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81 Cards in this Set
- Front
- Back
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Marketing |
-discover needs -create concept for products -satisfy needs with marketing mix |
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Marketing Mix |
-the controllable factors -product, price, place, promotion |
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Target Market |
-specific group of potential customers towards which an organization directs its marketing program -can't target the whole population! |
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Environmental Forces |
-the uncontrollable factors -social, economic, competitive, technological, reglatory |
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Marketing Program |
-a plan that integrates the marketing mix to provide a good or service to prospective customers |
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Evolution of North American Business |
-production era -sales era -marketing concept era -marketing orientation era -customer experience management era -social media marketing era |
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Production Era to Sales Era |
-good were scarce in the earlier years and so buyers accepted any goods produced, major concern was production -supply was large so had to push products with salespeople |
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Marketing Concept Era |
-begin to satisfy needs and wants -marketing at beginning rather than end of the production cycle |
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Market Orientation Era
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-collect info of needs and wants -spread throughout the organization -use information to create value, ensure customer satisfaction, and develops customer relationships |
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Customer Value |
-the mix of price, quality, convenience, and service |
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Customer Satisfaction |
-the match between customer expectations and the actual product performance |
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Customer Relationship Management |
-the process of building and developing long term relationships with customers by delivering customer value and customer satisfaction
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Customer Experience Management |
-not just about the product but about the experience -manage customer interactions with all aspects of the business (positive impression, satisfied, loyal) |
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Organization |
-legal entity of people with shared common mission |
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Organizational Strategy |
-long term course of action designed to deliver a unique customer experience |
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Organizational Structure |
-corporate level (overall strategy) -business unit level (specific strategic direction for their types of products) -functional level (specialists create value) |
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Organizational Foundations |
-values -mission -culture |
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Core Values |
-fundamental and enduring principles that guide conduct over time |
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Mision |
-a statement of the organization's function in society -often identifies its customers, markets, and products -"deliver superior quality products and services through leadership and innovation" |
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Organizational Culture |
-set of values, ideas, attitudes, and norms of behaviour that is learned and shared among members of an organization |
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Organizational Goals |
-specific -measurable -attainable -relevant -time based |
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Setting Strategic Directions |
-where are we now -where do we want to go |
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Strategic Direction: Where are we now |
-competencies -customers -competitors |
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Strategic Direction: Where do we want to go |
-business portfolio analysis -market product analysis |
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Business Portfolio Analysis (Model) |
-market share is high or low on x axis -growth is high or low on y axis |
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Market Product Analysis (Model)
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-products are new or current on x axis -markets are new or current on y axis |
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Strategic Marketing Process (Model) |
-planning phase -implementation phase -evaluation phase |
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Strategic Marketing Process: Planning |
-SWOT analysis (build strength, fix weakness, exploit opportunity, avoid threat) -Market Product Focus (set goals, target, points of difference, position) -Marketing Program (marketing mix) |
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Strategic Marketing Process: Implementation |
-obtain resources -design marketing organizatoin -develop schedules -execute program |
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Strategic Marketing Process: Evaluation |
-compare results with program goals -correct negative deviations -exploit positive deviations |
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Points of Difference |
-characteristics of the product that make it superior to competitive substitutes |
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Competitive Advantage |
-product excellence -customer excellence -location excellence -operational excellence |
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Environmental Scanning |
-continually acquiring information on events occurring outside the organization to identify and interpret potential trends -identify trend -understand reason behind trend (marketer or natural) -take action to respond to trend (marketing program) |
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5 Environmental Forces |
-social -economic -technological -competitive -regulatory |
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Social Forces |
-demographics -culture |
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Social Forces: Demographic Examples |
-population growth -generation/age changes -ethnic diversity |
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Social Forces: Culture Examples |
-attitudes towards work and leisure -working women needing convenience -environmental/health |
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Economic Forces |
-macro (inflation and recession) -consumer income (disposable is after tax and discretionary is after tax and necessities) |
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Technological Forces |
-inventions or innovations from applied science for production level and communications |
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Competitive Forces |
-porter 5 Forces |
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Porter 5 Forces |
-power of buyer -power of seller -threat of new entrants -threat of substitute products -competition within the industry |
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Regulatory Forces |
-restrictions on business with respect to how it conducts activities -protect competition and consumers -self regulation -consumerism (increase influence, power, and rights of consumers in dealing with institutions_ |
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Market Segments |
