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1. Marketing meeting needs of profitability a.

. An organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders b. Marketing management art and science of choosing target marketing sand getting, keeping and growing customers through creating, delivering and communicating superior customer value c. Social definition shows role marketing plays in society marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others d. Managerial definition art of selling products 2. Marketer someone who seeks a response from another party (prospects) a. Skilled at stimulating demand for companys product b. Seek to influence level, timing and composition of demand to meet the organizations objectives. 3. Demands a. Negative demands consumers dislike product and may pay price to avoid it b. Nonexistent consumers unaware or uninterested in the product c. Latent demand consumers pay share a strong need that cannot be satisfied by an existing product d. Declining demand consumers begin to buy the product less frequently or not at all e. Irregular demand consumers purchases vary on seasonal, monthly, weekly, daily or even hourly basis f. Full demand consumers are adequately buying all products put into the marketplace g. Overfill demand more consumers would like to buy the product than can be satisfied. h. Unwholesome demand consumers may be attracted to products that have undesirable social consequences 4. Business markets changing a. Technology much of business carried over networks. More precise production rather than mass production b. Globalization technological advances in transportation/shipping/communication made it easier for companies to market to other countries c. Deregulation deregulated industries create greater competition and growth opportunities in most other countries d. Privatization many countries converted public companies to private ownership/management to increase efficiency e. Customer empowerment customers show less brand loyalty show more intelligently greater price sensitivity f. Heightened competition domestic and foreign g. Industry convergence h. Retail transformation more competition from shopping TV, ecommerce i. Disintemediation - ?? 5. Production concept- Consumers prefer products widely available and inexpensive 6. Product concept consumers favor those that offer most quality, performance or innovative features a. Better mouse trap fallacy better will lead consumers to their door 7. Selling Concept org must aggressively sell and promotion mostly used with unsought goods, goods that buyers normally do not think of buying or when overcapacity 8. Relationship marketing building mutually satisfying long term relationships with key parties customers, supplies, distributors and partners in order to earn and retain their business builds strong economic, technical and social ties among the parties

9. Marketing network company and its supporting stakeholders with whom it has built mutually profitable business relationships 10.Integrated marketing a. Marketing activities set of marketing tools the firm uses to pursue its marketing objectives McCarthy classified these tools into for groups (four p) of marketing : price, product, place, promotion 11.Needs wants demands a. Needs basic human requirements food, air, water, clothing, shelter to survive. i. Marketers dont create needs, they are preexisting ii.5 types 1. Stated needs customer wants an inexpensive car 2. Real needs- customer wants a car whose operating cost is low 3. Unstated needs- customer expects good services from the dealer 4. Delight needs- customer would like the dealer to include onboard navigation 5. Secret needs- the customer wants to be seen by friends as a savvy consumer iii.Many consumers dont know what they want. Need to appeal to more than just state needs b. Wants when directed to specific objects that satisfy a need c. Demands are wants for specific products backed by an ability to pay 12.Target markets Segments of market that present the greatest opportunity 13.Marketing offering offering positioned in the mind of target buyers as delivering some central benefits a. Brand offering from a known source b. Intangible value proposition is made physical by an offering 14.Value reflects the perceived tangible and intangible benefit and cost to customers. Primarily ac combination of quality, service, price, called customer value triad 15.Marketing channels 3 kinds a. Communication newspapers, magazines, radio, TV, mail, telephone b. Distribution display, sell, delivery physical product service c. Service carry out transaction with potential buyers. Warehouses, banks etc 16.Supply chain long channels from raw materials to final products carried to final buyers 17.Competition actual and potential rival offerings and substitutes buyers might consider 18.Marketing environment a. Task environment immediate actors involved in producing, distributing and prompting the offering. b. Broad environment i. Demographic ii.Economic iii.Physical iv.Technological v.Political legal vi.Social cultural 19.Marketing planning analyzing marketing opportunities, selecting target markets, designing marketing strategies, developing marketing program sand managing marketing effort Chapter 2 20.Marketing involves satisfying consumers needs and wants 21.Value delivery process a. Customer segmentation b. Marketing selection focus c. Value positioning

d. e. f. g. h. i. j. k.

