment: assess internal environment's strengths and weaknesses, and then look at the external environment in terms of opportunities and threats --> Strengths: positive internal attributes of the firm --> Weaknesses: negative attributes of the firm --> opportunities: positive aspects of the external environment --> Threats: negative aspects of the company's external environment -- Also, assess the opportunities and shaky parts of the marketplace due to changes in cultural, demographic, social, technological, economic, and political forces (CDSTEP)

contest

a brand-sponsored competition that requires some form of skill or effort

Customer relationship management (CRM)

a business philosophy and set of strategies, programs, and systems focused on identifying and building loyalty amongst the customers the firm values the most

Public Relations (PR)

the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media

primary package

the packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption

Co-branding

the practice of marketing two or more brands together, on the same package or promotion -- Enhances consumers' perceptions of product quality by signaling unobservable product quality through links between the firm's brand and a well-known quality brand

Concept testing

the process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions -- Reactions are used by the developer to estimate the sales value of the product/service concept, maybe make changes to enhance sales value and determine if the idea is worth further development -- Start with qualitative research like interviews, then do quantitative research with surveys -- Most important question: all about the respondant's purchase intentions if the product/service was available - would they buy it? -- Would the product satisfy a need that other products are failing to meet? -- Some concepts never make it past this stage, especially if respondants seem uninterested

Media planning

the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

Early adopters

the second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; represent 13.5% of the population, generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review -- Spreads the word about the new product

managing risk through diversity

through innovation, firms often create a broader portfolio of products, which help them diversify their risk and enhance firm value better than a single product can -- Some products in a portfolio perform poorly, but others do well -> firms with multiple products can better withstand external shocks like changes in preferences or competitive activity

Mendoza marketing model

· Mendoza Marketing Model: wide-angle view of marketing -- The 5 Cs of strategic marketing --> Context --> Customer --> Competitors --> Collaborators --> Company -- STP marketing strategy --> Segment --> Target --> Position -- 4 Ps of the marketing mix --> Product (1 page) --> Price (1 page) --> Place (1 page) --> Promotion (1 page)

unique selling proposition (USP)

a strategy of differentiating a product by communicating its unique attributes; often becomes the common theme or slogan in the entire advertising campaign -- Message of an ad campaign provides target audience with reasons to respond in the desired way

Diffusion of Innovation Theory

a theory that identifies stages of dissemination and types of adopters of new technology and other changes, including behavioral change -- Innovators, early adopters, early majority, late majority, laggards

rule-of-thumb methods

budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted

How to ensure your offerings provide value

by making a product that can satisfy virtually every demand a consumer has

cause-related marketing

commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign

4Ps: promotion

communication by a marketer that informs/persuades/reminds potential buyers about products or services, trying to influence their opinions and elicit a response

core customer value

defines the basic problem-solving benefits that consumers are seeking -- Start with this when developing/changing a product to determine what customers are seeking, then make the actual physical product and add associated services to round out the offering

Interactions within marketing channel

interactions occur across the supply chain because the parties want things from each other -- Each member of the channel performs a specialized role -- Conflicting goals can lead to channel conflict

Product life cycle

introduction, growth, maturity, decline -- The stages that products move through as they enter, get established in, and eventually leave the marketplace, offers marketers a starting point for their strategy planning -- Not every product follows the same life cycle curve: some stay in the maturity stage for a long time (home appliances)

Supercenters

large store that combine a supermarket with a full line discount store

actual product

marketers convert core customer value into actual product -- Attributes like brand name, features/design, quality level, and packaging are important at different levels depending on product

Page view

number of times an internet page gets viewed by any visitor

negative word of mouth

occurs when consumers spread negative information about a product, service, or store to others

media buy

the actual purchase of airtime or print pages for the ad campaign

Seven primary needs met by apps

"me time," socialize, shop, accomplish, prepare, discover, self-express -- Apps can meet several needs at once

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization -- Good marketers add value to their products by pushing people up the needs hierarchy and offering info on as many of the pyramid needs as they can

4E framework: how to educate customers

-- clear call to action to draw customers through computers, tablets, etc. --> potential customers arrive at websites: chance to educate the customer and communicate offered benefits --> some info might not be new, but education is more about reminding people about what they already know

Generational cohort

--> Generational cohort: a group of people of the same generation, usually with similar purchase behaviors because they have shared experiences and are in the same stage of life

psychological risks

Associated with the way people will feel if the product or service doesn't convey the right image

selling teams

Combinations of sales specialists who primary duties are order getting, order taking, or sales support but who work together to service important accounts.

Heterogeneity

Differences between the marketing of products and services, the delivery of services is more variable -- The more people needed to provide a service, the more heterogeneous -- Variable nature of the service can be used to marketers' advantages: micromarketing segmentation strategy can customize a service to meet customers' needs exactly -- Alternate approach: tackle variability by replacing people with machines

7C framework 5: Communication

Digital communication needs clear, helpful, meaningful content -- Communication vehicles on blogs, etc. determine how effectively the firm can interact with and engage site visitors

Marketing ethics

Ethics issues that are specific to the domain of marketing

Planning phase for introducing conscious marketing

Introduce conscious marketing at the start of the planning process by including statements in the mission statement of the firm

Selective Distribution Strategy

Lies between intensive and exclusive distribution strategies, uses a few selected customers in a territory -- Helps seller maintain a particular image and control the flow of product into an area

Business to business (b2B) buying process

Like the B2C buying process, it starts with need recognition, but the information search and alternative evaluation steps are more formal for B2B -> needs specified in writing, ask potential suppliers to submit formal proposals, while B2C buying decisions are made more informally

Technology augmenting human efforts

Low tech, low effort: neither humans nor tech put in much effort Low tech, high effort: situations where humans are strongly present, but tech isn't High tech, low effort: tech is prominent, less human effort needed High tech, high effort: human and tech efforts both critical

Pricing: channel members

Manufacturers, wholesalers, retailers, each with a different POV on pricing strategies -- Retailer's cooperative: marketing channel intermediary that buys collectively for a group of retailers t0 achieve price and promotion economies of scale

Privacy concerns

More consumers are feeling a loss of privacy, but at the same time the Internet of Things has increased accessibility to consumer info

Performance risk

Perceived danger inherent in a poorly performing product or service

Independent agents

Salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer; also known as manufacturer's representatives or reps.

Evaluating salespeople using marketing metrics

Salespeople's evaluation process has to be tied to their reward structure, but salespeople have to be evaluated and rewarded ONLY on the activities and outcomes that fall under their control

advertising

a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future

search engine marketing (SEM)

an activity used in online searches to increase the visibility of a firm by using paid searches to appear higher up in the search results

Niche media

channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests

Mass media

channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio, and television

Value cocreation

customers act as collaborators with a manufacturer or retailer to create the product or service

Media mix

the combination of the media used and the frequency of advertising in each medium

Product mix

the complete set of all products offered by a firm

Channel Member Characteristics

the larger and more sophisticated the channel member, the less likely that it will use supply chain intermediaries

Puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product

innovation

the process by which ideas are transformed into new products and services that will help firms grow

Retrieval stage

we access the desired information

Sustainable packaging

Product packaging that has less of a negative impact on the environment.

Impulse products

Products purchased without planning, like fragrences and cosmetics at Macy's or tabloids at QFC

web tracking software

Software used to assess how much time viewers spend on particular web pages and the number of pages they view.

Introducing a firm to conscious marketing

"For new firms founded on conscious marketing principles, their leaders, who are also their founders, establish the standard from the very start. But even if an existing firm seeks to move toward a conscious approach to marketing, it can adopt decision rules (as we discuss in the next section) and norms that encourage consciousness throughout its entire corporate culture. For example, to ensure that conscious marketing is infused into all levels of the firm, it can be integrated into each stage of the marketing plan"

Managing marketing channels through strategic relationships

"In a conventional marketing channel, relationships between members reflect their arguments over the split of the profit pie: If one party gets ahead, the other party falls behind. Sometimes this type of transaction is acceptable if the parties have no interest in a long-term relationship. But such attitudes can limit the success of the supply chain as a whole."

Break-even analysis

"Technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point."

Coercive power

A type of marketing channel power that occurs when the channel member exerting the power threatens to punish or punishes another channel member for not undertaking certain tasks it wants it to do.

impressions

the number of times an advertisement appears in front of the user

Specialty stores

A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

Multi-attribute model

Compensatory model of customer decision making

7C framework 2: Context elements

Second element of website design: traditional contextual elements like design and navigation -- Context elements have to be aligned with the target markets

cold calls

a method of prospecting in which salespeople telephone or go to see potential customers without appointments

persuasive advertising

communication used to motivate consumers to take action -- Usually happens in the growth and early maturity stages of the product life cycle, when competition is most intense -> focused on accelerating the market's acceptance of the product -- Later, persuasive advertising can be used to reposition an existing brand by persuading people to change their existing perceptions of the products

Cannibalization

negative impact of a company's new product on the sales performance of its existing and related products -- Also, market share when one product competes closely with a similar product offered by the same company

convenience stores

type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout -- Modern version of the neighborhood mom and pop grocery or general store -- Trying to decrease dependence on gas sales by offering fresh food, tailoring to local markets, and offering new services like financial service kiosks

How firms develop new products

1. idea generation -- Firms can use their own internal research and development efforts, collaborate with other firms, license tech, brainstorm, outsource, or do consumer research 2. concept testing 3. product development 4. market testing 5. product launch 6. evaluation of results

Consumer decision process model

Represents the steps consumers go through before, during, and after making a purchase

Retailing

The set of business activities that add value to products and services sold to consumers for their personal or family use; includes products bought at stores, through catalogs, and over the Internet, as well as services like fast-food restaurants, airlines, and hotels.

Innovators

Those buyers, representing approximately 2.5 percent of the population, who want to be the first to have the new product or service. -- Crucial to the success of new products and services because they help the product gain market acceptance

compatibility

a diffusion process may be faster or slower, depending on various consumer features, including international cultural differences

communications channel

the medium of transmission that carries the coded message from the source to the receiver

associated services (augmented product)

the nonphysical attributes of the product including product warranties, financing, product support, and after-sale service

Depth

the number of categories within a product line -- Increasing depth: add items to address changing consumer preferences or preempt competitors while boosting sales -- Decreasing depth: delete products within a product line to realign the firm's resources --> Never done lightly, prune product line to eliminate unprofitable or low-margin items, refocus the marketing efforts on more profitable items

click-through rate (CTR)

the number of times a user clicks on an online ad divided by the number of impressions

4E Framework for the objectives of digital marketing

1. Excite customers with relevant offers 2. educate customers about the offering 3. Help customers experience the products, directly or indirectly 4. Give customers an opportunity to engage with the digital marketing activities of the company

impulse buying

A buying decision made by customers on the spot when they see the merchandise -- Recognizing need and jumping directly to purchasing without spending any time searching for additional info or evaluating alternatives

Intangible

A characteristic of a service: it cannot be touched, tasted, or seen like a pure product can -- Most fundamental difference between a product and a service -- Intangibility can be hard for marketers, especially if they're more used to selling -- Also, hard to promote a service that can't be shown directly to potential customers -> have to use symbols and images to promote and sell services

AIDA model

A common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interests (consumers are persuaded that the product is worth investigating), which lead to Desire (consumers don't just like the product, they want it), which leads to Action (buying the product)

rebate

A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.

