Marketing FINAL Discussion Questions

Marketing
The activity set of institutions, processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Customer Relationship Management (CRM)
Systematically tracks customers’ preferences and behaviors to tailor the value proposition as closely as possible. Got easier when firms got internet.
Sustainability
A product design focus, that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
Social Marketing Concept
Marketers must satisy customers needs in ways that also benefit society and also deliver profit to the firm. Ex: 9/11 people examine their values and redoubles commitment to their community and country.
Return on Investment (ROI)
The direct financial impact of a firm’s expenditure of a resource such as time or money.
Competitive Advantage
The first step is using distinctive competency and the second step is to turn the distinctive competency into a differential benefit.
Distinctive Competency
A superior capability of a firm in comparison to its direct competitors. Ex: Coca Cola’s success in global markets due to its distribution to overseas US soldiers.
Differential Benefit
Properties of products that set them apart from competitors’ products by providing unique customer benefits. Ex: Apple customer, people buy it even because products are more expensive because of the brand preference, companies do not have to compete on price.
Strategic Planning
Decision process that matches an organization’s resources and capabilities to its market opportunities for long term growth and survival. Top management such as a CEO is responsible; they define the mission, evaluate internal and external environments, set organizational or SBU objectives, establish portfolio, and develop growth strategies.
Functional Planning
Concentrates on developing detailed plans for strategies and tactics for short term, supporting organizations long term strategic plan. The function level management such as CMO or VP is responsible. They perform a situation analysis, set marketing objectives, develop marketing strategies and implement them, monitor and control them.
Operational Planning
Focuses on detailed plans for day to day activities, carries out functional plans to implement marketing plan, use marketing metrics to monitor how the plan is working.
Marketing Planning
Step 1: Perform a Situation Analysis
Step 2: Set Marketing Objectives
Step 3: Develop Marketing Strategies
Step 4: Implement and Control the Marketing Plan
Quotas
Limitations set by the government on the amount of a product allowed to enter or leave a country.
Embargos
A quota completely prohibiting specified goods from entering or leaving a country. Ex: Cuban Cigars
Tariffs
Taxes on imported goods
Economic Communities
Groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere. (NAFTA)
Gross Domestic Product (GDP)
Total dollar value of goods and services produced by a nation within its borders in a year. It is most commonly used measure of economic health. The best is per capita
Market Entry Strategies
The risk is greater with each. Includes: Exporting, Contractual Agreements, Strategic Alliance, Direct Investment
Exporting
Decide whether it will attempt to sell its products on its own or rely on intermediaries to represent it in the target country
Licensing
Firm gives another firm the right to produce and market its product in that country
Franchising
Right to adapt an entire system of doing business
Joint Ventures
A strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals.
Direct Investment
A firm expands Internationally through ownership, when it buys a business in host country outright
Syndicated Research
Research by firms that collect data on a regular basis and sell the reports to multiple firms
Custom Research
Conducted for a single firm to provide specific information its managers need
Data Mining
Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available. Includes: Customer aquisition, customer retention, customer abandonment, and market basket analysis
Exploratory Research
Qualitative; A technique that marketers use to generate insights for future, more rigorous studies. Ex: Use pictures to project individuals feelings. Focus groups, personal interviews. Used to help improve products to satisfy customers
Descriptive Research
Quantitative; A tool that probes more systematically into the problem and bases its conclusions on large numbers of observations. Most popular method is a survey
Casual Research
A technique that attempts to understand cause and affect relationships. Ex: Placing a case of beer next to a diaper display and see if sales increase.
Consumer Behavior
The process involved when individuals or groups select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires
Consumer Decision Process and Marketing Strategy
1.)Problem recognition – Encourage consumers to see that existing state does not equal desire.
2.) Information search – Provide information when and where consumers are likely to search
3.) Evaluation of alternatives – Understand the criteria consumers use in comparing brands and communicate own brand superiority
4.) Product Choice – Understand choice heuristics used by consumers and provide communication that encourages brand decision
5.) Postpurchase Evaluation – Encourage accurate consumer expectations
Business Markets
-Purchases made for some purpose other than personal consumption.
