Term
| Three related thoughts: Marketing Success is |
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Definition
… predicated on “standing-out”, rather than “fitting-in.”
• … predicated on making-old-things-new and new-things-known.
• … driven by the development and delivery of new stuff. |
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Term
| our brains are fundamentally wired to operate at three levels: |
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Definition
1. I will,
2. I won’t,
3. I want. |
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Term
| Four things in this world that are never satisfied |
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Definition
1. The Leech – keeps on sucking for more, more, more
2. The empty Grave – it always cries out for more
3. The barren Womb – womb, not room
4. Fire - the bigger a fire gets, the more it wants to consume |
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Term
| • Fact: Most humans, no matter how much they have, want more. Our souls are wired to want. |
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Definition
| o After all, what is happiness? One of the best answers: Happiness is a moment in time before we need something new to create more happiness. Happiness is usually more about anticipation than reality. We’re all big holes that need to be filled up… |
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Term
• And that is one reason, a compelling reason, why successful marketing is comparatively easy. Simply give people what they want ….
o What a paradox. |
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Definition
Most Americans have less than they want.
But nearly all have more than they need. |
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Term
| 1) Discussing the role of ‘Holes’ |
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Definition
a. Solutions (customers always have problems / marketers should offer solutions to those problems)
i. HD & the ¼ inch drill bit |
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Term
| 2) What’s an example of a marketing organization |
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Definition
a. Better yet, name an organization that does not engage in marketing
b. Or best of all, name a successful organization whose success is not in large part predicated on marketing. |
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Term
| 3) Principles – arguably, ‘tell us what works’ |
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Definition
| a. By contrast, laws/rules, tell us what we can and cannot do - or should or should not do. Laws keep us in bounds (like a child’s bumper in a bowling alley); they allow us to discriminate between right and wrong |
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Term
| a. The Law of “Leadership |
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Definition
| - be first (to market, to have a chance to remain in the mind) – Lindbergh |
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Term
|
Definition
| be first in a category – (Amelia Earhart/Janet Guthrie) |
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Term
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Definition
– be first (and top) in the mind – (Danica Patrick)
i. Importance of the ‘evoked set’ and your Firm’s name, brand or product being part of it?
ii. Ladders (None of us have ever bought anything without first knowing about the thing that we bought)
1. The thing, the product, must be inserted into customers’ minds |
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Term
| d. The Law of … Perception |
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Definition
i. Marketing battles, marketing wars, based on perceptions.
1. “There is nothing either good or bad, but thinking (perceiving) that makes it so.” – Shakespeare |
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Term
| e. The Law of … Focus (Ownership |
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Definition
i. Owning something; owning it ‘where’ and owning ‘what?’
1. Coffee, brown, I-pod, overnight, X-box, Kleenex, Band-Aid, Google, Facebook, Tweet
2. Owning Something: “I keep saying this to the team. We’ve got to own something. If we own butts, and then launch out from there, that’s ok. You don’t want to limit yourself to butts in the consumers’ mind, but you do not want to become everything to all people too quickly.” Sara Blakeley, founder and CEO of Spanx |
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Term
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Definition
take ownership when something goes wrong.
i. Tiger Woods did not; David Letterman did. (Note that both men are both brands and products.)
ii. Toyota did not; Apple did |
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Term
| i. Law of … Unpredictability |
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Definition
| i. Making prediction are difficult … ‘’, especially when they are about the future |
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Term
| At times, marketers can develop and promote solutions to problems that did not or do even exist, and in the doing actually create the perception that a problem exists. |
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Definition
|
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Term
| b) Marketing, it is a powerful thing |
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Definition
| Marketing can be used to facilitate good outcomes, or marketing can prove a powerful thing that facilitates not-so-good outcomes. We’ll learn about both… |
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Term
|
Definition
| i. Marketing is “the performance of business activities that direct the flow of goods and services from producers to consumers.” |
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Term
|
Definition
“A social and managerial process through which individuals and groups obtain what they want or need by creating and exchanging value with others.”
