.COMM 456

4E framework

1) Excite customers with relevant offers 2) Educate customers about the offers 3) help customers experience products whether directly or indirectly. 4) Give customers time to engage with their social network.

how do marketing firms become more value driven?

1) Firms must communicate information about customers and competitors across the organization and to intermediary firms involved in delivering the products to the customer including manufacturers, suppliers, transportation firms etc. 2) Striving to balance costs and benefits to the customer 3) Building relationships with customers 4) Taking advantage of new technologies such as social and mobile media.

consumer decision proceess

1) Need recognition 2) Information Search 3) alternative evaluation 4) Purchase 5) Post purchase

Types of Acfual or Perceived Risk

1) Performance Risk 2)Financial Risk 3) Social Risk 4)Physiological Risk 5)Safety Risk 6)Psychological risk

what are the factors in the immediate environment that affect consumer?

1) The company 2)Competitors 3) Corporate Partners

App pricing models

1) ad-supported apps: free to download but ads are placed on screen when the program is used to generate revenue. 2)Freemium apps:Apps that arr free to download but have in-app purchases that require users to pay for enhancements such as additional functionality. 3)paid-app- Apps that require payment to download. 4) Paid app with inapp purchases.1

steps of a social media campaign

1) identify strategy and goals 2) Identify target audience 3) campaign: experiment and engage 4) Develop budget 5) Monitor and change

Important consumer protection legislation

1)Federal Food and Drug Act- prohibits sale of adulterated and fraudulently labeled food and drug products 2)Children's Television Act-limits number of commercials shown during children's programming. 3) Do not spam law:laws to reduce spam email

strategic business unit

A division of the firm that can be managed and operated somewhat independently from the other divisions and may have a different mission or objective.

Marketing Segment

A group of consumers that repsonds similarly to a firm's marketing efforts.

Relative Market Share

A measure of the strength of a product in a particular market, defined by the sales of the focal product divided by the sales achieved by the largest firm in the industry.

Metric

A measuring system that quantifies a trend,dynamic or characteristic.

Blog

A website with periodic posts

marketing plan

A written document composed of an analysis of the current marketing situation, the threats and opportunities for the firm, marketing objectives and strategy defined in terms of the 4Ps, action programs, and projected or pro forma income(and other) financial statements.

marketing oriented era

After world war 2 the US entered a buyers market. Customers had a variety of choice and so businesses had to focus on designing products to satisify consumer needs.It was during this perios that firms discovered marketing.

what are the factors affecting consumer's search processes?

Among them are the following three factors: 1) Perceived benefits vs costs of search 2) Locus of control 3)Actual or Perceived risk

ad-supported app

Apps that are free to download but place ads on the screen when using the program to generate revenue

Production-oriented era

At the turn of the 20th century, most firms were production oriented and believed that a good product would sell itself. Manufacturers were more concerned with product innovation than satisfying the needs of individual customers, and retail stores were typically considered to be places to hold the merchandise until it was sold.

Value-based marketing era

At the turn of the 21st century businesses engage in value cocreation with customers to create and sell products successfully.

4ps-price

Capturing value: everything thatvthe buyer gives up including time, money and / or energy in exchange for a product.

Promotion

Communication by a marketer that informs, persuades and reminds potential buyers about a product in order to influence their opion and elicit a response.

How does the competition affect consumers?

Competitors can have a great impact on consumers. Firms must analyze the strengths and weaknesses of their competitors and anticipate the reaction to their marketing strategies. The competition must be constantly monitored.

personal blog

Created by an jndividual that receives no free products or compensation for positive reviews. Companies have the least control over personal blogs.

4Ps product

Creating value by developing a variety of offerings including goods,services and ideas to satisfy customer needs.

Value cocreation

Customers act as a collaborator with a mnufacturer or retailer to create a product or service.

Show rooming

Customers visit a store to touch, feel and eveb discuss the features of a product with sales associates, and then purchase it online from another retailer at a cheaper price.

the 4ps - place

Delivering the value proposition- place represents all the activities necessary to get the product to the right customer when that customer wants it.

Consumer Behavior

Dynamic interaction between the affect and cognition, and the environment by which human beings conductbthe exchange aspects of their lives.

Product line

Groups of similar items, such as those that consumers use together or think of as part of a group of similar products.

How do we excite customers?

