Marketing is ___1___, ____2___, and ___3___ for ____4___, ____5___, ____6___, and ____7__ that have value for ___8___, ___9___, ___10___, and ____11___ at large.

1) the activity

2) set of institutions

3) processes

4) creating

5) communicating

6) delivering

7) exchanging offerings

8) customers

9) clients

10) partners

11) society

What consumers perceive they gain from owning or using a product over and above the cost of acquiring it.

Customer Value

The consumer's overall rating of their experience with a company and its products.

Satisfaction

A measure of how often, when selecting from a product class, a customer purchases a particular brand.

Loyalty

The steps and processes organizations undertake to manage growth without detrimentally affecting the resources or biological systems of the earth

Sustainability

What is the single most important role of the marketing effort?

To increase the value to stakeholders by establishing and implementing an effective marketing strategy.

What is the "marketing strategy process"?

1) situation analysis

2) target marketing

3) positioning

4) marketing mix decisions

What makes up the marketing philosophy?

- core values (ethics and social responsibility)

- business definition (mission; customer needs and wants)

- strategic direction (desired leadership position)

- strategic infrastructure (SBUs and core competencies)

What makes up the strategic marketing plan (strategy)?

1. objectives

2. situation analysis

3. target marketing

4. positioning

5. integrating the marketing mix

What makes up the "tactical" aspect of the marketing organizational vision?

1. product

2. place

3. promotion

4. pricing

What makes up marketing's "organizational vision"?

1. philosophy

2. strategy

3. tactical

the type of behavior expected from a company's employees

core values

the fundamental contributions the organization provides to the customers

business definition

the desired leadership position of an organization and the measures used to chart progress toward reaching this position

strategic direction

the corporate configuration that produces the company's core competencies and provides the resources necessary to satisfy customer wants

strategic infrastructure

_____ are set in terms of desired profit, marketing share, or total sales

 _____ always provide a time frame and must be verifiable

objectives

the examination of marketing activities required to understand the marketing environment, customer needs and wants, and the competition

situation analysis

the process of selecting which market segments the firm will try to satisfy better than its competitors.

target marketing

creating a perception in the minds of consumers about the company and its products relative to competitors

positioning

determining which products to develop and which ones to drop

product plans

getting the right product, in the right condition, to the right customer, at the right time, for the miminum cost

place plans

provides info about a company's product or service in effort to encourage puchase

promotion plans

setting prices to reflect the value recieved by customers and achieve the profit required by the organization

pricing plans

what does the marketing mix consist of

product

place

promotion

price

Competition involves.....

companies of differing sizes and types. It may be individual companies or the industry as a whole.

what does competition consist of?

1. existing firms

2. potential competitors

3. substitutes

4. bargaining power of buyers and suppliers

What does the global macroenvironment consist of?

1. technology

2. economic

3. demographic

4. cultural diversity

5. legal

6. ethical

computerized systems that collect and organize marketing data on a timely basis to provide information for decision making

Marketing Information Systems (MIS)

the formal assembly and analysis of data about specific issues surrounding the marketing strategy

marketing research

MIS's and marketing research lead to....

marketing decision making

What is the marketing research process?

1. problem definiton

2. research design

3. exploratory research--> exploratory research results reported

4. additional research required

5. quantitative research

6. imterpret and report the findings

Consumer behavior involves the __1__ and ___2__ __2__ of individuals and households in discovering, evaluating, acquiring, consuming, and disposing of products.

1. actions

2. decision processes

___1___ and ___2__-__2___ ___2___ are closely related

1. involvement

2. decision-making processes

Knowledge about involvement and decision-making processes provides....

insight into how and dwhy consumers behave as they do.

What are the psychological factors involved in decision-making?

1. motivation

2. perception

3. learning

4. attitudes

5. information processing

what are the societal and social factors involved in decision-making?

1. culture

2. subculture

3. social class

4. reference groups

5. family

given the psychological factors and the societal and social factors, consumer involvement can either be ___ or ____

low or high

given the psychological factors and the societal and social factors, consumer decision-making can either be ___ or ____

passive or active

occurs when a customer becomes aware of an unfulfilled desire

problem recognition

 Consists of thinking through the situation, calling up experiences stored in memory, and seeking information from others.

information search

 Based on decision rules about which product or service is most likely to satisfy goals.

alternative evaluation

The buying choice after carefully weighing the alternatives followed by a financial commitment to make an acquisition.

purchase decision and purchase

purchase evaluation

What is the consumer decision making process?

1. problem recognition

2. information search

3. alternative evaluation

4. purchase decision and purchase

5. purchase evaluation

Business-to-business marketing is....

the marketing of goods and services to other businesses, governments, and institutions.