1. What is created and exchanged?
2. A product – so what is a product? |
|
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Term
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Definition
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 stakeholders.”
b. What is the implication that marketing entails social and managerial processes?
c. What are Needs?
d. What are Wants? |
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Term
| i. Ancient wisdoms written about the nature of our human wants. |
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Definition
| 1. Can marketers create needs? Can marketers create wants? Do ‘wants’ (sometimes) eventually turn into ‘needs’? |
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Term
| e. Exchanges, the “exchange process” or exchanging |
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Definition
i. Giving, getting – get, give.
ii. How important is the phenomenon called ‘exchange’ to the practice of marketing? |
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Term
| f. The role of Customer Value |
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Definition
| value is likely best and most simply defined as “the difference, hopefully positive, between benefits and costs |
|
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Term
| g. But there are different ways to consider value |
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Definition
For example:
i. An A/C unit has no value; cool air, that’s what has value
ii. Lawn fertilizer has no value, |
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Term
| h. Marketing Solutions offer Benefits that deliver Value |
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Definition
| the value delivered can exceed customer expectations, correspond equivalently to exactly what customers expect, or fall short of customers expectations. |
|
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Term
| i. The relationship between ‘value’, ‘expectations’ and ‘satisfaction |
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Definition
| i. Should marketers Under-Promise & Over-Deliver |
|
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Term
| a. The ‘Marketing Concept’ |
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Definition
| i. A business philosophy that puts customers and their needs first |
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Term
| b. Product, Service or “Marketing Offering” |
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Definition
i. The difference between?
ii. Anything offering value that can be exchanged. |
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Term
| c. Markets, Market Segments, & Market Segmentation |
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Definition
| i. The relationship between? |
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Term
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Definition
Positioning relates to …
• The place a product or brands occupies within a customer or prospects mind.
o For example, think Coke, 7-Up, and Dr. Pepper
1. Each produced is good, tasty and bad for you, right?
2. But each of us perceives each product as being different, along various attributes, one from the other.
3. Remember, Coke, 7-Up and DP each want to be perceived as different from each other, different and better, right?
4. Firms try to create, through their marketing strategies, unique and uniquely desirable positions – or places in customers’ minds - for their products or brands (or both). |
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Term
| The relationship between market segments and market segmentation and positioning: |
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Definition
e. Relationship and Relationship Marketing
i. The huge value of relationships and reputation.
1. The Bible says – “a good name is to be chosen rather than great riches, and loving favor rather than silver or gold.”
2. John Stuart Mill said – “Happiness is the by-product of pursuing some other worthy goal.” The same could be said of reputation. |
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Term
|
Definition
| i. The differentiating “power” of brands … |
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Term
| g. Innovation – (new and useful, provides solutions |
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Definition
| i. Innovation is just a $10 word for using new ideas to improve anything; for example, a product, process or how we learn |
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Term
| ii. Creativity is the key to successful innovation. |
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Definition
| 1. Creativity entails the ability to See or Think about the same things as everyone else is seeing or thinking about and yet coming up with {deriving, or creating} something new, different, better and most importantly, capable of creating greater value! |
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Term
|
Definition
Different from”; and “better than” (alternative solutions).
