Ch 1 & Ch 2

What info can marketers gather from the internet?

loyalty cards, frequency of store visits, buying preferences, Info Scan, Behavior Scan

What is the aim of marketing?

make selling superfluous in that they should know and understand consumers so well that the product sells itself.

What is consumer resistance?

many feel there are few real differences between brands so they show less loyalty and are more price sensitive

Marketing should focus on

meeting needs profitably" and "delivering a consistently higher standard of living"

Product orientation is also known as

myopia

What did IKEA notice?

noticed that people wanted quality furniture but at low prices.

What do SBUs focus on?

on markets rather than the good or service

What is Fulfillment management process?

receiving and approving orders, shipping goods on time, and collecting payment

What did EBAY recognize?

recognized that consumers needed an online source for locating unrelated items they wanted to buy

Socially responsible business practices include

recycled packaging

What's the industry boundary in mission statements?

specify nature of industry. Caterpillar operates primarily in industrial markets, John Deere operates in both industrial and consumer.

What's the vertical channels boundary in mission statements?

specify number of channel levels from raw materials to final product. Large vertical scopes are those that are involved throughout this process and smaller vertical scopes outsource some of these functions

What's the competence boundary in mission statements?

specify the range of technological and/or other core competencies

What's the geographic boundary in mission statements?

specify the regions or countries served

What's the market segment boundary in mission statements?

specify type of consumers served (Gerber, Victoria's Secret, Big & Tall)

Corporate social marketing aims to

supporting behavior change

What is the product concept?

consumers favor products offering the most quality, performance, or innovative features.​

Example of experiences marketed

Disney and Starbucks

Satisfaction reflects what?

a consumer's judgment of a product's perceived performance in relation to expectations

Example of ideas marketed

Revlon does not sell cosmetics.

What is internal marketing also known as

inside out approach

What's the product boundary in mission statements?

specify the range of products and applications supplied

When an organization is no longer a blank creator and becomes product oriented, it is least likely to adapt to changing customer needs

value

What are the 3 value creation phases?

1. Choosing the value 2. Providing the value 3. Communication the value

What are 5 characteristics of good missions statements?

1. Focus on a limited number of goals​ 2. Stress major policies and values​ 3. Define major competitive spheres​ 4. Take a long-term view​ 5. Short, memorable, meaningful

3 things manufacturers do?

1. Go to resource markets 2. buy resources to turn into goods/services 3. Sell it to intermediaries who sells them to consumers

What are the 5 core business processes?

1. Market-sensing 2. New Offering Realization 3. Customer Acquisition 4. Customer Relationship management 5. Fulfillment Management

Assessing growth opportunities includes what 3 things:

1. Planning new businesses, 2. Downsizing 3. Terminating older businesses

What are the 4 company orientations?

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

During prosperity and recession what things should market managers do?

1. Secure existing market from core segments 2. Push for greater market share from competition 3. Increase marketing budget 4. Emphasize core values 5. Drop unprofitable programs 6. Dont discount your nest brands?

Give a product and market orientation for each company 1. MP Railroad 2. Xerox 3. Standard Oil 4. Columbia Pictures

1. We run a railroad. We are people and goods . 2. We make copy equipment. we improve office productivity. 3. We sell gasoline. We supply energy 4. We make movies. We entertain people.

core competency has three characteristics

1. a source of competitive advantage and makes a significant contribution to perceived customer benefits​ 2. It has applications in a wide variety of markets​ 3. It is difficult for competitors to imitate

What is an SBU?

A Strategic Business Unit (SBU) is a subgroup of a single business or a collection of related businesses within the larger organization​

What are the 4 characteristics of SBUs?

A distinct mission and specific target market​ Control over its resources​ Its own competitors​ Plans independent of other SBUs​

What is the value chain?

A tool for identifying ways to create more customer value

Situational Analysis

An assessment of a firm's internal and external environments

What is industry convergence and examples?

Coming together of computing and consumer electronic industries (Apple, Sony, Samsung)

What are global markets

Companies in the global marketplace must decide which countries to enter; how to enter each (as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer); and how to adapt features to each country

What are business markets?

Companies selling industrial goods/services often face well-informed professional buyers skilled at evaluating competitive offerings

What are consumer markets?

Companies selling mass consumer goods/services focus on establishing a strong brand image by developing a superior product and packaging, ensuring availability, and backing it with engaging communications and reliable service​

What are non-profit markets?

Companies selling to nonprofit organizations with limited purchasing power such as churches, universities, charitable organizations, and government agencies​

What is consumer information/participation and examples?

Consumers have ability to find multitude of information online such as Urbanspoon, IMDB, Wikipedia, TripAdvisor, etc

3 Types of corporate social initiatives

Corporate social marketing, corporate community involvement, socially responsible business practices

Which company leveraged social media

Dell THROUGH Twitter

Why don you discount your best brands during bad times?

Discounting established brands tells the market your price was too high before and your products are not worth the future price once discounts are over. If you want to appeal to price conscious customers, create a new brand with lower prices​

Two examples of crowdsourcing?

Lego Ideas, Amazon's Mechanical Turk

What are the 4 strategic alternatives and their definition?

