Marketing-Kalan

What is a Convenience Product?

consumer goods or services that are low priced, widely available, purchased frequently without effort of comparison. They are non durable and the consumer usually has existing knowledge about the product, and alternatives are usually accepted (ex: coke and pepsi).

What is a durable consumer good?

consumer products that provide benefits over a long period of time (ex: washing machines, cars, hot water heaters)

WHat are the 4 types of innovations?

continuous innovations, dynamicaly continuous, convergence, discontinuous

What are the three layers of a product?

core, actual, and augmented

What is Marketing?

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives in a dynamic environment.

What is a consumer?

The ultimate user (the individual who makes the purchase) of a good or service.

What is operational planning?

day to day planning done by frontline managers

Behavior

dividing consumers into segments on the basis on how the act toward, feel about, or use a good or service. Looks are real purchase behavior § 80/20 Rule: 20% of your customers by 80% of your product. Beer is a good example

What happens during the decline phase of the product life cycle?

does not necessarily mean end of business. where profit decreases and consumers want something new. Competitors start to leave the market

What is a specialized service?

essential to the firm's operation but are not part of production (ex: accounting, healthcare, market research, advertising, PR, legal services, equipment repair)

What is tactical planning? middle management

the tactical level provides the development of plans including strategies and tactics that support the strategic plan

What is an unsought Product?

things we have little interest in until we need them (can be emergency) ex: disability insurance, car repairs

What're the two objectives of any business?

to stay in business or make a profit (unless youre a non profit org or business)

What happens in the maturity phase of the product lie cycle?

usually the longest, competition increase and profit is impacted. Price competition in the lower end of the market and private label competition.

5 factors that affect decision making

(ROCCT) Relative advantage, observability, Compatibility, Complexity, trial period/sampling

What is ACV?

(all commodity volume) the dollar value of the total goods moving through a market

Time and Place matter to purchase decision making.

-Staples such as bread and milk -impulse products are bought on a whim ex: tabloids (use celebrities to sell product) -Emergency products are not planned until an specific condition occurs (ex: drain cleaners, fixing a broken pipe)

Why do we want to prevent monopolistic activities?

1) protect companies from each other 2) protect consumers and 3) to protect the overall interest of society

The Diffusion of Innovation (or Rate of Adoption) Percentages

2.5, 13.5, 34, 34, 16

What is B2B?

A good is described as B2B if it's used in production, will be resold, or will be used to support production.

What is a business portfolio?

A group of different products or brands owned by the organization and characterized by different income generating and growth capabilities

What's the Marketing Concept (or Consumer Needs Focus)?

A management orientation or focus on identifying and satisfying consumer needs to ensure the organization's long term profitability

What is a Market Place?

A place or medium that allows buyers and sellers to come together to make an exchange

What is an innovation?

A product that consumers perceive to be new and different from existing products

What is a Product?

A tangible or intangible that, through the exchange process, satisfies a need (consumer or business). A tangible product may be referred to as a good, service, or idea.

What is the Marketing Plan?

A written document that describes the marketing environment, outlines the marketing objectives and strategies, provides specifics on marketing tactics, and who and how they will carried out

To make good decisions, you need to have info that is...

Accurate, Current, Relevant

What's a Market?

All of the customers and potential customers who share a common need that can be satisfied by a specific product who have the resources to exchange for it, who are willing to make this exchange, and have the authority to make it.

What's a bigger field? B2B or B2C?

B2B

Important to remember about buying decisions

Buying decisions seem very spontaneous but all decisions are the cumulative product of a complex process

What is CPG?

Consumer Packaged Goods, anything that can be packaged and labeled

What are the two classifications of a Product?

Consumer or Business

5 step process for segmenting

Criteria for segmenting, Develop segment profiles, Chose targeting strategy, positioning, CRM (customer relationship management)

What's a Demand?

Demands are human wants backed by buying power

What is a Direct Competitor?