Opt out

A customer privacy issue big in the U.S. where some brand takes the POV that personal info is in the public domain, so retailers can use it however they want (forces consumers to explicitly tell retailers not to use their personal info)

extreme value retailers

A general merchandise discount store found in lower-income urban or rural areas. -- Target low-income consumers whose shopping behavior is different from typical discount store or warehouse club shoppers

independent (conventional) marketing channel

A marketing channel in which several independent members—a manufacturer, a wholesaler, and a retailer—each attempts to satisfy its own objectives and maximize its profits, often at the expense of the other members.

affective component of attitude

A person's feelings or emotions about an object, person, or event.

Lifestyle

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

horizontal channel conflict

A type of channel conflict in which members at the same level of a marketing channel, for example, two competing retailers or two competing manufacturers, are in disagreement or discord, such as when they are in a price war.

Vertical channel conflict

A type of channel conflict in which members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, are in disagreement or discord. -- Can be avoided via open communication

off-price retailers

A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices. -- Merch is bought opportunistically from manufacturers or retailers with excess goods at the end of the season

Business to business (b2B) buying process step 2: product specification

After the need has been recognized and alternative solutions have been considered, the buyer writes a list of potential specs vendors can use to develop their proposals

Universal set

All possible choices for a product category

Search engine marketing

An activity used in online searches to increase the visibility of a firm by using paid searches to appear higher up in the search results -- Because consumers often rely on just the first few entries in a list of search results, the search engine marketing is becoming an important part of digital marketing strategy - it's a chance for firms to improve their position on the search engine page

Pulsing

An advertising schedule that combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods.

continuous advertising schedule

An advertising schedule that runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising.

Transmitter

An agent or intermediary with which the sender works to develop the marketing communications; for example, a firm's creative department or an advertising agency.

Emotional appeal

An appeal that evokes strong feelings - such as pity, fear, vanity - in order to persuade people (all about satisfying emotional desire rather than utilitarian needs)

Alpha testing

An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) department

aided recall

An awareness metric that occurs when consumers recognize a name (e.g., of a brand) that has been presented to them.

Default

An element of choice architecture that deals with "no-action" conditions by imposing a choice on a person who fails to make a decision or doesn't actively opt for a different alternative

Web portals for B2B RFPs

An internet site whose purpose is to be a major starting point for users when they connect to the web

Product

Anything of value to a consumer, can be offered through a voluntary marketing exchange

Premarket test

Conducted before a product or service is brought to market to determine how many customers will try and then continue to use the thing, based on tests with small groups of potential customers

Laggards

Consumers, representing approximately 16 percent of the population, who like to avoid change and rely on traditional products until they are no longer available. Sometimes laggards never adopt a product or service.

Wholesalers

Firm engaged in buying, taking title to, often storing, and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users.

Key conscious marketing stakeholders: Employees

Firm has to take care of employees first and foremost

Conscious marketing principle 3: conscious leadership to create a corporate culture

Firm's leaders are dedicated to being conscious at all levels of business through the entire culture of the company

Key conscious marketing stakeholders: customers

Firms have to consider effects on customers, react to trends quickly

Different types of consumer needs: functional, psychological, or both

Functional needs: relate to the performance of a product or service Psychological needs: relate to personal gratification consumers experience with a product or service

Social media engagement process: listening

Listen to what customers say before engaging in conversation -- If the conversation is negative, firms should respond immediately, maybe via a social media platform, so the firm can communicate with the customers to resolve the issue --> for a positive conversation, listening will help the firm understand how to keep the good going and figure out where to promote their stuff

Consumer decision process model step 5: postpurchase

Marketers are interested in postpurchase behavior because it entails actual customers, rather than potential ones -- Ensure postpurchase satisfaction: realistic expectations of the product, correct product use, stand behind the product with guarantees and warranties, encourage customer feedback, thank customers for support

Inbound marketing

Marketing activities that draw the attention of customers through blogs, Twitter, LinkedIn, and other online sources, rather than using more traditional activities that require having to go out to get customers' attention, such as making a sales call.

Online Marketing

Marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs.

Consumer decision process model step 4: Purchase and consumption

Measure conversion rate to see how well the retailer has converted purchase intentions into actual purchases -- Conversion rate: measure that indicates what percentage of visitors or potential customers click, buy, or donate on the site

Developing a marketing plan, Step 1: Defining the business mission and objectives

Mission statement: broad description of the firm's objectives and the scope of the activities it plans to engage in -- Answers two key questions: "what type of business are we?" and "what do we need to do to accomplish our goals and objectives?"

mobile task management

Mobile task management technology is a wireless network and a mobile device that receives demand notification and enables a speedy response.

Evaluating the economic environment via metrics

More wealthy the inhabitants of a country, the better the opportunity a firm has in that country Trade deficit: results when a country imports more goods than it exports Trade surplus: occurs when a country has a higher level of exports than imports Gross Domestic Product: Market value of goods and services produced by a country in a year, the most widely used standardized measure of output Gross National Income: GDP plus the net income earned from the investments abroad (minus any payments made to non-residents who contribute to the domestic economy) Purchasing Power Parity (PPP): A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other, expressed in the same currency

Personal selling step 3: sales presentation and overcoming reservations

Personal selling is all about storytelling when it comes to presentations: need to communicate sales pitches in ways that resonate with the audience -- Dealing with reservations/objections: they're most likely to show up during the sales presentation, so the seller can prep in advance and know the types of reservations the buyers are likely to raise, anticipating as many as possible and preparing to handle them -- Best way to handle reservations: relax and listen, then ask questions to clarify any reservations

psychological factors

Psychological factors influence how people receive marketers' messages -- Motive: a need or want that is strong enough to cause a person to seek satisfaction

Service gap

Results when a service fails to meet the expectations that customers have about how the service should be delivered

Limited assortment supermarkets (extreme value food retailers)

Retailer that offers only one or two brands or sizes of most products (typically includes a store brand) and attempts to achieve great efficiency to lower costs and prices

Customer expectations

Retailers need to know customer preferences regarding manufacturers, manufacturers need to know where target customers expect to find their products and those of their competition

sales promotion

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

Key conscious marketing stakeholders: environment

Sustainability as a key aspect of marketing

Tech advances in marketing

Tech makes it easier for customers to interact with company, mobile devices offer another channel of access -> makes customers more loyal --> Artificial intelligence (AI): solutions that rely on computer systems to perform tasks that require human intelligence --> Internet of things, aka IoT: when multiple "smart devices" with internet-connected sensors, combine the data they've collected to help consumers and companies consume more effectively

prototype

The first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, or crafted individually

information encoding stage

The first stage in memory development where consumers transform info they get about products into storable info

Marketing: health and wellness social trend

The idea that few human bodies look perfect, so marketers are focusing on embracing real beauty (CVS campaign)

Headline

The largest type in an ad, designed to draw attention

company sales force

The people who are employees of the selling company and are engaged in the selling process. -- Typically used more for established product lines

break-even point

The point at which the number of units sold, generates just enough revenue to equal the total cost, profit = 0

Business to consumer marketing (B2C)

The process by which businesses sell to consumers

Consumer to consumer marketing (C2C)

The process by which consumers sell to other consumers

Service or good?

There's a continuum from pure service to pure good -- Most offerings are somewhere in the middle: a combo of good and service

noncompensatory decision rule

When consumers choose a product or service based on the subset of its characteristics, regardless of the value of other attributes

Choice architecture

When evaluating alternatives, the design of the environment impacts how people make decisions

Observability

When products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process

Compensatory decision rule

Where the consumer is evaluating alternatives and trades off one characteristic against another so that the good characteristics compensate for the bad ones

Delivering service quality

Where the customer directly interacts with the service provider, a delivery gap always results in service failure -- Delivery gaps can be reduced when employees are empowered to spontaneously act in the customers' and firm's best interests when problems or crises arise

Perishable

a characteristic of a service: it cannot be stored for use in the future -- Both challenges and opportunities for marketers re: matching demand and supply - as long as supply and demand match closely, things are fine, but a large disparity between supply and demand causes problems

category specialists

a retailer that offers a narrow variety but a deep assortment of merchandise

full-line discount stores

a retailer that offers consumers very limited service and carries a broad assortment of well-known, nationally branded "hard goods" -- All about value prices, customers are willing to compromise on quality or cachet

voice-of-customer (VOC) program

an ongoing marketing research system that collects customer inputs and integrates them into managerial decisions -- Ongoing research allows service firms to assess how well they meet their customers' expectations

manufacturer brands (national brands)

brands owned and managed by the manufacturer -- Owning their own brand, manufacturers retain control over marketing strategy, can choose the right market segments and positioning, and build the brand to create equity

mobile commerce (m-commerce)

communicating with or selling to consumers through wireless handheld devices such as cellular phones

Salary

compensation in the form of a fixed sum of money paid at regular intervals -- The bulk of a compensation package is made up of salary, commission, or a combo of both - salary has an advantage for being so regular (people know when they'll get paid), and it gives sales managers more control

Spotting potential marketing opportunities

find changes in what customers want, demand, or expect, and adapt the product/service accordingly

Product excellence

focus on achieving high-quality products (high perceived value and effective branding and positioning) -- Effective branding and positioning is key -- A way of achieving a sustainable competitive advantage -- Investing in the brand itself, positioning the brand with a clear, distinctive image, and constantly reinforcing that image via merchandise, services, and promotions

Conscious marketing in the implementation phase

have to consider potential markets and how to deliver on the 4 Ps

beta testing

having potential customers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use

Operational excellence

involves a firm's focus on efficient operations, excellent supply chain management, and strong relationships with suppliers

first movers

product pioneers that are the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead

consumer products

products and services used by people for their personal use

Dimensions of service quality

reliability, responsiveness, assurance, empathy, tangibles

Sustainable competitive advantage

something the firm can persistently do better than its competitors

Market growth rate

the annual rate of growth in the specific market in which the product competes

Posttesting

the evaluation of an IMC campaign's impact after it has been implemented

Advertising schedule

the specification of the timing and duration of advertising

Informational appeals

used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides

Key conscious marketing stakeholders: marketplace

when one firm leads the way, others have to follow or risk being left behind

indirect marketing channel

when one or more intermediaries work with manufacturers to provide goods and services to customers

4E framework: how to excite customers

-- Offer has to be relevant to its targeted customers: personalize offers based on insights and info from customer relationship management and loyalty programs, and/or online analytic tools like Google analytics

