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85 Cards in this Set
- Front
- Back
marketing |
entails processes that focus on delivering value and benefits to customers, not just selling goods and services. |
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Marketing management philsophies evolution: Production |
focuses on the internal capabilities of the firm rather than on the desires and needs of the market place - efficient production + internal operations (Furniture industry) |
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Marketing management philosophies evolution: Sales |
people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits - aggressive techniques for overcoming customer resistance (Intermediaries pushing manufactures products) |
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Marketing management philosophies evolution: Market |
sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product. It is synonymous with the marketing concept. - focus on satisfying customer needs and wants |
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Marketing management philosophies evolution: Societal |
an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society’s long-term best interests |
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Market Penetration |
Present Product + present market -increase market share among existing customers (holiday themed cans for coke) |
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Market development |
Present product + New Market -Attracting new customers to existing products -Coke Zero |
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Product development |
New Product + Present Market -Creating new products for present markets -Vanilla or cherry coke |
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Diversification |
New Product + New market -Strategy of increasing sales by introducing new products into new markets -coke acquiring Glaceau to produce vitamin water |
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BCG Portfolio Matrix |
Resource Allocation |
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Star |
High Market Share + High Market Growth Rate -Fast growing market leader but usually need cash to finance growth - reinvest earnings in product improvement ,distribution, promotion + product efficiency |
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Cash Cow |
High Market Share + Low Market Growth Rate - High profits, low investment -generates more cash than it needs to maintain market share but is in a low growth market |
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Problem Child (question mark) |
Low Market Share + High Market Growth (poor profit margins) -low market share in a high growth industry - shows rapid growth but poor profit margins -needs lots of cash to prevent dog status - invest heavily |
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Dog |
low market share + low Market Growth - Low growth potential and small market share – most dogs leave the market - Divest or harvest |
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Sustainability - enough for all - forever |
-Socially responsible companies will out perform their peers -It is in business’s best interest to find ways to attack society’s ills -We co-exist. We need healthy consumers,employees, stockholders, and a stable economic environment |
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Green Marketing |
the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment |
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Environmental Forces |
Social, Economic, Technological Competitive, Regulatory |
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Social |
Demographic shifts, cultural changes |
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Economic |
macroeconomic conditions consumer income |
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technological |
changing technology, technology's impact on customer value |
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Competitive |
Alternative forms of competition, components of competition |
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Regulatory |
laws protecting competition, laws affecting marketing mix actions, self-regulation |
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Exporting |
Selling domestically produced products to buyers in other countries - Company can sell directly to foreign importers or buyers. - Lowest risk + lowest return |
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Licensing |
Where by a licensor allows another firm to use its manufacturing process, trademarks,patents, trade secrets, or other proprietary knowledge - In turn the licensee pays the licensor a royalty fee or a fee agreed on by both parties - has sufficient control over licensee's activities |
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Contract Manufacturing |
Private label manufacturing by a foreign company. - Foreign company produces a certain volume of products to specification, with the domestic firm’s brand name on the goods – domestic company usually handles the marketing |
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Joint Venture |
Domestic firm buys part of a foreign company or joins with a foreign company to create anew entity |
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Direct Foreign Investment |
Active ownership of a foreign company of overseas manufacturing or marketing facilities. Direct investors either have a controlling interest or a large minority interest in the firm - greatest potential for reward and risk |
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Internal Search |
Recalls info stored in the memory - Info stems largely from previous experience with a product - compares |
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External |
If a solution isn’t reached through internal search, then search process is focused on relevant external information |
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Marketing Controlled Info |
Biased toward a specific product because it originates with marketers promoting that product - mass media advertising |
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Non-marketing Controlled Info |
Product information source that is not associated with marketers promoting a product - personal experiences, personal sources |
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Cognitive Dissonance (Buyers Remorse) |
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions - try and reduce any lingering doubt |
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Social Class |
A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms (occupation, income, education, wealth |
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Direct-face-to-face: Primary |
Small, informal group - Include all groups with which people interact regularly in an informal way |
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Direct-face-to-face: Secondary |
Large, Formal Group - People associate with this more formally and less consistently - Clubs, professional groups, and religious groups |
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Indirect non-membership: Aspirational |
Organizations that a person would like to join |
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Indirect non-membership: Non-Aspirational |
a group someone wants to avoid being identified with |
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Opinion Leaders |
First to try new products - Teenagers,because of their willingness to experiment, are key opinion leaders for the success of new technologies - Companies use prominent public figures, such as movie stars, sports figures, and celebrities to promote products |
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Business Products |
Used to manufacture other products - become part of another product - aid the normal operations of an organization - are acquired for resale without change in form - Key is intended use |
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Derived Demand |
Demand for business products results from demand for consumer products - Organizations buy products to be used in producing consumer products |
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Inelastic Demand |
