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| the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives |
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| satisfying consumer needs by finding the right combo of product, price, promotion, and place |
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| production or product orientation towards marketing |
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| produce it, then let customers come to you |
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| sales orientation toward marketing (in 1920s they over produced, then tried to get customers to buy it) |
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| produce it, then get customers to buy it |
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| marketing orientation toward marketing |
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| find out what customers want, then produce it. **most prevalent |
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| market or value orientation toward marketing |
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Definition
| understand and create value for customers. goal is to surpass satisfying customer need. |
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| definition of market/value orientation |
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| an organization that has a market orientation focuses its efforts on 1) continuously collecting info about customers' needs and competitors' capabilities 2) sharing this information across departments, and 3) using the information to create customer value |
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| functional, social, personal, experiential, |
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| monetary, temporal, psychological, behavioral |
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| acquiring information outside organization to identify and interpret potential trends |
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| environmental forces affecting the organization, as well as its suppliers and customers |
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| social, economic, technological, competitive, regulatory |
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| demographic shifts, cultural changes, consumer taste (Affecting folgers: McDs, starbucks, on the go, energy drinks, health concerns) |
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| components of social environmental force that affects the organization, as well as its suppliers and customers |
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| macroeconomic conditions, consumer income (increase in DI, less time, dual incomes, more people can afford to go to starbucks) |
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| components of economic environmental force that affects the organization, as well as its suppliers and customers |
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| components of economic environmental force that affects the organization, as well as its suppliers and customers |
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| macroeconomic conditions, consumer income (increase in DI, less time, dual incomes, |
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| changing technology, ecological impact of technology, (disadvantage for folgers: wireless cafes. advantage: more time to stay at home and make Folgers.) |
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| components of technological environmental force that affects the organization, as well as its suppliers and customers |
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| alternative forms of competition, components of competition |
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| components of competitive environmental force that affects the organization, as well as its suppliers and customers |
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| laws protecting competition, laws affecting marketing mix actions, self regulation, consumerism (ex: for alcohol, firearms, tobacco) |
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Definition
| components of regulatory environmental force that affects the organization, as well as its suppliers and customers |
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Term
| Porter's Five Forces Model |
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Definition
| Once you establish your corporate strategy (what industry you want to compete in), then you have to determine waht industry profitability is dependent on (industry competitiveness, availability of substitute products, potential entrants, supplier power, and buyer power |
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| Porter's Five Forces Model |
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Definition
| Once you establish your corporate strategy (what industry you want to compete in), then you have to determine waht industry profitability is dependent on (industry competitiveness, availability of substitute products, potential entrants, supplier power, and buyer power |
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| industry competitiveness, availability of substitute products, potential entrants, supplier power, buyer power |
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Definition
| 5 forces of Porter's Model |
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| industry competitiveness (porters 5 forces) |
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Definition
low intensity of competition = higher profitabilty
low intensity--few firms, similar strategies, high product differentiation
*more firms = decreased profitability |
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| availability of substitutes (porters 5 forces) |
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Definition
customers can choose different products as substitutes.
**few or no substitutes equals higher profitability
• (gas, proprietary drugs)
o a lot of these hurt profitability |
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o High barriers to entry = higher profitability
• This happens when:
High capital requirements, economies of scale are present, high product differentiation, network externalities (technological or learning curve) |
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Definition
| . Threat of potential entrants—(porters 5 forces) |
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| • Low #, high information (like car selling) |
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Definition
| o Higher bargaining power when… |
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| lower bargaining power when.... |
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| market leader: high market growth rate, high relative market share |
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| high market growth rate, low relative market share |
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| low market growth rate, high relative market share |
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| low market growth rate, low relative market share |
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| market penetration (Ansoff) |
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| when existing products break into existing markets |
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| product development (ansoff) |
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| when new products break into existing markets (ex: Airbus—new jumbo jet) |
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| market development (ansoff) |
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| when existing products break into new markets (ex: moving McDs into Europe, banks extending to diff campuses |
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new products break into new markets
o Ex: When companies buy unrelated companies (Shakespeares breaks into the frozen pizza market
o Nabisco is bought by RJ firm |
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| grow sale through advertising, expand distribution, cut price |
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Definition
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Term
| the strategic marketing process |
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Definition
1. Planning phase
o situation (SWOT) analysis
• identify industry needs
• analyze competitors
• assess own company
• research customers
o market-product focus and goal setting
• set market and product goals
• find points of difference
• position the product
2. marketing plan...implementation
3. results....control phase |
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| product, price, promotion, place |
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Definition
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| how to analzye competitors |
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Definition
• Look at:
• Strategies
• Reaction patterns
o Actions by competitors that become predictable over time (we don’t want this)
o Ex: airplane routes—NWA looks at what SWA does and follows that (bc SWA always does same thing)—drops fares for promotion.