Target customers must be presented with offers relevant to them. Relevabcy may be achieved by crafting personal orders using data from customer relationship management or costumer loyalty programs. Some firms use software such as google analytics to gather inisghts and information ob their customer. Location-based software and apps help firms deliver the offer to the target customers when they are at the store making a purchase decision.

Business to Consumer marketing

Th eprocess in which businesses sell goods and services to consumers

Marketing mix

The 4 Ps Product, Price,Place and Promotion i.e. the set of controllable activities that a firm uses to respond to the wants of its target market.

Marketing

The activity, set of institutions or processes for creating,capturing,communicating,delivering and exchanging offerings that have value for customers,clients,partners, and society at large.

How does the company influence consumers?

The company strives to meet the needs of its target customers by matching them to the firm's core competencies. E.g. corning now manufactures touch screen glass instead of just light bulb glass

Social Risk

The fears that consumers suffer when they are worried others may not regard their purchases positively.

Need recognition

The first step of the consumer decision making process where consumers recognize they have an unsatisfied need and want to go from their actual needy state to a different desired state.

Relational orientation

The marketing philosophy that firms should establish and maintain longterm relationships with their customers.

page view

The number of times an internet page is viewed by a user

Planning Phase

The part of the strategic marketing planning process in which marketing executives, in conjunction with top management: 1) Defines the mission or vision of the business. 2) Evaluates the situation by assessing how the various players, inside and oustide of the organization, affect the firms potential for success.

bounce rate

The percentage of times a user leaves a website immediately or after glancing at one web page.

Business to business Marketing

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

marketing segmentation

The process of dividing the market into groups of customers that have different needs,wants or characteristics and who therefore might appreciate products or services geared especially for them.

Targeting

The process of evaluating the attractiveness of various segments and deciding which to pursue as a market.

Information Search

The second step in the consumer decision process. Involves a search for options to satisfy consumer needs.

Value proposition

The unique value that a good or service provides to cutsomers and how it is better than and different from those of its competitors.

Professional blog

Website created by a professional individual that reviews and gives reccomendations on products and are usually offered the product for free or recieve remuneratiob for their work. Professional bloggers are often compensated for positive reviews.

how do firms educate the customer?

Well-designed social media marketing offers must have a clear call to action thay draws customers through their computer and mobile devices into online websites or traditional retail stores. In these avenues marketers javenthe opportunity to communicate the Value proposition and the benefits provided by the product. Several social media tools are critical to consumer education including blogs, blogging tools, media sharing sites like youtube.

Mission Statement

a broad statement of the firm's onjectives and the scope of the activities that it plans to undertake

Customer Relationship Management

a business philosophy and setof strategies, programs and systems that focus on identifying and building loyalty among the firms most valued customers.

market penetration

a growth strategy that employs the existing marketing mix and focuses the firms efforts on existing customers.

market development

a growth strategy that employs the existing marketing offering to reach new market segments internationally or locally.

diversification strategy

a growth strategy that introduces a new product or service to a new market segment.

Product development strategy

a growth strategy that introduces a new product or service to the firm's current target market.

related diversification

a growth strategy where the current marketing mix and or market shares something in common wuth the new opportunity.

Unrelated diversification

a growth strategy whereby the new business lacks any common elements with the current business.

what is a marketing strategy?

a marketing strategy contains: a) the firms target market(s) b) the marketing mix 4ps c) the bases on which the firm plans to build a sustainable competitive advantage

SWOT analysis

a method of situational analysis in a strategic marketing plan that assesses bith the internal environment with regard to strengths and weaknesses and the external environment in terms of opportunities and threats

hit

a request for a file from a web browser or a search engine. hits are often misinterpreted are a metric for website success. However the number of hits is usually larger than the number of people visiting a website.

sentiment analysis

a technique used by companies to analyze data from social media sites and collect consumer comments about the company and their products.

keyword analysis

an evaluation of what keywords people use to search the internet for products and services.

Sales-oriented era

between 1920 and 1950 marketing entered a sales oriented era. Customers were conidtioned by world war 2 and the great depression to consume less and manufacture otems by themselves. people would plant victoy gardens instead of purchasing produce. Firms produced more than customers wanted or were willing to buy and had to rely heavily on personal selling and advertisment.

foreign currency fluctuations

changes in the value of a countries currency relative to the currency of another country; can influence consumer spending.

political/regulatory environment

comprises political parties, government organizatuons and legislation.Free Trade laws prohibit the formation of monopolies or alliances that would damage a competitive market place. Consumer protection laws prevent false and misleading advertisement and incorporating toxic materials in products.