What does b-2-b marketing include?

everything but direct sales to consumers

Globally this is the largest target market by far....

business-to-business marketing

What does the "buying center" consist of?

1. gatekeepers

2. users

3. decision makers

4. linking pins

5. advocates

6. information seekers

control flow of outside information by screening commercial contacts with other members of the buying center

gatekeepers

- actually use the product

- often initiate purchasing changes and provide feedback

users

have authority to make or approve purchases

decision makers

establish contacts among functional areas involved in the buying center

linking pins

provide group leadership to support (or not support) specific solutions and suppliers

advocates

locate data about products, competitors, and suppliers to be used during the purchasing process

information seekers

a customer's positive, neutra, or negative feeling about the value that was recieved as a reult of using a particular organization's offering in specific use situations

customer satisfaction

refers to how often, when selecting from a product class, a customer purchases a particular brand

customer loyalty

Why are satisfaction and loyalty important?

1. sales to increase revenue

2. less concerned about price

3. reduce the organization's costs

In terms of the importance of customer satisfaction and loyalty, "sales to increase revenue" (one of the reasons why satisfaction and loyalty are important) means....

 –The revenue stream from one lifetime

the amount of profit a company expects to obtain over the course of the relationship

lifetime value of a customer

In terms of the importance of customer satisfaction and loyalty, "less concerned about price" (one of the reasons why satisfaction and loyalty are important) means....

creating satisfied custmers thru service and experience is often more imporant and successful than trying to create satisfied customers thru price

In terms of the importance of customer satisfaction and loyalty, "reduce the organization's costs" (one of the reasons why satisfaction and loyalty are important) means....

loyal customers affect the cost structure, which is the amount of resources required to produce a specific amount of sales

consumer's beliefs about the performance of a product based on prior experience and communications

customer expectations

the percentage of customers who switch to another brand or supplier

customer defections

Satisfaction ratings.....

provide a way for consumers to compare brands, enable testing agencies to determine how well products perform, and allow companies to monitor how satisfied consumers are with their goods an services.

What is a customer satisfaction measurement program? And what is its purpose?

1. an ongoing survey of customers

2. obtaining continuous estimates of satisfaction

 The ability to understand the perspective of another person or organization. It means putting yourself in someone else’s shoes and seeing the world as that person sees it.

empathy

being able to rely on another party to perform as promised and in the way you expect

trust

 The degree to which empathy and trust make a difference. Going beyond what is promised to make sure the customer is better off because of the relationship.

commitment

 Companies must be willing to provide superior value for their best customers. Often, building relationships may require specific incentives or rewards.

rewarding loyalty

What are the 4 factors involved in creating a personal relationship?

1. empathy

2. trust

3. commitment

4. rewarding loyalty

the systematic evaluation of the practices of excellent organizations to learn new and better ways of serving customers

benchmarking

With benchmarking, the best practices are the....

...selected competencies for which leaders are known.

Through _____, the market can be divided into several groups of people with similar characteristics.

segmentation

A market segment is....

a homogeneous group of customers with similar needs, wants, values, and buying behavior

Target marketing involves....

...selecting certain segments for emphasis.

the total market is ____ (1), meaning it has many types of ____ (2)

1. heterogeneous

2. buyers

________ divides the total market into homogeneous subgroups, or clusters with similar characteristics.

Market segmentation

any discriptive characteristic that helps separate all potential purchasers into groups

a segmentation variable

What are the segmentation variables?

1. geographic

2. demographic

3. diversity

4. psychographic and lifestyle

5. behavioristic

6. benefit

_______ compiles information about a market segment and the amount of opportunity it represents.

The market segment profile

What factors about a market segment does the market segment profile compile information about?

1. size and growth

2. competitive factors

3. cost and efficiency

4. segment leadership

5. compatibility

What are the steps for positioning?

 1) Identify the attributes or characteristics used by   buyers in a segment to understand brands.

2)  Diagram the most important dimensions on a grid   (map).

3)  Locate the brand relative to others based on how   it is perceived by buyers.

4)  Identify the ideal position for buyers in the   segment.

5)  Determine the fundamental way to position the   product.

6)  Develop the marketing mix that supports the   positioning strategy selected.

What are the bases for positioning (a product or service)?

1. benefit

2. price/quality

3. time of use or application

4. product user or spokesperson

5. direct comparison

6. product class or category

7. country of origin

A product is....

...any physical object, service, idea, person, event, place, or organization that can be offered to satisfy consumers' needs and wants.