• Why? Tells other companies they won’t achieve market penetration by other airlines dropping fares
Protects position
• Objectives
• Strengths and weaknesses |
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Term
| Goods strategic orientation focuses on: |
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Definition
focuses on:
o Products
o Top down strategy development
• Corporate → business unit→ market management→ consumer
o Maximizing efficiencies and profit
• Involves standardization and often a short-term perspective |
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| service strategic orientation |
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Definition
focuses on
o Services (intangible processes and competencies)
• Indirectly for goods that are exchanged
o Bottom-up strategy development
• (consumer as partner/co-producer)
mass customization and relationship marketing
o maximizing organizational learning
• using customers, suppliers, distributors, etc
• wealth is obtained from application of knowledge/skills
NOT from tangible resources or goods |
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| implications of service orientation |
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Definition
• Change in marketing’s normative values
o Goods-centered view values tangibility, standardization, and nonperishability
o Service orientted view values customization, coproduction, and continuous customer involvement
• Exchange value is determined by customer
o No inherent value in brand/product, only in customer perceptions of brand |
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Term
| need for service strategic orietnation |
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Definition
| we need this bc of growing economic importance, outsourcing, information/knowledge now the ke source of competitive advantage, and easy access has led to commoditizaton of goods |
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Term
| marketing stimuli and other stimuli affect buyers characteristics and buyer's decision process, which in turn affects the buyer's ultimate decision |
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Definition
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| consumer buying process (PrIEPPp) |
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Definition
| • 1. Problem recognition→ 2. information search→4. Evaluation of alternatives 4. purchase decision→ 5. postpurchase behavior |
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• Physiological needs for food, water, air, clothing, shelter, and sex
• Also known as biogenic or primary needs
• Also sleep, survival needs, human contact |
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• Needs that are learned in response to one’s culture or environment (such as the need for esteem, prestige, affection, or power).
• Also known as psychogenic or secondary needs |
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| power, affiliation, achievement |
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Definition
| what is the trio of needs? |
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• lowest to highest→
o innate needs (food, air, water, etc) → safety and security needs (protection, order, stability) → social needs (affection, friendship, belongings)→ ego needs (prestige, status, self-esteem) → self actualization (self-fulfillment) |
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Definition
| Maslow's hierarchy of needs (fits in with problem recognition) |
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| how we conduct the information search (stage 2 of consumer buying process) |
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Definition
| internal sources, group sources, marketing sources, public sources, experiential sources (trial) |
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o Reassuring buyers through ads and personal communications
o Providing quality post-sale service |
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Definition
| How can marketers help reduce doubt? |
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| Level of satisfaction = actual performance minus expectations |
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Definition
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o Low involvement (almost subconscious) ex: grocery stores
o Few if any alternatives considered (like most supermarket items) |
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o Medium involvement, several alternatives considered
• Ex small household appliances, like blenders…you look at some, pick the best one. With middle priced items |
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High involvement, a lot of time and effort spent, information search and alternative evaluation occur
• ex: car purchase, house |
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Term
| total set (decision making sets) |
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Definition
| —theoretical, doesn’t exist in reality, we can’t ever know ALL alternatives (like all watches) |
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| awareness set (decision making sets) |
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Definition
| largest set we are aware of. Process starts here |
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| (consideration set-decision making sets) |
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Definition
| I will actually consider these (not Rolex) |
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| choice set--decision making sets) |
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