Marketing 360 exam 1 chapters 1, 2, 3, and 7

marketing
organizational function and processes for creating, communicating, and delivering value to customers and managing customer relationships
stakeholders
buyers, sellers, investors, employees… anyone with a “stake” in the company
consumer
user of a good or service
marketing concept
management orientation that focuses on identifying and satisfying customer needs to ensure long term profitability
need
difference between consumers actual state and the desired state
want
desire to satisfy needs in specific ways that are culturally/socially influenced
benefit
outcome sought by customer that motivates buying behavior; satisfies need/want
demand
customer desire for products coupled with resources needed to obtain them
market
All customers who share common need that can be satisfied by a specific product; have resources to exchange, willing to exchange, and have authority to exchange
marketplace
any location or medium used to conduct an exchange
virtual goods
digital products consumers buy for use in online contexts
utility
usefulness or benefit consumers receive from a product
exchange
process by which a transfer of value occurs between a buyer and a seller
product
tangible good,service, idea that satisfies customer needs through exchange process
value
benefits a customer receives from buying a good or service
production orientation
management philosophy that emphasizes the most efficient ways to produce and distribute products
selling orientation
managerial view of marketing as a sales function, way of moving products out of inventory quickly
consumer orientation
business approach that prioritizes the satisfaction of customers needs and wants
total quality management (TQM)
management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality management
instapreneur
business person who produces product when it is ordered; t-shirt business
triple bottom line orientation
business orientation that looks at financial bottom line, social bottom line, and environment bottom line
customer relationship management (CRM)
systematic tracking of consumers preferences/behaviors to bettor tailor value proposition to individual’s needs and wants
attention economy
company success measured by share of mind rather than share of market, making money when attracting eyeballs rather than dollars
social marketing concept
management philosophy that marketers must satisfy customers needs in ways that also benefit society and deliver profit
sustainability
product design focus that creates products that meet consumer needs without compromising future generations ability to meet needs
green marketing
marketing strategy that supports environmental stewardship
return on investment (ROI)
direct financial impact of firms expenditure of a resource such as time or money
Popular culture
music, movies, games, sports, books, celebrities and other forms of entertainment consumed by mass market
myths
stories containing symbolic elements that express the shared emotions and ideals of a culture
consumer goods
the goods individual consumers purchase for personal/family use
services
intangible products that are exchanged between producer and consumer
business-to-business marketing
marketing of goods and services from one organization to another
industrial goods
goods individuals or organizations buy for their own use when doing business
e-commerce
buying and selling goods over then internet
shrinkage
losses when retailers experience shoplifting, employee theft, and damage to merchandise
anticonsumption
deliberate defacement of products
not-for-profit organizations
organizations with not for profit goals buy goods/services to support their functions
value proposition
marketplace offering that fairly and accurately sums up the value that will be realized if good/service is purchased
brandfests
event put on by firm to thank customers for their loyalty
lifetime value of a customer
potential profit a single customer’s purchase generates over their lifetime
distinctive competency
superior capability of a firm in comparison to competition
differential benefit
properties of firms products that sets them apart from competition by providing unique benefit
value chain
designing, producing, marketing, delivering, and supporting any product. each part can either add or remove value from product
marketing scorecards
feedback vehicles that show (in quantified terms) how the company/brand is doing in achieving goals
metrics
measurements that marketers use to measure the effectiveness of different marketing strategies
amafessionals
consumers who contribute ideas for fun and challenge rather than financial incentives; motivation is psychic income
consumer-generated content
everyday people functioning in marketing roles
social networking
online platform where users represent themselves to others where they share common interests
web 2.0
2nd generation of the world wide web that incorporates social networking and user activity
physical URL’s
new apps that enable user generated clouds of content to form around products; bar code scanners
folksonomy
classification system that relies on users rather than preestablished systems to sort content
wisdom of crowds
groups are smarter than individuals; can sometimes predict successful product
open source model
software companies sharing their code with each other to assist in development of a better product
marketing plan
describes marketing environment, objectives, strategy, and who carries out each segment of the strategy
mass market
all possible customers in the market
market segment
distinct group of customers in the market who are similar and their needs differ from other customers in the market
target market
market segment that firms marketing focuses on