Marketing: Efficient utilization and distribution of food social trend

-- Retailers expanding their efforts to eradicate food deserts where consumers (usually lower socioeconomic status) have limited/no access to affordable healthy/fresh food options

How to get merchandise to stores

-- Ship merchandise to stores -- Customer store pickup -- deliver merch directly to customer from fulfillment center (order is placed, filled via store or fulfillment center, then shipped via mail/UPS/FedEx/retailer's own trucks)

Steps for making an ethical decision

1. Identify issues 2. Gather info and identify stakeholders -- Gather facts key to the ethical issue -- Identify all issues and groups that have a stake in resolving the issue 3. Brainstorm and evaluate alternatives -- All parties related to the decision should come together and brainstorm courses of action 4. Choose a course of action -- Weigh alternatives and choose a course of action that generates the best solution for stakeholders using ethical practices based on a conscious marketing approach -- Management ranks alternatives in order of preference, establishes advantages and disadvantages of each -- Choosing: ensure you've applied all relevant decision-making criteria and assess your confidence that the decision meets the stated criteria (if not confident, examine other alternatives)

test marketing

A method of determining the success potential of a new product, it introduces the offering to a limited geographic area before a national launch -- Strong predictor of product success because the firm can study actual purchase behavior (more reliable than simulated tests) -- Uses all the elements of the marketing mix: promotions like ads and coupons, product appears in targeted retail outlets with appropriate pricing, giving results that can be the basis for estimating demand for the entire market

Brand ownership

Brands can be owned by any firm in the supply chain, whether manufacturers, wholesalers, or retailers. -- Two main brand ownership strategies: manufacturer brands, or retailer/store brands -- Marketing brands: can be marketed using common/family names, or as individual brands

Retrieval set

Brands or stores the consumer can readily bring to mind for a certain prouct

Responding to the environment

In a constantly changing market, the marketers who succeed are the ones who respond quickly, accurately, and sensitively to their consumers

Conscious marketing in the control phase

evaluate managers on their actions from a conscious marketing POV -- systems in place to check whether each conscious marketing issue raised in the planning stage has been successfully addressed -- Systems also have to react to changes

Social media engagement process

Three steps: 1. Listen to what customers have to say 2. Analyze the info available through various touchpoints 3. Implement or do social media tactics to excite customers

big box retailers

discount stores that offer a narrow but deep assortment of merchandise

cross-promotion

efforts of two or more firms joining together to reach a specific target market

sales support personnel

employees who enhance and help with a firm's overall selling effort, such as by responding to the customer's technical questions or facilitating repairs -- Some salespeople's primary function may be order getting, order taking, or sales support, but others might fill a combo of roles

locational excellence

especially important for retailers and service providers, it's all about achieving excellence by having a strong physical location and/or internet presence

Power in a marketing channel

exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution -- Like a retailer having power or control over a supplier: higher level member has control over lower level member

Using the Diffusion of Innovation Theory

- using the diffusion of innovation theory, firms can predict which types of customers will buy their new product or service immediately after its introduction, as well as later as the product gets more and more accepted by the market. -With this knowledge, the firm can develop effective promotion, pricing, and other marketing strategies to push acceptance among each customer group -However, because different products diffuse at different rates, marketers must work to understand the diffusion curve for each new product and service, as well as the characteristics of the target customers in each stage of the diffusion.

What do marketing channels do?

-- Add value: each participant in the channel adds value, at each step the product becomes more costly but also more valuable to the consumer -- Channel management affects other aspects of marketing

Key roles of packaging

-- Attracts consumers' attention -- Enables products to stand out from competitors -- Promotional tool (can say "new and improved") -- allows for the same product to appeal to different markets with different sizes - little packages for convenience stores, versus bulk packages for Costco -- Updated packaging as a way of repositioning the product, attracting a new target market or appear more up to date in their current market -- Changes can make consumers feel like they're receiving something tangible in return for paying more, even when the product itself isn't changed -- Packaging can also help suppliers save costs

Business to business (B2B) buying process step 4: Proposal analysis, vendor negotiation, and selection

-- Buyer organization evaluates the proposals it got in response to the RFP -- Often, the list is narrowed to a few suppliers, and the buyer goes over key terms in regards to each possible supplier

Advertising

-- Can't lie too crazily (can fudge little things or puff, but that's it -- Deceptive reference prices -- Loss leader pricing: takes the tactic of leader pricing one step further by lowering the price below the store's cost -- Bait and switch: advertise low, aggressively pressure to purchase a more expensive item -- Predatory pricing: setting a low price for one or more products, trying to drive competition out of business Price discrimination: selling the same product to different resellers or the consumer at different prices each time -- price fixing: colluding with other firms to control prices' -- Horizontal price fixing: competitors that produce and sell competing products work together to control prices, taking price out of the consumer decision process' -- Vertical price fixing: parties at different levels of the same marketing channel collude to control prices -- MSRP: manufacturer's suggested retail price, price manufacturers suggest retailers should use -- Gray market pricing: irregular but not quite illegal methods, legally avoiding authorized distribution channels to sell at lower than manufacturer's intended costs

The four overarching strategies that focus on aspects of the marketing mix to create and deliver value/develop sustainable competitive advantages

-- Customer excellence: focus on retaining loyal customers and excellent customer service -- Operational excellence: achieved via efficient operations and great supply chain and human resource management -- Product excellence: having products with high perceived value and effective branding/positioning -- Locational excellence: good physical location and internet presence

Distribution centers versus direct store delivery

-- Distribution centers provide more accurate sales forecasts (can combine forecasts for many stores serviced by one distribution center) -- DCs allow the retailer to carry less merch in individual stores, lower inventory investments system-wide -- Easier to avoid running out of stock or having too much in stock, because merch is ordered from the DC as needed -- Retail space more expensive than storing at DC, DC better equipped to prep merch for sale NOTE: DCs aren's appropriate for all retailers

How to prevent negative consequences of brand extensions

-- Evaluate the fit between the product class of the core brand, and that of the extension -- Evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension (keeps brand-specific extensions top of mind for extensions) -- to avoid diluting a brand: refrain from extending the brand name to too many products or categories -- Consider whether the brand extension will be distanced from the core brand, especially if the firm wants to use some but not all of its brand associations

Developing a marketing plan, Step 5: evaluate performance via marketing metrics

-- Evaluating results of strategy and implementation program using metrics: measuring systems that quantify trends, dynamics, or characteristics -- metrics help explain what's happened and also predict what comes next -- Usually managers start by reviewing the implementation programs, analysis could show their strategy and mission statement need work -- Holding people accountable for performance: at each organizational level, the business unit and its manager should be held accountable only for the revenue, expenses, and profits they can control --> Expenses that affect several levels of the organization shouldn't arbitrarily be foisted on lower levels -->> use performance evals to pinpoint problem areas and examine why performance levels are above or below expected/planned levels --> hold managers accountable only in cases of inadequate sales jobs or setting inappropriate forecasts - hard when fault is difficult to assign

Developing a marketing plan, Step 4: implementing marketing mix and allocating resources

-- Implement the actual marketing mix of product, price, place, and promotion for each product and service, based on what they think their target markets will value --> Simultaneously, decide how to allocate resources to products and services -- all about creating value, so firms try to develop products and services that customers see as valuable enough to buy -- Pricing as the only activity that actually brings in money and influences revenue -- Firm has to make the product or service accessible when and where the customer wants -- Integrated marketing communications (IMC): promotion dimension of the four Ps, covers lots of communication disciplines: general ads, personal selling, sales promotion, public relations, direct marketing, electronic media, all combined to provide clarity, consistency, and maximum communicative impact

Motivating and Compensating Salespeople

-- Manager has to get to know their people and determine what motivates them to be effective (these motives vary according to selling context, great managers figure out how to motivate their people individually based on what's most important to each person)

Types of B2B markets

-- Manufacturers and service providers: manufacturers buy raw materials to make and market their own goods/services -- Resellers: marketing intermediaries that resell manufactured products without major alterations --> Involve wholesalers (firm that buys large quantities and then resells the goods to retailers or industrial/business users) and distributors (reseller that resells manufactured products without significantly altering their form, distributors often buy from manufacturers and then sell to other businesses like retailers via B2B transactions) -- Institutions: hospitals, school systems that buy things in bulk -- Government

Factors that affect consumers' search processes when seeking to fulfill a need

-- Perceived benefits versus perceived costs of the search (is it worth the time and effort to look for info on this thing), locus of control (either internal, "I control the outcomes of my actions" or external, "fate controls all outcomes"), and actual or perceived risk (risk can be performance, financial, social, physiological, or psychological, the higher the risk the more engaged the search)

Strategies based on product life cycle: caveats

-- Product life cycle as a starting point for thinking about strategy to implement during each stage of the life cycle of a product -- Hardest part of applying the life cycle is that managers don't know what shape each product's life cycle will take, so there's no way to know exactly what stage a product is in

Marketing timeline

-- Production-oriented era: all about product innovation rather than satisfying customer needs, retail stores as places to hold merchandise until consumers wanted it -- Sales-oriented era: manufacturers have the capacity to produce more than customers want or need, so to combat overproduction firms become more sales-oriented - lots of selling and advertising -- Market-oriented era: customer is king, consumers have choices and can make purchasing decisions based on things like quality, convenience, price, etc. --> Manufacturers and retailers focus on what consumers want and need before they start designing/making/selling new products - this is when firms discovered marketing -- Values-based marketing: most successful firms today do this, transcend a product/selling focus in an attempt to discover and satisfy their customers' needs and wants - focusing on giving the customers greater value than their competitors

Ways of retaining loyal customers

-- Sometimes the methods used to maintain a sustainable competitive advantage help attract and maintain loyal customers --> strong brand, unique merchandise, superior customer service are all things that help solidify a loyal customer base (loyal customers are a sustainable competitive advantage in and of themselves) -- Loyal customers are reluctant to patronize competing firms -- Viewing customers in a lifetime value POV rather than a transaction-by-transaction basis is key -- Another way of achieving customer loyalty is through creating an emotional attachment via loyalty programs (they're part of the overall customer relationship management programs) -- Customer service is also a way of building a competitive advantage (consistency in this area is hard) - firms that offer good customer service have to instill its importance in employees over a long period to make it part of company culture --> once a reputation of good service is built, the advantage can be sustained for a long time because competitors are hard-pressed to develop a similar reputation

Value of Branding for the Customer

-- brands add value to merchandise and services, for both consumers and sellers, beyond physical and functional characteristics or the pure act of performing the service. - Brands Facilitate Purchases: easily recognized, signify a certain quality level and have familiar attributes, so consumers can make quick decisions -Brands Establish Loyalty: consumers learn to trust certain brands -Brands Protect from Competition and Price Competition: more established brands have a strong foothold in the market and a loyal customer base, so neither competitive pressures or retail-level price competition poses as great a threat -Brands Are Assets: can be legally protected via trademarks, etc. to make a unique form of ownership -Brands Impact Market Value: value of the company is its overall monetary worth, comprising all its assets