-segment because people are different and have different needs and wants -no size fits all |
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Segmentations |
-have common needs and wants -will respond similarly to a marketing action |
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When to Segment Markets |
-mass marketing (instead of different products, different marketing mix for each segment) -multi segment marketing (one product for each segment) -niche/concentrated marketing (one product and one segment) -micromarketing (customization) |
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Steps in Segmenting and Targeting |
-Group potential buyers into segments -Group products to be sold into categories -Develop a market product grid -Select target markets Take marketing action to reach target markets |
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Criteria to Form Segments |
-increased profit potential -similar needs within the segment -different needs among segments -potential for marketing action to reach the segment -simplicity/cost of assigning to segment |
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Ways to Segment Consumer Markets |
-demographic -geographic -behavioural -psychographic |
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Behavioural Variables (buying habits: how they spend and choose) |
-benefits sought (price, quality, convenience, service) -usage rate -user status (first time or regular) -method of payment -loyalty |
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Psychological Variables (who are the customers) |
-personality -lifestyle |
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Develop a Market Product Grid |
-product on top and market on the side -size of market corresponds with a number -examples were pillows (soft/hard and type of sleeper) and Wendys (meal and dorm/commute/non-student) |
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Criteria to Select Target Market |
-market size -expected growth -competitive position -cost of reaching segment -compatibility with organization objectives and resources |
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Positioning |
-the place an offering occupies in the consumers' mind on important attributes relative to competition -create yourself a competitive advantage to max profits |
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Perceptual Maps |
-maps of positioning with attributes in 2 dimensions |
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Consumer Behaviour Decision Process |
-recognize need -search for info -alternatives -choose -post purchase evaluation |
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Informational Search |
-from personal sources, public sources, marketer-dominated sources -yields you awareness set -suggest criteria to use to judge |
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Alternative Evaluation |
-evaluative criteria -if meet criteria then go from awareness set to consideration set |
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Post Purchase Behaviour |
-consumer compares with expectations -expectations high or product bad? -maximize consumer satisfaction for retention, repeat purchases, and word of mouth -use toll free hotlines, return policies, and monitor social media |
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Involvement Levels |
-extended problem solving (specialty good) -limited problem solving (shopping good) -routine problem solving (convenience good) |
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Involvement in Purchase Decision |
-skip or minimize stages depending on involvement -involvement is significance of the purchase to the consumer |
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4 Influences on Purchase Decision |
-marketing mix -social influences -psychological influences -situational influences |
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Psychological Influences |
-motivation -personality -perception (selective perceptions and perceived risk) -learning (behavioural, cognitive, brand loyalty) -lifestyle -values, beliefs, attitudes |
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Socio-cultural Influences |
-personal influences -reference groups -family -social class -culture -sub culture |
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Situational Influences |
-purchase task (reason: gift or self?) -social surroundings (people present at time of purchase) -physical surroundings (decor, music, crowd) -temporal effects (time of day or time available) -antecedent states (mood/cash on hand) |
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Perception: Selective Perception |
-exposure (only watch CTV) -attention (confirmation bias) -comprehension (Snow Pup=toy) -retention (forget quickly) |
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Perception: Perceived Risk |
-anxiety because consumer cannot anticipate the outcome of the purchase -combat with seals of approval, endorsements, free trials, extensive usage instructions, warranty/guarantee |
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Leaning: Behavioural Learning |
-automatic responses through repetition -drive, cue, action, reward -marketer should link cue (promotion) to action (their product) |
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Learning: Cognitive Learning |
-more about thinking -link two ideas through repetition in advertising |
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Learning: Brand Loyalty |
-results from the positive reinforcement of previous actions |
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Values |
-personally or socially preferable modes of conduct that are enduring |
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Beliefs |
-a consumer's subjective perception of how well a product or brand performs on different attributes |
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Attitudes |
-learned predisposition to respond to an object or class of objects in a consistently favourable or unfavourable way -shaped by values and beliefs |
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Attitude Change |
-increase/decrease perceived product attributes -increase/decrease importance of attributes -add new attributes |
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Personal Influences |
-opinion leadership (influential) -word of mouth (conversations) |
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Reference Groups |
-people to whom an individual looks to for approval -membership groups -aspiration groups -dissociation groups |
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Family Influnces |
-family life cycle (where from formation to retirement) -family decision making (spouse dominant or joint) |
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Culture |
-common values, attitudes, ideas, and norms that are shared among members of a group -affect marketing mix (especially promotion) -can be cause of business failure |
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Sub Culture |
-subgroups within a larger culture, perhaps ethnic groups within the national culture |
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Hofstede 5 Dimensions |
-power distance (inequality ok?) -masc. vs fem. (achievement vs human goals) -uncertainty avoidance (rules/laws and attitudes towards change) -LTO vs STO (past/present or future) individualism vs collectivism |
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Consumer Behaviour Principles |
-consistency (trends) -social validation (numbers) -authority -liking principle -scarcity -reciprocity |
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Buyer Behaviour |
-functional needs (performance of product) -psychological needs (personal gratification from product) |
