Shared Flashcard Set

Details

Prelim 2
N/A
131
Marketing
Undergraduate 3
03/21/2015

Additional Marketing Flashcards

 


 

Cards

Term
Buying Center
Definition

    

The decision-making unit of a buying organization, sometimes called the buying center, is defined as “all those individuals and groups who participate in the purchasing decision-making process, who share common goals and risks arising from the decisions”.

Term
Approvers
Definition

Authorize the proposed action of deciders or buyers

Example: CFO Concerned with cutting costs

  

Term
users
Definition

use product or service and help define product specifications

Example: Pilot and Flight Attendant with respect to Boeing

Term

Influencers 

Definition
have a direct influence on the buying decision but do not make the final decision themselves. Examples of these members include past presidents or spouses to executives.
Term
DECIDERS
Definition

A company’s sales manager selects a hotel and negotiates the arrangements.

Select requirements and suppliers

Example:  sales manager, supply Chain, percurement

 

 

 

Term
GateKeepers
Definition

Gatekeepers have the power to prevent sellers or information from reaching members of the buying center.


Example: administrative assistant 

Term
Buyers
Definition
have formal authority over selectting supplies and arranging terms of purchase
Term
Orginizational Demand
Definition

 is derived demand: it comes ultimately from the demand for consumer goods or services.

Term
Orginizational vs. Consumer
Definition
Organizational buyers usually face more complex buying decisions than consumer buyers, because their purchases involve large sums of money, complex technical features, and economic considerations
Term
Buyers and Sellers are dependent on each other
Definition

A. Market Structure and demand

B. Types of decisions and decision process

Term
Buyers are influenced by economic market
Definition
Factors include: level of primary demand ,economic outlook, and cost
Term
Major Influences on Orginizational Buyers
Definition

1. Enviornmental

2. Orginizational

3. Interpersonal

4.Individual 

Term
Enviornmental
Definition

Buyers influenced by current and expected economic enviroment

Example: during recession travel budgets are cut

 

 

Term
Orginizational
Definition

Marjeter must be familar with company

If company is well orginized easier to convince to buy

Term
Interpersonal Factors
Definition
buying center includes several particiants with varying level of interest, authority, and persuasiveness
Term
Want a High Payoff but Low Volume
Definition
Need a Buy In from all six groups
Term
Case Study: Marriott
Definition

Targeted companies to be preferred lodging

con: companies are locked in

Pro: large cost savings 

Term
8 Stages of Buying Process
Definition

Buyphases:

1. Problem Reconginition

2. GEneral needs description

3. Product specifications 

3. Supplier Search

4. Proposal Solicitation

5. Supplier Selection

6. Order routine specification

7. Performance Review 

 

Term
General Needs Description
Definition
Buyer goes on to determine the requirements of the prodcut
Term
Product Specifications
Definition
specific requirements can be developed
Term
Supplier Search
Definition

"Takes Time"

Buyer now tries to identify the appropriate supplier

Example: the buyer compares hotels via trade directories, a computer search, phoning properties directly, or visiting a site

Term
Order Routine Specification
Definition
Buyer writes formal order with technical specification; Supplier responds by offering a final contract
Term
Perfromance Review
Definition

determines if the product met the buyer’s specifications and if the buyer will purchase from the company again.

Term
Case Study: HoneyWell
Definition

Proposed a solution so airlines can do a better job serving clients

Created a solution in consumer space

Term
Case Study: Four Seasons
Definition
targeted travel agents and tour guides , maximize the top teir
Term
Proposal solicitation
Definition
qualified suppliers are invited to submit proposals
Term
Supplier Selection
Definition
qualified hotels are invited to submit proposals
Term
Individual Factors
Definition

Each partcipant in the buying process has personal motivations 

Risk- durable vs. consumerable

Term
Marketers
Definition
Best informed about competitiors and Custoomers
Term

     

There are three major steps in target marketing 

Definition

1. Segmentation

2. Targeting

3. Positioning

Term
Segmentation
Definition

1.  dividing a market into distinct groups who might require separate products and/or marketing mixes