Pricing: Company Objectives

-- pricing of products and services should support and allow the firm to reach their overall goals Profit Orientation: company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing Target profit pricing: a pricing strategy when they have a particular goal as their overriding concern, uses price to stimulate a certain level of sales at a certain point per unit Maximizing Profits: profit strategy that relies mainly on economics - if a firm can specify a mathematical model that captures all the factors needed to explain and predict sales and profits, it can identify the price where its profits are maximized Target return pricing: pricing strategy implemented by firms focused on the rate at which their profits are generated relative to their investments, designed to produce a specific return on investment (usually as a percentage of sales) -- Sales orientation: company objective based on belief that increasing sales will help the firm more than increasing profits -- Premium pricing: competitor-based pricing method where the firm deliberately prices a product above the prices set for competing products to capture the consumers who want the best or who will take it no matter the price (cost doesn't matter) -- Competitor orientation: a company objective based on the premise that the firm should measure itself primarily against its competition -- Competitive parity: firm's strategy of setting prices that are similar to those of its major competitors -- Status quo pricing: competitor-oriented strategy where a firm changes prices only to meet those of the competition -- Customer orientation: Company objective based on the idea that the firm should measure itself primarily according to whether it meets the customer's needs

Building B2B Relationships

-a multitude of ways to enhance relationships, and these methods seem to be advancing and evolving by the minute. EX: blogs and social media can build awareness, provide search engine results, educate potential and existing clients about products or services, and warm up a seemingly cold corporate culture. An expert who offers advice and knowledge about products increases brand awareness, and a blog is a great medium for this information. -Web analytics, like traffic on the website and the number of comments, can offer tangible evaluations, but a better measure is how often the blog gets mentioned elsewhere, the media attention it receives, and the interaction, involvement, intimacy, and influence that it promotes. EX: Twitter, the micro-blogging site, is valuable for B2B markets, because they can communicate with other businesses as often as they want. -

undesirable consumer behavior

-although firms want satisfied, loyal customers, sometimes they fail to attain them. -Passive consumers are those who don't repeat purchase or recommend the product to others. More serious and potentially damaging, however, is negative consumer behavior, like negative word of mouth and rumors.

Naming Brands and Product Lines

-although there is no simple way to decide how to name a brand or product line, the more the products vary in their usage or performance, the more likely it is that the firm should use individual brands EX: General Motors utilizes several different individual brands (Cadillac, Chevrolet, GMC), each catering to very different target markets and meeting different needs. Hyundai, on the other hand, utilizes only one brand since usage and level of performance are relatively homogeneous.

Entry into New Markets or Market Segments:

-because the market is saturated at this point (maturity stage), firms may attempt to enter new geographical markets, including international markets, that may be less saturated. -However, even in mature markets, firms may be able to find new market segments. EX: Laundry - so in the U.S. laundry tablets have never been very popular people like using liquid detergent to control the amount they add, Dial has developed a 3-in-1 laundry sheet which includes laundry detergent, fabric softener, and antistatic agents. It's less expensive than purchasing premium brand versions of the 3 items. Dial hopes to appeal to a new market segment that wants a premium product and to save money, without cannibalizing its core customer groups.

Development of new products

-despite market saturation, firms continually introduce new products with improved features or find new uses for existing products because they need constant innovation and product proliferation to defend market share from intense competition.

Product launch

-if the market testing returns with positive results, the firm is ready to introduce the product to the entire market. This most critical step in the new product introduction requires tremendous financial resources and extensive coordination of all aspects of the marketing mix. -For any firm, if the new product launch is a failure, it may be difficult for the product, and perhaps the firm, to recover. So what does a product launch involve? --First, on the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the firm confirms its target market (or markets) and decides how the product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. -the timing of the launch may be important, depending on the product. EX: Hollywood Studios typically release movies targeted toward general audiences (i.e. those rated G or PG) during the summer when children are out of school.

Improving Business Relationships

-new products don't always target end consumers; sometimes they function to improve relationships with suppliers. EX: Kraft found that its lemonade flavor was selling poorly. It realized that the reason was the placement of the packages in pallets. Because it was placed at the bottom of the stacks in pallets, lemonade was the last flavor retailers would sell. By changing and innovating its pallet, Kraft offered chimney stacks for each flavor, enabling the retail stockers to reach whichever flavor they needed easily.

Changing customer needs

-when they add products, services, and processes to their offerings, firms can create and deliver value more effectively by satisfying the changing needs of their current and new customers or by keeping customers from getting bored with the current product or service offering. -Sometimes, companies can identify problems and develop products or services that customers never knew they needed.

Why has the dependence and growth of service-oriented economies sprung up in developed countries?

1. Because it's generally less expensive for firms to manufacture their products in less developed countries 2. Because people place a high value on convenience and leisure -> performance of particular tasks by specialists 3. People are demanding more specialized services

Personal selling process

1. Generate and qualify leads 2. Preapproach 3. Sales presentation and overcoming reservations 4. Closing the sale 5. Follow-up

Social media engagement process: doing

1. Identify strategy and goals: what do you want to promote/achieve? 2. Identify target audience -- Find an audience big enough that you can reach everyone who might want to adopt your product, but not so big that you end up trying to appeal to someone way outside your target market -- Multiple target markets: do an analysis for each different audience, because messages and channels will likely be different for each group 3. Develop budget 4. Campaign: experiment and engage -- Develop copy and images: clear call to action, eye-catching graphics, appeal to the right customers -- With social media, images and messages have to be updated constantly 5. Monitor and change -- Review the success of the campaign and tweak as needed -- analyze digital marketing analytics and website traffic, then change to increase online presence and improve digital conversion rate

Steps to plan and execute an ad campaign

1. Identify target audience -- Better the audience is identified, the more likely the campaign is to succeed - have to structure tone and media to appeal to target audience 2. Set advertising objectives, usually in the advertising plan (subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the ad campaign, clarifies a specific strategy for accomplishing these objectives, and indicates how to measure the success of the campaign -> the plan itself acts as a yardstick against which advertising success or failure can be measured 3. Determine advertising budget 4. Convey the message 5. Evaluate and select the media that'll be used to disseminate the campaign 6. Create advertisements 7. Assess impact of ad campaign using marketing metrics

merchandise flows

1. Manufacturing to Distribution Centers 2. Manufacturing to Store 3. Distribution Centers to Store 4. Store to Customer OR 5. Fulfillment center ships to customer

Phases of the marketing plan/strategy

1. Planning phase: execs and managers define the mission and vision of the business 2. Planning Phase continued: Evaluate the situation by assessing how various players affect the firm's potential for success (inside and outside the company) 3. Implementation phase: marketing managers identify and evaluate various opportunities via STP: segmentation, targeting, and positioning 4. Implementation phase continued: implement the marketing mix using the four Ps 5. Control phase: managers evaluate the performance of the marketing strategy and take any necessary corrective actions NOTE: not always necessary to go through the entire process for every evaluation

How Consumers Perceive Communication

1. Receivers decode messages differently (not necessarily the way the sender intended) 2. Senders adjust messages according to the medium and receivers' traits

Values-based marketing

1. add value: benefits to the consumer 2. Use info: analytics 3. Use social media and media marketing 4. Do conscious marketing: focus on corporate social responsibility

The four service gaps

1. knowledge gap -- A type of service gap, reflects the difference between customers' expectations and the firm's perception of those expectations -- Have to know what the customer wants: invest in services that improve customer satisfaction -- Cut down the knowledge gap by understanding customer expectations via customer research and more communication between managers and employees 2. standards gap -- A type of service gap, pertains to the difference between the firm's perceptions of customers' expectations and the service standard it sets 3. delivery gap -- A type of service gap, the difference between the firm's service standards and the actual service it provides to customers 4. communication gap -- A type of service gap, refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises

Criteria to assess global markets

4 sets of criteria to assess a country's market: -- Economic analysis -- Tech and infrastructure analysis -- Governmental actions and inactions -- Sociocultural analysis

Inseperable

A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable. -- Interaction with the service provider might impact the customer's perception of the service outcome -- Less chance to try the service before purchasing it, and can't return the service afterwards -- high purchase risk, so firms sometimes offer warranties, etc.

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor. -- Franchisee pays a lump sum plus a royalty on all sales, for the right to operate a business in a specific location -- Franchisee also agrees to operate the outlet in accordance with the procedures laid out by the franchisor -- Franchisor helps with locating and building the business, developing products, and coordinating advertisement, and training management, and making sure all outlets provide the same quality of service -- Combines entrepreneurial advantages of owning a business with the efficiencies of vertical marketing systems operating under single ownership

Marketing strategy

A firm's target marketing mix (the four Ps of product, price, place, promotion) , and method of obtaining a sustainable competitive advantage

sweepstakes

A form of sales promotion that offers prizes based on a chance drawing of entrants' names.

Product line

A group of associated items, such as those that customers use together or think of as part of a group of similar products

early majority

A group of consumers in the diffusion of innovation model that represents approximately 34 percent of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products and services can be profitable until this large group buys them. -- Don't like to take as much risk, tend to wait until the bugs are worked out

market penetration strategy

A growth strategy that employs the existing marketing mix and focuses on the firm's efforts towards existing customers -- could attract new customers to current target market, or encourage current target market to patronize the firm more often or buy more on each visit --> marketing penetration strategy generally needs more marketing efforts, like more advertising or additional sales and promotions, or more intense distribution efforts in certain areas where the stuff is already sold

Service Gaps Model

A managerial tool designed to encourage the systematic examination of all aspects of the service delivery process and prescribes the steps needed to develop an optimal service strategy.

Paid search

A method used by firms to appear higher up in the search results of a search engine -- Position on the search page is based on a fee charged by the search engine -- Often, an additional fee is charged every time a user clicks on the search result

bonus

A payment made at management's discretion when the salesperson attains certain goals; usually given only periodically, such as at the end of the year.

hit

A request for a file made by web browsers and search engines. Hits are commonly misinterpreted as a metric for website success, however the number of hits typically is much larger than the number of people visiting a website.

Department stores

A retailer that carries many different types of merchandise (broad variety) and lots of items within each type (deep assortment); offers some customer services; and is organized into separate departments to display its merchandise.

