Term
| Customer Relationship Management. |
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Definition
is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
--It deals with all aspects of acquiring, keeping and growing customers. |
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Term
| Customer Lifetime Value. (CLV) |
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Definition
is a prediction of all the value a business will derive from their entire relationship with a customer. Because we don’t know how long each relationship will be, we make food estimate and state CLV as a periodic value.
--Losing a customer is not just losing a single sale, but losing entire steam of purchases that the customer would make over a lifetime of patronage. |
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Term
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Definition
The total combined customer lifetime values of all the company’s customers.
-- the more loyal the firm’s profitable customers, the higher its customer equity.
-- customer equity marks the future.
Ex. In the 1970s and 80s, Cadillac had 51% of the luxury car market in America. they had a very loyal customer base. As the years passed on, Cadillac customers were getting older customer equity was falling. Cadillac market share was good, its customer equity was falling. |
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Definition
--Company sales divided by market sales.
--the portion of a market controlled by a particular company or product. |
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Term
| Focus: Why do companies market and seek long-term relationships? |
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Definition
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Definition
The portion of the customer’s purchasing that a company gets in its product categories.
--Banks what to get more share of wallet, restaurants and markets want to get more share of customer, Car companies want to get more share of garage. |
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Definition
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing market opportunities.
--Strategic planning sets the stage for the rest of the companies plans: annual plans, long-range plans and strategic plans. |
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Definition
| is a statement of the organizations purpose—what it wants to accomplish in the larger environment. A clear mission statement acts as an “invisible hand” that guides people in the organization. |
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Term
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Definition
the collection of businesses and products that make up a company.
• The best business portfolio is the one that best fits the company’s strength and weaknesses to opportunities in the environment.
o ESPN for example : ESPN radio, ESPN company, ESPN Magazine.
Disney
• Theme parks, Pixar, Apparel, ESPN
• They people to mom and dad and the kids
Is typical for companies to have many levels of companies as far as luxury. |
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Term
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Definition
Marketing has the the main responsibility for achieving profitable growth for the company.
Penetration
-Company growth by increasing sale of current products to current market segments without changing the product.
- Starbucks might improve store location, menu, store design. Starbucks is remodeling their stores to give a more neighborhood feel.
Diversification
-Starting up or buying a business beyond its current products and markets.
-Starbucks recently bought Evolution as its entry into the “health and wellness” category, including standalone stores called Evolution by Starbucks. |
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Term
| Focus: The Strategic planning process and its desired outcomes; introduction to the 4Ps |
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Definition
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Definition
• Superior aesthetics
• Great customer service
• Convince
• Integration
• Ease of use
• Aspiration products
• Individual and coolness in a box. |
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Term
| Building Strong Customer Relationships |
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Definition
• Loyalty
• Trust
• Price
• Consistency
• Geeks in stores
• Entry into the cool club
• Warranties/replacement |
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Term
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Definition
• Manufacted demand
o Wants vs needs
• How many people have more than one ipod
o Planned Obsolesce
• Battery life
• New Product
• Extensions of existing producsts
o Changing how music is sold
• Back to single pricing—with more songs available….
• Focus on lng-term, not short term. |
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Term
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Definition
Dividing a market into distinct groups of buyers who have different needs characteristics, or behaviors, and who might require separate products or marketing programs.
EX old people vs college students. |
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Term
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Definition
involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
--A company should target segments in which it can profitability generate the greatest costumer value and sustain over time.
--EX Allegiant air avoids direct competition with major airlines rivals target marketing small neglect markets and new flyers. “Goes where they ain’t." |
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Definition
| Actually differentiating the market offering to create a superior customer value. |
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Term
| Microenvironment (and the component parts) |
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Definition
Consists of the actors close to the company that affect its ability to serve its customers.
--the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. |
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Term
| Macroenvironment ( and its component parts) |
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Definition
Consists of the larger societal forces that affect the microevironment.
