Marketing Test 1

What is AirBnB's mission?

"belonging anywhere"

Conditions of an exchange

1. Atleast 2 parties 2.each party has something of value to the other 3. each is capable of communication and delivery 4.each is free to accept or reject 5.each believes it is appropriate to deal with the other

marketing management orientations

1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept

The Marketing Process: Creating and Capturing Customer Value FIGURE 1.1 KNOW!!!!!!!

1. Understand the marketplace and customers needs and wants 2. Design a customer value driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4.engage customers build relationships and create customer delight 5. capture value from customers to create profits and customer equity 2 and 3 create and build 5 captures value

What are the bonds?

1. Utilitarian-whats in it for me (the customer) frequency programs and building a relationship 2.affective-customer wants to go there, they like the customer service acts of kindness can impact this 3.symbolic-fits with who you are example of buying flowers at lowes bc it goes back to breast cancer research 4. Obligatory-you ought to go, not a need/want

measures for marketing return on investment

1. brand awareness 2.sales 3. market share

What are the key changes to the marketing landscape?

1. digital age (social media, big data, artificial intelligence) 2. growth of not for profit marketing (used by hospitals, zoos, religious organizations, etc.) 3. rapid globalization (McDonald's generates 75% of corporate rev from outside the US) 4. sustainable marketing

4 different customer relationship groups

1.strangers 2. butterflies 3.true friends 4. barnacles

how many SBU's are in a BCG

10

World Population US population

7,622,796,557 329,163,066

Amazon

Amazon is rapidly growing They only trail behind walmart they "obsess over customers" selection convenience and value successful bc strongly customer focused and heavy marketing

What is the BCG?

Boston Consulting Group developed the best known portfolio planning method; a leading management consulting firm

what is consumer generated marketing? give an example of someone who uses this.

Brand exchanges created by consumers themselves both invited and uninvited by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers Tesla uses this..they had a fan made ad contest

What is CLV? recall the stew leonard example

Customer Lifetime Value the value of the entire stream of purchases a customer makes over a lifetime of patronage example: stew leonard has 5 supermarkets he says he sees 50,000 dollars walking out everytime there is an upset customer and it can be worse bc they will share with other customers their bad experience

relationship marketing vs transnational

Discrete transactions-ACQUIRE Relational-ACQUIRE AND RETAIN

Why did we talk about domino, mcdonalds, coke, apple, amazon, google and microsoft?

Dominos-they are moving to italy to take over the pizza industry mcdonalds-changing the style and look of the restaurant coke-bringing the world together one coke at a time apple-creating new experience in the store for the customer amazon-one stop shop on the internet google-one stop search engine microsoft-recreating typing and presentation platforms

Frito lay chip study findings

Flat Chips-affectionate, irresistible, casual, and fun member of the family rigged chips-expressive, aware and confident tostitos- trendy cutting edge issue conscience and change oriented

Why did we discuss frito lay?

Frito lay was the first to study customers who like certain chips

What is the Snickers Hungerithim index and which key area of change does it address

It was a Social Media campagin which monitored the "mood" of the internet and offered real time price discounts to consumers when the internet was "hungry" angry internet=cheaper snickers It addresses digital age-social media

name the 2 axis of the BCG

Market growth rate and relative market share

4 P's of Marketing

Product, Price, Place, Promotion these should be blended into an integrated marketing plan

an overall evaluation of the company's strengths weaknesses opportunities and threats

SWOT

what is the difference between the marketing concept and the societal marketing concept?

The societal marketing concept shows that companies should balance three considerations in setting their marketing strategies: company profits, consumer wants, and society's interests. Example: Cosmetics retailer Lush knows that doing what's right benefits both customers and the company. "We believe in happy people making happy soap," says the company's mission statement.

Define mission statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

what are the 5 functions associated with the management of marketing

analysis planning implementation organization control

Highly loyal but not very profitable

barnacles

potentially profitable but not loyal

butterflies

What is a SBU (strategic business unit)?

can be a company division or sometimes a single product or brand

low growth high share

cash cow

What is CMO?

chief marketing officer this person heads up the companys entire marketing operation and represents marketing in the company

how can a company gain a share of wallet?

companies can offer greater variety to current customers or they can create programs to cross sell and up sell to market more products and services to existing customers

interrelated groups in a company for the internal environment

company

what are some of the customer centered measures?

customer acquisition customer engagement customer retention customer life time value customer equity

The total combined customer lifetime values of all of the company's customers it relates to CLM because the aim of CLM is to produce high customer equity

customer equity

What is CRM?

customer relationship management the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

what is meant by market oriented?

defined in terms of satisfying basic customer need focusing on customers and customer experience

Human wants that are backed by buying power

demands

actually differentiating the market offering to create superior customer value

differentiation

Company growth through starting up or acquiring businesses outside the company's current products and markets ex:starbucks reserve roasteries or bars (high end)

diversification

Which of Ansoff's four marketing strategies represents the highest risk approach for a business? least?