Direct competitor: an organization who offers basically the same product (coke and pepsi)

targeted marketing strategy

Dividing the target market into segments based on customer characteristics and then selecting one or more segments and developing solutions to meet those specific needs.

What is and does the FTC do?

Federal Trade Commission: the federal government is responsible for interstate trading • A product can be new for 6 months

What's an idea that can be marketed?

Going green, Virginia is for lovers, I heart NY, etc

What is B2C?

Goods purchased by individuals for personal or family use

What is product concept development/screening (new product creation)?

Ideas from step one are expanded into actual product concepts that highlight key features and consumer benefits and are evaluated for commercial and technical feasibility

5 step decision making process for consumers

Identify the problem, Information search, Create a set of alternatives, Make the product choice, Post purchase evaluation

What is an Indirect Competitor?

Indirect competitor: an organization that offers a different solution to the same problem as your firm

The Diffusion of Innovation (or Rate of Adoption) Categories

Innovators, early adaptors, early majority, late majority, laggards (innovators and early adaptors are the reference group)

What is a service?

Intangible products sold directly from the supplier to the consumer. The US is a service based economy.

SWOT?

Internal: S- things the company does well in comparison to the competition W- things the competition does better than the company External: O- areas or unmet needs a company can exploit T- anything that can do a company harm

What are the 4 stages in the product life cycle bell curve?

Introduction, Growth, Maturity, and Decline

Vals

It's a system for dividing up a population based on values and lifestyles

Four critical objectives of gathering information

Know what your customers want When they want the goods/services Where they want it What the competition is doing

Psychographics

Looking at consumers and market segments in terms of attitudes, interests, and opinions. (AIO)

What is MRO?

Maintenance, Repair, Operating: goods used in a relatively short time, primarily to support operations

What is MIS?

Management Information Systems: The process developed by a firm to continuously gather, sort, analyze, store, and distribute relevant and timely marketing information

What is B2B

Marketing of those goods and services that businesses and organizational customers need to produce other goods and services, for resale, or to support their operations.

4 types of businesses in the competitive environment

Monopoly: one organization is able to control price, quality, and supply Oligopoly: a few organizations control price, quality, and supply (electric, internet, cable) Monopolistic competition: many firms with slightly different products. Each product has its own niche to be successful in Perfect competition: many small firms with many alternatives, no single firm can dominate the market

What is a NonDurable Good?

Non Durable: provides benefits for a short period of time because they are consumed or they have short durable lives (ex: newspapers, food, drink)

What does it mean to be Non for Profit?

Organizations that we see as existing for the public good. Therefore, they should not be taxed. They can earn revenue, but not profit.

WHat is the product mix?

Product Mix: the total set of all products that a firm offers for sale

What is the Marketing Mix (the 4 P's)?

Product, Price, Place, Promotion

Growth Strategies?

Refer to Market Emphasis, Product Emphasis

What are the 2 lines in the product life cycle graph?

Sales, Profit (dips down then the bell curve cuz it includes initial investment)

BCG's diagram?

Star, Cash Cow, Question Marks, Dogs

What are the three levels of planning?

Strategic, Tactical, Operational

Consumers buy benefits. What is a benefit?

The outcome sought by the consumer that motivates buyer behavior

What is a Need (or state of felt deprivation)?

The difference between where you are and where you want to be

What is the Mission Statement

The first statement in an organization's strategic plan that describes the overall purpose of the organization, what it intends to achieve in terms of its customers, products, resources, employees, and the community where it is

What is a Value?

Value is an individual decision. Ex: two people may differ in what they think a house on sale is worth. Price also represents value.

What is a dynamically continuous innovation?

a change in an existing product that requires moderate learning or behavior change. Ex: audio equipment has changed from Edison's cylinders, platters, 8 tracks, cassettes, CDs, iPods

What is a product line?

a firm's total product offerings designed to satisfy a single need or desire of the targeted consumer. o Proctor and Gamble's detergent line o Marriot's chain of hotels

What is a continuous innovation?

a modification of an existing product that sets one brand apart from the competition. Requires little learning to understand new uses for this product.