Product development Service development Pricing Sourcing/making Distributing/servicing Sales force Sales promotion Advertising

22.The value chain tool for identifying ways to create more customer value a. Primary activities sequence of bringing in materials and converting to final product b. Value delivery network = supply chain c. Core business processes i. Market sensing processes ii.New offering realization iii.Customer acquisition iv.Customer relationship management v.Fulfillment management 23.Core competencies labor power, materials, machines, information, energy a. Source of competitive advantage into hat it makes a significant contribution to perceived customer benefits b. It has applications in a wide variety of marketings c. It is difficult for competitors to imitate 24.Holistic marketing framework a. Value exploration i. Customers Cognitive space existing and latent needs ii.Companys competence space iii.Collaborators resource space horizontal partnerships b. Value creation identify new customer benefits from customer view i. 3 steps. 1. Redefine concept, reshape scope, reposition brand identity c. Value delivery 25.Marketing plan - central instrument for directing and coordination the marketing effort 26.Strategic marketing plan lays out target markets and value proposition that will be offered based on analysis of best market opportunities 27.Tactical marketing plan specifies marketing tactics including product features, promotions, merchandizing, pricing, sales channels and service. 28.Target marketing definition focus on selling a product or service 29.Strategic market definition everyone who might drink something to quench his or her thirst 30.Business definitions 3 dimensions a. Customer Groups b. Customer needs c. Technology 31.Intensive growth review opportunities for improving existing business 32.Marketing plan written document that summarizes what the market has learned about the market place indicates how the firm plans to reach its marketing objectives 33.Contents of marking plan a. Executive summary and table of contents b. Situation analysis c. Marketing strategy d. Financial projections e. Implementation controls

Chapter 3 34.Order to payment cycle Orders sent to firm (by sales reps/dealers etc), sales dept makes invoices sends to various departments (warehouses. Out of stock are back ordered and shipped items accompanied by shipping billing dept. a. Todays companies need to do this accurately 35.Sales Information Systems timely accurate reports on current sales allows you to order replacement stock 36.Database 37.Data warehousing 38.Data mining 39.Marketing intelligence system set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. a. Collected by reading books newspapers and trade publications, taking to customers, suppliers and distributors and meeting with other managers 40.Fad unpredictable, short lived and without social economic and political significance companies can cash in but more a matter of luck and good timing than anything else 41.Trend direction or sequence of events that has some momentum and durability., more predictable than fads 42.Megatrends large social, economic, political and technological changes that are slow to form and once in place they influence us for some time, between 7-10 yrs or longer 43.Household patterns a. Traditional mother father kinds b. Nontraditional diverse single parents etc 44.Special interest groups womens rights, senior citizens, minority rights, gay rights Chapter 4 45.Marketing research systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company a. Firms categories i. Syndicated service research firms gather consumer and trade info which sell for a fee (Nielsen media research) ii.Customer marketing research firms hired to carry out specific projects. Design the study and report findings iii.Specialty in marketing research firms specialized service. Field service firms sell field interviews to other firms b. Small companies dont use those instead use internet, check out rivals, engage students or professors to design and carry out projects 46.Marketing research process (id suggest reading this section starting at pg 104 a. 6 step i. Define problem and research objectives 1. Cant be too narrow or too broad ii.Develop the research plan 1. Manager needs to set budget for research 2. Data sources a. Secondary data collected for another purpose and already existed somewhere b. Primary freshly gathered for specific purpose/project 3. Research approaches a. Observational

b. Focus group gathering of 6-10 pal who are carefully selected based on certain demographic, psychographic and other considerations and brought together to discuss at length various topics of interest i. Paid small amount ii.Moderators track down potentially useful insights c. Survey research learn about peoples knowledge beliefs preferences and satisfaction d. Behavioral data customers leave traces of purchasing behavior in store scanning data, catalog purchase, customer databases (Safeway discount cards etc) e. Experimental research finding match groups control/experiment 4. Research instruments a. Questionnaires b. Qualitative measures unstructured measurement approaches that permit a range of possible responses and they are a creative means for ascertaining consumer perceptions that may otherwise be difficult to uncover i. Shadowing observing people using products etc ii.Behavior mapping photographic ppl within a space, hospital waiting room over few days iii.Consumer journey 0 keeping track of all interactions consumer has with a product, service or space 5. Sampling plan a. Sampling unit who is to be surveyed b. Sampling size how many people should be surveyed c. Sampling procedure how should the respondents be chosen 6. Contact methods a. Mail questionnaire b. Telephone interview c. Personal interview d. Online interview iii.Collect the information 1. Most expensive part and most prone to error iv.Analyze the information v.Present the findings vi.Make the decision 47.Marketing metrics set of measures that help firms to quantify, compare and interpret their marketing performance. 48.Customer performance scorecard records how well the company is doing year after year on such customer based measures 49.Stakeholder performance scorecard tracks satisfaction of constituencies who have critical interest in and impact on companies performance employees supplies banks distributors 50.Overall market share companies sales expressed as a percentage of total market sales a. = customer penetration x customer loyalty x customer selectivity x price selectivity b. Customer penetration - % of all customers who buy from the company c. Loyalty = purchases from the company by its customers expressed as a percentage of their total purchases from all supplies of the same products d. Customer selectivity = size of avg customer purchase from the company expressed as a percentage of the average customer purchase from an avg company e. Price selectivity = avg price charged bit eh company expressed as a percentage of the average price charged by all companies 51.Served market share sales expressed as percentage of total sales to its served market

