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Definition
| buyers, sellers, investors, community residents, citizens |
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| identifying and satisfying consumer needs to ensure long term profitability |
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| the activity for creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders and society at large |
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Definition
| money, credit, labor, goods for goods, services, ideas. essentially something of value in return for something of value |
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| from customer's prospective: value= |
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Definition
| the ratio of costs (price) to benefits (utilities); perceived benefits/price; takes many forms: making a profitable exchange, earning prestige among rivals, taking pride in doing what a company does well, nonprofits: motivating, educating, or delighting the public |
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Definition
| includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself; list price-discounts-allowances-rebates, coupons=product (physical good, service, assurance of quality, repair facilities, packaging, credit, warranty) |
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Term
| ways to build value through customers |
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Definition
| regard them as partners rather than victims, remember that it's more expensive to attract new customers than to retain current ones, calculating the lifetime value of a customer allows a firm to decide which customers are "worth keeping" vs which should be "fired" |
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Definition
| shifts from inner to outer directed: production oriented, sales oriented, marketing concept oriented, customer relationship oriented |
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Term
| production oriented marketing era |
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Definition
| the focus is on the internal capabilities of the firm; a management philosophy that emphasizes the most efficient ways to produce and distribute products; marketing played an insignificant role |
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| sales oriented marketing era |
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Definition
| focus is on aggressive sales techniques to move excess capacity and a belief that high sales result in high profits; when product availability exceeds demand, businesses may focus on a one-time sales of goods rather than repeat business; managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory |
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| marketing concept oriented marketing era |
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Definition
| focus is on satisfying customer needs and wants while meeting objectives; emphasizes satisfying customers' needs and wants |
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| customer relationship oriented marketing era |
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Definition
| continuous satisfaction of customer expectations while meeting organization objectives; total quality management is widely followed |
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Term
| The production orientation was most popular during |
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Definition
| the beginning of the industrial revolution, when demand for products outstripped supply. Firms that engaged in this orientation paid little attention to the desires of consumers, and instead marketed products that they wanted to make, the way they wanted make them. Because there are typically few alternatives available to consumers, consumers must buy whatever is available or go without. |
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Definition
| focuses on spending large sums of money to attract new customers. It became popularized after World War II, when production shifted from weaponry back to consumer goods, and the supply of desired goods finally caught up with demand. Sales promotions were heavily used to stimulate demand for goods, though advertising and personal selling were used as well to attempt to make a sale. |
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Term
| The total quality management philosophy |
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Definition
| implemented by a number of firms through the 1990s as a way of not only meeting consumer needs, but doing so better than the competition on a regular basis. This is defined as a philosophy that involves all employees from the assembly line onward in continuous product quality improvement efforts. |
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Definition
| make money and a contribution: focuses on building long-term bonds with customers using CRM, social marketing, and seeks to maximize the financial, social, and environmental bottom lines with a greater focus on accountability |
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| Customer relationship management (CRM) |
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Definition
| involves systematically tracking customers' needs in ways that also benefit society and deliver profit to the firm |
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Definition
| management philosophy that marketers must satisfy customers' needs in ways that also benefit society and deliver profits to the firm |
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Definition
| a concept that falls under the social marketing concept; creating products that meet present needs and ensuring that future generations can have their needs met |
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Term
| Return on investment (ROI) |
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Definition
| the direct financial impact of a firm's expenditure of resources such as time or money |
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Term
| becoming market oriented requires |
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Definition
| establishing an info system to get to know your customers' needs and using the info to create a product that satisfies those needs, coordinating all marketing activities by restructuring the organization, obtaining the support of all managerial and staff levels in the organization. the goal: creating ultility for the customers: form, place, time and possession utilities |
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Definition
| the purchasers of an organization's products; the focal point of all marketing activities |
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Definition
| a specific group of customers on whom an organization focuses its marketing efforts: large or small customer groups, single or multiple product markets, single or multiple products, local or global markets |
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Definition
| product, pricing, distribution, promotion |
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Definition
| goods, services, or ideas that satisfy customer needs |
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Definition
| decisions and actions that establish pricing objectives and policies and set product prices |
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Definition
