MKT332 Final
Seller's market
A market in which there are more buyers for fewer goods and services.
Buyer's market
A market in which there are more goods and services than people willing to buy them
BCG matrix
A market share/market growth matrix that plots market share against market growth potential
Steps in the marketing planning process
1. define the misison of the organization 2. determine organizational objectives 3. Assessing organizational resources and evaluating environmental risks and opportunities 4. formulate strategy 5. implement strategy through operating plans 6. monitor and adapt strategies when necessary based on feedback
Sales orientation
Belief that consumers will resist purchasing nonessential goods and services, with the attitude toward marketing that only creative advertising and personal selling can overcome consumers' resistance and persuade them to buy
marketing mix variables
Blending product, distribution, promotion, and pricing to fit needs and preferences of a specific target market
Consumer orientation
Business philosophy incorporating the marketing concept that emphasizes first determining unmet consumer needs and then designing a system for satisfying them
Production orientation
Business philosophy stressing efficiency in producing a quality product, with the attitude toward marketing that a good product will sell itself
Transaction-based marketing
Buyer and seller exchanges characterized by limited communications and little or no ongoing relationships between the parties
Interactive marketing
Buyer-seller communications in which the customer controls the amount and type of information received from a marketer
Eight universal marketing functions
Buying Selling Transporting Storing Standardizing & Grading Financing Risk Taking Securing marketing information
Exchange functions
Buying and selling
Organization marketing
Marketing efforts of mutual-benefit organizations, service organizations, and government organizations that seek to influence others to accept their goals, receive their services, or contribute to them in some way
Mobile marketing
Marketing messages transmitted via wireless technology.
Event marketing
Marketing of sporting, cultural, and charitable activities to selected target markets
Social responsibility
Marketing philosophies, policies, procedures, and actions that have the enhancement of society's welfare as a primary objective.
Not-for-Profit marketing
Marketing strategy is adopted to meet service objectives Not-for-profit organizations form alliances with business firms for mutual benefit Does not focus on bottom line Markets to multiple audiences
Ethics
Moral standards of behavior expected by a society.
Transporting
Moving products from their point of production to locations convenient for purchasers
Converting new customers to advocates
New customer -> Regular purchaser -> Loyal supporter -> Advocate
___________ often raise awareness and funds through strategic partnerships.
Not-for-profit organizations
examples of weaknesses
Too narrow a product line Lack of management depth High-cost operation due to high labor costs and obsolete production facilities Inadequate financing capabilities Weak market image
Selling
Using advertising, personal selling, and sales promotion to match products to customer needs
Storing
Warehousing products until needed for sale
Place
Availability of goods and services at convenient locations
Time
Availability of goods and services when consumers want them
Ownership (possession)
Ability to transfer title to goods or services from marketer to buyer
Marketing
Activity, set of institutions, and processes for: creating, communicating delivering & exchanging offerings and managing customer relationships in ways that have value for customers, clients, partners, and society at large
examples of opportunities
Add to product line Enter new markets Acquire firms with needed technology
Planning
Anticipating future events and conditions and determining the best way to achieve organizational objectives Includes Identifying objectives and determining the actions Creates a blueprint for everyone in the organization
BCG: high relative market share/low industry growth rate
Cash cows Generate strong cash flow Strategy: Milk profits to finance growth of stars and question marks
examples of threats
Changing buyer tastes Likely entry of new competitors Adverse government policies
Securing marketing information
Collecting information about consumers, competition, competitions, and channel members foe use in making marketing decisions.
Marketing concept
Companywide consumer orientation with the objective of achieving long-run success.
external dimensions that affect the marketing mix variables
Competitive Social-Cultural Technological Economic Political-Legal
Form
Conversion of raw materials and components into finished goods and services
examples of strengths
Cost advantage Financial resources Customer loyalty Modern production facilities Patents
strategic window requires a thorough analysis of
Current and projected external environmental conditions Current and projected internal company capabilities How, whether, and when the firm can reconcile environmental conditions and company capabilities
Risk taking
Dealing with uncertainty about future customer purchases
strategic planning
Determining an organization's primary objectives Adopting courses of action that will achieve these objectives Provides long-term direction for its decision makers
Relationship marketing
Development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit
BCG: low relative market share/low industry growth rate
Dogs Generate little profits Strategy: Consider withdrawing
Buying
Ensuring that product offerings are available in sufficient quantities to meet customer demands
Standardizing and grading
Ensuring that product offerings meet quality and quantity controls of size, weight, and other variables
business portfolio analysis
Evaluation of a company's products and divisions to determine the strongest and weakest
Person marketing
Marketing efforts designed to cultivate the attention and preference of a target market toward a person
Four types of utility
Form Time Place Ownership (possession)
tactical planning
Guides the implementation of activities specified in the strategic plan Addresses shorter-term actions
Cause marketing
Identification and marketing of a social issue, cause, or idea to selected target markets
How does an organization create a customer?
