-Helps identify potential new product opportunities

-May explain customer behavior

Social- demographics, cultural shifts

Economic- Macro conditions, income

Technological- Technological changes, ecological impact of technology

Competitive- alternative competition, components

Regulatory- laws against comp. consumerism

-Industry competitiveness: lower competitive intensity the better

-Availability of Substitutes: few/no substitutes = profitable

-Potential Entrants: high barriers to entry are desirable

-Supplier power: capital requirements, economies of scale, differentiation

-Buyer Power: you want the industry to set the price, NOT suppliers or buyers

Whether an industry is profitable. 

Ex: cereal industry as opposed to Kellogg's company

Star: products that are market leaders in a growing industry (iphone, ipod)

?: products that are not a market leader in a growing industry (zune mp3 player)

Cash cow: products that are market leaders in a stable industry (Microsoft Word)

Dog: not market leader in an industry that is not growing

Market penetration- same product, same market

Market Development- same product, new market

Product Development- new product, same market

Diversification- New product, new market

Planning phase: SWOT analysis, market-product focus and goal setting, marketing program

Marketing Plan: Implementation

Results: Control

Market nicher: specialize! (most firms begin here and grow)

Market follower: imitate 

Market challenger: Attack leader, status quo

Market leader: Expand market, defend market share, expand market share

Advertising is any paid form of nonpersonal communication

-Typically from an identified sponsor (if not- propaganda/attack ads) 

2 way, personal (face-to-face) communication

-Usually more effective than nonpersonal advertising, but is very costly

Communication management that seeks to influence stakeholders

-Very effective because it is often considered more credible because it is from a 3rd party source

Combo of one or more promotional elements (advertising, personal selling, public relations, & sales promotion)

-goal: integrate marketing communications

-Stakeholders (non consumers) 

-Channel Members (intermediaries, large clients)

-Consumers

-Stakeholders: Public relations

-Channel members: personal sales

-Consumers: advertising

-Introduction: inform

-Growth: persuade, differentiate

-Maturity: remind, promotion

-Decline: spark sales, decline in $ spent

-Complexity: technical sophistication of product

-Purchase risk: financial, social, physical

The higher complexity and purchase risk the grater the need for personal selling as opposed to advertising

-Prepurchase: advertising to inform, promotion to induce trial

-Purchase: personal selling to close sale

-Postpurchase: personal selling and advertising to reduce anxiety

Push strategy: (personal selling) push product through the market.

-Sell to retailers

Pull strategy (advertising) pull in demand for product

-Sell to end users, who demand product from retailers

Selective attention- you only hear/notice what interests you

Selective distortion- ignore anything that conflicts w/ previous biases

Selection retention- only remember what you want to

Attention- get attention of target market, break through clutter

Interest- generate interest in what you're selling, talk directly to needs of market

Desire- Make targets want it using logic or emotion (sex, fear, etc)

Action- get market to act, direct (purchase) indirect (remember message, positive image)

Short term activity to motivate buying. Usually by lowering price or adding value

Give money back postpurchase, most consumers don't take advantage, but it instigates purchase

An extra item offered with purchase

-cereals, toy inside

-Buy one get one

-Extra 2 oz of shampoo

Contests involve skill

Sweepstakes involve luck

A tool used to push product through the distribution channel.

Includes price reduction for employees, training or store demonstrations, free merchandise, conventions and trade shows