Marketing Final: Chapter 1
What is selling orientation/concept?
-Many companies follow the selling concept, which holds that consumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort. The selling concept is typically practiced with unsought goods—those that buyers do not normally think of buying, such as life insurance or blood donations. These industries must be good at tracking down prospects and selling them on a product's benefits -Aggressive techniques for overcoming consumer resistance. These 5 part of marketing management.
What is market orientation/concept? Social marketing orientation? Production orientation?
-The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do -The societal marketing concept holds that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer's and society's well-being -The production concept holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on improving production and distribution efficiency. This concept is one of the oldest orientations that guides sellers.
What is target marketing?
A group of customers whose shared characteristics (age, income) that make them the most likely purchasers of a particular product. Product, price, place, promotion tailored to fit a specific target customer.
Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of the selling concept partner relationship management societal marketing consumer-generated marketing the production concept
Consumer-generated marketing. by which consumers themselves play role in shaping their own brand experiences and those of others. This might happen through uninvited consumer-to-consumer exchanges in blogs, video-sharing sites, social media, and other digital forums. But increasingly, companies themselves are inviting consumers to play a more active role in shaping products and brand content.
Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of . share of customer customer lifetime value customer satisfaction customer equity customer perceived value
Customer Satisfaction. Customer satisfaction depends on the product's perceived performance relative to a buyer's expectations. If the product's performance falls short of expectations, the customer is dissatisfied. If performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted
"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of customer lifetime value value proposition marketing offerings partner relationship management customer-perceived value
Customer lifetime value. Loyal customers spend more and stay around longer. Research also shows that it's five times cheaper to keep an old customer than acquire a new one. Conversely, customer defections can be costly. Losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon customer lifetime value customer perceived value a societal marketing campaign customer equity brand loyalty
Customer perceived value. Attracting and retaining customers can be a difficult task. Customers often face a bewildering array of products and services from which to choose. A customer buys from the firm that offers the highest customer-perceived value—*the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers*. Importantly, customers often do not judge values and costs "accurately" or "objectively." They act on perceived value.
What is the customer satisfaction relationship?
If CP < CE Dissatisfaction If CP = CE Satisfaction If CP > CE Delight Perceptions vs Expectations
Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by . using celebrities to advertise the products regularly putting products on sale creating contests with exciting prizes offering promotional deals such as "buy one and get one free" promising only what they can deliver and then delivering more than they promise
If CP > CE, =Delight. Perceptions greater than expectations. promising only what they can deliver and then delivering more than they promise
A is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. market segment market mix market offering value proposition brand positioning
Market Offering. Consumers' needs and wants are fulfilled through market offerings—some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to physical products. They also include services— activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.
An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of market offerings market segments marketing mixes market intermediaries value propositions
Market Segments. A group of consumers who respond in a similar way to a given set of marketing efforts. Market segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
What is marketing myopia?
Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs Product focus vs. customer-focus -They want a hole, not a drill. Know customer existing wants and needs (Maslow's hierarch, why marketing research is done)
Needs, Wants, Demands
Needs States of felt deprivation. Wants The form human needs take as they are shaped by culture and individual personality. Demands Human wants that are backed by buying power
Which of the following marketing management concepts is most likely to lead to marketing myopia? customer-driving marketing concept customer-driven marketing concept marketing concept product concept societal marketing concept
Product concept. Product quality and improvement are important parts of most marketing strategies. However, focusing only on the company's products can also lead to marketing myopia.
Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the concept. product selling marketing production societal marketing
Product concept. The product concept holds that consumers will favor products that offer the most in quality, performance, and innovative features. Under this concept, marketing strategy focuses on making continuous product improvements. Product quality and improvement are important parts of most marketing strategies. However, focusing only on the company's products can also lead to marketing myopia.
What are the 4 Ps, and tools for positioning?
Product: goods, service, idea, unit, package, warranty, etc Price: quickest to change, easiest copied Place (Distribution): raw to finished and available Promotion: communication with consumers
Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long- term benefits, both educationally and professionally, of reading every day. This is an example of a(n) campaign. consumer-generated marketing inbound marketing ambush marketing social marketing affiliate marketing
Social marketing. The use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being.
Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of . social marketing cause marketing ambush marketing societal marketing target marketing
Target Marketing.
Mass vs. Target Marketing
Target Marketing: 4P's is tailored to fit a specific target customer Mass Marketing: vaguely aims at everyone with the same marketing mix Assumes everyone is the same, and that everyone can be a potential customer Target marketing ≠ small market segments, only one that is fairly homogeneous
Which of the following customer questions is answered by a company's value proposition? "Why should I buy your brand rather than a competitor's?" "What is your company's estimated customer equity?" "What is the budget allocated by your company for research and development?" "What is the financial stability of your company?" "What are the costs involved in the production of your brand?"
The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs. Such value propositions differentiate one brand from another. They answer the customer's question: *"Why should I buy your brand rather than a competitor's?" Companies must design strong value propositions that give them the greatest advantage in their target markets.
In which of the following situations has a company most actively embraced customer-managed relationships? -Toyota develops a marketing presence on social networks and other online communities. -Best Buy distinguishes between its best customers and its less profitable customers, stocking merchandise to appeal to each group. -iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner. -American Airlines awards frequent flyer points to returning customers. -Paige Premium Denim jeans provide superior quality and perfect fit.
iRobot. Thus, marketers are now embracing not only customer relationship management but also customer-managed relationships, in which customers connect with companies and with each other to help forge and share their own brand experiences.
Customer equity refers to . -a firm's current sales -a firm's market share -the total combined customer lifetime value of all of the company's current and potential customers -the share a firm earns of a customer's purchasing in their product categories -the amount a customer is spending each year on certain products
the total combined customer lifetime value of all of the company's current and potential customers. The ultimate aim of customer relationship management is to produce high customer equity.25 Customer equity is the total combined customer lifetime values of all of the company's current and potential customers. As such, it's a measure of the future value of the company's customer base. Clearly, the more loyal the firm's profitable customers, the higher its customer equity.
Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through . research and development value creation and exchange innovation and creativity sales and revenue creation manufacturing efficiencies
value creation and exchange. Marketing is The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return