Subhead

A smaller headline, provides more info about the product

category killer

A specialist that offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing.

drugstores

A specialty store that concentrates on health and personal grooming merchandise, though pharmaceuticals may represent more than 70 percent of its sales.

push strategy

A strategy designed to increase demand by motivating sellers—wholesalers, distributors, or salespeople—to highlight the product, rather than the products of competitors, and thereby push the product onto consumers.

price skimming

A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it; after the high-price market segment becomes saturated and sales begin to slow down, the firm generally lowers the price to capture (or skim) the next most price sensitive segment.

strategic relationship (partnering relationship)

A supply chain relationship that the members are committed to maintaining long term, investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments, and interdependence.

partnering relationship

A supply chain relationship that the members are committed to maintaining long term, investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments, and interdependnece.

corporate vertical marketing system

A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.

referent power

A type of marketing channel power that occurs if one channel member wants to be associated with another channel member. The channel member with whom the others wish to be associated has the power and can get them to do what they want.

expertise power

A type of marketing channel power that occurs if the channel member exerting the power has expertise that the other channel member wants or needs and can therefore get them to do what they want.

reward power

A type of marketing channel power that occurs when the channel member exerting the power offers rewards to gain power, often a monetary incentive, for getting another channel member to do what it wants it to do.

information power

A type of marketing channel power within an administered vertical marketing system in which one party (e.g., the manufacturer) provides or withholds important information to influence the actions of another party (e.g., the retailer).

deal

A type of short-term price reduction that can take several forms, such as a "featured price," a price lower than the regular price; a "buy one, get one free" offer; or a certain percentage "more free" offer contained in larger packaging; can involve a special financing arrangement, such as reduced percentage interest rates or extended repayment terms.

Triple bottom line

A way to measure performance according to economic, environmental, and societal criteria

product-focused advertisements

Advertisements used to inform, persuade, or remind consumers about a specific product or service.

Public Service Announcement (PSA)

Advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing. -- Broadcasters often donate free airtime to them, they're often more creative and stylish

4Ps: price

All about capturing value -- Everything has a price, although it might not be a monetary one -- Price is everything the buyer gives up in exchange for the product -- Price has to be determined carefully based on potential buyer's belief about its value - figure out how much customers are willing to pay so they're satisfied with the purchase, while the seller still gets some profit

Evoked set

Alternative brands or stores that the consumer says they would consider when buying something

blog (weblog)

An online diary with periodic posts; corporate blogs are a new form of marketing communications.

Marketing

An organizational function/set of processes to create, capture, communicate, and convey/deliver value to customers -- also used for managing customer relationships in ways that benefit the organization and its stakeholders -- All about satisfying customer needs and wants

Wheel of Social Media Engagement: Connected Effect

An outcome of social media that satisfies humans' innate need to connect with other people -- Two-way connection via social media: people learn what their friends are into, and they also broadcast their opinions to their friends -- Increased connectivity allows consumers to seek social media approval for themselves, and provide social approval to others

Social media engagement process: Analysis

Assess what customers are saying about the firm and its competitors -- Three main categories of analysis used to understand data collected from social media: 1. Determine the amount of traffic using their sites, etc. via hits or page views 2. Learning who the visitors are, what they're doing, and what engages/excites them: bounce rate, click paths, conversion rate 3. Analyze data that comes from other sites - how did people find our site?

Different types of buying centers

Autocratic: one person makes the decision alone, though there might be multiple participants Democratic: majority rules Consultative: one person makes the decision after soliciting input from others Consensus: all members of the team have to agree before supporting a decision

Sales training

Beneficial to all salespeople, varies in type and mode of delivery depending on company -- Can also vary by topic, the kind of salesperson being trained, and the cost versus value of the training

Business ethics

Branch of ethical study looking at ethical rules and principles within a commercial context, the moral/ethical problems that might arise in a business setting, and social obligations that apply to businesspeople

private label brands

Brand developed and marketed by a retailer and available only from that retailer; also called store brands

brand equity for the owner

Brand equity: The set of assets and liabilities linked to a brand that add or subtract from the value provided by the product or service -- Brands as assets that firms can build, manage, and harness over time to increase their revenue, profitability, and overall value 1. brand awareness: measures how many consumers in a market are familiar with the brand and what it stands for, and have an opinion about it -- Greater awareness/familiarity, the easier the decision-making process -> greater chance of purchase 2. perceived value: the relationship between a product's or service's benefits and its cost -- Consumers usually determine a product's value in relation to the value of its close competitors: if they think a less expensive brand is about the same quality, the perceived value of the cheaper option is high 3. brand associations: the mental links that consumers make between a brand and its key attributes, be it a logo, slogan, or spokesperson (can also be about creating specific associations with positive consumer emotions) 4. brand loyalty: when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category -- Customers are rewarded with loyalty or customer relationship management programs -- Lower marketing costs to reach loyal customers -- Loyal customers generate positive word of mouth -- High level of brand loyalty insulates the firm from competition - less switching to competitors' brands mean more sales

Conscious marketing principle 1: Greater purpose of marketing

Business is about more than just making profits, so the actions taken by the company should focus on this purpose first and profit second -- The resulting engagement improves inputs and the outcomes of marketing actions

Business to business (b2B) buying process step 6: vendor performance assessment

Buyer assesses the vendor's performance so they can decide about future purchases (analysis is more formal and objective than in a B2C transaction)

Business to business (b2B) buying process step 1: need recognition

Buying organization recognized that it had an unfulfilled need

How marketing affects various stakeholders

Can affect lots of supply chain partners and/or society at large -- partners in the supply chain who could be affected; wholesalers, retailers, intermediaries like transportation or wharehousing companies -- All these entities are involved in marketing to each other -- Marketing can also benefit an entire industry or society

brand elements

Characteristics that identify the sponsor of a specific ad

Emotional support

Concern for other' well-being and support of their decisions in a job setting -- support and incentivize basic service providers

Wheel of Social Media Engagement: Timeliness Effect

Concerned with the firm being able to engage with the customer at the right place and time - 24/7 from any location -- To be effective, firms have to respond quickly, or timeliness benefit diminishes -> responding quickly can positively impact customers' buying intentions (those who get faster responses say they would buy more) -- Timely interactions with firms often occur when customers engage with them at the point of purchase -- Beacon Technology: tech that allows companies tp detect where customers are (those who have enabled the feature) at any time via their phones -- Intimate connections can form between a firm and their customers - firms invest time and money to create engagement, and also capture engagement data -- Understanding how to engage effectively with consumers is key

Wheel of Social Media Engagement: Network Effect

Connected effect enhances human interaction on a one-to-one basis and enables the impact of the interaction to expand exponentially -- Network effect as the outcome of social media engagement: every time a firm or person posts info, it is transferred to the poster's connections across social media, which allows the info to spread spontaneously -- Credibility and influence of the original poster and the network partners that choose to share the post determine the ultimate influence of the post -- Marketing POV: people who discuss products are more likely to buy them -- Using influencers as brand ambassadors -> a firm can use the power of digital marketing to exponentially spread its message

Marketing social factors

Consumer decision process is influenced from within by psychological factors, and from without by external social environment (family + reference groups + culture) -- Family: consider how families might influence purchase decisions of their members -- Reference group: One or more people an individual uses as a basis for comparison regarding feelings, beliefs, and behaviors (provide info to others through conversation, like blog posts to followers --> consumers can identify with reference groups to create and maintain self-image, and then buy accordingly to maintain that self-image

Variable costs

Costs that vary with production volume

4 Ps: product

Creating value by developing a bunch of offerings (goods, services, etc.) to satisfy customer needs -- Each product creates value in specific ways -- Goods: items that can be physically touched, their value stems from what they can provide and how they're marketed in terms of convenience, status, performance, etc. -- Services: intangible customer benefits produced by people or machines, can't be separated from the producer - all about the experience the customer gains -- Most market offerings combine goods and services -- Ideas: intellectual concepts, like thoughts or opinions - if you agree with/adopt the ideas, you've purchased the idea that's being marketed

Involving customers in service recovery

Customer has to get a chance to air the complaint completely, firm has to listen carefully -- Mostly customers just want to be heard -- Customer and company working together -> outcome is better than what they could do on their own

Opt in

Customer privacy issue big in Europe, takes the POV that consumers "own" their personal info, so retailers have to get consumers to explicitly agree to share their info

Showrooming

Customers visit a store to touch, feel, and try on or discuss a product's features with a sales associate, then purchase it online from another retailer at a lower price

Key conscious marketing stakeholders

Customers, society, marketplace, and employees

7C framework 6: Commerce

Desktop usage is greater, and conversion rates are higher, for online purchases -- Most loyal customers are the ones using multiple channels -> firms have to offer a range of options consistently and constantly so consumers can choose --> close alignment across channels creates a seamless experience

7C framework 4: community

Firms can use websites and blogs to allow their customers to interact, socialize, share info, and create a sense of community -- comments, reviews, responses, etc. -- thought-sharing sites as effective ways to create community

Multiple sources of advantage

Firms require multiple approaches to build a "wall" around their position that stands as high as possible

Personal selling step 1: generate and qualify leads

Generate a list of potential customers (leads) and assess their potential (qualify) -- If there's already an established relationship with the customer, skip this step (not often used in retail, either, but cannot skip in B2B situations where relationship is key) -- Qualify leads by determining if they're worth pursuing and turning into customers

7C framework 7: connection

Good digital marketing engages customers and offers them a call to action -- Online marketing is all about getting customers to interact and engage with the firm continuously and positively

Market development strategy

Growth strategy that uses the existing market offering to reach new segments of the market, be they domestic or international

Diversification strategy

Growth strategy where a firm introduces a new product or service to a market segment it doesn't currently serve (diversification opportunities can be related or unrelated) -- Related diversification: growth strategy where the current target market and/or marketing mix shares something in common with the new opportunity -- Unrelated diversification: growth strategy where new business doesn't have any common elements with the present business

White papers

In a B2B context, white papers are a promotional technique used by B2B sellers to provide information about a product or service in an educational context, thereby not appearing like a promotion or propaganda. -- Goal: provide important info that a potential B2B buyer can understand and will help the company address its issue with new solutions -- Explain the solution in nontechnical language so the firm's executives can understand and appreciate the option before considering a purchase

7C framework 3: content

Info content is key to being successful with the 4E framework of digital marketing -- Have to constantly monitor the content they share digitally and make sure the info is relevant to the target markets and creates excitement so the users will stay interested in engaging with the website and the company -- Anticipate visitors' questions and attempts to answer them through the content they present --> home page is especially important: first page has to define the firm's purpose clearly, if not, the visitors will exit the site -- Content has to align with the target market and content is NOT directly about the firm's products or services, rather, it's about things that matter to the target market -- Every online channel helps customers interact with the firm

online chat

Instant messaging or voice conversation with an online sales representative.

warehouse club

Large retailers with an irregular assortment, low service levels, and low prices that often require membership for shoppers.

Developing a marketing plan, Step 5: evaluate performance via marketing metrics -- how do you choose a metric to evaluate performance?