| the ready, convenient, and timely availability of products |
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Definition
| activities that inform customers about the organization and its products |
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Definition
| ongoing process of making decisions that guide the firm both in the short term and the long term; identifies/builds on firm's strengths, helps managers make informed decisions, develops objectives before action is taken |
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Term
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Definition
| done by top-level corporate management: 1. define the mission 2. evaluate the internal and external environment 3. set organizational or SBU objectives 4.establish the business portfolio (if applicable) 5. develop growth strategies |
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Term
| strategic planning: define the mission |
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Definition
| answer: what business are we in? what customers should we serve? how do we develop firm's capabilities and focus its efforts? |
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Term
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Definition
| a formal document that describes the firm's overall purpose and what it hopes to achieve in terms of its customers, products and resources |
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Definition
| an assessment of a firm's internal and external environments |
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Definition
| controllable elements inside of an organization-people (human capital), physical facilities, financial stability, corporate reputation, quality products, strong brands, technologies, etc. |
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Term
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Definition
| uncontrollable elements outside of an organization that may affect its performance either positively or negatively (economic, competitive, technological, legal, political, ethical, and sociocultural trends, trends manifest as opportunities or threats, firm cannot directly control external factors but can respond to them via planning |
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Definition
| flows from the marketing plan, and is further developed by supervisory managers who might be product or brand managers, advertising managers, sales managers for particular products, divisions, or geographic territories, publicists, specialists in marketing research, etc. 1. develop action plans to implement the marketing plan. 2. use marketing metrics to monitor how the plan is working |
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Term
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Definition
| planning done by top functional-level management such as the firm's chief marketing officer. 1. perform a situation analysis 2. set marketing objectives 3. develop marketing strategies 4. implement marketing strategies 5. monitor and control marketing strategies. needs to be consistent with the corporate strategic plan |
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Term
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Definition
| a set of unique features of a company and its products that are perceived by the target market as superior to the competition and are sustainable. Types: low cost, product/service performance (differentiation), niche-based |
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Term
| firm's distinctive (core) competencies |
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Definition
| things a firm does extremely well (strengths), which can provide an advantage in the marketplace (financial and human resources; reputation, goodwill, and brand names) |
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Term
| organizational/ SBU objectives |
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Definition
| what the firm hopes to accomplish with long-range business plan, needs to be specific, measurable, attainable, and sustainable |
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Definition
| the group of different products or brands owned by a firm and having different income-generating and growth capabilities |
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Definition
Assessing the potential of a firm’s SBUs
Helps make decisions regarding which SBUs should receive more or less of the firm’s resources |
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Definition
| A division, product line, or other profit center within a parent company |
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Definition
| A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products |
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Term
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Definition
| The percentage of a market that actually buys a specific product from a particular company |
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Term
| Market-Growth/Market-Share Matrix |
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Definition
A strategic planning tool based on the philosophy that a product’s market growth rate and market share are important in determining marketing strategy
Factors determining SBU/ product’s position within a matrix
Market growth rate
Relative market share |
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Term
| Boston Consulting Group (BCG) matrix purpose |
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Definition
| to aid management in decisions related to financial resource allocation by classifying the various SBUs into one of four categories based on the SBUs market growth rate and relative market share. |
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Definition
| serves as a proxy for company strength in the market. |
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Definition
| provides an estimate of market attractiveness; usually measured in terms of the annual growth rate |
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Term
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Definition
| Divesting the business early in its life as a dog while it is in relatively good shape can make a decent return; harvesting the business decreases the future value of the dog when divested, but harvesting can also provide income in a steady stream over time. |
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Term
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Definition
| high relative market share, high growth rate; requires additional resources for continued growth |
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Definition
| low relative market share, low growth rate; subordinate market share has diminished prospects and represents a drain on the portfolio |
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Definition
| high growth rate, low relative market share; requires a large committment of resources to build market share |
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Definition
| low growth rate, high relative market share; generates surplus resources for allocation to other SBUs |
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Term
| product-market growth matrix |
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Definition
characterizes different growth strategies according to type of market (new vs. existing) and type of product (new vs. existing)
