Marketing Management Midterm 1

BCG Growth Model
BCG Growth Model
Path to profitability
Marketing Environment
1. Customers
2. Company
3. Competitors
4. Segmentation
5. Targeting
6. Position

Marketing Mix
1. Product
2. Place
3. Price
4. Promotion

Customer Acquisition> Customer Retention

Sales Per Customer and Margin

Profits

Brand Champions/Love Group
​a manager who is ​responsible for ​creating and ​developing a ​brand and encouraging ​support for it, both inside and outside a ​company:
Product Market Expansion Matrix
Product Market Expansion Matrix
Consumer Lifetime Value
prediction of the net profit to the entire future relationship with a customer
Cash Cow
product with high market share in a no growth industry
Dog
Low market share and low market growth
Product Orientation
All about the product. Does no consider competitors or the needs of the market
Sales Orientation
Aggressive sales techniques
Market Orientation
Understand customer needs, company capabilities, knows competitors, and wants to make a profit
Societal orientation
Concerned about the environment
Market Development
Existing product in new market
Diversification
New product in new market
Market Penetration
Existing product in existing market
Product Development
New product in existing market
SWOT
Strengths, Weaknesses, Opportunities, Threats
External Environment
External Environment
Gen Y/Millennials
Born between 1979-1994
Gen X
Born between 1965-1978
Baby Boomer
Born between 1946-1964
Tweens
29 million americans age 8-14
Discretionary Income
Money to blow
Disposable Income
Money for needs
Gross Income
Total amount of money before taxes
Competitive rivalry
Rivalry among existing companies in a particular industry varies in intensity based on the type and number of competitors and on the basis of competition—price discounting, advertising, new product offerings, and service quality
Power of suppliers
Powerful suppliers can drive down industry profits by charging higher prices and/or reducing product and service quality
Power of buyer
Powerful buyers (customers) can use their clout to demand and receive lower prices, increased product quality, and more services
Threat of entrants
New entrants can shake up an industry and cause increased competition as they seek to take market share from existing companies in the industry
Threat of substitutes
Substitute products have the potential of replacing existing products because they perform a similar function
Regulatory Factors
The objective of regulation is to protect consumers and businesses
Social Factors
Social forces affect people’s attitudes, beliefs, and lifestyle. These forces shape consumers’ behavior
Competitive Factors
used to determine the attractiveness of an industry
Technological Factors
Application of science and research to accomplish a function more efficiently or to solve a problem.
Economic Factors
Changes in the economy affect consumer spending
Exporting
Goods produced in the home country are exported to a foreign market
Licensing
Another country is allowed to use manufacturing, processing, trademark, know-how, patent, or some other skill or value
Joint Venture
A company joins with a foreign market to create a local business where the company shares joint ownership and control
Foreign Direct
Build up wholly owned operations in other countries
Glocalization
going global but acting local
Customization
similar to glocalization, but the branded product is usually changed
Standardization
same product where ever the market is
Competitive risk
competitors’ responses to the new product’s entry into the local market
Economic risk
potential mismanagement of a country’s economy, exhibited in inflation and government debt
Legal risk
inadequate protection of contracts and intellectual property
Political risk
demonstrations, strikes, civil strife, abrupt government changes, violence, or terrorism, influences business performance
Fraud Triangle
Opportunity, Pressure, Rationalization
Marketing Myths
1. Marketers push products consumers don’t want to buy.
2. Consumers are no match for the power of marketing
3. Marketing is deceptive and not truthful or honest
4. Marketers believe in planned obsolescence (something no longer wanted because it is useless)
Cross tabs
Frequency counts

Conditions, attitudes, and/or behaviors that occur most often

Analysis of variance
Variability around an average

Averages that differ beyond expected variability

Regression analysis
Relationship between a dependent variable and one or more independent or predictor variables
Factor analysis
Data reduction techniques

Identify highly correlated variables, group into factors

Cluster analysis
Classifies objects or people into groups based on similarities

Divide markets into segments

Discriminant analysis
Ability of predictor variable to discriminate between categories

Generate perceptual maps depicting brands

MaxDiff analysis
Measures most/least important or most/least appealing

Determine choice preferences

Conjoint analysis
Estimates the value of component attributes given tradeoffs

Develop new products and identify pricing alternatives

Secondary Data
Someone else does the research work and you use the data
Primary data
More concise, but you do the research. Expensive and time consuming
Routine Problem Solving
Low risk and information search; such as buying detergent
Limited Problem Solving
Middle Risk and more information search: buying a new bike
Extensive Problem Solving
High risk and a lot of information search: buying a new car or home
Initiators
suggest purchasing a product or service
Influencers
affect the outcome decision with their opinions
Deciders
have the final decision to buy
Buyers
purchaser
Users
ones who use the product or service
Gatekeepers
control the flow of information