Lots of factors contribute to overall performance, so it's hard to find a single metric to evaluate performance --> common approach: compare firm's performance over time to itself or competing firms, using financial metrics like sales, profits, and revenues (consider absolute level of sales and profits, as well as relative levels of each) --> another possible metric: look at firm's products or services as a portfolio, depending on relative performance the profits from some products or services can be used to fuel the growth of others

Marketing environment: factors that affect the larger environment (macroenvironment)

Macro-environmental factors: aspects of the external environment that affect a company's business -- Culture: the shared meanings, beliefs, morals, values, customs of a group, transmitted by words, literature, institutions, and passed down from one generation to another as it's learned over time -- Marketers have to make their products/services identifiable by and relevant to particular groups of people - have to account for the culture of the country and region --> Country culture: visible and invisible aspects of the culture of the country, sometimes the best way to market to country culture is to establish a universal appeal within the specific identity of the country culture --> Regional culture: culture of the region of the country in which people live -- Demographics: Info about the characteristics of human populations and segments, particularly those used to identify consumer markets (like by age, gender, income, education, etc). - offer a simple snapshot of the typical consumer in a specific target market --> Income: income distribution in the U.S. is more polarized: highest income groups are growing, lowest income groups are shrinking, but the range in income creates marketing opportunities at both ends of the spectrum --> Education: higher education means better jobs and higher earnings --> gender: gender roles today are more blurred, shifts in status/attitude/behaviors affect how marketers need to design and promote their products (more gender neutral, transcending gender boundaries, more customer interaction) --> Ethnicity: U.S. is getting more diverse, and foreign-born citizens tend to concentrate in a handful of certain cities -- Social: -- Technology -- Economic -- Political/legal

Economic situation

Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in the marketer's home country and abroad -- Inflation: persistent increase in the prices of goods and services -- Foreign currency fluctuations: changes in the value of a country's currency relative to the currency of another country, can influence consumer spending -- Interest rates: The cost of borrowing money, the cost to the consumer/the fee the bank charges you to borrow money -- Shifts in these economic factors make marketing easier for some and harder for others, depending on their situation

Conscious marketing principle 4: making ethics-based decisions

Make decisions for the company that are based on sound marketing ethics

brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers

Consumer decision process model step 1: Need recognition

Need recognition: the beginning of the consumer decision process, happens when consumers recognize they have an unsatisfied need and want to go from their actual (unsatisfied) state to a different (satisfied) state --> wants: goods or services that are desired, but not necessarily needed

Different types of B2B buying situations

New buy: purchase of a good or service for the first time, likely to be a very involved decision because the buyer/buying organization has no experience with the item -- Hardest to market and sell for because the buying organization has to change its current habits -- Several buying center members likely involved, and the level of involvement will be higher, with people spending more time at each stage of the process Straight rebuy: a buyer has purchased the same thing before, this time they're just buying more of the same thing -- Usually only the buyer is involved (like a habitual purchase in a B2C transaction) modified rebuy: when a buyer has purchased something similar before, but wants to change some specs this time around -- spend less time at each stage of the process Different strategies used for different buying situations

Social media

Online and mobile tech that creates and distributes content to facilitate interpersonal interaction -- Helps consumers and firms build connections that allow them to share all different forms of information

Choice architecture: nudge

Part of the environment that alters behavior in a predictible way without forbidding other options or changing money incentives

Communicating the service promise

Poor communication between marketers and customers can cause mismatches between what's promised and what's delivered -- How the service is communicated is something that CAN be controlled -- Overpromise and underdeliver -> unhappy customers -> they tell others (word of mouth and social media as important channels for dissatisfied customers) -- Reducing the communication gap: manage customer expectations and promise only what you can deliver, or maybe a little less --> Coordinate how the expectation is created and the way the service is provided

Evaluating performance via marketing metrics: portfolio analysis

Portfolio analysis: evaluating the firm's "portfolio" of various products and businesses, then allocating resources based on what's expected to be most profitable for the firm in the future -- Portfolio analysis usually performed at the strategic business unit (SBU) or product line level of the firm -- Strategic business unit (SBU): a division of the firm itself that can be managed and operated independent-ish from the other divisions, might have a different mission or objectives -- product line: group of associated items, like those that consumers use together or think of as part of a group of similar products

Conscious marketing principle 2: Considering stakeholders and their interdependence

Potential stakeholders: broad set of people who might be affected by a firm's actions (corporate shareholders, employees, families, supply chain members, etc.) Conscious marketers consider how their actions will affect their range of stakeholders and potential stakeholders -- Want to serve as many stakeholders as possible and avoid damaging anyone, so the focus shouldn't be solely on maximizing profits -> instead, conscious marketing would tell them to focus on the broad implications of their actions -- Achieve the most benefits for the most stakeholders

Personal selling step 2: preapproach and using CRM systems

Preapproach happens before meeting the customer for the first time, extension of qualifying leads (focus on conducting additional research and developing plans for meeting with the customer) -- Once research is done, salesperson can focus on establishing goals for the meeting - know ahead of time exactly what needs to be accomplished

Pricing strategies

Pricing strategy: a long-term approach to setting prices for the firm's products -- Everyday low pricing (EDLP): strategy where the company emphasizes the continuity of their retail prices at a level between regular nosale prices and discounters -- High-low pricing: pricing strategy based on the promotion of sales, during which prices are temporarily reduced to encourage purchases -- Reference price: price against which buyers compare the actual selling price, facilitates their evaluation process -- Penetration pricing strategy: new product or service pricing strategy where the initial price is set low, object is to deter competitors from entering the market -- Experience curve effect: drop in unit cost as the accumulated volume sold increases - as sales grow, costs keep dropping, so there can be more reduced prices

Coupons

Provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount.

Memories

Psychological factors that affect decision making that consist of info acquired and stored in the brain

Digital marketing

Relates to all online marketing activities - includes all digital assets, channels, and media --> Not just online, but also social media and mobile marketing --> Online marketing activities: web design, blogging, search engine optimization -- Presence of online, social media, and mobile marketing is expanding relative to more traditional integrated marketing channels and communications

Marketing analytics

Relying on data analytics to define and refine approaches to customers and markets -- Growth of big data and associated challenges, so you have to consider the implications for lots of organizations and firms, as well as for the customers

4Ps: Place

Represents all the activities necessary to get the product to the right consumer when the consumer wants it -- Deals with marketing channel management: aka supply chain management, all about a set of approaches and techniques that firms use to efficiently and effectively integrate their suppliers -- A set of approaches and techniques firms use to integrate their suppliers, manufacturers, warehouses, stores, and transportation efficiently and seamlessly into a value chain where the merchandise is produced and distributed in the right amounts, to the right places, at the right time, minimizing systemwide costs and satisfying service levels required by customers

Business to business (b2B) buying process step 3: RFP process

Request for Proposals: process through which buying organizations invite alternative suppliers to bid on supplying their required components -- RFP could be posted on company website, another B2B portal, or sent to favorite vendors directly

Information storage stage

Second stage in memory development, refers to how knowledge is integrated and stored with what consumers already know

Developing a marketing plan, Step 3: identify and evaluate opportunities via STP (segmentation, targeting, positioning)

Segmentation, targeting, and positioning is a trio of processes used to identify and evaluate opportunities for increasing sales and profits -- Market segmentation: dividing the market into groups of customers with different needs, wants, and characteristics who might appreciate products geared especially towards them -- Target marketing, aka targeting: evaluating each market segment's attractiveness and decide which to pursue as a market -- Market positioning: once a firm has decided which market segment(s) to pursue, it determines how it wants to be positioned in those segments by defining the marketing mix variables so target customers have a clear, distinctive, and desirable understanding of what the product does or represents when compared to its competitors --> Once target segments have been identified, the firm has to evaluate each of its strategic opportunities

Omnichannel or Multichannel strategy

Selling in more than one channel (internet, catalog, etc.)

How to constantly deliver service that meets expectations

Service providers generally want people to do well once they know what's expected of them -- Generally, more employees will buy into a quality-oriented process if they're involved in setting the goals -- Employees must be thoroughly trained not just to do their jobs, but also how to treat guests - high standard of service will permeate throughout the organization

4 core differences between services and goods

Services are intangible, inseparable, heterogeneous, and perishable

Consumer decision rules

Set of criteria that consumers use consciously and subconsciously to quickly and efficiently select from among lots of alternatives

Evaluative criteria

Set of important attributes about a particular product

Click path

Shows how users proceed through information on a website, like how grocery stores try to track the way shoppers move through aisles

Microblog

Smaller than a traditional blog - short sentences, videos, and images (Twitter)

Marketing: social trends

Social trends shape consumer values - more focus on sustainability, health, wellness, better use and distribution of food -- Also of interest: energy trends, green marketing, social concerns

Exclusive Distribution Strategy

Strategy in which only selected retailers can sell a manufacturer's brand -- Benefits manufacturers: assures them the most appropriate retailers represent their products -- Great when supply is limited or a firm is just starting out

Sentiment analysis

Technique that allows marketers to analyze data from social media sites to collect consumer comments about companies and their products -- Assess how favorable or unfavorable the sentiments are -- analyze data from various sources to collect consumer comments and then analyze the comments to get insights into what consumers really think

Zone of tolerance

The area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere. -- Evaluates how well firms perform on the five service quality dimensions -- Defining the zone of tolerance: ask questions about each service quality dimension that relate to 1) desired and expected levels of service from low to high, 2) customers' perceptions of how well the focal service performs and how well a competitive service performs, and 3) importance of each service quality dimension

atmospherics

The controllable characteristics of a retail space that entice a customer to enter the store, and which are designed to influence a customer's mood so as to increase the odds of a purchase being made

distribution intensity

The number of supply chain members to use at each level of the supply chain

Wheel of Social Media Engagement: Information Effect

The outcome of digital marketing where relevant info is spread by firms or individuals to other members of their social network -- Info is the key to turning the wheel -- Relevance of the info, and therefore its impact, depends on its context and the receiver

Globalization

The process by which goods, services, capital, people, information, and ideas flow across national borders -- Global markets as a result of several fundamental changes, like reducing/eliminating trade barriers, decreasing concerns of distance and time, and standardized laws across borders

Business-to-business marketing (B2B)

The process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and consumers

encoding

The process of converting the sender's ideas into a message, which could be verbal, visual, or both. -- Most important is what is received: consumers must receive info that makes them take the brand's desired actions

Postpurchase cognitive dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers' remorse. -- Common for expensive, infrequent purchases

Exchange

The trade of things of value between buyer and seller, so each is better off as a result -- Sellers offer products or services, then communicate and facilitate the delivery of the product to consumers -- Buyers finish the exchange: give the seller info and money

personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. -- Cost of communicating with a potential buyer directly is high compared to other forms of promotion, but is the best and most efficient way to sell certain products and services

Personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. -- worth more than it costs: adds value by educating customers and providing advice, saves the customer time, makes things easier for the customer, builds long-term strategic relationships with customers -- Salespeople save time and simplify buying: time is money, customers see value in time and labor savings -- Building relationships: best person to manage the relationship is the salesperson on the front lines, best salespeople are the ones who build strong relationships with their customers

