Term
| Porter's Generic Strategies- Cost Leadership |
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Definition
| Focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments |
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Term
| Porter's Generic Strategies- Differentiation |
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Definition
| requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge higher prices while targeting a broad array of market segments |
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Term
| Porter's Generic Strategies- Differentiation Focus |
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Definition
| Requires products to have significant points of difference to target one or only a few market segments |
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Term
| Porter's Generic Strategies- |
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Definition
| Controlling expenses controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments |
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Term
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Definition
| Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. |
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Term
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Definition
| the ratio of perceived benefits to price; Value= perceived benefits/ price |
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Term
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Definition
| Potential customers-People-with the desire and ability to buy a specific product |
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Term
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Definition
| Product (IPOD), Price (200), Promotion(TV), Placement (Walmart) |
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Term
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Definition
| Time, Place, Form, Possession |
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Term
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Definition
| Exchange is the trade of things of value between buyer and seller so that each is better off after the trade. |
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Term
| Conditions Needed for Market Exchange |
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Definition
1. two or more individuals, groups, or organisations must participate.
2. each party must possess something of value that the other party desires.
3. each party must be willing to give up its "something of value" to receive the "something of value" held by the other party.
4. the parties to the exchange must be able to communicate with each other to make their something of value available . |
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Term
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Definition
| A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter. |
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Term
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Definition
| A want is a felt need that is shaped by a person’s knowledge, culture, and personality. |
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Term
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Definition
| A unique strength relative to competitors that provide superior returns often based on quality, time, cost, or innovation |
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Term
| What are the 5 environmental factors? |
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Definition
Competition
Economy
Legal/Regulatory
Social Trends
Technology |
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Term
| Ansoff's Market- Product Matrix |
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Definition
| The matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing and/or new markets – there are four possible product/market combinations. This matrix helps companies decide what course of action should be taken given current performance. |
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Term
| 1st Product Matrix (Ansoff) |
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Definition
| Market Penetration- Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Market penetration is the least risky way for a company to grow. |
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Term
| 2nd Product Matrix (Ansoff) |
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Definition
| Product Development- A firm with a market for its current products might embark on a strategy of developing other products catering to the same market (although these new products need not be new to the market; the point is that the product is new to the company). |
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Term
| 3rd Product Matrix (Ansoff) |
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Definition
| Market Development- An established product in the marketplace can be tweaked or targeted to a different customer segment, as a strategy to earn more revenue for the firm. |
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Term
| 4th Product Matrix (Ansoff) |
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Definition
| Diversification in New markets or products- Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications are examples of new products created by the Virgin Group of UK, to leverage the Virgin brand. |
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Term
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Definition
| The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions |
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Term
| Primary and Secondary Research |
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Definition
Primary-facts and figures newly collected for the project
Secondary- facts and figures already recorded for the project |
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Term
| Steps in the Consumer Decision Process |
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Definition
problem recognition- perceiving a need
information search- seeking value
alternative evaluation- assessing value
purchase decision- buying value
post purchase behavior- value in consumption or use |
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Term
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Definition
| The feeling of post purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives |
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Term
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Definition
intangibility- can’t be held, touched, or seen before the purchase decision
Inconsistency- quality of service is never the exact same
Inseparability- customer usually cannot and does not separate the deliverer of the service from the service itself
Inventory- inventory cost is simply paying employees |
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Term
| Dimensions of Service Quality |
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Definition
| Reliability, Tangibles, Responsiveness, Assurance, and Empathy |
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Term
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Definition
| color, size, style which can be determined before purchasing |
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Term
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Definition
| can only be discerned after purchase |
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Term
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Definition
| characteristics that the consumer may find impossible to evaluate even after the purchase ex. Medical diagnosis, legal services |
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Term
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Definition
| Customer Experience Management- the process of managing the entire customer experience within the company |
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Term
| Consumer Goods and the 4 P's |
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Definition
Convenience, Shopping, and Specialty Goods
See Consumer Purchase Behavior for Each |
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Term
| Product Life Cycle Stage 1 |
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Definition
Finding New Consumers-
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Product - one or few products, relatively undifferentiated
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Price - Generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly. In some cases a penetration pricing strategy is used and introductory prices are set low to gain market share rapidly.