What is a discontinuous innovation?

a totally new product that creates changes in the way we live Ex: computers

What is Marketing Myopia?

being shortsighted and putting more emphasis on the products rather than the benefits and experiences produced by the products

Marketing also is....

building and managing profitable customer relationships, creating and exchanging value, and identifying unmet needs and developing solutions

Syndicated Data

collected by a third party and sold to multiple clients

Primary Data

collected to address a specific issue at hand

What is the augmented?

extra benefits that add value but is not a physical part of the product (like warranties for cars, financing plans)

What is a shopping product?

goods and services that consumer spend time to gather information and compare alternatives on dimensions like price, attributes, quality

What is a specialty product?

goods and services that have unique characteristics that are important to the buyer and the buyer will commit significant time and resources to buy it (ex: cars, smartphones, laptops)

Types of B2B markets

government, resellers/retailers, producers, non for profit

What are the 7 steps in the process for new product creation?

idea generation/screening, product concept development/screening, marketing strategy development, business analysis, technical development, market testing, commercialization

What is a raw material?

ingredients used in manufacturing or production processes and consumed in the process to become part of the final product or to be process materials that others will finish.

WHat is a component Good?

manufactured goods or subassemblies of finished goods that become part of the final product.

segmentation variables

o Dimensions that divide the total market into homogenous groups, each with different needs and preferences

Situational Influences

physical environment, time, sociocultural, social class, peer groups, reference groups, gender roles

What happens in the growth phase of the product life cycle?

product grows rapidly as consumers adopt it. Consumer base tends to grow rapidly

What is a processed Material?

products created when firms transform raw materials from their original state. Not finished good.

What is secondary data?

research that has already been done usually for another purpose. It's fast, cheap, and readily available

Custom Research

studies designed and executed for a specific client or brand for a specific purpose. Can be done through interviews, surveys, mail, online etc

Level of Perceived Risk

the belief that the choice has potentially negative consequence

What is the core?

the benefit (fulfilling the need for transportation)

What is convergence?

the coming together of two or more technologies to create a new system with greater benefits than its parts. Ex: smartphones

What happens in the introductory phase of the Product Life cycle?

the goal is to get the consumers to try the product. Many products that don't get traction in the intro phase, die.

Level of Involvement

the level of importance of the perceived purchase to the individual

Consumer Behavior

the process individual or groups go through to select, purchase, use, and dispose of goods, services, idea, or experiences

What is the actual?

the product itself (the car)

What is culture?

the set of values, norms, and beliefs that influence everyone in the organization. It incorporates ethics, dress code,

What is strategic planning?

where senior management matches a company's resources and capabilities to market opportunities for long term growth and survival. INCLUDES mission statement

What is Equipment?

§ Equipment: products that are usually expensive used in daily operations • Heavy (Capital) are used over a long period of time • White (Accessory) are movable, cost less, have shorter lives

What is Idea Generation/screening (new product creation)?

§ Identify products or concepts that provide customer benefits to fit unmet needs. Must be the compatible with the company mission and strengths. § Can come from customers, vendors, market research

Maslow's Hierarchy of Needs

§ Physiological needs (food) § Safety needs § Social needs (acceptance) § Self-esteem/ego (social status, recognition) § Self actualization

4 objectives in data mining

§ customer acquisition: learning who you're doing business with and what you can do to find similar customers § customer retention: giving your best customer more incentives to stay with your brand (encourage loyalty) § customer abandonment: some customers are not profitable and if a company cannot make them profitable, they get rid of them § market basket analysis: finding ways to fulfill more needs to existing customers

6 step process of research process

• Define the problem • Determine research design • Determine sample • Collect data • Analyze and interpret data • Present Findings