---demographic, economics, natural, technological, political, and cultural forces. |
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Term
| Focus: Introduction concepts of targeting, positioning, and segmentation; discuss environmental factors that may make it harder or easier to reach intended audiences. |
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Definition
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Term
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Definition
The management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing:
(1) identification, selection and development of a product,
(2) determination of its price,
(3) selection of a distribution channel to reach the customer's place, and
(4) development and implementation of a promotional strategy. |
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Term
| Marketing communications. |
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Definition
| Coordinated promotional messages delivered through one or more channels such as print, radio, television, direct mail, and personal selling. |
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Term
| Focus: Differentiate between marketing and marketing communications; explain basic functions of each; provide context for marketing and marketers. |
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Definition
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Term
| Marketing information system. (MIS) |
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Definition
| People and producers dedicate to assessing information needs, developing the needed information, and helping decisions makers to use the information to generate and validate actionable customer and marketing insights. |
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Definition
| the systematic design, collection, analysis, and reporting of data relevant to specific marketing situation facing an organization. |
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Definition
| information collected for the specific purpose at hand. |
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Term
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Definition
| information that already exists somewhere, having been collected for another purpose? |
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Term
| Focus: What to consider as you assess the viability of a product or an idea. |
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Definition
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Term
| Models of Consumer behavior |
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Definition
| The process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants. See also consumer decision making. |
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Term
| Characteristics Affecting Consumer Behavior. |
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Definition
| cultural, social, personal, and psychological. |
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Term
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Definition
-it is subconscious
-Buyer’s characteristics
-buyers decision process. |
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Term
| Focus: Understanding consumers wants, needs, perceptions, motivations with respect to products or brands. |
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Definition
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Term
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Definition
Geographical
National, regions, state
Demographical
Age, gender, religion, race
Psychographic
Social class, lifestyle, personality characteristics
Behavior
Uses and responses to a product.
(demographic--behavior)
-demographical
-dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity and generation. |
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Term
| Major Segmentation Variables. |
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Definition
| (age,lifestyle, user rates) |
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Term
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Definition
| the positioning of the brand--the full mix of benefits on which it is positioned. |
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Term
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Definition
• Process of defining superior customer value by showing how you’re different from the others
o Could write a differentiation statement about yourself in relation to other Emerson students. |
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Term
| Focus: Taking a deeper drive into how to assess and segment potential markets. |
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Definition
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Definition
| Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. |
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Term
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Definition
| an activity benefit or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. |
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Term
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Definition
core customer value.
-“what are customers really buying.” for people buying an apple iPad are buying more than just a tablet computer. they are buying entertainment, self-expression, productivity , and connectivity
Actual product.
-brand name, quality, packaging, design, features.
Augmented Product.
- after sale service, warranty, product support, delivery and credit. |
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Term
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Definition
| A name term, sign, symbol, or design, or a combination of these, that identifies the products or service od one seller or group of sellers and differentiates them from those of competitors. |
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Term
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Definition
• Products range from pure tangible goods (soap) to pure service (visit to the ER)
o Service = a form of a product
• Consists of activities, benefits, or satisfactions that are intangible. You don’t get to keep anything except the knowdge it happened
o The move from a traditional good or service to EXPERINCE |
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Term
| Four service characteristics. |
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Definition
Intangibility
-services, cannot be seen tasted, felt, heard, or smelled before purchase. Ex. Cosmetic surgery.
Variability
-quality of services depends on who provides them when where and how. EX. Hotels the Marriott has better service than other hotels.
Inseparability
-services cannot be separated from their providers. Uber lyft. The customer becomes part of the service.
Perishability
-services cannot be stored for later sale or use. Some doctors charge patients for missed appoints because the service value existed only at that point and disappeared when he did not show up. Hotels charge less during the off season. |
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Term
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Definition
the differential effects that knowing the brand name has on consumer response to the product or its marketing.
-its a measure of the brands ability to capture consumers preference of loyalty. |
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Term
| store brand (or private label brand) |
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Definition
a brand created and owned by a reseller of a product or service.
-safeway select. |
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Term
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Definition
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Term
| Focus: Explaining the physical and psychological components of products, service and brand. |
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Definition
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Term
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Definition
--A group of consumers who respond in a similar way to a given set of marketing efforts.
--An identifiable group of individuals, families, businesses, or organizations, sharing one or more characteristics or needs in an otherwise homogeneous market. Market segments generally respond in a predictable manner to a marketing or promotion offer. |
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Term
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Definition
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
• The key parts of a positioning statement.
• Market
• Brand
• Concepts
• Point of Difference (how you are superior)
Burt’s Bees offers “Earth friendly natural personal care products for the greater good." |
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Term
| Companies Indicate What they stand for through |
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Definition
• Mission Statement
• Positioning statement
• Value proposition—the deal the offer that you make to the customer.
• Media Communication.
• Customer Communications. |
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Term
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Definition
• Is critical throughout the course.
o Your memorable/identifying details
o What do you remember
o Backbone of marketing strategy
• Basic formula to (target segment and need), (The brand) is the (concept) that (point of difference).
• To taste-conscious beer drinkers watching their waistlines, Miller lite is the only beer that tastes great and is less filling. |
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Term
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Definition
| a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concepts) that (point of difference) |
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