Ideas

intellectual concepts, thoughts, opinions and philosophies.

steps of the social media engagement process

listen->analyze->do

market share

percentage of the market accounted for by a specific entity.

Social Media

refers to the content distributed through online and mobile technologies to facilitate interpersonal relationships.

click path

shows how the users proceed through the information on a website.

marketing affects various stakeholders

stakeholders include: 1) Members of the value chain such as suppliers,manufacturers, retailers and wholesalers also other intermediary firms such as those involved in transportation. 2) Industries at large 3) Society is sometimes influenced.

Green Washing

the act of disingenuously marketing products and services to customers as environmentally friendly in order to increase sales and gain public approval.

Market Growth Rate

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

Control phase

the part of the strategic marketing planning process in which marketing managers evaluate the performance of the strategic marketing plan and take the necessary corrective actions.

Implementation phase

the part of the strategic marketing planning process in which marketing managers: 1)identify and evaluate opportunities by engaging in segmentation, targeting anf positioning. 2) implement the marketing mix using the 4ps

Consumer to Consumer marketing

the process by which consumers sell to other consumers.

Positioning

the process of defining the marketing mix so that target customers have a clear,distinct and desirable understanding of what the product does or represents in comparison with competing products.

situational analaysis

the second step in a marketing plan. Uses a SWOT analysis to examine both the internal environment with regard to opportunities and strengths and the exertnal environment in terms of opportunities and threats.

supply chain management

the set of approaches and techniques employed by firms to effectively and efficiently integrate their suppliers,manufacturers, stores, warehouses and other firms involved in the transaction(e.g. transport) into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right places and at the right times while minimizing system-wide costs and satisifying service levels required by customers.

exchange

the trade of things of value between the buyer and the seller so that each is better off as a result.

4 overarching strategies

there are 4 overarching macrostrategies that focus on aspects of the marketing mix to create and deliver value and to develop sustainable competitive advantages: 1)customer excellence: Retaining loyal customers and excellence in customer service. 2)operational excellence:: acheived through efficient oporations and excellent human reaource and supply chain management. 3) Product excellence: Having a prodiuct that has a high perceived value and excellent branding and positioning. 4)locational excellence : must have a good physical location or online presence.

Corporate Partners

there are few firms that work in isolation. Almost all firms collaborate with suppliers, manufacturers transport etc. Nau collaborates with econaterial companies and ethical sheep farmers to source materials for their socially responsible clothing lines. Partnerships like these can be beneficial to the brand inage and reputation.

Interest Rates

these represent the cost of borrowing money.

Microblogs

Shorter blogs with sentences or short clips like twitter.

conversion rate

Percentage of customers that buy a product after viewing it.

Functional need

Pertain to the performance of a product or service

Services

Intangible offerings that involve a deed,performance or effort that cannot be physically possessed; intangible consumer benefits that are produced by people or machines and cannot be separated from the producer

green marketing

Involves a strategic effort by firms to supply customers with environmentally friendly merchandise.

performance risk

Involves the perceived danger inherent in a poorly performing product or service.

Perceived Benefits or Costs of Search

Is it worth the time and effort to search for information about a product or service. For instance spend less time researcging a child's toy than a new house.

what is a sustainable advantage?

It is an advantage that a firm has over the competition that is not easily copied and can be maintained for a long period of time. it is something that a firm can persistently do better than the competition.

Goods

Items that cab be physically touched

Technological Advances

Macroenvironmental factor tgat has greatly contributed to the improvement of value of both products and services in the past few decades.

Economic Situation

Macroenvironmental factor that affects the way consumers buy merchandise and spend money, both in a marketer's home and abroad; see also inflation,foreign currency fluctuations, and interest rates.

Psychological Needs

Pertains to the personal gratification that consumers associate with a service or product.

Internal Search for Information

Occurs when the buyer examines his or her own memory and the knowledge about the product or service, gathered through past experiences.

External search for information

Occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision.

Inflation

Refers to persistent increase in the price of goods and services.

external locus of control

Refers to when consumers believe that fate or other external factors control all outcomes.

Internal locus of control

Refers to when consumers believe that they have some control over the outcomes of their actions. In which case they generally engage in more search activities

Integrated Marketing Communications

Represents the promotion dimension of the 4ps and encompasses a variety of communication disciplines including public relations, general advertising, dual marketing, electronic media, personal selling and sales promotion.

Financial Risk

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