1. AT MANY LEVELS, IN MANY WAYS, MOST OF WHAT ANY MARKETER DOES RELATES, DIRECLTY OR INDIRECLTY TO THE PURSUIT, GROWTH OR RETENTION OF DIFFERENTIATION.
ii. Positioning is connected with differentiation, as well. |
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Term
| i. The impact of technology on business and marketing |
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Definition
i. “Technology is a one-way street, it is always moving forward.”
ii. A huge challenge for some companies, a huge opportunity for others.
iii. Technology has primarily impacted the way we connect with each other, that marketers connect with us, and that we as customers connect with marketers. |
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Term
| j. The impact of cultural diversity, globalization, green, ethical and social responsibility, and sustainability issues on marketing practice and what it takes to be successful as a marketing manager or marketing Firm. |
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Definition
| i. Each factor impacts the practice of marketing and marketing Firms. |
|
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Term
| The marketing concept applies to almost everything in life.’ |
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Definition
|
|
Term
| b. That “communication skills |
|
Definition
| listening, listening, listening, writing, writing, writing, and speaking (and listening) – really matter |
|
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Term
| c. That marketing or interpersonal “impressions |
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Definition
| first, last, and in-between – really matter. |
|
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Term
| d. Almost everything you do |
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Definition
| anywhere and everywhere in your life – has marketing implications. |
|
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Term
| e. That ‘everyone’ never represents an acceptable marketing segment or target market. |
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Definition
|
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Term
| f. Knowledge is the fundamental source of competitive advantage. |
|
Definition
|
|
Term
| g. Change is inevitable, and it will not arrive in a straight line |
|
Definition
| i. Change will be resisted - either directly or indirectly - by someone; usually, several someone’s. |
|
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Term
| ii. Change does not always represent progress, but change is always necessary for progress to occur. |
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Definition
|
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Term
| iii. That if you’re really smart, you will always stay ahead of change and then, in effect lead the change |
|
Definition
|
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Term
| h. That all successful companies have one thing in common, i.e., they are customer-focused and heavily committed to marketing. |
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Definition
| i. Such Firms make promises, in effect. But more importantly, such Firms keep all the promises they make to customers. |
|
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Term
| i. That nothing happens in business until someone sells something |
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Definition
|
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Term
| j. That the company or person who, throughout their lives, delivers the most value, wins, almost every time |
|
Definition
|
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Term
| k. That marketing is a part of all our lives, for better and for worse |
|
Definition
| i. Why not learn how to be a better marketer and a better consumer? |
|
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Term
| • There are four steps in every decision |
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Definition
| 1. You perceive a situation. 2. You think of possible courses of action. 3. Then, you calculate which action is in your best interest. 4. Finally, decide on which action to take. |
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Term
| • Looking-at and making-sense of (i.e., perceiving) the world is an active, continuous process. |
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Definition
| During that process, “meaning-creation” or “sense-making” takes place. In turn, the perceptions that arise shape and influence, and actively bias our decisions. This is always true. |
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Term
| 3) Can and do marketers shape perceptions |
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Definition
|
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Term
| 4) Can marketers shape those perceptions for better and for worse? |
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Definition
|
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Term
| • The world of marketing is unique, insofar as it freely offers the “feeling of being right” to both buying and selling participants. In fact, “if it did not feel right” to each buyer/seller participant in any marketer/customer relationship, neither party would participate. |
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Definition
| o Every marketing transaction has a buyer and a seller. |
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Term
| • In most marketing exchange relationships, either the buyer or the seller is actually right (the winner) and one is wrong (the loser), at least in terms of the level of value that has been exchanged. |
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Definition
| o Why? Because the value taken away from the seller was less than the value of the amount the buyer had to give up to obtain the object of transaction, or the value given up by the seller was greater than the value of the amount the buyer gave up to obtain the object of transaction. |
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Term
| Success in marketing, from the perspective of the Firm and manager, depends: |
|
Definition
| • Not so much to be skillful in making the customer do what suits the interests of the business, … |
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Term
| • As to be skillful in conceiving and thus making the business do what suits the interests of the customer |
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Definition
o Customers - indeed all of humanity - is inherently self-interested
o When the topic is marketing and the goal is to market more successfully, go beyond simply fishing where the fish are; one should also fish in the particular places (i.e., segments) where the specific fish you are targeting are more likely to bite on your specific bait.
