Marketing
activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large
target market
one or more specific groups of potential consumers toward which an organization directs its marketing program
exchange
trade of things of value between a buyer and a seller so that each is better off after the trade
Conditions for Marketing/Exchange to Occur
two or more parties w/ unsatisfied needs
desire and ability on their part to have their needs satisfied
way for the parties to communicate
something to exchange
social, economic, technological, competitive, regulatory
5 Environmental Forces
product
good, service, or idea to satisfy the consumer's needs and is received in exchange for money or something else valuable
price
what is exchanged for the product
promotion
means of communication between the seller and buyer
place
means of getting the product to the consumer
marketing mix
product, price, promotion, place
controllable factors that can be used by the marketing manager to solve a marketing problem
need
when a person feels deprived of basic necessities
want
need that is shaped by a person's knowledge, culture, and personality
relationship marketing
links the organization to its individual customers, employees, suppliers and other partners for their mutual long-term benefit
customer value
unique combination of benefits received by targeted buyers that includes quality
market segment
relatively homogeneous groups of prospective buyers that have common needs and will respond similarly to marketing action
marketing program
plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
market share
ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
business portfolio analysis
technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units as though they were a collection of separate investments
diversification analysis
technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products
cash cows (BCG portfolio analysis)
generate large amounts of cash have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and invest in other SBUs
Stars (BCG portfolio analysis)
high share of high-growth markets that may need extreme cash to finance their own rapid future growth, when growth slows, likely to become cash cows
question marks (BCG portfolio analysis)
low share of high-growth markets, require large injections of cash just to maintain their market share
dogs (BCG portfolio analysis)
low shares of slow-growth markets, they may generate enough cash to sustain themselves, they may not become real winners
market development
marketing strategy to sell current products to new markets
product development
marketing strategy of selling new products to current markets
market penetration
marketing strategy to increase sales of current products in current markets
diversification
marketing strategy of developing new products and selling them in new markets
1. obtaining resources
2. designing the marketing organization
3. defining precise tasks, responsibilities, deadlines
4. actually executing the marketing program designed in the planning phase
four components of the implementation phase
marketing strategy
means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
marketing tactics
detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies
social forces
demographic characteristics of the population and its culture
marketing research
process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
sampling
selecting a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are interested
secondary data
facts and figures that have already been recorded prior to the project at hand
primary data
facts and figures that are newly collected for the project
observational data
facts and figures obtained by watching, either mechanically or in person, how people actually behave
depth interview
researchers ask lengthy, free flowing kinds of questions to probe for underlying ideas or feelings
focus groups
informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors
open ended questions
allow respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher
close-end (fixed alternative) questions
require respondents to select one or more response options from a set of predetermined choices
dichotomous question
simplest form of a fixed alternative question that allows only a "yes" or "no" response
semantic differential scale
five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings
Likert Scale
respondent indicates the extent to which he or she agrees or disagrees with a statement
head-to-head positioning
competing directly with competitors on similar product attributes in the same target market
differentiation positioning
seeking a less-competitive, smaller market niche in which to locate a brand
perceptual map
means of displaying in 2D the location of products or brands in the minds of consumers
production era
until 1920s
goods scarce, people accepted virtually any goods
sales era
1920s - 1960s
firms could produce more than buyers could buy, competition grew, firms hired salespeople to find new buyers
marketing concept era
from late 1950s
idea that an organization should: strive to satisfy the needs of consumers while trying to achieve the organization's goals
launched by GE
Customer Relationship era
1980s to present
firms continuously seek to satisfy the high expectations of customers, social media, customer relationship management, customer experience
relationship marketing
ongoing, personal relationship between the organization and its individual customers that begins before and continues after the sale
marketing concept
satisfy customer wants & needs
customer and profit orientation in whole firm
focus on total marketing mix
Exchange
goods->communication/delivery->consumer->money/info (continuum)
BDI/CDI
way to measure relative share of the business relative to the size of the market
low BDI, high CDI
problem child (BDI/CDI)
high BDI, high CDI
star (BDI/CDI)
low BDI, low CDI
dog (BDI/CDI)
high BDI, low CDI
cash cow (BDI/CDI)