1. market penetration
2. product development
3. market development
4. diversification |
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Term
| market penetration strategy |
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Definition
| existing products, existing markets |
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Term
| product development strategy |
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Definition
| existing markets, new products |
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| market development strategy |
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Definition
| existing products, new market |
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Definition
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Term
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Definition
| set up end of aisle displays- offer 2 for 1 deals for intro period |
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Definition
| advertise in music/sports print magazines-advertise on visited web/ blog sites |
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Term
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Definition
| focus on the day to day execution of the marketing plan |
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Term
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Definition
| determines much of its internal environment-the values, norms, and beliefs that influence everyone in the firm |
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Term
| the marketing control process |
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Definition
| 1. establishment of performance standards 2. evaluation of actual performance relative to established standards. 3. corrective action, if necessary |
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Definition
| products purchased, prices paid for those products, effectiveness of promotion, how, where, and when people purchase |
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Definition
| demographic diversity and characteristics: size of demographic groups, life cycle changes, increasingly multicultural societies vs ethnocentrism, role of consumerism |
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Term
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Definition
The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles
Generational cohorts |
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Term
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Definition
| an aggregation of individuals who experience the same event within the same time interval; related to life stage and current conditions that create values, preferences, and marketable behaviors |
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Definition
| stages in the business cycle, the role of inflation |
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| microeconomic (household) issues |
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Definition
| willingness to spend, influences on ability to buy: income and income distribution, taxes, consumer sentiment |
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Term
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Definition
| large number of sellers, unique but substitutable products, pricing is important in marketing mix: cereals, toothpastes |
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Definition
| large amount of sellers, similar products, distribution is important in marketing mix: agricultural products |
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Definition
| few number of large competitors, similar products, promotion is key to achieve perceived product differences: movie studios, cell phone companies (4 main own 89%) |
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Definition
| single producer, unique and unsubstitutable, the marketing mix here is unimportant: major league baseball |
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Term
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Definition
| firms that market products: with similar features and benefits to the same customers at similar prices; with different features, benefits, and prices |
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Term
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Definition
| firms that provide very different products that solve the same problem or satisfy the same basic customer need |
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Term
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Definition
| firms that compete for the limited financial resources of the same customers |
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Term
| model for competitive analysis |
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Definition
| michael porter: threat of new entrants, bargaining power of buyers, threat of substitute products or service and the bargaining power of suppliers all lead to industry competitors and rivalry among existing firms |
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Term
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Definition
| The application of knowledge and tools to solve problems and perform tasks more efficiently |
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Term
| using technology in the marketing mix |
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Definition
| pricing (value)= demand forecasting and cost accounting-computerized models. promotion=social media, video conferencing; place=automation in warehouses, Product=CAD, inventory management |
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Term
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Definition
| to protect competition-level playing fields; to protect customers: protect people from harm, prohibit hazardous products, guarantee info disclosure, control marketing activities; to protect companies: control piracy, safeguard trademarks |
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Term
| decision process stage: problem recognition |
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Definition
| occurs when consumers realize that they need to do something to get back to a normal state of comfort |
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Term
| decision process stage 2: information search |
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Definition
| internal vs external search. factors affecting external search: risk, knowledge, product experience, level of interest, amount of confidence in decision |
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Term
| need less info in external search when: |
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Definition
| less risk, more knowledge, more product experience, low level of interest, confidence in decision |
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Term
| need more info in external search when: |
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Definition
| more risk, less knowledge, less product experience, high level of interest, lack of confidence |
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Term
| decision process stage 3: evaluation of alternatives |
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Definition
| simplify with an evoked (or consideration) set, identifying evaluative criteria, analyzing product attributes: by importance, by beliefs (framing), managing attribute evaluations: with determinant attributes, with cutoff criteria, with multiattribute compensatory models |
