JMU Marketing 380 Chapters 1-2

Mission Statement

A broad description of a firm's objectives and the scope of activities it plans to undertake; attempts to answer two questions: What type of business are we? What do we need to do to accomplish our goals and objectives

Customer Relationship Management (CRM)

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers; companies using CRM systematically collect info about their customers' needs and use that information to target their best customers with the products, services, and special promotions that would be most important to them

Locational Excellence

A competitive advantage based on location is sustainable because it is not easily duplicated

Strategic Business Unit (SBU)

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

Product Line

A group of products that consumers may use together or perceive as similar in some way

Metric

A measuring system that quantifies a trend, dynamic, or characteristic; used to explain why things happened and also to project the future

Marketing Plan

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements. Three major phases are Planning, Implementation, and Control.

Customer Excellence

Achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service

Target Marketing

After a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue in this process

Sustainable Competitive Advantage

An advantage over the competition that is not easily copied and can be maintained over a long period of time

Situation Analysis (SWOT Analysis)

Assesses both internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats; should also assess the opportunities and uncertainties of the marketplace due to changes in Cultural, Demographic, Social, Technological, Economic, and Political forces (CDSTEP)

Promotion

Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response

Relational Orientation

Companies realized they need to think about their customers in terms of relationships rather than transactions

Market Segment

Consisting of consumers who respond similarly to a firm's marketing efforts

Consumer-to-Consumer (C2C) Marketing

Consumers market and sell their products and services to other consumers

Value Cocreation

Customers can act as collaborators to create the product or service

Market Penetration Strategy

Employs the existing marketing mix and focuses the firm's efforts on existing customers; might be achieved by attracting new consumers to the firm's current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit

Market Development Strategy

Employs the existing marketing offering to reach new market segments, whether domestic or international

Price

Everything has a price (doesn't always have to be monetary). Price is everything the buyer gives up (money, time, and/or energy) in exchange for the product

Four P's (aka Marketing Mix)

Four interrelated decisions and consequent actions which are the controllable set of decisions or activities the firm uses to respond to the wants of its target markets: Product (Creating Value), Price (Capturing Value), Place (Delivering the Value Proposition), and Promotion (Communicating the Value Proposition)

Marketing Strategy

Identifies a firm's target market(s), a related marketing mix (its 4 P's), and the bases on which the firm plans to build a sustainable competitive advantage

Ideas

Include thoughts, opinions, and philosophies; intellectual concepts such as these can be marketed. Exchange of value occurs when children listen to bike safety sponsors' presentation and decide to start wearing their helmets; they have adopted, or become "purchasers" of the safety idea

Planning Phase of Marketing Plan

Step 1: Marketing executives, in conjunction with other top managers, define the mission and/or vision of the business. Step 2: they evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success

Implementation Phase of Marketing Plan

Step 3: Marketing managers identify and evaluate different opportunities by engaging an a process known as segmentation, targeting, and positioning (STP). Step 4: Then they are responsible for implementing the marketing mix using the four Ps

Control Phase of Marketing Plan

Step 5: Entails evaluating the performance of the marketing strategy using marketing metric and taking any necessary corrective actions

Four Macro Strategies

Strategies that focus on aspects of the marketing mix to create and deliver value and to develop sustainable competitive advantages: Customer excellence, Operational excellence, Product excellence, and Locational excellence

Marketing

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

Market Growth Rate

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

Related Diversification Opportunity

The current target market and/or marketing mix shares something in common with the new opportunity

Segmentation, Targeting, and Positioning (STP)

The firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets

Unrelated Diversification

The new business lacks any common elements with the present business

Market Share

The percentage of a market accounted for by a specific entity and is used to establish the product's strength in a particular market

Business-to-Consumer (B2C) Marketing

The process by which businesses sell to consumers

Market Segmentation

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

Business-to-Business (B2B) Marketing

The process of selling merchandise or services from one business to another

Operational Excellence

The second way to achieve a sustainable competitive advantage through efficient operations, excellent supply chain management, and strong relationships with suppliers

Marketing Channel Management (aka Supply Chain Management)

The set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers.

Exchange

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

Value Proposition

The unique value that a product or service provides to its customers and how it is better than and different from those competitors

Marketing Plan

Specifies the firm's marketing activities for a specific period of time. Multiple components: how the product/service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

Product Development Strategy

Offers a new product or service to a firm's current target market

Services

Intangible customer benefits that are produced by people or machines and cannot be separated from the producer

Diversification Strategy

Introduces a new product or service to a market segment that currently is not served

Market Positioning

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

Goods

Items that you can physically touch; primarily function to fulfill some need, but their ultimate value stems from what they provide and how they are marketed (in terms of convenience, status, performance, taste, etc.)

Product Excellence

Occurs by providing products with high perceived value and effective branding and positioning

Relative Market Share

Provides managers with a product's relative strength compared with that of the largest firm in the industry

Value

Reflects the relationship of benefits to costs, or what you get for what you give

Integrated Marketing Communications (IMC)

Represents Promotion; encompasses variety of communication disciplines such as advertising, personal selling, sales promotion, PR, direct marketing, and online marketing including social media- in combination to provide clarity, consistency, and maximum communicative impact

Place

Represents all the activities necessary to get the product to the right customer when that customer wants it.