Exam#1 Marketing

Marketing
Managing profitable customer relationships
The Five Steps Model of Marketing Process
1.Understand the Marketplace 2.Design a customer driven marketing strategy 3. Construct an integrated marketing program that delivers superior power 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity.
Needs
States of felt deprivation
Wants
The form human needs take as shaped by culture and individual personality.
Demands
Human wants that are backed by buying power
Market offering
Some combination of products, services information , or experiences offered to a market to satisfy a need or want.
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.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Market
The set of all actual and potential buyers of a product or service.
What are the five core customer and marketplace concepts
1. needs,wants and demands. 2. marketing offerings. 3. Value and satisfaction. 4. Exchanges and relationships. 5. Markets
Marketing Management
The art and science of choosing target markets and building profitable relationships with them.
To design a winning marketing strategy , the market manager must answer two important questions:
1.What customer will we serve?(who is our target) 2. How can we serve these customers best?How will i differentiate and position itself in the marketplace
What are the alternative concepts under which organizations design and carry out their marketing strategies
1. the production 2. the Product 3. Selling 4. Marketing 5. Societal Marketing concepts
The Production Concept
holds that consumers will favor products that are available and highly affordable and thus the organization should focus on production and distribution efficiency
The Product Concept
holds that consumers will favor products that offer the most in quality, performance, and innovative features. The organization should focus on continuous product improvements
The Selling Concept
the idea that consumer will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort
The Marketing Concept
The marketing management philosophy 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
principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers wants, the company s requirements, consumers long-run interests, and society’s long-run interests.
What are the four major marketing mix tools
1. Product 2. Price 3.Place 4. Promotion
When you blend these 4 marketing mix tools you create
an integrated marketing program
Customer Relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Customer Perceived Value
the customers evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers
Customer Satisfaction
the extent to which a product’s perceived performance matches a buyer’s expectations
Strategic Planning
the process of developing and maintaining a strategic fit between the organization’s golas and capabilities and its changing marketing opportunities
Mission Statement
a statement of the organizations purpose what it wants to accomplish in the larger environment
Steps in strategic planning Fig2.1
1. Define the company mission 2. setting company objectives and goals 3. Designing the business portfolio 4. Planning marketing and other functional strategies
Business Portfolio
The collection of businesses and products that make up the company
Portfolio Analysis
The process by which management evaluates the products and businesses making up the company.
Growth-share matrix
A portfolio -planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs
The BCG growth-share matrix
Y axis Market growth rate low to high X axis Relative market share high to low HH = Stars LH = Cash Cow HL =Question Mark LL =Dog
Stars
Are high growth, high-share business or products. They often need heavy investment to finance their rapid growth
Cash Cows
are low-growth, high-share businesses or products. These are established and successful SBUs need less investment to hold their market share.
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
Dog
Are low growth in low share businesses and products.
What are the problems with Matrix Approaches
They can be difficult, time consuming, and costly to implement
Product/Market expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Market Penetration
a strategy for company growth by increasing sales of current products to current market segments for current company products.
Market Devolpment
a strategy for company growth by identifying and developing new market segments for current company products
Product Development
A strategy for a company growth by offering modified or new products to current market segments.
Diversification
A strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets
Downsizing
reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy
Value Chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Marketing Strategy
The marketing logic by which the business unit hopes to achieve its marketing objectives.
Market Segmentation
Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing programs
Market Segment
A group of consumers who respond in a similar way to given set of marketing efforts.
Market Targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Marketing Mix
The set of the controllable tactical marketing tools product, price, place, and promotion that the firm blends to produce the response it wants in the target market
The Four C’s
1. Customer Solutions 2. Customer cost 3. Convenience 4. Communication
The Four Marketing Management functions
analysis, planning, implementation, and control
SWOT analysis
An overall evaluation of the company’s strengths S= strength W= weaknesses O=opportunities T=threats
Marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Micro environment
The actors close to the company that affect its ability to serve its customers-the company,suppliers,marketing intermediaries, customer markets, competitors and publics.
Physical distribution firms
help the company to stock and move goods from their points of origin to their destination.
Marketing services agencies
are the marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right market.
Financial intermediaries
include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying and selling of goods.
Customer Markets
consist of individuals and households that buy goods and services for personal consumption.
Government markets
are made up of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them.
International markets
consist of these buyers in other countries, including consumers, producers, resellers, and governments.
Public
any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
The 7 types of publics
Financial , Media, Government, Citizen-action , Local, General, Internal Publics.
Major Forces in the Company’s Macroenvironment
Demographic, Economic, Natural, Technological, Political , Cultural FORCES
Demography
the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Baby Boomers
The 78 million people born during the baby boom following ww2 and lasting until the early 1960’s
Generation X
The 45 million people born between 1965 and 1976 in the ‘birth dearth” following the baby boom.
Generation Y
The 72 million children of the baby boomers, born between 1977 and 1994
Economic Environment
factors that affect consumer buying power and spending patterns.
Value Marketing
has become the watchword for many marketers.
Marketers should pay attentions to
income distribution as well as average income.
Middle class
Be somewhat careful but still can have a good time some tim
Working class
must stick to basics of food clothing and shelter and try to save
Underclass
must count their pennies when making even the most basic purchases
Engle’s laws
Differences noted over a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care,m and other goods and services categories as family income rises.
Natural Environment
natural resources that are needed as inputs by marketers or that are affected by marketing activities
Trends to watch out for are
Shortages of raw materials, increased pollution, and increased government intervention in natural resource management.
Environmentally sustainable
strategies and practices in and effort to create a world economy that the planet can support indefinitely.
Technological environment
Forces that create new technologies, creating new product and market opportunities.
Political environment
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society.
Increasing Legislation
Legislation affeting business around the world has increased steadily over the years.
Business Legislation
1st it protects companies from eachother, 2nd protect consumers from unfair business practices, 3rd to protect the interests of society against unrestrained business behavior.
Changing Government agency enforcement
International marketers will encounter dozens, or even hundreds, of agencies set up to enforce trade policies and regulations.
Cultural Environment
Institutions and other forces that affect society’s basic values,m perceptions,preferences and behaviors
Core beliefs and values
are passed on from parents to children and are reinforced by schools, churches, businesses, and governments
Secondary beliefs and values
are more open to change.
People views of themnselves
People vary in ther emphasis on serving themselves versus serving others.
People’s views of others
People are cocooning going out less with others and staying home more to enjoy creature comforts of home and hearth.
People’s views of organizations
Willing to work for the major organizations and expect them, in turn to carry out society’s work.
Peoples view of society
Patriots defend it. reformers want to change it , malcontents want to leave it. Peoples orientations to their society influences ther consumption patterns and attitudes toward the marketplace
Peoples view of nature
A trend has been people’s growing mastery over nature through technology and the belief that nature is bountiful
Peoples view of the universe
People vary in their beliefs most Americans, practice religion, religious conviction and practice have been dropping off gradually through the years. Some say Americans are on a spiritual journey