o Or, as Wayne Gretzky might have suggested, “skate to where the fish are likely to be.” If this statement does not make sense now, wait a while. |
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Term
| Success in marketing, from the perspective of the individual, entails the understanding the following sentiment (and worldview): |
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Definition
| • Regardless of what you do, you are a marketer. Marketing involves making people “like” you and “trust” you. This is human nature at its most natural. |
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Term
| o The first thing to say when meeting someone is “thanks for making time for me.” The second thing to do is to ask them about themselves. The third thing to do is to make them laugh. These are not tricks. The only trick is understanding there are no tricks or shortcuts to marketing success, just lots of people - rich or poor - all wanting to be treated better than dirt. |
|
Definition
|
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Term
|
Definition
• Marketing’s major function is to make meaning out of meaninglessness by bringing together diverse demand and miscellaneous supply.
• Marketing involves a constant struggle for sustenance, status, stability and survival in an ever-changing marketplace. |
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Term
|
Definition
• There is a thing called the Golden Rule: “Do unto others as you would have them do unto you.” Presumably and hopefully, most of you know the Golden Rule.
• But in a marketing context, perhaps a guideline called the Platinum Rule should apply: “Do unto others as they would have you do unto them.”
o In others words, slow down, listen, pay attention and learn; then respond in ways that create and deliver values that signal to customers and prospects that not only have you been listening, you also understand. |
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Term
|
Definition
| • Remember, people often buy a product not just for the function purpose it serves (or problem it solves) but also for the social, cultural or personal (think prestige) “values” that the products appears to embody and say about the person consuming it. |
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Term
|
Definition
| • Marketing is an action word. Market-ing is a gerund – a verbal form ending in “ing” that is used as a noun, but conveys the meaning of the verb, “to market.” Marketing, “to market”, is one thing that every individual or organization routinely engages in or does. |
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Term
| 2. Measuring performance improves performance |
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Definition
| But measuring is not enough. A value must also be placed on the performance being measured. The question of whether the return (i.e., the value) the Firm is receiving in exchange for its investment of time, people (talent) or money (treasures) [the three T’s] in pursuit of a specific goal or priority must be answered. |
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Term
| 3. To solve important problems or answer important questions |
|
Definition
| in the proper order, you should follow three simple guidelines. First, define the problem or question – accurately. Second, determine what is needed to answer the question or solve the question. Third, start working. |
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Term
| 4. Many successful companies value three virtues of simplicity |
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Definition
| 1) those Firms possess or develop highly distinctive core competencies (one, two or three); 2) those Firms consciously simplify their business models; and 3) those Firms relentlessly apply their business models to as many opportunities as possible. |
|
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Term
|
Definition
| • Their symbolic meaning to a particular nation … |
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Term
|
Definition
|
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Term
Strategy – a Greek word, at its root.
• Originally used to describe a “military commander.” |
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Definition
o This makes sense, because successful marketing strategy is often similar to a successful military strategy.
o Strategy is about getting more out of a situation than the beginning balance of power would suggest should be possible.
o Strategy encompasses the art of creating power. |
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Term
| Famous Historical Quotes that relate to Strategy and are also relevant to marketing strategy: |
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Definition
• Failing to plan is like planning to fail – Wooden
o You want to assure failure, don’t plan.
• Plans are nothing, but planning is everything – Eisenhower
o Plans rarely work out the way they are supposed to on paper, because circumstances change.
• A good plan, violently executed today, is better than a perfect plan next week – Patton
o Be opportunistic. Strike fast and hard. Do it, now. |
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Term
| • When absolute superiority is not attainable, produce a relative one at the decisive point by making skillful use of the resources you have – Clauswitz |
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Definition
o Attack your competitor at its weakest point with your strengths.
o This also means that Firms should focus on doing what they do best, i.e., focus on cultivating and exploiting their competencies or strategic advantages |
|
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Term
| • If you don’t know where you are going, any road will get you there – anonymous |
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Definition
|
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Term
| When creating or executing plans, Firms (people) should focus on their strengths: |
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Definition
– Focus on taking advantage of their competencies, taking advantage of what they do best. Examples:
To the U.S. Army, an open expanse of water is a forbidding barrier.