Ethical and legal issues in personal selling

Three main areas of ethical and legal issues: -- relationship between sales manager and sales force -- possible inconsistency between corporate policy and salesperson's ethical comfort zone -- Ethical and/or legal issues when salesperson interacts with customer, especially if the salesperson/their firm collects significant info about the customer --> Keeping relationships trustworthy: companies have to respect customer privacy and the "information comfort zone" of info the customer feels comfortable sharing -- As frontline rep for a firm, salesperson has a duty to be ethically and legally correct in all their delaings with customers: it's the right thing to do, means good business, and keeps long-term relationships stable (long-term relationships can fall apart if customers think/feel they've not been treated in an ethically proper manner)

Recruiting and selecting salespeople

Training is expensive, have to find people who are the right fit for the job -- Hiring based on misplaced assumptions re: gender or other categories can be damaging to the company and discriminatory -- Most important recruiting activity: determine what the salesperson will be doing and what personal traits and abilities a person should have to do the job well -- Different traits are stressed at different firms depending on the company culture and the work -- Best personal traits for salespeople: friendly sociable personality, optimistic, resilient, self-motivated, empathetic

Wheel of Social Media Engagement: Dynamic Effect

Twofold impact of the dynamic effect: 1) Describes the way in which info is exchanged to network participants via back-and-forth communications in an active and effective manner -- Back and forth promotes engagement, which makes consumers more likely to buy 2) Expands the impact of the network effect by examining how people flow in and out of network communities as their interests change

Conventional supermarket

Type of retailer that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format. Tricks to help them compete with other formats: -- Emphasize fresh perishables -- Target green, ethnic, and millennial consumers -- Provide better value with private-label merch -- Value-added services like online ordering and delivery options -- Better shopping experience

Pricing: Customers

Understand how customers will react to different prices -- Demand curve: shows how many units of a product or service consumers will demand during a specific period at different prices (usually downward-sloping: less quantity at higher prices, demand more quantity at lower prices) -- Prestige products and services: products and services that consumers purchase for status, rather than function -> higher price conveys greater status and exclusivity --> Higher price could lead to more sold, but only to a point "When customers value the increase in prestige more than the price differential between the prestige product and other products, the prestige product attains the greater value overall." -- Price elasticity of demand: measures how changes in a price affect the quantity of the product demanded, specifically, it's a ratio - percent change in quantity demanded, divided by percent change in price -- Elastic: refers to a market for a product or service that is price sensitive - small changes in price generate large changes in quantity demanded --> More elastic = more price sensitive = elasticity less than -1 (elasticity of -5 means a 1% decrease in price raises quantity sold by 5%) -- Inelastic: a market for a product or service that is price insensitive - small changes in price do not generate large changes in quantity demanded -- Customers are usually more sensitive to price increases than to price decreases (easier to lose current customers with an increase than to gain them with a decrease) -- Dynamic, aka individualized, pricing: process of charging different prices for goods or services based on the type of customer, time of day/week, season, and level of demand -- Income effect: change in the quantity of a product demanded by consumers due to a change in income -- Substitution effect: consumers' ability ti substitute other products for the focal brand, increasing the price elasticity of demand for the focal brand -- Cross-price elasticity: percentage change in demand for product 1 that occurs in response to a percentage change in price of product B -- Complementary products: products whose demand curves are positively related, so that they rise or fall together, a percentage increase in demand for one thing results in a percentage increase in demand for the other -- Substitute products: products for which changes in demand are negatively related - increase in the quantity of one represents a decrease in the quantity of the other

How marketing creates value and firms become more value-driven

Value stems from these four key activities: adding value, marketing analytics, ethical and social dilemmas, and social/mobile marketing

Corporate social responsibility (CSR)

Voluntary actions taken by a company to address the ethical, social, and environmental impacts of business operations and the concerns of stakeholders -- CSR is important in conscious marketing, but isn't the same thing as conscious marketing

Organic search

When a user enters a keyword search into a search engine like Google, the organic search ensues that determines the ranking that appears on the search engine's page -- The more relevant the key term, the higher the ranking will be on the page of search results -- The process of listing web page results based on the relevancy of key terms

4E framework: engage the customer

With engagement comes action, potential for relationship, and maybe even loyalty and commitment -- Social media tools offer a way for customers to actively engage with firms (positively or negatively) -> positively engaged customers are more profitable consumers --> Negative engagement has the potential to be more damaging than positive engagement is beneficial

Professional blogs

Written by experts, reviewing and recommending services -- Consumers trust pro bloggers' reviews, except when they know the reviewer is being compensated for their work

Brand licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee -- Common for toys, apparel, accessories, entertainment -- Firm that provides the right to use its brand (licenser) obtains revenues through royalty payments from the firm that has obtained the right to use the brand (licensee) -- Popular form of licensing: using characters from books and other media

lagged effect

a delayed response to a marketing communication campaign

distribution center

a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists

service retailers

a firm that primarily sells services rather than merchandise

Family brands

a firm's own corporate name used to brand its product lines and products -- Kraft puts the company name into the brand name of its various salad dressings

Family brand

a firm's own corporate name used to brand its product lines and products -- Selling a bunch of products under one family brand, so the individual brands benefit from the overall brand awareness associated with the larger family name

Boston Consulting Group Matrix

a framework that classifies each product or product line within a firm's "product portfolio" -- Great for conceptualizing, hard to implement in practice (hard to measure relative market share and industry growth) -- Other measures could easily substitute to represent competitive position of the product and market's attractiveness --> Also run into the issue of self-fulfilling prophecies by putting products in certain quadrants (location in quadrant impacts how it's treated and supported in the firm)

role playing

a good technique for practicing the sales presentation prior to meeting with a customer; the salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer

relative market share

a measure of a product's strength in a particular market, defined as the sales of the focal product divided by the sales achieved by the largest firm in the industry

Gross Rating Points (GRPs)

a measure used for comparing the effectiveness of different media vehicles: average reach x frequency

point-of-purchase (POP) display

a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store

relational orientation

a method of building a relationship with customers based on the idea that buyers and sellers should develop a long-term relationship

telemarketing

a method of prospecting in which salespeople telephone potential customers -- Both telemarketing and cold calls have fallen out of favor due to low success rate: not able to establish specific needs of potential customer during cold calls, because the person isn't expecting the call and might not want to participate

Advertising

a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future -- Not free, carried by some medium, source must be known or knowable (it's the law), represents a persuasive form of communication designed to get the consumer to take some action -- Consumers screen out messages that are irrelevant to them -- More communication channels and different media usage among consumers makes the job of advertisers harder - need to use creativity and different media to reach target markets

top-of-mind awareness

a prominent place in people's memories that triggers a response without them having to put any thought into it

viral marketing program

a promotional strategy that encourages people to pass along a marketing message to other potential consumers

Extended problem solving

a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk

habitual decision making

a purchase decision process in which consumers engage with little conscious effort

Relationship selling

a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties -- Salespeople doing this work with their customers to find mutually beneficial solutions to their wants and needs

order getter

a salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale -- Also responsible for following up to make sure the customer is satisfied and to build the relationship

Order taker

a salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products

Supply Chain Management

a set of approaches and techniques firms employ to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels that their customers require. -- Also called marketing channel management

sales contest

a short-term incentive designed to elicit a specific response from the sales force

brand repositioning (rebranding)

a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences -- Repositioning can improve the brand's fit with its target segment or boost the vitality of old brands -- Costs and risks: spending lots of money to make tangible changes to product and packaging, and intangible changes to the brand's image through different promotion -> costs might not be recovered if the repositioned brand and messages aren't credible to consumers

pull strategy

a strategy in which the goal is to get consumers to pull the product through the marketing channel by demanding it

Marketing plan

a written document, featuring analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives, and strategy -- Objectives and strategy defined in terms of the four Ps -- Report also features action programs for implementing objectives and strategy, as well as projected/pro forma income and possibly other financial statements -- Writing everything down helps everyone involved know what the objectives are and how they'll be met (reference point for evaluating whether or not the firm meets its objectives

Evaluation of results

after the product has been launched, marketers must undertake a critical post launch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed (if any) -- Lots of firms use panel data to improve the probability of success during the test marketing phase of a new product intro --> customer panel data is collected by panelists scanning in their receipts at home, the info is used to measure individual household first-time trials and repeat purchases

feedback loop

allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly

marketing channel management

also called supply chain management, refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers

Setting and allocating the IMC budget: objective and task method

an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs

Flighting

an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising

cooperative advertising

an agreement between a manufacturer and retailer in which the manufacturer agrees to defray some advertising costs

conscious marketing

an approach to marketing that acknowledges four key principles: 1. Higher purpose 2. Stakeholders 3. Conscious leadership and culture 4. Ethics

advanced shipping notice (ASN)

an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment

Quick response (QR) inventory system

an inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it

premium

an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing

manufacturer's representative

another name for independent agents -- Good for smaller firms or firms expanding into new markets, because then the company can get instant, extensive sales coverage without having to pay full-time staff

Service

any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer

noise

any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels

Pretesting

assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

Tracking

assessments that monitor key indicators, like daily or weekly sales volume, while the ad is running to shed light on any problems with the message or medium

Personal selling step 5: follow-up

attitudes customer develops after the sale become the basis for how they purchase in the future -- Reliability: salesperson must deliver right product/service -- Responsiveness: ready to deal with issues, questions, or problems that come up -- Assurance: customers assured through guarantees that the product will perform as expected -- Empathy: salesperson has to understand the issues faced by consumers the best give them what they want -- Tangibles: reflect the physical characteristics of the seller's business, a way to signal the quality of the product -- If expectations aren't met, the customer will complain, have to handle complaints effectively to sustain the relationship -- Best way to stop postsale problems: check in with customer immediately after sale - speed shows responsiveness and empathy from salesperson, shows customer that the salesperson cares, and sets up repeat business (first step in initiating rebuys or further orders)

Concept

brief written description of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy

Informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

Reminder advertising

communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

commission

compensation or financial incentive for salespeople based on a fixed percentage of their sales

Service quality

customers' perceptions of how well a service meets or exceeds their expectations -- Because service quality is intangible, it's hard for customers to evaluate

Keyword analysis

determine what keywords people use to search for their products and services -- With this, they can refine their sites by choosing keywords to use on the site that are the same ones used by customers -- Keywords should go on site pages, in page titles, and in URLs -- Then the return on investment can be assessed that came with improving the site (calculating incremental profit increase, divided by the investment on the site improvement)

Key conscious marketing stakeholders: society

engaging with community because they recognize the importance of community stakeholders and goodwill -- Society says: companies have to act responsibly

Product development, aka product design

entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features

Situational factors

factors affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues -- Purchase situation (predispositions to purchase things can change in certain situations), sensory situation (store environment/five senses of visual, auditory, smell, touch, and taste can influence the consumer decision process) -- Temporal state (state of mind) can alter preconcieved notions and opinions (a bad attitude changes consumer behavior, for example) -> because retailers can't predict what happens outside the store, they make the in-store experience as nice as possible

relative advantage

if a product or service is perceived to be better than substitutes, then the diffusion will be relatively quick