52.Served market is all the buyers who are able and willing to buy its product 53.Relative market share expressed as market share in relation to its largest competitor 54.Measures of market demand a. Potential market set of consumers who profess a sufficient level of interest in a market offer. However not enough to define a market. They have enough income and must have access to the product offer b. Available market interest, income and access to offer. Comp or govt may restrict sales c. Target market qualified available market the company decides to pursue d. Penetrated market set of consumers who are buying the companys product 55.Market demand for a product is the totals volume that would be bought by a define customer group in a defined geographical area in a defined maritime period. a. Not a fixed number it is a function , so called market demand function share the level of selective demand for the companys product penetration index current level of demand compared to potential demand 58.share penetration index current market share compared to potential market share forecast - market demand that corresponds to one level of industry marketing expenditure that will occur 60.Market potential limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment 61.Total market potential maximum amount of sales that might be available to all firms in an industry during a given period under a given level of industry marketing effort and environmental conditions a. Chain ratio method multiply base number by several adjusting percentages 62.Market build up method identifying all potential buyer sin each market and estimating their potential purchases 63.Brand development index (bdi) index of brand sales to category sales 64.Read page 134 no definitions just a few paragraphs Ch 5 Text Pages: 154, 158, 162, 163, 164, 165, Ch 8 Text Pages: 240, 242, 247, 248, 251, 255, 260, 262, 263, 266

Chapter 5 65.Customer perceived value (cpv) difference between the prospective customers evaluation of all the benefits of all the cost of an offering from the perceived alternatives 66.Total customer value perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering 67.Total customer cost the bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the given market offering, including monetary, time, energy and psychic cost. 68.Value proposition consist of the whole cluster of benefits the company promises to deliver more than the core positioning offering 69.Value- delivery system includes all the experiences the customer will have on the way to obtaining the using offering 70.Satisfaction personas feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his expectations

71.Profitable customer person, household or company that over time yields a revenue stream that exceeds by an acceptable amount the companys cost stream of attracting, selling and servicing the customer 72.Customer profitability analysis (cpa)- best conducted with the tools of n accounting technique called activity-based costing 73.The aim of CRM is to produce high customer equity. 74.Customer Equity The total discounted lifetime values of all of the firms customers. 75.Value Equity The customers objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs. 76.Brand Equity Customers subjective and intangible assessment of the brand, above and beyond its objectively perceived value. 77.Relationship Equity The customers tendency to stick with the brand, above and beyond objective and subjective assessment of its worth. 78.Customer Database Readily accessible and organized collection of comprehensive information of current or potential customers. 79.Database Marketing Process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships. 80.Customer Mailing List A set of names, addresses, and telephone numbers. 81.Business Database A collection of business customers past purchasing behaviors and purchasing habits. 82.Data Warehouse 83.Datamining Involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking.

240, 242, 247, 248, 251, 255, 260, 262, 263, 266 Chapter 8 1. Mass Marketing The seller engages in the mass production, mass distribution, mass promotion of one product to all buyers. 2. Clustered preferences The market might reveal distinct preference clusters, called natural market segments. 3. People play five roles in a buying decision: Initiator, Influence, Decider, Buyer, User. 4. To be useful, market segments must rate favorably on five key criteria: a. Measurable b. Substantial c. Accessible d. Differentiable e. Actionable 5. Market Partitioning A strategy to discover new segments is to investigate the hierarchy of attributes consumers examine in choosing a brand. Chapter 9 1) 2) 3) Branding Endowing products and services with the power of a brand. It is all about creating differences. Involves creating mental structures and helping consumers organize their knowledge about the product. Key word Differentiate a value from others. Brand Equity The added value endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm. Customer-based Brand Equity Defined as the differential effect that the brand knowledge has on consumer response to the marketing of that brand. A brand has positive customer-based