A change in price will not significantly affect the demand for product - Demand without regard to price |
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Joint Demand |
Multiple items are used together in the final product. Demand for one item affects all - Occurs when multiple items are used together in a final product |
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Fluctuating Demand |
Demand for business products is more volatile than for consumer products (few large players) The demand for business products tend to be more unstable than the demand for consumer products |
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Multipier effect |
Small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and manufacturing equipment needed to make the consumer product |
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Geography |
Segmentation based on region of a country or the world, market size, market density, and climate |
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Demographics |
Segmentation based on age, gender, income, race/ethnicity, family life cycle |
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Psycographcis |
Segmentation based on personality, motives, lifestyle, and geodemographics |
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Benefits Sought |
Type of segmentation that identifies customers according to the benefits they seek in a product |
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Usage Rates |
Divides a market by the amount of product purchased or consumed (Former, potential, 1st time, light or irregular, medium, and heavy) - Segmenting by usage rate enables marketers to focus their efforts on heavy users or to develop multiple marketing mixes aimed at different segments. |
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Primary Research |
Information collected for the first time – used for solving the particular problem under investigation |
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Observational Data |
watching people |
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Questionnaire data |
asking people |
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Primary Data Advantage |
Answers a specific research question, data is current, source of data is known, secrecy can be maintained |
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Primary Data Disadvantage |
Primary data is expensive, disadvantage usually offset by the advantages of primary data |
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Secondary Data |
Facts and figures already recorded prior to the project |
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Internal Data |
inside the firm – financial statements, reports, files, customer letters, sales call reports, and customer lists |
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External Data |
outside the firm – US census reports, trade association studies and magazines, business periodicals, and internet – based reports |
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Tests/Experiments |
Used by marketer to gather primary data or Variables– products, price, package design, shelf space, advertising theme, advertising expenditures |
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Surveys |
Most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes |
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Branding marks |
The elements of a brand that cannot be spoken |
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Brand Names |
The part of a brand that can be spoken, including letters, words, and numbers |
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Brand Line Extension |
occur when a company introduces additional items in the same product category under the same brandname such as new flavors, forms, colors, added ingredients, package sizes - many new products are line extensions |
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Co-branding |
Placing two or more brands on a product or its package |
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Private Label |
designating a product manufactured or packaged for sale under the name of the retailer rather than that of the manufacturer. |
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Family Brand |
Marketing several different products under the same brand name |
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Benefits of branding |
Helps speed consumer purchases by identifying specific preferred products - Provides a form of self-expression and status- Confidence,assurance - Evaluates product quality to reduce the risk of purchase |
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where do brands live? |
in the hearts and minds of consumers |
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brand equity |
Thevalue of company and brand names |
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How Services differ from goods |
Intangible, inseperable, inconsistency, Inconsistency, perishable |
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Intangible |
Services cannot be touched, seen, tasted, heard, or felt in the same way as goods.Tangible cues are often used to communicate a service’s quality and nature. Facilities are a critical tangible part of a service experience. |
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Inseperable |
Production and consumption are simultaneous meaning the consumer takes part in production - Services are often sold, produced, and consumed at the same time
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Inconsistency |
Services depend on their employees for quality, which makes consistency difficulty to achieve - they're less standardized and uniform |
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Perishable |
services cannot be saved, stored, warehoused, or inventoried. It is challenging to synchronize supply and demand |
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Pricing |
Price allocates resources in a free market economy --> value = Benefits/price(costs) |
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factors in setting price |
demand, cost, competition -markup pricing, keystoning, profit max. pricing, break-even pricing |
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consumer demand (value of benefits from customers POV |
Cost factors, competitive environment |
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skimming |
where a firm charges a high introductory price often coupled with heavy promotion –over time price is lowered – use this for new products when the product is perceived as having unique advantages |
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Penetration |
Charging a low price for a product, a larger share of the market is captured, resulting in lower production costs – lower profit per unit + higher volume of sales is required to meet break-even point |
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ROI |
Net profit after taxes divided by total assets - most common profit objective - measures management's overall effectiveness in generating profits with the available assets - higher ROI the better |
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Survival (Satisfactory profits) |
strive for profits that are satisfactory to the stockholders and management – a level of profits consistent with the level of risk and organization faces |
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status quo |
Maintain Prices/margins – meet competition |
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sales |
Marketshare – Sales maximization - Based on market share as reported in dollar or unit sales - Strive for either marketshare or to maximize sales |
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profit |
Satisfactory profits – profit maximization – Targeted ROI - Setting prices so total revenue is as large as possible relative to total costs |
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market share |
A company’s product sales as a percentage of total sales for the industry |
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prestige |
How a company prices their product and how a customer values their product – the higher the price the more the customer will value their product |