Mark Quiz

The law of division

over time, a product category will divide into 2 or more categories

Exchange (Transaction)

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

Marketing Environment

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

Place

the distribution system applied to the product or service; how the company makes the offer available to consumers

Social Marketing Concept

the idea that a company's marketing decisions should consider consumer's wants, the company's requirements, consumer's long run interests, and society's long-run interests

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

Portfolio Type Analyzing

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 market opportunities

Market Research

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Helps assess market potential and market share or measure the effectiveness of the marketing mix activities

Product

the total package of benefits the customer obtains when making a purchase

Boston Consulting Group (BCG)

Analyzes a firm's business units (SBUs) or products/brands as though they were a collection of separate investments

Caseual Research

marketing research to test hypothesis about the cause and effect relationships

5 steps of the marketing process

1. Understanding 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

Exploratory Research

marketing research to gather preliminary information that will help define problems and suggest hypotheses

Primary Activities

-Inbound & Outbound logistics -Operations -Marketing -Service

Product decisions are shaped by

-Long run growth potential -Resource Commitments -Competitive Positioning -Company-Product/Market Fit

Support Activities

-Procurement -Technology Development -HR Management -Firm Infrastructure

Buyer Bargaining Power

-account for significant % of seller's sales -have multiple options for meeting procurement needs

Decision Making Process

-awareness of need -search for information -identification of the options -selection -post purchase affirmation of the buy decision

What do we use customer insights for?

-better information and more effective use of existing information -use insights to create more value for their customers and develop competitive advantage

Macroenvironment Factors

-demographic -economic -natural -technological -political -cultural forces

Purpose of value proposition

-differentiate one brand from another -answers the customer's question of why buy your brand compared to others

Responses to competitive price pressures

-differentiating products -exercising price leadership

Customer Insights are

-difficult to obtain -not obvious -customers are unsure of their behavior

Elements of the distribution system

-direct sales rep -brokers/manufacturer's reps -distributors -retail outlets

Supply & Demand

-greater the supply, lower the price -affecting demand and supply

Portfolio Type Analyzing steps

-identify key businesses that make up the company -assess attractiveness and how much support each deserves

Marketing Concept Focuses

-outside in view on satisfying customer needs as a path to profits

Uses of CRM

-pinpoint high value customers -target them more effectively -cross sell the company's products -create offers tailored to specific customer requirements

Successfully managing distribution channels

-products are stocked & available -resellers actively display, advertise, & promote -resale prices and margins do not deteriorate

Suppliers gain strength in channel management under these conditions

-selective rather than intensive distribution -superior product line breadth & quality -high degree of supplier/reseller interdependency -supplier sales force presence at resale level

Pricing of products is determined by the interplay between

-supply/demand conditions -cost factors (fixed/variable costs) -competition -buying bargaining power -product value to potential customers

Microenvironment Factors

-the company -suppliers -marketing intermediaries -customer markets -competitors -publics

Selling Concept Focuses

-tracking down prospects and selling them on a product's benefits -creating sales transactions -inside out view on existing products and heavy selling

BCG vertical axis

market growth rate

Gen X

49 million people 1965-1976

Baby Boomers

78 million people 1946-1964

Millennials (Y)

83 million children 1977-2000

SWOT Analysis

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

The law of the category

If you can't be first in a category, set up a new category you can be first in

The law of leadership

It's better to be first than it is to be better

Descriptive Research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

What's the marketing mix?

Product, Price, Place (Distribution) , Promotion

What are the 4 p's that go into Product?

The product itself, the brand name, its warranty, financing

Product decisions should be based on

a clear understanding of existing and potential customer wants and desires. It requires constant monitoring and adjusting

Product Concept

a detailed version of the new product idea stated in meaningful consumer terms. Consumers will favor products that offer the most in quality

Marketing Concept

a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Product/Market Expansion Grid (Ansoff Grid)

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

Value Chain

a set of primary and support activities that perform together to create economic value for the enterprise

Mission Statement

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

Differentiation

actually differentiating the market offering to create superior customer value

Gen Z

after 2000

Positioning

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

What is the glue of the distribution system?

technology and information

Generation Classes

baby boomers, gen x, millennials y, gen z

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

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

Microenvironment

consists of the actors close to the company that affect its ability to serve its customers

Macroenvironment

consists of the larger societal forces that affect the microenvironment

Vision Statement

declaration of an organization's objectives, intended to guide its internal decision making

Market Segmentation

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

Market targeting (targeting)

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

Price

factor that is determined by interplay of supply/demand conditions, cost factors, competition, buyer bargaining power, and product value to potential customers; what the company will charge for the product.

Marketing Myopia

focusing only on existing wants and losing sight of the underlying customer needs

Customer Insights

fresh marketing information based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships

Stars

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 turn into cash cows

Promotion

how the company communicates with target customers about the offering and persuades them of its merits

Demographic Environment

involves people, and people make up markets

Customer Engagement Marketing

is a new form of marketing involving the use of social media. This allows customer managed relationships

Marketing

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

Value Proposition

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

Demography

is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics

Dogs

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

Cash Cows

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

Question Marks

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

Customer Relationship Management (CRM)

managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty

BCG Classifications

question marks, stars, cash cows, and dogs

Relative Market Share Position

ratio of a division's own market share in a particular industry to the market share held by the largest rival firm in that industry

BCG horizontal axis

relative market share

Demographic Trends

shifts in age, family structure, geographic population, educational characteristics, and population diversity

Market Offerings

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