What is a brand?

a distinguishing name and/or symbol intended to identify and differentiate products from those offered by competitors

What were the top 3 brands (in order) in the world in 2000 and 2007?

1. Coca-Cola

2. Microsoft

3. IBM

What is a trademark?

a distinctive form or figure that identifies a brand

What is trademark piracy?

a brand name and the trademark symbol/logo are protected by law if they are legally registered. That gives the owner sole right to use them any way s/he chooses

the assets linked with the brand name and symbol that add value to the product or service

brand equity

What is brand equity comprised of?

1. brand awareness

2. brand loyalty

3. percieved quality

4. brand associations

5. competitive advantage

- is part of a consumer's evoked (consderation) set

- greater familiarity and liking

- better recognition

brand awareness

- reduced marketing cost for repeat buyers

- leverage with distribution channel members

- attract new customers by word of mouth

- steady market share allows time to respond to competitors

brand loyalty

- reason to buy (value to customer)

- uniqueness

- better price

percieved quality

-help consumers process information

- create positive attitudes

- allow brand extensions and changes

brand associations

- company can market value rather than compete on price

- a barrier to entry

- supports promotion campaigns

competitive advantage

What are service characteristics that affect marketing strategy?

1. goods vs. services

2. service-goods continuum

3. service quality

4. search, experience, credence attributes

developing the service mix....

- core, augmented, and branded services

- development of new services

- global adjustments of services

What is an expanded concept of marketed services?

nonprofit marketing

List global forces creating growth in the services sector.

1. technology

2. quality of life

3. government deregulation of services

4. competition in professional services

5. privatization

6. the need for specialization

7. access to knowledge

8. growth of franchising

How is technology creating growth in the services sector?

technological advances and the accompanying information revolution are creating vast opportunities in the service sector

How is "quality of life" a global force creating growth in the service sector?

by how people feel and experience life

How is "government deregulation of services" a global force creating growth in the service sector?

Governments around the world have deregulated services. The resulting competition is lowering the cost while improving the quality of services, so people are consuming more of them.

professional service providers are turning to marketing as a way to conduct their business operations

How is "privatization" a global force creating growth in the service sector?

privatization of government functions is opening up service opportunities

How is "the need for specialization" a global force creating growth in the service sector?

there is a need for outside specialists by companies that want to concentrate resources on their core business

How is "access to knowledge" a global force creating growth in the service sector?

Fundamental competencies required to run many service businesses are accessible to individuals or small groups of experts through computerized services.

How is "growth of franchising" a global force creating growth in the service sector?

a major trend that tends to focus on service based products

Services are unique. Describe services- contrasts between goods and services.

- intangibility

- relationship with consumers

- the services encounter connection

- simultaneous production and consumption

- no storage and inventory

- service quality control

Describe the new product development process.

1. new-product strategy

2. idea generation

3. idea screening

4. business analysis

5. prototype product development

6. market testing

7. commercialization

when is extending the product life cycle not a good thing?

when firms resist change and sometimes keep their products going far beyond their usefulness

True or False: There are times when it is good business to extend the product life cycle.

TRUE

What are the FOUR common ways to extend the product life cycle?

1. selling to new segments

2. stimulate more frequent use

3. encourage more use per occasion

4. promoting more varied use

What describes how consumers make a product choice, and what are the five steps to it?

Adoption

1. knowledge

2. persuasion

3. decision

4. implementation

5. confirmation

What describes the spread of innovations from one group to another over time?

diffusion

What is integrated marketing communications (IMC)??

the coordination of advertising, sales promotion, personal selling, public relations, and sponsorships to reach consumers with a powerful unified effect

What are the objectives of integrated marketing communications?

1. provide information

2. create demand for products

3. communicate value

4. communicate product uniqueness

5. close the sale

6. build relationships and loyalty

In the communications process, who sends more messages?

the sender (marketer) to the reciever (consumer)

As the sender what is the marketer's responsibility?

-to make sure the message is recieved by the target audience

- make sure message is understood as intended

- make sure message provides relevant information to help the audience be knowleadgeable

- make sure message elicits an appropriate response

Spokesperson's are usually judged according to:

1. expertise

2. trustworthiness

3. attractiveness

What are the FIVE types of communication activities?

1. personal selling

2. advertising

3. sales promotion

4. public relations

5. sponsorships

-requires person-to-person communication between buyer and seller

-this occurs face to face, by telephone, video conferencing, or interactice computer linkages

personal selling

paid communication thru nonpersonal channels

advertising

Examples of advertising communication mediums:

1. newspapers

2. television

3. radio

4. magazines

5. direct mail

6. billboards

7. point-of-sale displays

attempts to motivate purchases thru a sales message

sales promotions

What are some examples of sales promotions?