2. Develop profiles for Resulting Segments

Term
Targeting
Definition

3.evaluating each segment’s attractiveness

4. selecting one or more of the market segments    

Term
Market Positioning
Definition

5. developing competitive positioning for the product

6. Developing an appropriate marketing mix.

Term
STP Model
Definition

Segmentation,

Targeting, Positioning 

Term
Segmentation
Definition
" If you are not thinking segments, you are not thinking"
Term
Case Study: Mean Girls
Definition
Effectively identified sub groups and groups of interest
Term
Major segmentation Variables
Definition

1. Geographic

2. Demographic

3. Physcographic

4. Behavioral

Term
Geographic segmentation 
Definition

1.     dividing the market into different units, such as nations, states, regions, counties, cities, or neighborhoods.

2.   The success of local and regional tourism depends on creative geographic segmentation.


Term
Three Marketing Alternatives
Definition

A) NO Market segmentation

B) COmplete Segmentation

C) Market Segment by:

income

Age Classes 

income age-class

Term
Case STudy: American Express
Definition
Not only important to find a new sector but also impritant to segment that sector
Term
Requiremnets for effective Segmentation
Definition

1. Measurability

2. Accessibility 

3. Sustanibillity

4. Actionalbility 

Term

   Psychographic segmentation

Definition
 divides buyers based on social class, lifestyle, and personality characteristics. 
Term
Income
Definition

does not always predict which customers will buy a given product or service.


Term
Measurability
Definition

   the degree to which the segment’s size and purchasing power can be measured.

Term

Accessibility    

Definition

the degree to which segments can be assessed and served. 

Term

Substantiality    

Definition

The degree to which segments are large or profitable enough to serve as markets.

Term
Case Study: Ritz Carlton
Definition

Demographic Targeting

Targeted the richest in the market, going after the top of the market.

Term
CASE STUDY: Lowes Hotel, Hotel Bakery
Definition

Psychographic ( Life Style Segment) :

Targeted dog lovers who wanted to travel and ebrace animals 

 

Term
Case Study: Hilton
Definition
Geography Target: welcomed chinese consumers by incororating customs across all hotels
Term
Case Study: Pepsi vs. Coke
Definition

Competetive Target Market: Little Latin Boy used coke to reach Pepsi 

Use competiton to keep a portion of the market

Term
HyperTargeting
Definition
CaseStudy: Netflix Targets Big Data
Term
Three market-coverage strategies
Definition

c.     concentrated marketing

Term
undifferentiated marketing strategy
Definition

1.    a company ignores market segmentation differences and goes after the entire market with one market offer.
It is difficult to develop a a brand that will target large segments

Term

  differentiated marketing

Definition

1.     , a company targets several market segments and designs separate offers for each.

Term
Three steps in positioning:
Definition

1. Identify

2. Select

3. Communicate 

Term
Identify
Definition

set of possible competitive advantages on which to build a position

Term
Selecting
Definition

select the right competitive advantages    

Term
effectively communicate
Definition

communicate and deliver the chosen position to a carefully selected target market

Term
Case Study: 16 Handles
Definition
Positionging brand and concept, looking at what people want, what competeiors are not providing and make a space for yourself
Term
Market Planning
Definition

Segmentation

Target Marketing 

Strategy -Outside Convo

Positioning- Inisde Convo

 

Term
Image
Definition

even when competing offers look the same, buyers may perceive a difference based on company or brand    

Term

Personnel differentiation 

Definition

requires selecting customer-contact people carefully & training them well.

