Marketing 201 exam 1

Needs
States of felt Deprivation
Wants
The form human needs take as they are shaped by culture and individual personality.
Value Proposition
describes why a customer should buy a product or use a service. (what makes it have value)
5 Marketing Concepts
Production——
consumers favor products that are available and cheaper. organization needs to focus on improving production and distribution
efficiency
Product——
consumers favor products with better quality and features. organization focus on product improvements.
Selling——
consumers will not buy enough of the product unless organization does a large scale promotion and selling effort.
Marketing——
philosophy which reaching organizational goals depends on knowing needs and wants from target markets and satisfies better than competition.
Societal——
organization should consider customers’ wants, company’s requirements, consumer and society long term interests.
Customer relationship management
acquiring, engaging, and growing customers
Customer-perceived value
customers evaluation of difference between the benefits and costs of a product in a market compared to others in the same market. (No rules vs. Alpha Crux). also known as value marketing.
Customer-engagement marketing
engaging the customer by shaping brand conversations, experiences, and community to make the brand a part of their lives
Customer equity
total customer lifetime value of all the company’s current and potential customers
Marketing Strategy
company hopes to create customer value(stand out above others in same market) and achieve good customer relationships
Marketing Objective
Goals set when promoting a product that should be achieved in a certain time frame
Mission Statement
Purpose of the organization–what it wants to accomplish in the larger environment
Business portfolio
List of products and services offered by a business
BCG
Boston Consulting Group
dimensions of BCG approach
x-axis—–relative market share(measures company strength)

y-axis—–market growth rate(market attractiveness)

4 BCG categories
Star—————High-growth, high-share. Need heavy investments to finance rapid growth.
Cash Cow——–low-growth, high-share. Established and successful need less investment to hold their share.
Question Marks–high-growth, low-share. Require a lot of cash to hold their share.
Dog—————low-growth, low-share. generate enough cash to maintain but small chance to make large amounts of cash
Market Penetration
increased sales of currents products to current market segments without changing the product
Market Development
company growth by developing new market segments for current company products
Diversification
company enlarging its range of products or markets
Value Chain
internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
Value delivery network
Network composed of the company suppliers, distributors, and customers who partner with each other to improve the performance of the entire system in delivering customer value
Marketing control
monitoring the proposed plans as they proceed and adjusting where necessary.
Micro
company, suppliers, marketing intermediaries, customer markets, competitors, and publics
macro
demographic, economic, natural, technological, political, and cultural forces
Reseller markets
monitoring the proposed plans as they proceed and adjusting where necessary.
Business market vs. consumer market
Consumer markets are where households buy goods and business markets are where businesses buy goods
Marketing Information Systems (MIS)
assessing information needs, developing the information, and helping decision makers use the information to generate customer and market insights.
Internal databases
collections of consumer and market info from data sources within the company network
Competitive Marketing intelligence
monitoring, collection, and analysis of PUBLICLY available info about consumers, competitors, and developments in a market. Obtained by observing consumers firsthand to quizzing the company’s own employees, benchmarking competitors products, online research, and monitoring social media
Marketing Research
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Steps in marketing research process
defining the problem and research objectives

developing the research plan for collecting information

implementing the research plan–collecting and analyzing data

interpreting and reporting the findings

3 types of research design
exploratory—gather info that will help define problems and suggest hypothesis

descriptive—describe marketing problems, situations, or markets, such as the market potential for a product or demographics and attitude of consumers

causal—test hypothesis about cause and effect relationships

Research Plan
Research approach, contact methods, sampling plan, research instruments(observation,survey,experiment)
ethnographic research
observational research that involves sending trained observers to watch and interact with consumers in their “natural environments” (inside man)
brand personality
customers are likely to choose brands with personalities that match their own.
Maslows hierarchy
Self-actualization needs
development and realization
Esteem needs
recognition, status
Social needs
sense of belonging, love
Safety needs
security, protection
Physiological needs
hunger, thirst
selective attention
tendency for people to screen out most of the info to which they are exposed. marketers work to gain their attention
selective distortion
tendency of people to interpret information in a way that will support what they already believe.
selective retention
consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands.
stages of buyer decision process
problem recognition
need description
product specs
supplier search
proposal solocitation
supplier selection
order routine specification
performance review
stages of adoption process
awareness–the consumer becomes aware of the new product but lacks information about it

interest–the consumer seeks information about the new product

evaluation–the consumer considers whether whether trying the new product makes sense.

trial–tries the product on a small scale to improve his or her estimate of its value

adoption–decides to make full and regular use of the new product

diffusion process
Innovators
early adopters
early majority
late majority
laggards
derived demand
business demand that comes from consumer goods. (if demand for shoes goes up, demand for shoe laces follow)
types of business buys
straight rebuy–buyer routinely reorders something without any modifications

modified rebuy–buyer wants to modify product specs, price, terms, or suppliers

new task–buyer purchases a product or service for the first time

systems selling–buying a complete solution to a problem from a single seller, avoiding all the separate decisions involved