diversification market penetration

low growth low share

dogs

the act of obtaining a desired object from someone by offering something in return

exchange

how many sections are there to a marketing plan?

executive summary currently marketing situation threats and opportunities analysis objective and issues marketing strategy action programs budgets controls

expectation satisfaction model

expectations---perceived performance---1. Delighted 2. Satisfaction 3. dissatisfied

what is meant by product oriented?

focusing on the product

What is important about belonging to AirBnB

it drives everything they do its not just a room provider they are a curator of an authentic and unique experience

**FIGURE 1.6

know it !!!

larger societal forces that affect the microenvironment

macroenvironment

What is customer engaged marketing

making the brand a meaningful part of consumers conversations and lives by fostering direct continuous customer involvement in shaping brand conversations experiences and communities ex: barkbox

company growth by identifying and developing new market segments for current company products example: starbucks looking at demographics

market development

some combination of products services information or experiences offered to a market to satisfy a need or want

market offering

company growth by increasing sales of current products to current market segments without changing the product ex: adjusting the product design ads price or distribution starbucks mobile app

market penetration

4 quadrants of the Ansoff's matrix

market penetration market development product development diversification

a group of consumers who respond in a similar way to a given set

market segment

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

market segmentation

the process by which companies engage customers, build strong customer relationships and create customer value in order to capture value from customers in return

marketing

The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

marketing environment

is the process that turns marketing plans into marketing actions

marketing implementation -who when where how

Help the company to promote, sell, and distribute its products to final buyers

marketing intermediaries

the art and science of choosing target markets and building profitable relationships with them

marketing management

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

marketing myopia

the net return from a marketing investment divided by the costs of the marketing investment

marketing return on investment

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

marketing strategy

Actors close to the company that affect its ability to serve its customers

microenvironment

2 types of marketing environment

microenvironment macroenvironment

states of felt deprivation

needs

includes company activities that make the product available to target consumers

place

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

positioning

the amount of money customers must pay to obtain the product

price

the goods and services combo the company offers to the target market

product

company growth by offering modified or new products to current market segments ex:starbucks making K cups

product development

refers to activities that communicate the merits of the product and persuade the target customers to buys it

promotion

high growth low share

question mark

marketing consists of creating maintaining and growing desirable exchange of relationships built by consistently delivering superior customer value

relationships

feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to expectations

satisfaction

What is marketing in 3 words?

satisfying customers needs

what is the difference between the selling concept and the marketing concept?

selling--factory--existing products--selling and promoting--profits through sales volume takes on an INSIDE OUT view that focuses on existing products and heavy selling. The aim is selling what the company makes than making what customers want marketing--market--customer needs--integrated marketing--profits through customer satisfaction takes on an OUTSIDE IN view focusing on satisfying customers needs as a path to profits

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests (needs/ wants and society)

societal marketing concept

name the 4 quadrants of a BCG

star cash cows question marks dogs

high growth high share

stars

Draw figure 2.1 and know which boxes are corporate**

steps of strategic planning 1. defining the company mission (corporate) 2.setting the company objective and goals (corporate) 3. Designing the business portfolio (corporate) 4. planning marketing and other functional strategies (business unit, product and market level)

neither loyal nor profitable

strangers

the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities

strategic planning

provide the resources needed by the company to produce its goods

suppliers

Evaluating each market segment's attractiveness and selecting one or more of the market segments to enter is called:

targeting

what is a business portfolio?

the collection of businesses and products that make up the company

philosophy that says achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do (needs and wants of customers)

the marketing concept

What is a portfolio analysis?

the process by which management elevates the products and businesses that make up the company

the idea that customers will favor products that offer the most quality in performance and innovative features meaning the company should focus on making continuous product improvement (quality/performance/innovation)

the product concept

the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency (available/affordable) example: personal computer company Lenovo and home appliance maker Haier in the chinese market

the production concept

The idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort (large scaling selling/promo) example: things you dont always think about like life insurance or donating blood

the selling concept

what is the value chain? How is it different from the value delivery network?

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products the series of internal departments that carry out value creating activities to design produce market deliver and support a firms products

What is a market?

the set of all actual or potential buyers of a product or service

What about Patagonia which key area does it address

they address sustainable marketing the call for more environmental and social responsibility Patagonia's mission statement- "We are in the business to save our home planet"

both profitable and loyal

true friends

A customer's subjective assessment of benefits relative to costs in determining the worth of a product

value

a network composed of the company, suppliers, distributers and ultimately customers who partner w each other to improve the performance of the entire system in delivering customer value

value delivery

The set of benefits or values a company promises to deliver to consumers to satisfy their needs the company must decide how it will differentiate and position in the market

value proposition

the forms of human needs take as they are shaped by culture and individual personality

wants

what is partner relationship management?

working closely with partners in other company departments and outside the company to jointly bring greater value to customers