Term
positioning
Definition

Simple idea that connects you to the customer

*something meaningful that sets you apart from the competition  and provides place for you in the sutimers head

Term
Major Stages In Product Development
Definition

Idea Generation

Idea Meaning

Concept development and testing

Marketing Strategy

Buisiness Analysis

Product Development 

Test Marketing

Commercialization

Term
Idea Generation
Definition
Ideas are gained from internal sources , customers, competetitors, distributers, suppliers
Term
Idea Screening
Definition
spot godd ideas and drop poor ones ASAP
Term
Concept development and testing
Definition
ideas are developed in to concepts and tested
Term
Marketing Strategy development
Definition

target market

planned positioning

long run sales 

Term
Buiness Analysis
Definition
review of sales cost and profit projections
Term
Product development
Definition
concept turns into a prototype
Term
Market Testing
Definition
product introduced into more realistic settings
Term
Commercialization
Definition
product is brought into the market place
Term
Commercializtaion
Definition
Product brought in marketokace
Term
Product Lifestyle stages
Definition

Product developmnet 

Introduction

Growth maturity

Decline 

Term
Beginning
Definition

company finds a new idea:

     sales are zero and the company’s investment costs add up.

Example: STarwood Hotel: Starlab innovation idea generation to induce product development

Term
Introduction to Growth
Definition

Going from introduction to growth is a major challange 

Example: Google Glass 

Term
Growth
Definition

period of rapid market acceptance and increasing profits

Example: Even- a wellness centered hotel, struggling with how to grow an idea to make it proftble by targeting specific people 

Term
Maturity
Definition

    period of slowdown in sales growth because the product has achieved acceptance by most of its potential buyers.

*As categories get more crowded brands are forced to mature 

Example: Royale Careebeian trying to hold on sales marging but choosing worldwide destinations 

Term
Decline
Definition

period when sales fall off quickly and profits drop.

Exaple RadioShack: Aimed to rejuvinate Brand but faild

Leggo- used technolgy to rejuvinate brand and succeeded 

Term
Building Agile Brands
Definition
Theory is easy execution is hard
Term
Brand
Definition
The Story
Term
Branding
Definition
Signals
Term
Example Gap:
Definition

experiencing brand and branding problems

no clear sense of what it is and what it is not 

Term
Framework for Brand Story
Definition

1. Percision is Key for powerful story

2. Simple and Sticky points are stronger 

3. Absolute Certainty : Example Fed EX

Term
Convince customer of Brand
Definition

What/How: easy to tell a customer what you do

Who : harder for you to convince

Why: most difficult to convey 

Term
Comeptitor and Brand
Definition
Easier for competitor to mimic what and how but for competitor to mimic why and who
Term
Case Study: Old Spice
Definition
- Rejuivinated the art of manliness to have a clear definition of what that is ( What/ How)
Term
Caste Study: Apple
Definition
Clearly defined who they were, sleek new younger virus free computer .
Term
Prototype
Definition

Prototype to pressure test startegy to determine if it will actually work

 

Term
Agility is more important than performance
Definition
must execute in a rapidly changing enviornment
Term
Breakthrough is more important than consistentcy
Definition
Want to be able to change when it benefits you
Term
Case Study: KFC
Definition
Changed colors to green and yellow and launched a social media campaign prior to a large cricket tournament
Term
How to create agile brand experiments
Definition

1. Plan

2. Inside Out

3. Reinvent the old

4. Ceeate the new 

5. Ulock word of mouth 

Keep it fresh 

Term
Plan
Definition

Figure out touch points, to win and suprise . Create a blue print for all parts of your service.

Example Hertz: created a customer journey, planned ahead for customer poblems , technology for keys to find rented cars 


Term
Inside Out
Definition

Employees are the most important Touch point: Empower people inside your company and the culture should resonate out. 

Example: GE workers able to view their engines being installed

Term
Reinvent The Old
Definition

Create new Touch Point:

Example : Lego using technologies to show customers what the have the possibility to build 

Term
Create New
Definition
Create a new touch point.Example allowing customers to project poetential furniture into their livivng rooms, IBM exhibit in grand central, BMW Test Drive (sold from the experience )
Term
Unlock word of mouth
Definition
Term
Unlock word of Mouth
Definition

Let your customers tell your story , give them something to tsalk about ; Example: Johhny walker house: select view invited in for dinner , makes people excieted to get in. give them a postice experience to talk about 

Employer customer service can override bad service overall. 

