Marketing 2800
What are the four factors required for marketing to occur?
1) two or more parties (individuals or organizations) 2)a desire and an ability on their part to be satisfied 3)a way for the parties to communicate and 4) something to exchange
What is a need?
A need occurs when a person feels deprived of basic necessities such as food, clothing, and shelter
Marketing Strategy
A strategy is a larger, overall plan that can comprise several tactics, which are smaller, focused, less impactful plans that are part of the overall plan
Define SBU
A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
What is a want?
A want is a need that is shaped by a person's knowledge, culture, and personality.
What are the five elements of the promotional mix?
Advertising, personal selling, public relations, sales promotion, direct marketing
Core values
An organization's core values are the fundamental, passionate, and enduring principles that guide its conduct over time
Mission
By understanding it's core values, an organization can take steps to define its mission, a statement of the organization's function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision.
What type of consumer good is toothpaste?
Convenience
What are the different categories of consumer goods/products?
Convenience, specialty, shopping, unsought
What is a customer value proposition?
Customer value proposition is a cluster of benefits that an organization promises customers to satisfy their needs. I.e. Walmart's customer value proposition can be described as "everyday low prices for a broad range of products that are always in stock in convenient locations."
What is a demand curve?
Demand curve shows a maximum number of products customers will demand/buy at a given price
What are the two central marketing concerns?
Discovering and satisfying customer needs
Ansoff's Matrix: New Market/New Product
Diversification
What are two different ways to position products?
Head-to-head, differentiation positioning
Boston Consulting Group model focused on planning for small business units (Portfolio Matrix)
High MG/High MS: Stars High MG/Low MS: Problem Children Low MG/High MS: Cash Cows Low MG/Low MS: Dogs
demographic segmentation
I.E. More than half of all U.S. homes are made up of only one or two people
Four I's of service
Intangibility, inconsistency, inseperability, inventory
What type of problem solving would be used when choosing a restaurant to eat at?
Limited problem solving
Ansoff's Matrix: New Market/Present Product
Market Development
Ansoff's Matrix: Present Market/Present Product
Market Penetration
What does marketing mean?
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and sociey at large. Marketing is far more than simply advertising or personal selling.
Segmentation
Marketing segmentation involves aggregating prospective buyers into group that 1) have common needs and 2) will respond similarly to a marketing action
What is cognitive dissonance?
Post purchase tension or anxiety, when you regret your buying decision. To alleviate it, customers often search for information to reinforce their purchase decision.
Primary data
Primary data are the facts and figures that are newly collected for the project and is categorized into observational data, questionnaire data and other sources.
Ansoff's Matrix: Present Market/New Product
Product Development
What type of problem solving would be used when buying groceries?
Routine problem solving
What are Porter's Generic Strategies?
Scope vs. Source of Competitive Advantage: Broad/Cost: Cost leadership (Walmart) Broad/Differentiation: Differentiation(Kia) Narrow/Cost: Cost focus(Staples) Narrow/Differentiation: Differentiation focus (Subaru)
Secondary data
Secondary data are facts and figures that have already been recorded before the project at hand and is categorized as internal and external data depending to whether the data come from inside or outside the organization needing the research
Intangibility
Services are a performance rather than an object
Marketing tactic
Smaller plan to achieve a strategy
Inventory
The cost of maintaining the ability to deliver a service
Market Share:
Total revenue compared to all revenue from firms in that market
Multi product branding
a company uses one name for all its products in a product class
price lining
a firm that is selling not just a single product but a line of products may then price them at a number of different specific pricing points, which is called price lining
Competitive advantage
a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
sales promotion
adv: effective at changing behavior in short run, very flexible dis: easily abused, can lead to promotion wars, easily duplicated
Advertising: promotional mix
adv: efficient for reaching masses dis: high absolute costs, difficult to receive good feedback
personal selling
adv: immediate feedback, very persuasive, dis: extremely expensive per exposure, messages may differ between sales people
public relations
adv: often most credible source in consumer mind dis: difficult to get media cooperation
consumer oriented sales promotions
also known as simply consumer promotions, are sales tools used to support a company's advertising and personal selling
selective distribution
at selective places
direct marketing
avdv: messages can be prepared quickly, facilitates relationship with customer dis: declining customer response, database management is expensive
What is product repositioning
changing the place a product occupies in a consumer's mind relative to competitive products
5 environmental forces
competitive, legal and regulatory, societal, technological, economic
Types of sales promotions
coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point of purchase displays, rebates, product placements
Depth of a product
depth of a product line store carries a a large assortment of each item
Forms of nonstore selling
direct mail and catalogs, television home shopping, online retailing, telemarketing, direct selling
pull strategy
directing the promotional mix at ultimate consumers to encourage them to ask a retailer for a product
Push strategy
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
Marketing metric
each display in the marketing dashboard displays a marketing metric which is a measure of the quantitative value or trend of a marketing activity or result
What type of problem solving would be used when purchasing a car?
extended problem solving
What are the stages of the product life cycle?
introduction, growth, maturity, decline
multibranding
involved giving each product a distinct name. Multibranding is a useful strategy when each brand is intended for a different market segment
head to head positioning
involves competing directly with compeititors on similar product attricbutes in the same target market
differentiation positioning
involves seeking a less competitive, smaller market niche in which to locate a brand
prestige pricing
involves setting a high price so that quality or status conscious consumers will be attracted to the product and buy it.
odd-even pricing
involves setting prices a few dollars or cents under an even number.
personalization
is the consumer initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences
behavioral segmentation:
microfridge markets a fridge/microwave combo for college students with low budgets and not a lot of room
psychographic segmentation
people of similar lifestyle tend to live together
Geographic segmentation
people who like similar things live in the same location
price elasticity of demand
percentage change in quantity demanded/percent change in price
Pricing objectives
pricing objectives involve specifying the role of price in an organization's marketing and strategic plans
indirect marketing channels
producer to agent to wholesaler to retailer to customer
Direct marketing channels
producer to consumer
target pricing
results in the manufacturer deliberately adjusting the composition and features of a product to achieve the target price to consumers
Elastic demand
sensitive price, change in demand is greater than change in price
inseparability
services are difficult to separate from the deliverer of the service
penetration pricing
setting a low initial price on a new product to appeal immediately to the mass market
Skimming pricing
setting the highest initial price that customers really desiring the product are willing to pay
What type of consumer good is clothes?
shopping
What are the criteria for forming successful market segments and selecting target markets?
simplicity and cost effectiveness of assigning potential buyers to segments, potential for increased profit, similarity of needs of potential buyers within a segment, difference of needs of buyers among segments, potential of a marketing action to reach a segment
External factors that influence consumer decision making are:
situational, sociocultural, marketing mix, psychological
Intensive distribution
sold everywhere
exclusive distribution
sold very few places
what type of consumer good is a rolex watch?
specialty
yield management pricing
the charging of different prices to maximize revenue for a set amount of capacity at any given time
Bundle pricing
the marketing of two or more products in a single package price
What does publicity mean?
the notice or attention given to someone or something by the media
dynamic pricing
the practice of changing prices for products and services in real time in response to supply and demand conditions
breadth of a product line
the variety of different items a store carries
Marketing dashboard
the visual computer display of the essential information related to achieving a marketing objective
What type of consumer good is a thesarus?
unsought
value pricing
value pricing is the practice of simultaneously increasing product and service benefits and maintaining or decreasing price
Inconsistency
variability in the quality of service due to the variability of the people who deliver the service
brand extension
when you use an existing brand name or trademark on new products, so as to increase sales