For the U.S. Navy, open water is a broad and inviting highway. |
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Term
| Focus on your strengths. |
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Definition
• Focus on those things you do better than anyone else. Starbucks probably lost its focus on coffee several years back.
Or, “In-N-Out Burger” – burgers, fries, shakes; done extremely well – that is the whole game for “In-N-Out |
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Term
| When the subject is the pursuit of marketing or strategic success, or strategic marketing success: |
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Definition
| • The notion of relationships is hugely important within a strategic marketing context. (Creating-keeping-strengthening relationships.) |
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Term
| There are two kinds of relationships. Each is valuable, good and useful for marketers and marketing Firms. But one relationship is far more useful. |
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Definition
• WET RELATIONSHIPS - relates to exchange and transactions
• DRY RELATIONSHIPS – also relates to exchange and transactions |
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Term
| In the end, wet is better because: |
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Definition
| • Customer Loyalty and Marketer Understanding of Customers are both enhanced |
|
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Term
| Then there is the role played by the value of a Firm’s, product’s, brand’s or individual’s - |
|
Definition
|
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Term
|
Definition
o Reputations should and could be built out on the basis of GENUINE differentiation, as well as promise-making and promise-keeping.
• Effect on branding, positioning, the attempt to differentiate |
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Term
| Planning is inevitably useful. Planning is often a prerequisite for success because the act: |
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Definition
• Encourages systematic and forward looking thinking.
• Forces Firms to clarify, as well as create, goals and objectives.
• Leads to more efficient coordination of Firm efforts and assets.
o Assets: Any physical, organizational or human attribute that enables the Firm to generate and implement strategies that improve its efficiency and effectiveness in the marketplace. (assets = time, talent and treasure [again, the 3 T’s])
• Provides clear performance metrics – which, in turn, facilitates managerial control and establishes accountability (who is responsible for what?).
• Helps companies articulate and respond more quickly to environmental changes and suddenly arising opportunities and threats.
• Forces more careful consideration of the entire environment (a SWOT, if you will), as well as consideration of customers and competitors who also exist as key dimensions of any marketing Firm’s environment. |
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Term
|
Definition
• Entails taking a careful look at where the Firm has been (PAST), where it is now (in terms of its current Strengths and Weaknesses (PRESENT), and where it ought to be going given the Opportunities or Threats the Firm may soon be facing (FUTURE).
o Statement is illustrative of Revelations: “I was, I am, I will be …”
o Statement also relates to the Irish Proverb – “May you have the Foresight to know where you are going, the Hindsight to know where you have been, and the Insight to know when you have gone too far.” |
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Term
| • Executing these planning processes involves something called a SWOT analysis, an examination of Strengths, Weaknesses, Opportunities and Threats – of a SWOT. |
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Definition
o Strengths and Weaknesses exist inside the Firm itself.
o Opportunities and Threats exist outside the Firm –
In fact, they would exist even if the Firm did not exist.
Opportunities and threats exist as trends moving in favor of or against the interests of the marketing Firm. |
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Term
| At its core, STRATEGIC planning forces development of a strategy that: |
|
Definition
• Meets and beats competitive threats, and
• Ensures the L/T survival and growth of the Firm. |
|
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Term
| At its core, MARKETING planning involves decisions about: |
|
Definition
• Which products to produce, and
• How to price, promote and distribute them effectively.
o This is your first exposure to an important marketing concept: the marketing mix. |
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Term
| Significantly, when a Firm decides which products to produce it also, by default, decides: |
|
Definition
• The markets (segments) it will enter and in which it will compete.
• The types of customers’ wants, needs, and problems it will satisfy/solve.