Term
Keep It Fresh
Definition

Want to make buyers come back for more: 

example: Mark and spencer- swap old clothes for new 

example: coke encourages peruvians to smile for a photo they can use on ideas and get discount on coke and other things 

Term
Key Take Away
Definition

1. get to the point

2. Prototyple

3. Breakthorught more important than consistentcy 

4. Be agile and act fast 

Term
What do you want to tell marketplace?
Definition
Really greta products solve un solved or undersolved problems
Term
Internal Marketing
Definition

Marketing must be embraced by all emplyees and all employees must be seen as part of the marketing unit

Added value : if product is deliverd in a meanigful way

Everyon must do their part and become a part of the marketing team


Term
Marketing Function vs. Market Development
Definition

Market Development: COnsumer Goods; traditional marketing

Market Function: Sevices( Marketing through touch points)

example: Starbucks does very little marketing traditionally most of it is done through baristas


Term
Case Study: Cheesecake Factory
Definition

Approach different from COmpetitors: 

carefful employee selection

self motivated growth desire

EMployee trainig and retention:

-healthcare

-Stock Share

-employee of the year award


Term
OB and Marketing
Definition

Internal maketing: where OB and marketing collide

**Expand your age of marketing beyond the marketing development

Term
Turning the orgizational chart upside down
Definition
service orginizations should create an orginization that supports those employees who serve customers
Term
Example McDonald's
Definition

Only Two kinds of emplyees: 1.those that serve the customers and 2. those that serve those that serve the customers

** Most tangible way for a company to measure work of employees is salary 

Term
Case Study: Japan Airlines
Definition

CEO engages with regular employees, eats lunch etc.

during recission: CEO slashed his own pay , and cut top cooperate benefits

less of a pay gap between to an bottom 

Term
MArketing is everybody's buisness
Definition

Employee attitude help form first impression of a service

OFten hard to differentiate the tangible product between competeing companies

-differentiation comes from people who deliver the service

IN services most marketing is carried out by employees outside the marketing department

Term
CASE STUDY: Double Tree
Definition

ARSA- Aquistion, retention, satifaction, advocacy

super friendly hotel staff, bday gifts, hugged them, made people feel apart of the family


Term
Price (Value)
Definition

Tradeoff between give and get

WHen customers ee high price they assume high quality

If something is of higher quality you can charge a higher price


Term
Five C's Pricing
Definition

customer

competitor

cost

channel

compliance

 

Term
Customer
Definition

What impact does price have on customer

what imterdependency is there on goods

what are the customers prepared to buy 

** Customer insights contribute to customer decisions

Term
Case STudy : Starbucks
Definition

Rags to riches story 

opened up a new market with portible cofee

credibility vs. advertising- dont need as much advertising if product is credible 

Term
Competitors
Definition

are you able to shift demand curve in your favor against competitors 

 

competition is a critical element !

Term
Case Study Shamwow
Definition

Price point, promotional opportunities, competitosr, customer feed back

* Positioned itself against competition

TAKE AWAY: Smart Companies understand that they should give away product first before giving away price

 

Term
COST
Definition

shifiting supply curve creates new markets being able to proudce same qaunity at a lower price

cost y

 

Term
CASE STUDY: Expedia
Definition

Wants buisnesses to understand that there is a cost that is worthwhile. If they use expedia the right way they can get a better return.

in Buisness to buisness marketing price change can be offset by value. 

Term
Break Even
Definition

 

Break Even Point: firm considers variable costs and fixed costs and tries to determine at what point ir will break even : Target profit pricing 

Term
Compliance
Definition
Buisness cannot collude but they can compy example: restauraunt week
Term
Channel
Definition
Depending on how the good is bought a channel at which its sold but add on an aditional price
Term
Common Price Tactics
Definition

Decoy Pricing 

BOGOF

Price Endings 

Price Bundling

Price decrimination 

 

Term
Decoy
Definition
Having something more expensive on the menu will drive up revenue
Term
BOGOF
Definition
Use the wine example make spmething free that is of lesser value but
Term

Price Endings

 

Definition

.99 fast food

.95 higher up restauraunts

.00 very expensive restauraunts 

Term
Price Bundling
Definition

Demand heterogenity - different values demand different proces want to maximizze value either way

Jack and JIll

 

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