Principles of marketing Exam 1
Marketing
Process by which companies engage customers, build relationships, and create value in order to make a profitable return
Macro environment
the larger societal forces that affect the microenvironment
Undifferentiated Marketing
a company targets the entire market
Differentiation
actually differentiating the market offering to create superior customer value
competitive advantage
advantage over competitors offering consumers more value
Publics
any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
descriptive research
marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
Exploratory Research
marketing research to gather preliminary information that will help define problems and suggest hypotheses
Marketing Concept
philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired products
Factors of Macro Environment
demographic, economic, natural, technological, political, cultural
Market Targeting
evaluating each market segment's attractiveness and selecting one or more segments to enter
Types of publics
financial, media, government, citizen-action, local, general, internal
marketing intermediaries
firms that help the company to promote, sell, and distribute its goods to final buyers
Marketing Research
helps business learn more about customers
primary data
information collected for the specific purpose at hand, First hand information
Secondary Data
information that already exists somewhere, having been collected for another purpose
ethnographic research
involves sending trained observers to watch and interact with consumers in their natural environment
Customer Insight
marketing information based on the understanding of customers and the marketplace
Micro environment
the actors close to the company that affect its ability to serve its customers
The 5 Marketing orientations
1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept
5 Step Marketing Process
1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity
Citizen- action public
A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups.
Target Market
A set of buyers who share common needs/ characteristics that a company decides to serve
Factors of a Micro Environment
Company, Supplies, intermediaries, customer markets, competitors, Publics
production Concept
Consumers will favor cheap and available products
Selling Concept
Consumers will not buy enough products unless the company promotes them
Product Concept
Consumers will value product with the highest quality
customer perceived value
Customers evaluation of the differences/ benefits of a marketing offer compared. to competing ones
Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Different ways to segregate a market
Geographic, demographic, Psychographic, behavioral
societal marketing concept
Idea in which a company's marketing decisions should consider consumers wants, companies capabilities, and long term interests
Casual Research
Marketing research to test hypotheses about cause-and-effect relationships
Ways to gather primary data
Observation, Survey, Experiment
Marketing Information System
People and procedures dedicated to assessing information needs and helps decision makers
Federal Cigarette Labeling and Advertising Act
Requires cigarette packages to carry a warning label from the Surgeon General
Marketing Plan
Shows how an organizations objectives can be achieved through marketing
Marketing Myopia
The mistake of paying to much attention to a specific product then the benefits/ experience from these products
Positioning
The way consumers define/ rank companies or products
Concentrated Marketing
company goes after one company or few segments
Differentiated Market
company targets several separate markets
value proposition
the unique value that a product or service provides to its customers and how it is better than and different from those of competitors