market position
the way target market perceives product in comparison to competitors
marketing mix
combo of product, price, place, and promotion to create the desired result from customers
four P’s
price, product, promotion, place
price
assignment of value; amount consumer must exchange
promotion
coordination of marketers communication efforts to influence behavior
place
availability of product to customer at desired time and location
product
good or service desired by consumer
4 C’s
customer solution, cost, communication, convenience
business planning
ongoing process of decision making that guides firm in both short and long term
business plan
plan that includes the decisions that guide the entire firm
business ethics
rules of conduct for an organization
code of ethics
written standards of behavior to which everyone in the organization must subscribe
strategic planning
managerial decision process that matches an organizations resources/capabilities to market opportunities to longterm growth and survival
strategic business units (SBU)
individual units within the firm that operate like separate businesses, with own mission, objectives, resources, etc
functional planning
decision process that develops short term strategies and tactics that support the long term plan
operational planning
decision process that develops plans for day to day activities that carry out functional plans
mission statement
formal statement of an organization’s strategic plan
situation analysis
assessment of a firms internal and external environments
internal environment
controllable environments inside an organization
external environment
uncontrollable elements outside an organization
SWOT analysis
the strengths, weaknesses, opportunities, and threats of the organization
business portfolio
group of different products or brands owned by an organization and have different income and growth capabilities
portfolio analysis
management tool for evaluating a firms business mix and assessing the potential of an organizations strategic business units
BCG growth-market share matrix
portfolio analysis model by Boston Consulting Group that assesses potential of products to generate cash
stars
SBU’s with products that possess high market share in high growth markets
cash cow
SBU’s with dominant market share in low growth market
dogs
SBU’s with small share of low growth markets
question marks
SBU’s with small share of high growth markets
market penetration strategies
growth strategy designed to increase sales of existing products to current customers, nonusers, customers of competitors
market development strategies
growth strategy that introduces existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that emphasize both new products and new markets
control
process of measuring performance and comparing that to stated performance objectives and adjusting to meet objectives
return on marketing investment (ROMI)
quantifying just how an investment in marketing has an impact on firms success, financially or otherwise
action plans
individual support plans that provide guidance for implementation and control of marketing strategies
operational plans
plans that focus on day to day execution of the marketing plan
marketing myopia
short sighted operations eg railroad firms seeing themselves as railroad company rather than transportation company
economic environment
state of the economy & business cycle
competitive environment
having high competitive intelligence; knowing what competitors are doing
competitive market structure
marketplace designed to have products and services compete for consumers
perfect competition
many sellers of similar products with little influence
monopolistic competition
many sellers of similar products but offers different benefits. eg soap
oligopoly
small number of sellers with massive marketshare
monopoly
one seller controls the market
levels of competition
aspects of a products/services/consumers that firms compete for
brand (direct) competition
same products meeting the same need. brand becomes differentiating factor
product competition
different products meeting the same need, best product wins
total market competition (discretionary income)
firms competing for consumers extra income
technological environment ; change industry?
impact of tech on business, distribution, inventory control, communication
Political/legal environment
legislation that controls business
Sherman Antitrust Act 1890
eliminates monopolies, price fixing
Clayton Act 1914
prohibits tying contracts
Federal Trade Commission Act 1914
created FTC
Robinson-Patman Act 1936
prohibits price fixing from the supplier to retailers
Sociocultural environment
understanding target market demographics and marketing accordingly
ethnocentrism
belief that ones culture/demographic is superior to others
demographics
measurable characteristics of consumers such as age, race, gender, etc that set them apart from other consumers
social norms
specific rules about right or wrong/acceptable or unacceptable
cultural values
society’s deeply held values about the right and wrong way to live
product standardization vs localization
Relationship marketing
CRM (customer relationship management)
Segmentation Process
Dimensions of market segmentation
criteria for good segments
segmentation strategies; concentrated, differentiated
product positioning, perceptual (positioning) map
relaying value info
Stealth marketing
type of marketing where the consumer does not know that they are being marketed to
guerrilla marketing
type of marketing where it is in an unexpected location or time
buss vs hype
darwins biological determinism
cannibalization
traditional vs non traditional media types
consumer bill of rights
right to choose which prodcuct
porters strategies
cost leadership