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39 Cards in this Set
- Front
- Back
what does it take to be successful in marketing?
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-ethical behavior/social responsibility
-continuous monitoring -excellent customer service -consistent message through mult. channels -competitive advantage -understanding of the customer -creative ads -be flexible and adaptable |
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value
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must create customer value
= benefit - cost |
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current market conditions:
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-barriers to entry (highly competitive but low legal obligations)
-strategic relationships (partnerships) -globalization -accelerating changes in environment -knowledgeable customers -customizing -technology dependent/capable -eco-friendly -fierce competition |
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How to be successful?
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flexible, know your customers, competitive advantage, and know your competition
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Market drive strategy
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1.) continuously strive to increase customer value
2.) continuously gathering information on customers, competition, and market 3.) cross-functional coordination |
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international focus
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new trend towards china india and russia due to population growth potential large land amounts with natural resources
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technology
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traditional forms of marketing are unwanted by consumers ex: commercials
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Challenges of setting quotas
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1.) keeping reps motivated WRT quota levels
2.) territories are not equal (potential) 3.) products not equal vary by territory 4.) dealer changes/personal changes 5.) competition 6.) what behavior are you motivating? |
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successful incentive programs
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-relatively simple easy to explain
-measure what you want done-reward -want reps to earn incentives |
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rapids changes in market:
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technology, competition, globalization, trends change faster, reduced barriers to entry, availability of information (greater access)
-customers more demanding |
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Kodak
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from 2001 to 2007 lost 50% of revenue did not adapt to changes in the market (digital) or competition
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Marketing Myopia
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1963
railroad industry believed would never die lost market share to trucks which were now preferred used railroads because they were the best at that time benefit |
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Decision making process
-consumer |
1.) define problem
2.) search alternatives 3.) evaluate alternatives 4.) purchase 5.) post purchase |
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Decision making process
-business or organization |
-more bulk purchases for better deals
-look at what competitors are doing as references -decision have bigger impact on many people -need based not want based -contract based -longer time period to make decision |
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Buying roles
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user, decider, influencer, initiator, information gatherer, and purchaser.
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value chain
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from raw materials to end consumer all things/people need to have same value
-good relationships, pay for better service outsourcing cheaper |
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competitive model forces
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1.) rivalry exists
2.) threat new entries 3.) threat substitutes 4.) bargining power of suppliers 5.) bargining power of buyers |
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forecasting sales
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-industry trends, company trends, company objectives, sales force opinions, executives opinions, model analysis
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segmentation
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limited resources waste time on other targets different customer needs market to many segments with different approaches
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mass marketing
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all people with the same approach
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differentiated marketing
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each as own strategy
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concentrated marketing
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one segment targeted but exposed to all, given to all segments
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niche marketing
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small group zoned in on within a segment
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customized marketing
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one person or business must be very profitable
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mass customized marketing
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ex: DELL or Nike
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ways to segment a market
consumers |
age, income, geography, needs, personality, price point, martial status, gender/race, belief, usage, values, behaviors, life cycle, occupation, education, and frequency
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ways to segment a market
business |
life cycle stage, needs, size of business, usage purpose, geography, industry, price point, and frequency
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effective segmentations
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-differentiable respond differently
-identifiable -actionable -cost > benefit -stable over time -differentiate standout |
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Identification of segments
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-pick characteristics and form segments
-analyze behaviors and patterns build from data, data mining |
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perceptual map
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see where you are compared to competition
cluster=high competition two qualities usually price and quality. |
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Achieving A1 quality
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-customize relationships with customers
-focus on customer service and reward programs -send thank-you notes give suggestions -customer database updated continuously and track |
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customer lifetime value
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recognize these customer 60% more successful investment in relationships
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80/20 rule
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20 percent of customers yield 80 percent of the profits important to find high value customers which are a small part of customer base
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retention
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really important to keep customers coming back, do not ignore existing customers, repeat customers generate 2x the profit that new customers do
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total commitment
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entire organization all work together part of the company culture
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cross-functional teams
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key to success
from all parts of the organization form a team, line workers, ceo, marketing rep, human resource rep all come together. |
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International call centers
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paying for call centers in india costs less outsourcing customer service
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Marketing Sensing Processes
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ask questions open minded to change look at competitors listen to all employees find hidden needs
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Learning Organizations
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mind set or philosphy always becoming better how to get better, commit resources to this est. funds and MR
-CLOs, and CKOs |