• The competitors with which it will compete/do battle |
|
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Term
| The Marketing Function, in any Firm, should play a critical role in any strategic planning processes in which the Firm engages. The fundamental reason why: the marketing function provides: |
|
Definition
| • Information about 1. The Market, 2. What Customers want or need; particularly, values they are not currently receiving, and 3. Current and likely strategies and activities of relevant direct and indirect Competitors. |
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Term
| STRATEGIC PLANNING, entails developing the Firm’s |
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Definition
• Mission; SWOT; Goals & Objectives (and Metrics) (for each SBU … reference GE, Jack Welch and SBUs); Strategies and Tactics for Reaching those goals & objectives (within each SBU), [tactics will always involve segmentation and targeting, and managing the marketing mix elements to create hopefully unique value for targeted segments]:
o Goals & Objectives should always be compatible with the Mission.
o Goals & Objectives should be established such they allow the marketing Firm to exploit (take advantage of) its strengths and overcome (avoid, compensate for) its weaknesses. |
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Term
| • The Firm’s Mission – should give the Firm direction regarding where it should go as well as constraints on where it should go. Mission Statements should |
|
Definition
Realistic,
Specific,
Appropriate for the environment in which the Firm operates,
Indicate/emphasize a distinctive competency ‘owned’ by the Firm, and
Motivating. …
• Who were are, what we aim to become, how we will get there … |
|
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Term
| • The Firm’s Stated Goals and Objectives |
|
Definition
o Goals ensure that the Firm does what is necessary and appropriate to secure the resources and establish the means (approaches) and methods (metrics) necessary to measure progress toward achieving its mission.
The Firm’s goals and objectives provide useful metrics and benchmarks against which to measure progress or the failure to move forward successfully.
Goals and objectives each should have a time-frame, i.e., “will be completed by specific dates” metrics.
Objectives should be stated as specifically as possible, increase market share, increase awareness of the new product, lower costs of distribution by X%.
Goals, by contrast, can be stated much more broadly than objectives.
Goals should be developed first; then, objectives should follow.
Each goal should have 2 or 3 objectives ‘attached’ to it.
• Then, if the Firm makes progress toward achieving those objectives it will naturally be making measurable progress toward achieving its major goals. |
|
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Term
|
Definition
| Decisions regarding the allocation of three (3) ‘Ts” are always in play. |
|
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Term
| • “Functional Marketing” Plans |
|
Definition
involving and addressing the activities the Firm must execute to carry out its daily marketing and other functional operations.
o Such functional area plans would include targeting, pricing, promoting, new product development, distribution (Supply chain management, logistics); as well as accounting; finance, production; HR; technology goals, and so forth.
Firms secure sustained competitive advantage by implementing marketing strategies that exploit their internal strengths, through responding to environmental opportunities, while neutralizing external threats and avoiding or mitigating internal weaknesses. This, in a nutshell, is strategic-level market planning.
Because most Firms are interested in revenue, profit or market share GROWTH, we should explore four avenues through which growth may be achieved. |
|
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Term
|
Definition
| making more sales to existing customers without changing the Firms’ products in any way (Firms surely can change how they price, promote or distribute, however). |
|
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Term
|
Definition
| – When the Firm identifies and develops new market opportunities and thus new markets for existing products |
|
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Term
|
Definition
| Developing and delivering modified or brand-new-to-the-world products to existing markets. |
|
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Term
|
Definition
| pursuing newly identified market segments by developing or acquiring and marketing new/modified products |
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Term
|
Definition
o The Role of SBUs
o The Portfolio Planning Method known as the Boston Consulting Group (BCG) Matrix – illustrated on page 36 of text.
Two dimensions, creating a 2X2 Matrix
• Vertical Axis (Market Attractiveness – the Growth Rate of the Market)
• Horizontal Axis (The Firm’s Relative Market Share)
Cash Cows – low-growth markets, but high-share organizational products
Stars – high-share products targeting high growth markets
Question Marks – low-share products in high-growth markets (?)