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Term
| decision process stage 4: purchase and postpurchase |
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Definition
| what are the choice heuristics? Price = quality, brand loyalty, country of origin; unanticipated circumstances; cognitive dissonance; satisfaction/dissatisfaction; what can the marketer control? |
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| factors affecting consumer involvement |
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Definition
| previous experience, interest, perceived risk of negative consequences, situation, social visibility |
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Definition
| high consumer involvement: many brands examined, many sellers considered, many product attributes evaluated, many external information sources used, a considerable amount of time spent searching |
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Term
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Definition
| a moderate amount of consumer involvement: several brands examined, several sellers considered, several product attributes evaluated, several external information sources used, a little amount of time spent searching |
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Definition
| low consumer involvement: one brands examined, few sellers considered, one product attributes evaluated, no external information sources used, a minimal amount of time spent searching |
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Term
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Definition
| extended problem solving: high (expensive, complex product); habitual decision making: low (simple, low-cost product) |
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Term
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Definition
| habitual decision making: respond to environmental cues (store signage or displays) extended problem solving: careful processing of information (search advertising, magazines, car dealers, web sites) |
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Term
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Definition
| extended problem solving: cognitive learning (use insight and creativity to use info found in environment) habitual decision making: behavioral learning (ad shows product in beautiful setting, creating positive attitude) |
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Term
| needed marketing attitudes |
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Definition
| habitual: product display cues, extended: ads, salespeople, web sites etc |
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Term
| customer buying influences |
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Definition
| marketing mix influences, psychological influences, sociocultural influences, situational influences |
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| situational influences on consumers' decisions |
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Definition
| Important dimensions of the physical environment include décor, smells, and lighting; Social implications; time |
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| cultural and social group influences |
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Definition
| cultures and subcultures, social classes, reference groups and opinion leaders, family influences (consumer socialization), roles and personal influence |
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Definition
The values, beliefs, customs, and tastes produced or practiced by a group of people
Includes key rituals like weddings and funerals |
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Definition
| A group within a society who share a distinctive set of beliefs, characteristics, or common experiences |
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Term
| social class measurements |
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Definition
The overall rank or social standing of groups of people within a society, according to factors such as family background, education, occupation, and income
Status symbols such as luxury products allow people to flaunt their social classes
Mass-class consumers are targeted by many marketers |
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Definition
| A set of people a consumer wants to please or imitate and that therefore has an effect on an individual’s evaluations, aspirations, or behavior. Types: membership, aspirational, nonaspirational (or dissociative) |
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Term
| individual and psychological influences |
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Definition
| perception, learning, motivation, attitude, psychographics |
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Term
| types of family decision making |
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Definition
| husband/wife- dominant, autonomic, syncratic |
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Definition
Internal state that drives us to satisfy needs by activating goal-oriented behavior
Maslow’s Hierarchy of Needs |
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Term
| Maslow's Hierarchy of needs |
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Definition
| psychological needs, safety needs, social needs, esteem needs, self-actualization |
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Definition
| Process by which we select, organize, and interpret information from outside world |
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Definition
Consumer notices certain stimuli
and ignores others |
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Definition
Consumer changes or distorts information that conflicts
with feelings or beliefs |
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Definition
Consumer remembers only
that information that
supports personal beliefs |
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Definition
| A relatively permanent change in behavior caused by information or experience |
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Term
| how do we learn: behaviorally |
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Definition
| classical conditioning, operant conditioning, stimulus generalization |
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Term
| how do we learn: cognitively |
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Definition
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Term
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Definition
Change beliefs about a brand’s attributes
Change the perceived importance of attributes.
Add new attributes and new beliefs about these attributes to the product evaluation. |
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Definition
| An organized pattern of knowledge that an individual holds as true |
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Term
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Definition
| A learned tendency to respond consistently toward a given object |
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Term
| individual (personal) influences |
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Definition
| gender, age/life cycle, personality/ self-concept/ lifestyle |
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