-Purchases made by someone other than the user of the product.
-Decisions frequently made by several people
– Purchases made on rational criteria
-Limited number of large buyers
-Products often complex; classified based on how organizational customers use them.
-Promotion emphasizes selling
-Purchases frequently involve high risk and high cost
Consumer Markets
– Purchases for individual or household consumptions
-Purchases usually made by ultimate user of the product
-Decisions usually made by individuals
-Purchases often based on brand reputation or personal recommendations with little or no product expertise.
-Individual purchasers often make quick decisions
-Many individual or household customers
-Promotion emphasizes advertising
-Most purchases are low risk and low cost
Segmentation
Identify and describe market segments. The process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics. Making more money by bettering items for needs of customers. It includes Demographics such as Age gender family cycle, Psychographics, or Behavior.
Targeting
Evaluate segments and decide which to go after. A strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.
Positioning
Developing a marketing mix that will create a competitive advantage in the minds of the selected target market. Develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.
Convienance Products
A consumer good or service that is usually low-priced, widely available, and purchased frequently with a minimum of comparison and effort. (Low priced, wherever is convenient for you, Place) Ex: Paper Towels.
1.) Staple Product
2.) Impulse Product
3.) Emergency Product
Speciality Products
Goods or services that has unique characterstics and is important to the buyer and for which she will devote significant effort to acquire. ( Willing to pay more for it, no substitute, Promotion) Ex: Make Up
Unsought Products
Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to her attention. Ex: Casket
Innovation
A product that consumers perceive to be new and different from existing products. FDC (Federal Trade Commission) thinks a product must be entirely new or changed signficantly to be called new, and a product may be called new for only six months. From a marketing standpoint a new product is anything that customers perceive as new and different
Continuous Innovation
A modification of an existing product that sets one brand apart from its competitors. This modification is the easiest to get people to buy. The consumer doesnt have to learn anything new to use this innovation.
Dynamically Continuous Innovation
A change in an existing product that requires a moderate amount of learning or behavior change. Ex: Cell phone or TV.
Discontinuous Innovation
A totally new product that creates major changes in the way we live. More difficult to get people to buy. Ex: Internet, Radio, Electricity, Telephone
Total Quality Management (TQM)
A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement. It maximizes customer satisfaction by involving employees, regardless of their function, in efforts to continually improve quality.
Product Life Cycle (PLC)
A concept that explains how products go through four distinct stages from birth to death: Introduction, Growth, Maturity, and Decline.
Introduction
The first stage of the product life cycle in which slow growth follows this stage of a new product in the marketplace. The goal is to get first-time buyers to try the product. Sales hopefully increase at a steady but slow pace.
Growth
The second stage in the product life cycle, during which consumers accept the product and sales rapidly increase. Marketers must heavily rely on advertising and other forms of promotion. Price competition may develop which drives profits down.
Maturity
The third and longest stage in the product life cycle during which sales peak and profit margins narrow. To remain competitive and maintain market share during this stage, firms may tinker with the marketing mix in order to extend this profitable phase for their product.
Decline
The final stage in the product life cycle, during which sales decrease as customer needs change.
Brand
A name, term, a symbol, or any other unique element of a product that identifies one firm’s product and sets it apart from the competition. A brand name is probably the most used and most recognized for of branding.
Brand Equity
The value of a brand to an organization
Break Even Analysis
A method for determining the number of units that a firm must produce and sell at a given price to cover all its costs.
Break Even (units)= Total Fixed Costs / CM to Fixed Costs
Cost Plus Pricing
A method of setting prices in which the seller totals all the costs for the product and then adds an amount to arrive at the selling price
Mark Up on Costs
Total Cost + (Total Cost X Markup Percentage)
Mark Up on Selling Price
Price= Total Cost / 1.00-Markup Percentage
Promotion Mix
The major elements of marketer-controlled communication, including advertising, sales promotion, public relations, personal selling, and direct marketing