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Distribution - Distribution is selective and scattered as the firm commences implementation of the distribution plan.
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Promotion - Promotion is aimed at building brand awareness. Samples or trial incentives may be directed toward early adopters. The introductory promotion also is intended to convince potential resellers to carry the product |
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Term
| Product Life Cycle Stage 2 |
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Definition
Growth Stage
Product - New product features and packaging options; improvement of product quality.
Price - Maintained at a high level if demand is high, or reduced to capture additional customers.
Distribution - Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product.
Promotion - Increased advertising to build brand preference. |
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Term
| Product Life Cycle Stage 3 |
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Definition
Maturity Stage
Product - Modifications are made and features are added in order to differentiate the product from competing products that may have been introduced.
Price - Possible price reductions in response to competition while avoiding a price war.
Distribution - New distribution channels and incentives to resellers in order to avoid losing shelf space.
Promotion - Emphasis on differentiation and building of brand loyalty. Incentives to get competitors' customers to switch. |
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Term
| Product Life Cycle Stage 4 |
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Definition
During the decline phase, the firm generally has three options:
Maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product.
Harvest it, reducing marketing support and coasting along until no more profit can be made.
Discontinue the product when no more profit can be made or there is a successor product.
The marketing mix may be modified as follows:
Product - The number of products in the product line may be reduced. Rejuvenate surviving products to make them look new again.
Price - Prices may be lowered to liquidate inventory of discontinued products. Prices may be maintained for continued products serving a niche market.
Distribution - Distribution becomes more selective. Channels that no longer are profitable are phased out.
Promotion - Expenditures are lower and aimed at reinforcing the brand image for continued products. |
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Term
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Definition
| Geographic, demographic, psychographic, behavioral |
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Term
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Definition
| aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action |
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Term
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Definition
| blending of different communication and delivery channels that are mutually reinfocing in attracting, retaining and building relationships with consumers |
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Term
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Definition
| two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller |
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Term
| integrated marketing communication |
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Definition
| designing marketing communications programs that coordianate all promotional activities- advertising, personal selling, sales promotion, public relations and direct marketing |
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Term
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Definition
| a nonpersonal, indirectly paid presentation of an organization, good or service |
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Term
| Setting the promotional budget |
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Definition
% of sales budgeting- allocated as a percentage of past or anticipated sales
competitive parity- matching the competitor's absolute level of spending or the proportion per point of market share
All you can afford- money is allocated to proption only after all other budget items are covered
Objective and task- company determines its promotion objectives, outlines the tasks to accomplish objectives and determines the promotion cost of performing these tasks |
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Term
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Definition
push- directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
personal selling and sales promotions play major roles
pull- directing promotional mix at ultimate consumers to encourage them to ask the retailer for a product |
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Term
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Definition
Context-how it looks, feels and acts "How"
Content- any digital subject present "what"
Community-feeling of belonging- "why"
Customization- ability to customize -"touch"
Communication- they way the site talks to consumer
Connection-networking of site design
Commerce- safe for transactions |
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Term
| 3 Types of Problem Solving |
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Definition
Extended- considerable time and effort used
Limited- seek some info
routine- little effort |
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Term
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Definition
| influencing perceptions and capacity management |
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Term
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Definition
| name, phrase, design, symbols to identify products and distinguish |
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Term
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Definition
Skimming- set price initially high then lower it
Penetration- set price below to get into market
Prestige- price it high enough to imply luxury
Price lining- tiered pricing
Predatory- charging low price to drive competitors out
Loss-leader- having one item lower to bring in customers |
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