Dogs – low-share products in low-growth markets (X)
o Once a Firm classifies where its products belong, the Firm must determine what strategic role each product should play in the future.
Actually, there are only four BASIC strategic moves an organization can make with respect to any product:
• Invest to build share
• Invest just enough to maintain share
• Harvest the SBU (i.e., get as much as the Firm can while it can)
• Divest the SBU (sell the loser)
o Business portfolios are useful, but far from perfect, as will be explained |
|
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Term
| • The strategic role of the future. |
|
Definition
| o Companies should always be looking toward the future for purposes of identifying opportunities and threats before their competitors can do the same. |
|
|
Term
• The Marketing Planning Process, on its surface, is simple -
o The Marketing Planning Process consists of:
Analyzing Market Opportunities |
|
Definition
| what are the best opportunities? |
|
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Term
| Selecting Target Markets |
|
Definition
| identifying the customer segment(s) your Firm is best equipped to pursue; these are, effectively, the best opportunities |
|
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Term
| Planning the Marketing Effort |
|
Definition
| Deciding how best to manage your Marketing Mix to create and deliver the most appealing sorts of value to target markets? |
|
|
Term
| Marketing Planning entails two basic activities: |
|
Definition
1) Identifying the best marketing opportunities, which leads to the identification of “target markets” –those groups (i.e., homogenous market segments) of customers that our Firm is best able to pursue through differentiating value …
a. Learn: No Firm, no product (brand), can be all things to all people.
i. No product has ever been made or marketed that everyone wants or needs and also can afford.
b. So marketing Firms must target carefully.
2) Planning the marketing effort (i.e., marketing mix) for our Firm.
a. How can our Firm manage (change) our marketing mix (Product, Price, Place [or distribution or supply chain] and/or Promotion to deliver differentiating value to targeted segments. |
|
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Term
| • Targeted customer segments |
|
Definition
| the unmet needs, unrecognized wants, and unsolved problems (of those segments) should reside at the center of this marketing activity. |
|
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Term
| • To SUCCEED in today’s incredibly competitive marketplace, organizations should be continuously customer-focused (or customer-centered). |
|
Definition
o This is the “Marketing Concept” (remember that business philosophy) in action.
To win new customers from competitors and keep existing customers, Firms must create and deliver more value than those competitors. |
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Term
| How have we defined value? Value is - |
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Definition
• The hopefully positive difference between what a customer gains (gets) from owning and using a product, and what it costs the customer (gives) to acquire the product. Remember, value is tied to exchange. Remember exchange: a “get and a give.”
And remember how expansive, how broad a definition of product exists in this class (and the world). Products are … |
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Term
| • Organizations cannot be all things to all people |
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Definition
o That is to say, no single company can satisfy the needs and wants and provide the requisite value to all customers. Thus every Firm needs to focus…
o Thus the strategic need exists for organizations to engage in: |
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Term
| Effective) Market segmentation |
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Definition
| Process of dividing a market into distinct, smaller groups of customers who share certain characteristics in common; characteristics that make them more likely candidates for purchasing the products in question |
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Term
| o (Effective) Market targeting (or target marketing |
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Definition
– which involves a
Process of evaluating market segments to identify which are most attractive and therefore should be targeted. |
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Term
| o (Effective) Marketing Positioning |
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Definition
| is able to earn or occupy a clear, distinctive and desirable place in the minds of customers (or the entire targeted market segment). Nordstrom’s versus Target versus Wal-Mart |
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Term
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Definition
| begins with actually differentiating the Firm’s marketing offer (its Product[s]), Promotional, and Placement and Pricing efforts. Then the Firm’s Marketing Mix actually does/can provide greater value to customers. We know that value can be real (genuine) or merely perceived. But (our Firm’s) value must exceed the value offered by competitors competing for the same market segment. |
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