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brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not. Brand Knowledge All the thoughts, feelings, images, experiences, beliefs, and so on that become associated with the brand. Brand Promise The marketers vision of what the brand must be and do for the customers. The trade value and future prospects of a brand rest with consumers, their knowledge about the brand, and their likely response to marketing activity as a result of their knowledge. Brand Asset Valuator: Consists of Differentiation, Relevance, Esteem, and Knowledge. a. Differentiation: Measures the degree to which a brand is seen as different from others. b. Relevance: Measures the breadth of a brands appeal. c. Esteem: Measures how well the brand is regarded and respected. d. Knowledge: Measures how familiar and intimate consumers are with the brand. e. Brand Strength: Differentiation and Relevance combine to determine Brand Strength. f. Brand Stature Esteem and knowledge together, create the Brand Structure, which is more of a report card of past performance. Brand Salience Relates to how often and easily the brand is evoked under various purchase or consumption situations. Brand Performance Relates to how the product or service meets customers functional needs. Brand Imagery Deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers psychological or social needs. Brand Judgments Focuses on customers own personal opinions and evaluations. Brand feelings Customers emotional responses and reactions with respect to the brand. Brand Resonance Refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are in sync with the brand. Integrating Marketing Mixing and matching marketing activities to maximize their individual and collective effects. Varieties of marketing activities are used to reinforce brand promise. Brand awareness Consumers ability to identify brand under different conditions, as reflected by their brand and recognition of recall performance. Brand Image The perception and beliefs held by consumers, as reflected in the associations held in consumer memory. Internal Branding Activities and processes that help to inform and inspire employees. Brand Bonding Occurs when customers experience the company as delivering on its brand promise. Brand Promise This will not be delivered unless everyone in the company lives the brand. Brand Value Chain A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create brand value. Tracking Studies Collect information from consumers on a routine basis over time. Brand Valuation Estimating the total financial value of the brand. Branding Strategy Reflects the number and nature of common distinctive brand elements applied to the different product sold by the firm. Brand Extension Refers to the action of a firm using an established brand (parent brand) to introduce a new product (new product can also be referred to as a sub-brand). Family Brand If a parent brand is associated with multiple products through brand extensions, then it may also be called a family brand. Line Extension The use of an established products brand name for a new item in the same product category. Example: Dannon has introduced several types of Dannon Yogurt lines: fruit on the bottom, natural flavors, fruit blends, etc. Category Extension the applying of an existing brand name to a new product category Example: Honda has used its brand to launch different products such as: motorcycles, lawnmowers, marine engines, etc. Brand Line Consists of all products original as well as line and category extensions. Brand Mix (or Brand Assortment) Set of all brand lines that a seller makes available to buyers. Brand Dilution Occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand.

Chapter 10 1) Positioning The act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. The result of positioning is the successful creation of a customer-focused value proposition. 2) Point-Of-Difference (POD) Are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. 3) A companys positioning and differentiation strategy must chance as the product, market, and competitors change over the product life cycle. 4) Product Life Cycle: a. Products have a limited life b. Product sales go through distinct stages, each posing different challenges, opportunities, and problems to the sellers. c. Products rise and fall at different stages of the product life cycle. d. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life-cycle stage. 5) Product Life Cycle Stages: a. Introduction A period of slow sales growth as the product is introduced in the market. Profits are non-existent because of the heavy expenses on product introduction. b. Growth A period of rapid market acceptance and substantial profit improvement. c. Maturity A slowdown in sales growth, because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition. d. Decline Sales show a downward drift and profits erode. 6) Sales Volume = # of brand users X usage rate per user. 7) Quality improvement Aims at increasing the products functional performance. 8) Feature Improvements Aims at adding new features that expand the products performance. 9) Strategies in declining industries: a. Increasing firms investment b. Maintaining firms investment c. Decreasing firms investment d. Harvesting the firms investment e. Divesting the business quickly 10)Diffused Preference Market A type of market in which buyer preference scatter evenly.

Ch 22 1) Reengineering Appointing teams to manage customer-value-building process and break down walls between depts. 2) Outsourcing Greater willingness to buy more goods and services from outside domestic or foreign vendors. 3) Benchmarking Studying best practice companies to improve performance. 4) Supplier Partnering Increased partnering with fewer but better value-adding suppliers. 5) Customer Partnering Working more closely with customers to add value to 6) Merging Acquiring or merging with firms in the same of complementary industries as gain economies of scale and scope. 7) Globalizing Increased effort to think global and act local 8) Flattening Reducing the number of organizational levels to get closer to the customer. 9) Focusing Determining the most profitable business and customers and focusing on them. 10)Accelerating Designing the organizational levels to get closer to the customer. 11)Empowering Encouraging and empowering personnel to produce more ideas and take more initiative. 12)Brand Asset Management Team Each major brand should be run by this team consisting of key representatives from major functions affecting the brands performance. 13)Social Marketing Done by a nonprofit or government organization to further a cause.

14)The Marketing Effective Review A company or divisions marketing effectiveness is reflected in the degree to which it exhibits the five major attributes of a marketing orientation a. Customer Philosophy b. Integrated Marketing Organization c. Adequate Marketing Information d. Strategic Orientation e. Operational Efficiency 15)Marketing Audit Comprehensive, systematic, periodic, and independent examination of a companys or business units marketing environment, objectives, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the companys marketing performance.