Identifying needs in the marketplace Finding out which needs the organization can profitably serve Developing goods and services to convert potential buyers into customers
marketing planning
Implementing planning activities devoted to achieving marketing objectives
rule of three
In any industry, the three strongest, most efficient companies dominate between 70 and 90 percent of a market
Factors that have extended economic views
Increase in international trade agreements Growth of electronic business Interdependence of the world's economies
Using social marketing to build relationships
Increase lifetime value Interactive marketing Takes place on social media sites
Wholesalers
Intermediaries that operate between producers and resellers.
strategic window
Limited periods when key requirements of a market and a firm's particular competencies best fit together
How did the views of marketing vs. selling shift in the marketing era?
Marketing and selling would no longer be considered synonymous terms.
Place marketing
Marketing efforts designed to attract visitors to a particular area; improve consumer images of a city, state, or nation; and/or attract new business
Strategic alliances
Partnerships in which companies combine resources and capital to create competitive advantages in the market
strategic implications of marketing in the 21st century
Planning becoming vital as technology advances Marketers must consider: a changing, diverse population & the boundary-less business environment created by the Internet Planning reduces risk and worry of bringing new goods and services to the market
top management: positions, planning emphasized, examples
Positions: Board of directors, Chief executive officer, Chief operating officer, Chief financial officer planning emphasized: strategic examples: organization-wide objectives; fundamental strategies; long-term plans; total budget
Forms of alliances
Product development partnerships Vertical alliances
Five Eras of Marketing History
Production Sales Marketing Relationship Social
Sustainable products
Products that can be produced, used, and disposed of with minimal impact on the environment.
Financing
Providing credit for channel members (wholesalers and retailers) and consumers
BCG: low relative market share/high industry growth rate
Question Marks Have potential to become stars or cash cows Strategy: Either invest more funds for growth or consider disinvesting
Bottom line
Reference to overall company profitability
BCG: high relative market share/high industry growth rate
Stars Generate considerable income Strategy: Invest more funds for future growth
target market
The group of people toward whom the firm directs its marketing efforts and merchandise
Social marketing
The use of online social media as a communications channel for marketing messages.
Exchange process
activity in which two or more parties give something of value to each other to satisfy perceived needs
An example of interactive marketing would be:
buyer-seller communication through the Internet and virtual reality kiosks.
Sally Myers, head of marketing at Sally's Salon, serviced six new customers over the past two weeks. Through a feedback form, Sally learned that all of them had acted upon the opinions of their friends and family members. What Sally encountered is an example of:
buzz marketing
Phoebe was asked to bring a can of food for the local food bank as the "price of admission" for a certain ceremony. This is an example of _____
cause marketing
distribution strategy
ensure that consumers find their products in the proper quantities at the right times and places
Mission
essential purpose that differentiates one company from others
As an official sponsor of the Olympics, The Coca-Cola Company engages in _____ marketing
event
The NBA Sacramento Kings play their home games in the Arco Arena. The naming of their stadium is an example of which one of the five types of nontraditional marketing?
event marketing
ACB Ltd. provides credit to dealers, as well as buyers of Alfresco Automobiles. The marketing function performed in this case is:
financing
To convert needs into wants, marketers:
focus on the benefits of goods and services
The future growth of a company is endangered when management:
is committed to maintaining a product-oriented philosophy.
strategic business units (SBUs)
key business units within diversified firms
Marketing myopia
management's failure to recognize the scope of its business
pricing strategy
methods of setting profitable and justifiable prices
Porter's Five Forces
model developed by strategy expert michael porter that identifies 5 competitive forces that influence planning strategies 1. The potential of new entrants 2. The bargaining power of buyers 3. The bargaining power of suppliers 4. The threat of substitute products 5. Rivalry among competitors
An alliance between a not-for-profit organization and a for-profit organization:
often benefits both parties
Marketing strategy
overall, companywide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix
Melissa is campaigning for Janet, her friend, who is contesting for the presidency of the student council at Riverdale Junior College. Melissa's effort is an example of _____ marketing.
person
middle management: positions, planning emphasized, examples
positions: General sales manager, Team leader, Director of marketing research planning: tactical examples: Quarterly and semiannual plans; business unit budgets; divisional policies and procedures
supervisory management: positions, planning emphasized, examples
positions: Regional sales manager, Supervisor-telemarketing office planning: operational examples: Daily and weekly plans; unit budgets; departmental rules and procedures
Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:
reduce the threat of new entrants.
SWOT analysis
review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats
product strategy
satisfaction of all consumer needs in relation to a good, service, or idea
Which of the functions of marketing involves advertising?
selling
factor that contributed to the transition from the production era to the sales era
sophisticated production techniques
Assume you want to increase the number of customers by applying the marketing concept. Which strategy would be most consistent with this approach?
target markets
Utility
the want-satisfying need of a good or service
first mover strategy
theory advocating that the company first to offer a product in a marketplace will be the long-term market winner
second mover strategy
theory that advocates observing the innovations of first movers and then improving on them to gain advantage in the marketplace
promotion strategy
varied ways to send messages about goods, services, and ideas to buyers