Term
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Definition
| Marketing is the activity, set of institutions, and processes for creating, communication, delivering and exchanging offerings that have value for customers, clients, partners, and society at large |
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Term
| 4 components of marketing |
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Definition
1. Marketing creates successful exchanges
2. Marketing is an on-going process
3. Marketing is a way of doing business
4. Marketing is part of everyone's job |
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Term
| Reasons to study marketing |
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Definition
1. To make better marketing decisions
2. To make more informed, more capable consumers
3. To enable better public policy making
4. To support effective social marketing |
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Term
| What is social marketing? |
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Definition
Where organizations try to get members of society to take up activities that benefit us and the environment
i.e. recycle or buy fuel efficient cars |
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Term
| What is the marketing concept? |
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Definition
| A business orientation that focuses on achieving organizational objectives by understanding customer needs, and creating and delivering value in exchanges that satisfy the needs of all parties |
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Term
| How does a market oriented organization create customer value? |
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Definition
- Being focused on customers
- Staying ahead of competitors
- Coordinating marketing activities (i.e. all parts of marketing w/i company all working together) |
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Term
| Market oriented organizations achieve superior levels of what? |
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Definition
- Organization performance
- Customer responsiveness
- Employee responsiveness |
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Term
| What are market driven organizations? |
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Definition
They understand the market and adjust their marketing strategies to be superior to the competitor
i.e. McDonald's changes to meet the healthy living requirements of customers |
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Term
| What are market driving organizations? |
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Definition
They understand the market and respond to new needs in order to get way out in front of competition
i.e. IKEA introduces modular and interchangeable product technology |
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Term
| Which is more beneficial: to be a market driven or market driving organization? |
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Definition
| Market driving organizations will sustain performance longer than market driven organizations |
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Term
| What is bonding and what are the 3 types? |
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Definition
A method of increasing customer value in an effort to make the customer stay and locking in customer relationships
1. Economic Bonds
2. Social Bonds
3. Structural Bonds |
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Term
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Definition
Providing the customer with financial incentives
i.e. coupons, store dollars |
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Term
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Definition
| Building a personal relationship with the customer so that the reputation of the organization becomes associated with the product |
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Term
| What are structural bonds? |
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Definition
| The integration of customers' businesses with their businesses |
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Term
| *What are the 5 building blocks to market oriented management? |
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Definition
1. Beliefs, values and behaviors
2. Market learning
3. Market organziation
4. Marketing strategy
5. Integrated marketing = value creation |
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Term
| What is meant by treating customers as annuities? |
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Definition
An annuity is a fixed sum of money paid to someone each year, typically for the rest of their life
By treating customers as annuities you are seeing customers as a steady source of income over a long period of time and therefore you want your customers to do business exclusively with you.
i.e. Starbucks wants your coffee budget to be spent exclusively on them |
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Term
| What is the benefit of treating customers as annuities? |
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Definition
As customer relationship strengthens over time, profit components continue to build upon one another
i.e. (1) Base profit, (2) profit from increased purchases, (3) profit from price premiums, (4) profit from reduced operating costs, (5) profit from referrals |
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Term
| What are the barriers to market oriented behavior? |
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Definition
- Skepticism and lack of commitment
- Emphasis on short-term results
- Conflicting incentives
- Faulty marketing systems |
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Term
| Which components of marketing were introduced in which eras over the evolution of marketing? |
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Definition
Production Era = capacity creation (i.e. Ford)
Sales Management Era = Promotion (i.e. P&G)
Consumer Era = Needs, wants, desires (i.e. GE)
Societal Era = Quality of life (i.e. oil embargo)
Personal Marketing Era = Mass customization (i.e. Dell) |
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Term
| What are the 4 components of the marketing macro-environment and which of the 4 P's does each associate with? |
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Definition
"STEP"
1. Socioeconomic (Promotion)
2. Technological (Product)
3. Economic (Price)
4. Political/Legal (Place) |
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Term
| What is mass customization and what are the 3 types? |
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Definition
Using technology to customize a product at more or less the same price as non-customized products
1. Collaborative
2. Adaptive
3. Cosmetic |
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Term
| What is collaborative mass customization? |
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Definition
Information is collected by customers that is used to specify and manufacture a product that suits that specific customer
i.e. building custom NIKE shoes online |
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Term
| What is adaptive mass customization? |
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Definition
Firms produce a standardized product, but this product is customizable in the hands of the end-user (the customer alters the product themselves)
i.e. setting a ringtone on your cell phone |
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Term
| What is cosmetic mass customization? |
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Definition
Firms product a standardized physical product, but market it to different customers in unique ways
i.e. Amazon suggests products you may be interested based on your shopping or browsing patterns |
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Term
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Definition
| All possible customers in a market, regardless of the differences in their specific needs and wants |
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Term
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Definition
| A distinct group of customers within a larger market who have similar needs, wants, preferences, and behaviours, who seek similar product solutions, and whose needs differ from other customers in the larger market |
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Term
| Define: market segmentation |
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Definition
| A process of dividing the overall market into groups of consumers who seek very different solutions for their needs and wants than other groups of consumers |
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Term
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Definition
| A combination of (1) the product itself, (2) the price of the product, (3) the place where it is made available, (4) and the activities that introduce it to consumers (OTHERWISE THE 4 P'S) , which creates a desired response among a set of predefined consumers |
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Term
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Definition
| How an organization wants its brand to be known to its customers as being different and better than competing brands |
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