Fashion cycles

in industries that rely on fashion trends and experience short product life cycles, including apparel, arts, books, and software markets, most sales come from new products. EX: a motion picture generates most of its theater, DVD, and cable TV revenues within a year of its release. Or fashion designers produce entirely new product selections a few times per year.

relevance

in the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer

Preapproach

in the personal selling process, occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer

The Shape of the Product Life Cycle Curve

in theory, the product life cycle is bell shaped with regard to sales and profits. In reality, however, each product or service category has its own individual shape; some move more rapidly through their product life cycles than others, depending on how different the category is from offerings currently in the market and how valuable it is to the consumer. New products and services that consumers accept very quickly have higher consumer adoption rates very early in their product life cycles and move faster across the various stages.

product placement

inclusion of a product in a nontraditional situation, like a movie scene or bit of a tv program

Lead users

innovative product users who modify existing products according to their own ideas to suit their specific needs -- If lead users customize a firm's products then other customers might want to do the same, so studying these users lets firms understand general trends on the way

Sources of new product ideas

internal R&D, -- Product development costs are high, but the new product or service is expected to have a good chance of better tech or market breakthrough (firms expect such products to make enough in revenue and profits to offset the costs of R&D) R&D consortia, -- Groups of firms or institutions maybe including governments or educational institutions that explore new ideas or obtain solutions for developing products licensing, -- Method used in developing new tech where a firm buys the rights to use tech or an idea from another firm brainstorming, -- Group activity used to generate new ideas outsourcing, -- The client firm hires an outside firm to facilitate some aspect of its business (in this case, developing new products and services) competitors' products, -- Reverse engineering: taking apart a competitor's product, analyzing it, and creating an improved product that doesn't infringe on the competitors' patents customer input -- Tracking the use of products, soliciting suggestions and ideas from users through formal focus groups/interviews, or informal discussions

sales management

involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force

product labeling

labels on products and packages provide information the consumer needs for his or her purchase decision and consumption of the product -- Communication tool to signal benefits to consumers

trade shows

major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

Factors influencing the consumer decision process

marketing mix, psychological factors (internal to the customer), social factors, situational factors

frequency

measure of how often the audience is exposed to a communication within a specified period of time

Conversion rate

measure that indicates what percentage of visitors or potential customers click, buy, or donate at the site

Breadth

number of product lines offered by a firm; also known as variety -- Increase breadth: add new product liens to capture new or evolving markets and increase sales -- Decrease breadth: delete entire product lines to address changing market conditions or meet internal strategic priorities, focusing on other product lines instead

limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time

Brand dilution

occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

blogs (weblogs)

online diaries with periodic posts that let people share thoughts, opinions and feelings -- Corporate blogs as a new form of marketing communications -- Corporate blogs: created by companies themselves, key to digital marketing --> educate customers when discussing products, create excitement when promoting special offers, engaging two-way dialogue

Bounce rate

percentage of times a visitor leaves the website almost immediately, like after viewing just one page

Distributive fairness

pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure -- Key is to listen carefully to the customer

What is the Marketing Mix?

product, price, place, promotion (the four Ps) -- The controllable set of activities that a firm uses to respond to the wants of its target market -- Create product, capture price, communicate promotion, convey/deliver product -- Have to be aware of the effects/consequences of a product

retailer/store brands (private-label brands)

products developed by retailers -- Private-label brands: brands developed and marketed by a retailer, available only from that retailer (aka store brands)

unsought products/services

products or services consumers either do not normally think of buying or do not know about

shopping products/services

products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives

specialty products/services

products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers

institutional advertisements

promotes a company, corporation, business, institution, or organization, not intended to sell a particular product or service

Organizational culture

reflects the set of values, traditions, and customs that guide a firm's employees' behavior -- Culture often comprises a set of unspoken guidelines that employees share through various work situation -- Can influence purchasing decisions -- Generally either autocratic, democratic, consultative, or consensus --> knowing which culture is big at which organization helps the seller decide how to approach that client and who to tell what info to

Mutualism

relationship between the consumer and the company where each helps the other thrive -- Feedback is critical · Mutualism: consumers and companies enable each other's success, so ethical marketers do not manipulate their consumers, it's a symbiotic relationship o Convincing and persuading rather than manipulating o Helps companies stay ethical o Marketers have to know what the consumers want before the consumers do o All about building a relationship with consumers and each keeping the other happy o The end does not justify the means - lying is never okay, so you have to figure out what resonates with your target audience and use that to get them to do what you want rather than controlling by lying

direct marketing

sales and promotional techniques that deliver promotional materials individually -- Direct marketing retailers try to target their consumers carefully so they will be more receptive to their messages -- Customer databases allow marketers to identify and track customers over time and across purchase situations

Consumer decision process model step 2: search for information

search for information about the options that exist to fulfill the need you've identified -- Length and intensity of the search based on the degree of perceived risk associated with the purchase: more risk associated with the purchase means a longer, harder search --> internal search for info: buyer examines their memory and knowledge about the product or service, gathered via past experiences -- External search for knowledge: buyer seeks outside information, beyond their personal knowledge base, to make the decision

Loyalty programs

specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time

Introduction stage

stage of the product life cycle when innovators start buying the product

Intensive Distribution Strategy

strategy designed to place products in as many outlets as possible

Return on Market Investment (ROMI)

the amount of profit divided by the value of the investment -- For an ad, the ROI is (sales revenue generated by ad -> ad's cost) / ad's cost

Universal Product Code (UPC)

the black and white bar code found on most merchandise

Marketing environment: factors that affect the immediate environment

the capabilities of the company, the company's competitors, corporate partners, and physical environment -- Company capabilities: focus on satisfying the customer needs that match the core competencies of the company -- Competitors: marketers have to understand their firm's competitors, like strengths, weaknesses, and likely reactions to things their own firm does -- Corporate partners, aka parties that work with the focal firm: understand the role these partners play and how they work with the firm to create a single efficient manufacturing system -- Physical environment: Products and services are influenced by how they are used in the environment and how they affect the environment --> Physical environment: The land, water, air, living things --> Energy trends: firms are trying to engage in sustainable practices re: manufacturing products and providing services, as well as the types of products and services they offer --> Green marketing: strategic effort by firms to supply customers with environmentally friendly merchandise --> Have to be aware of the threat of Greenwashing: marketing products or services as environmentally friendly with the goal of gaining public approval and sales rather than actually helping the environment --> Regarding greenwashing: Consumers have to question whether a firm is spending more money and time advertising its green credentials rather than actually working to develop environmentally sound practices

social marketing

the content distributed through online and mobile technologies to facilitate interpersonal interactions

sender

the firm from which an IMC message originates; the sender must be clearly identified to the intended audience -- Sender has to remain clear and obvious at all times

Business to business (b2B) buying process Step 5: Order specification

the firm places its order with its preferred supplier(s), including a detailed description of goods, prices, delivery dates, and maybe penalties for noncompliance -- Supplier then sends acknowledgement to buyer that it has the specs, and fills the order by the due date

Buying Center

the group of people typically responsible for the buying decisions in large organizations -- Initiator: The buying center participant who first suggests buying that particular product or service -- Influencer: The participant whose views influence other members of the buying center in making the final decision -- Decider: The participant who ultimately decides any part of (or the entire) buying decision (what to buy, where, how, etc.) -- Buyer: The participant who handles the paperwork of the actual purchase -- User: the person who consumes or uses the product or service purchased by the buying center -- Gatekeeper: the participant who controls info or access to decision makers and influencers

Late majority

the last group of buyers to enter a new product market, representing approx. 34% of the population, when they do enter the market, you know the product has achieved its full marketing potential

Body copy

the main text portion of a print ad

Segmentation

the marketplace can be segmented/divided into groups of people who are important to an organization for particular reasons -- You need to know which marketplace segments your product is most relevant to (old ladies, runners, etc) and then build a marketing strategy that targets those groups

social media

the online and mobile technologies that distribute content to facilitate interpersonal interactions, with the assistance of various firms that offer platforms, services, and tools to help consumers and firms build their connections

Price

the overall sacrifice a consumer is willing to make - money, time, energy - to acquire a specific product or service -- All the things the buyer has to give up to take possession of the product -- Price is the only element of the marketing mix that doesn't generate costs - it generates revenue - so it's extra important

share of wallet

the percentage of the customer's purchases made from a particular retailer

receiver

the person who reads, hears, or sees and processes the information contained in the message or advertisement

decoding

the process by which the receiver interprets the sender's message

Diffusion of innovation

the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters

Business to business (B2B) marketing

the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers -- Usually involves manufacturers selling to wholesalers who will eventually sell to retailers -- Can also involve service firms marketing their services to other businesses rather than the ultimate consumer -- Ultimate user of the product being sold is another business -- B2B transactions are usually more complex and involve multiple members on the buying and selling sides -- B2B firms focus on serving specific types of customer markets by creating value for these customers - find it productive to focus their efforts on key industries/market segments

Growth stage

the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy -- Product is gaining acceptance and demand, sales increase, competition emerges -- Product adopters buying product -- Segmentation of the market to ride the rising sales trend and firmly establish the brand within particular segments of the market: different product variations to appeal to different segments

Individual brands

the use of individual brand names for each of a firm's products -- Kraft's lines of Jell-O and Planters

Brand extension

the use of the same brand name for new products being introduced to the same or new markets -- Increase in the breadth of a product mix

Line extension

the use of the same brand name within the same product line and represents an increase in a product line's depth -- Advantages of using the same brand name for new products: --> brand name is already well-established, so the firm can spend less in developing consumer brand awareness and brand associations for the new product --> If the original brand or the buyer extension has strong consumer acceptance, then that perception will carry over to other products under the brand umbrella --> Extensions for complementary products create synergy between products that can increase overall sales

social shopping

using the internet to communicate about product preferences with other shoppers

Adding value

value-oriented marketers measure the benefits customers perceive against the cost of their offerings -- use available customer data to find opportunities that satisfy their customers' needs better, keep costs down, and develop long-term loyalties

fulfillment center

warehouse facilities used to ship merchandise directly to customers

Consumers as your only revenue

· Customers are your only revenue - producing assets o Everything in a company is a cost, it's only through customers buying product that you generate revenue (goal: enough revenue to cover the cost o Marketing as the sole discipline that brings in revenue o High demand, low supply = you can afford to be rude to the consumers because there's no other game in town o Today, the supply is high, so to succeed, you need to pull consumers away from the competition and convert them to your product

Long Tail selling/marketing

· Long Tail: A few things at the top sell a lot, lots of little things sell a little (43% of sales from bestsellers, 57% of sales from niche products) o You can make a lot of revenue from little niche things o Today, you can reach all the little niche markets (websites help you reach the target demographics that will buy niche products) -- There's money in niche markets