Marketing 3000 Exam 1 BGSU

Sustainable Marketing Principles

1. Consumer-oriented marketing 2. Customer value marketing 3. Innovative marketing 4. Sense-of-mission marketing 5. Societal marketing

Steps in the Strategic Planning Process

1. Defining the company mission 2. Setting company objectives and goals 3. Designing the business portfolio 4. Planning marketing and other functional strategies

Marketing Process

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

Business portfolio steps

1. the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. 2. it must shape the future portfolio by developing strategies for growth and downsizing.

Marketing Mix (4 P's)

1.Product, 2.Price, 3.Place, 4.Promotion

Product Oriented

An approach to business that centers on capturing business by focusing on creating and manufacturing better products at lower prices.

Managing Marketing

Analysis Planning - Develop strategic plans, develop marketing plans Implementation- carry out the plans Control - measure results, evaluate results, take corrective action

Chapter 3

Analyzing the Marketing Environment (PART 2: UNDERSTANDING THE MARKETPLACE AND CONSUMER VALUE)

Cash Cows (BCG Matrix)

Cash cows are low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of the cash that the company uses to pay its bills and support other SBUs that need investment.

promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response constitutes of 4 As: Awareness

Chapter 2

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization

Stars (BCG Matrix)

High-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.

Demands

Human wants that are backed by buying power

real-time marketing

Marketers can engage consumers in the moment by linking brands to important trending topics, real world events, causes, personal occasions, or other important happenings in consumers' lives

Question Marks (BCG Matrix)

Question marks are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.

geographic organization

Sales and marketing people are assigned to specific countries, regions, and/or districts

price

The amount of money exchanged for a good or service, constitutes of 4 As: Affordability

customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Management

The process of accomplishing the goals of an organization through the effective use of people and other resources.

downsizing strategy

There are many reasons that a firm might want to abandon products or markets. A firm may have grown too fast or entered areas where it lacks experience. The market environment might change, making some products or markets less profitable.

Weaknesses (SWOT)

These are internal factors about a business that can be seen as negative factors. Weaknesses might include a poorly trained workforce, limited production capacity, ageing equipment or poor cash flow. This information would also have been obtained from an internal audit.

matrix approach disadvantages

They can be difficult, time consuming, and costly to implement.

digital and social media marketing

Using digital marketing tools such as Web sites, social media, mobile apps and ads, online video, e-mail, and blogs that engage consumers anywhere, at any time, via their digital devices.

Sense-of-mission marketing

a company should define its mission in broad social terms rather than narrow product terms

customer value marketing

a company should put most of its resources into customer value-building marketing investments

Consumer-oriented marketing

a company should view and organize its marketing activities from the consumer's point of view

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

market segment

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

value delivery network

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

market oriented

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept

Product/market expansion grid

a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

innovative marketing

a principle of sustainable marketing that requires a company to seek real product and marketing improvements

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment. mission statements should be market-oriented and defined in terms of satisfying basic customer needs. Products and technologies eventually become outdated, but basic market needs may last forever.

Boston Consulting Group Matrix

an analysis method of a firm's product portfolio regarding its market share and market growth

Positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets.

true friends

both profitable and loyal

Consumer-generated marketing

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

operating control

checking ongoing performance against the annual plan and taking corrective action when necessary

greater consumer empowerment

companies can no longer rely on marketing by intrusion. Instead, they must practice marketing by attraction—creating market offerings and messages that engage consumers rather than interrupt them. Hence, most marketers now combine their mass-media marketing efforts with a rich mix of online, mobile, and social media marketing that promotes brand-consumer engagement, brand conversations, and brand advocacy among customers.

market development

company growth by identifying and developing new market segments for current company products

market penetration

company growth by increasing sales of current products to current market segments without changing the product. It can spur growth through marketing mix improvements—adjustments to its product design, advertising, pricing, and distribution efforts.

product development

company growth by offering modified or new products to current market segments

Diversification

company growth through starting up or acquiring businesses outside the company's current products and markets

strategic control

consists of monitoring the execution of strategy and making adjustments, if necessary

Threats (SWOT)

current and emerging external factors that may challenge the company's performance. Examples include new competitors entering the market, globalisation driving down prices, changes in regulations or economic policy.

Maximize

customer-centered firm seeks to deliver high customer satisfaction relative to competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its prices or increasing its services. But this may result in lower profits. Thus, the purpose of marketing is to generate customer value profitably.

frequency marketing programs

direct marketing programs that provide concrete rewards to frequent customers. Airlines offer frequent-flier programs, hotels give room upgrades to frequent guests, and supermarkets give patronage discounts to "very important customers."

Segmentation

dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

Targeting

evaluating each market segment's attractiveness and selecting one or more segments to enter

Opportunities (SWOT)

external factors that the company may be able to exploit to its advantage

marketing intermediaries

firms that help the company to promote, sell, and distribute its goods to final buyers

financial intermediaries

firms, such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers

distribution firms

help the company stock and move goods from their points of origin to their destinations

Barnacles

highly loyal but not very profitable

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

Strengths (SWOT)

internal capabilities that may help a company reach its objectives

Production concept

is the idea that consumers will favor products that are available and highly affordable, therefore the organization should focus on improving production and distribution effects

The marketing concept

is the philosiphy in which according organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

strangers

low potential profitability and little projected loyalty

Differentiation

making a product different from other similar products to create superior customer value. If a product is perceived to be exactly like others on the market, consumers would have no reason to buy it.

place

making goods and services available in the right quantities and locations, when customers want them, constitutes of 4 As: Accessibility

Customer-engagement marketing

making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community

marketing dashboards

meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance

marketing control

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved

butterflies

potentially profitable but not loyal

full partnerships

relationships that have close working relations, trust, mutual respect, and highly integrated operations. For example, P&G sales representatives work closely with Walmart, Kroger, and other large retailers that sell Tide.

Customer-Driven Marketing Strategy

segmentation, targeting, differentiation, positioning

caring capitalism

setting themselves apart by being civic minded and responsible

sustainable marketing

socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs

Market Offerings

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

Needs

states of felt deprivation that consist of Maslow's heirarchal needs

Microenvironment

the actors close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Marketing Management

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

Business Portfolio

the collection of businesses and products that make up the company

customer perceived value

the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

Wants

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

societal marketing concept

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

product concept

the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements

Selling 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

Macroenviornment

the larger societal forces that affect the microenvironment - demographic, economic, natural, technological, political, and cultural forces

marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships, This is guided by the four Ps

Marketing services agencies

the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets

Marketing Myopia

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

product

the need-satisfying offering of a firm, constitutes of 4 As: Acceptability

Marketing Return on Investment (ROI)

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

share of customer

the portion of the customer's purchasing that a company gets in its product categories

Marketing

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

business portfolio analysis

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

Strategic Planning

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

market

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

value proposition

the set of benefits or values it promises to deliver to consumers to satisfy their needs

Marketing Mix

the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market

customer equity

the total combined customer lifetime values of all of the company's customers

customer's lifetime value

the value of the entire stream of purchases a customer makes over a lifetime of patronage

Marketing Implementation

turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

Partner relationship management (PRM)

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

Functional Organization

Departmentalization around specialized activities such as production, marketing, and human resources.

Dogs

Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

Value

Due to the changing economic environment, marketers are increasingly emphasizing this