Market penetration - increase market share among existing customers (loyalty cards)​ Market development - attracting new customers to existing products (foreign direct investment)​ Product development - creating new products for present markets (Apple)​ Diversification - introducing new products into new markets Disney licenses characters for other products (packaging).

In providing the value phase,

Marketing must determine specific product features, prices, and distribution.

IBM won because

Once competitors saturated the market with cheaper hardware alternatives, they adjusted by moving into software rather than hardware.

What is the traditional marketing mix?

Product, place, promotion, and price

Example of Information marketed

Siemens isn't only selling Xrays or MRIs, but information. Their business is really health care information technology and the end product is an electronic patient record

What has become an important resource for companies in reaching consumers?

Social media

What's a type of metamarket and what does it consist of?

The automobile metamarket. It consists of new/used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, etc.​

Social responsibility requires to understand what

The financial and non financial returns to business and society from marketing

What is Marketing?

function that creates, communicates, and delivers value to customers

What is the external environment?

Uncontrollable elements outside of an organization that may affect its performance either positively or negatively (economy, competition, technology, political unrest, etc.) (Greece)​ Firm cannot directly control external factors but can respond to them via planning

Large firms like blank Company usually operate several SBUs

Walt Disney

SBUS may have blank

a mission statement

What are the core business processes?

activities which are necessary for the the survival of the firm.

What is a strategic planning gap

an assessment of the difference between projected and desired sales.

Kodak failed because

because they were reactive and not proactive in consumers' rapid shift to digital cameras.

Corporate community involvement aims to

being visible in the community and associating brand with positive actions ​

What's a metamarket?

cluster of complementary products closely related in the minds of consumers

What is a market?

collection of buyers and sellers who transact over a particular product or product class (such as the housing market

What does the government do?

collects taxes to buy goods from resource, manufacturer, and intermediary markets and uses them to provide public services.​

Activity systems are when

companies integrate core business process consistent across categories

What is the production concept?

consumers prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution (myopia—Kodak, railroad industry)​

What is the selling concept?

consumers, if left alone, won't purchase enough products. Practiced most aggressively with unsought goods—goods buyers don't normally think of buying such as insurance and cemetery plots. The aim is to sell what they make, keep inventory low and keep profits high.

What is the internal environment?

controllable elements inside of an organization (human capital, organizational culture-Google, financial stability, corporate reputation, quality products, brand strength, etc.) These elements represent key strengths and weaknesses ​ of the firm​

What's an unstated need example?

customer expects good service from the dealer (Residence Inn)

An example of real needs?

customer wants a car whose operating cost, not initial price, is low

An example of stated needs?

customer wants an inexpensive car

Whats an example of secret need?

customer wants friends to see him/her as elegant or classy

What is a Delight needs example?

customer would like the dealer to include GPS navigation system

Whats the marketing concept?

customer-centered, sense-and respond philosophy. The job isn't to find the right customers for your products, but the right products for your customers.​

What is the Customer Acquisition process?

defining target markets and prospecting for new customers

What is customer relationship management?

developing and maintaining close customer relationships to encourage loyalty

Corporate culture can become blank in a rapidly changing business environment such as companies like blank

dysfunctional. enron

The lowest curve projects the blank sales over the next five years from the current business portfolio. The highest describes blank sales over the same period.

expected. desired

What is the Market-sensing process?

gathering and acting upon information about the market​

What's marketed? (8 items)

goods, services, experiences, persons, places, organizations, information, ideas

Having consumer info/participation allows people to what?

have more power to influence peer opinions and marketers try to harness this power

Internal marketing is what

hiring, training, and motivating able employees who want to serve customers well.

With blank, marketers are able to collect richer information about markets, prospects, and competitors

internet

Social responsibility analyzes what aspects?

legal, ethical, social, and environmental

What is Disintermediation ?

liminating the human aspect by automating the marketing process (Amazon, eBay, E-Trade).​

What is crowdsourcing?

outsourcing the tasks usually assigned to marketers or researchers to the 'crowd' or potential markets.

Value perceptions increase with blank and service but decrease with blank. ​

quality, price.

Value is a combination of

quality, service, and price (qsp

What is the customer value triad?

quality, service, and price (qsp

In the Choosing the value phase,

represents the "homework" marketers must do before any product exists. Marketers must segment the market, select the appropriate target, and develop products with customer appeal. The formula "segmentation, targeting, positioning (STP)" is the essence of strategic marketing.

What is the New Offering Realization process?

researching, developing, and launching new high-quality offerings quickly and within budget

What is retail transformation?

retailers are beginning to focus more on abstract experiences rather than products (Dick's Sporting Goods, Bass Pro Shops)

What do consumers do?

sell their labor and receive money with which they pay for goods and services

What is the corporate culture?

shared experiences, stories, beliefs, and norms that characterize an organization.​

Whereas managers can change blank and blank, the company's culture is very hard to change (Facebook)

structures and policies

In the communicating the value stage,

utilizing the sales force, Internet, advertising, and any other communication tools to promote the product. The value delivery process begins before there is a product and continues through development and after launch.​

Marketers help consumers learn what they "blank" by promoting what they "blank" such as the blank and blank industry.

want. need. communications industry, luxury auto industry"

SBUs answer what question

what business are we in