1. coupons

2. contests

3. free samples

publicly designed to present the firm and its products in a positive light

public relations

the exchange of money (or some other form of value) in return for a public association with an event

sponsorships

What are the steps in the IMC plan?

1. select and understand target audience

2. determine the communication objectives and select the communication mix

3. develop the budget

4. implement

5. measure the results

What is mass communication composed of?

1. advertising

2. sales promotion

3. public relations

What are qualities/factors of advertising?

1. information

2. persuasive

3. reminder

4. reinforcement

What are qualities/factors of sales promotion?

1. gets trial

2. stimulates immediate sales

What are qualities/factors of public relations?

1. corporate communications

2. publicity

What are the steps in the advertising plan?

1. set the avertising objectives and budget

2. develop the theme and message

3. select media, set the schedule, and buy space

4. create the ads

5. asses advertising effectiveness

What are the steps for personal selling?

1. plan

2. prospect

3. organize information and develop a call plan

4. approach: secure an interview and/or gain attention/interest

5. present case and build relationships

6. manage objections and close the sale

7. service

In terms of prospecting, put in order and describe each type of prospect.

1. lead: may be interested; might have a need for the product. Is a large pool and must be narrowed down to the most likely buyers

2. prospect: potential customers who have an interest in the product

3. qualified prospect: potential buyer interested in the product and likely to be a reliable customer. Has attributes of a good customer.

involves seeking out new customers within the company's target markets

prospecting

the incorporations of all activities concerned with planning, implementation, and control of sourcing, manufacturing, and delivery of products and services

supply chain management

all of the organizations from which components, semi-finished products, and services are purchased

a supply network

What is it called when the buyer controls or owns the supplier or customer?

vertical integration

refers to selling products directly to consumers for personal and household use

retailing

a firm that makes the majority of its sales to consumers

a retailer

Retailing process....?

1. decide on target markets and positioning

2. specify service level and pricing

3. decide on merchandise assortment

4. determine store locations

5. specify technology

6. determine importance of supplier relationships

the variety of product lines offered

merchandise breadth

the number of products available within each line

merchandise depth

What must merchandise depth and breadth be determined for?

merchandise assortment

What strategy means that the product lines carried seem to be unrelated?

scrambled merchandising

uses various devices to communicate with customers, generally calling for a direct response on their part

direct marketing

What is so great about direct marketing?

It offers consumers a convenient way to shop from the comfort of their home or office. It can improve the quality of products offered to customers. It is of value to entrepreneurs as retailers cut back on inventory. It allows small businesses to access markets without the assistance of retailers, wholesalers, or a company sales force.

All direct marketing companies maintain....?

 a database with customer name, addresses, and purchase history

Examples of direct marketing media:

1. direct mail

2. internet

3. catalogues

4. telemarketing

5. print and broadcast media

6. televised home shopping

What are the direct marketing decisions?

1. payment methods and delivery

2. target markets

3. database management

4. merchandise assortment

5. pricing

6. message design

7. choice of media and other channels

What are the major factors influencing price?

1. global

2. economic

3. legal and ethical

4. competitive

5. costs

What are the global factors, in respect to major factors influencing price?

1. market

2. cost

3. financial

What are the economic factors, in respect to major factors influencing price?

supply and demand

What are the legal&ethical factors, in respect to major factors influencing price?

regulatory and company

What are the competitive factors, in respect to major factors influencing price?

- differentiation and substitution

- industry structure

What are the "costs" factors, in respect to major factors influencing price?

- marginal

- fixed

-variable

examines such aspects as the # of firms, whether products are differentiated, and the freedom of firms to enter and exit

industry structure

What does industry structure include?

- perfect competition

- monopolies

- oligopolies

- monopolistic competition

occurs when product attributes are stressed

differentiation

_____ try to demonstrate value and avoid any price reductions.

Marketers

adjusts prices to gain more customers or to establish a dominant position in the market

price competition

Value based pricing recognizes....

that price reflects value, not simply costs.

Value based model:

customers--> value --> price--> cost and profit--> product/service distribution promotion

cost based model:

products/services distribution promotion--> cost and profit--> price--->value--> customers

Because prices send powerful messages....

it is important that they reflect the customer value that the company delivers.

Price and Customer Value Strategies:

the strategy selected depends on the company's target market and the number of buyers who desire to purchase at each value/price position

When marketers develop a pricing strategy, it should...

reflect the value percieved and revieved.

How can abuses, in terms of pricing strategies, occur?

- manipulation of the consumer's reference price

- quoting overcharged or misleading prices

- using discriminatory pricing practices