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| The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers |
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| 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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| Larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces |
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| Firms that help the company to promote, sell, and distribute its goods to final buyers |
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| Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives |
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| The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics |
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-WWII-1964
-one of most powerful forces shaping the marketing environment
-rethinking the purpose and value of their work, responsibilities, and relationships
-wealthiest population
-account for 50% of consumer spending |
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Definition
-1965-1976
-have grown up and are now taking over
-most education generation to date
-skeptical - research products before they buy
-prefer quality to quantity |
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Definition
-1977-2000
-tweens, teens, young adults
-fluency and comfort with technology
-prefer to seek out information and engage in two-way bran conversations
-requires creative marketing approaches |
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Definition
-Economic factors that affect consumer purchasing power and spending patterns
-characterized by more frugal consumers who are seeking greater value- right combination of good quality and service at a fair price
-marketers must pay close attention to major trends and consumer spending patterns both across and within their own networks
-economic environment can offer opportunities and threats- ex: facing still-uncertain econ, luxury car maker infiniti now promises to "make luxury affordable" |
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Definition
-natural resources that are needed as inputs by marketers or that are affected by marketing activities
-environmental concerns have been steadily growing over past 3 decades
-marketers should be aware of trends...
-growing shortage of raw materials
-increased pollution
-increased government intervention |
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Term
| Environmental sustainability |
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Definition
-developing strategies and practices that create a world economy that the planet can support indefinitely
-companies going beyond gov regulations, they are developing strategies and practices to support environment sustainability
-responding to consumer demands with more environmentally responsibly products
-ex: GE's "ecomagination"- cleaner fuel technologies
-ex: companies developing recyclable or biodegradable packaging, recycled materials and components, better pollution controls, energy efficient operations
-companies learning that environmentally responsible actions can also be good business |
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| Technological environment |
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Definition
-forces that create new technologies, creating new product and market opportunities
-most dramatic force now shaping our destiny
-new technologies can offer exciting opportunities for marketers
-changes rapidly
-new technologies create new markets and opportunities
-every new tech replaces an older tech- marketers should watch the technological environment closely
-challenge not only technical, but also commercial- to make practical, affordable versions of these products |
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Definition
-laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
-political environment has undergone 3 changes: increasing legislation regulation business, strong government agency enforcement, and greater emphasis on ethics and socially responsible actions
-marketing decisions strongly affected
-even most liberal advocates of free-market economies agree that the system works best with at least some regulation
-govs develop public policy to guide commerce
-business legislation enacted to protect companies, to protect consumers, and to protect the interest of society |
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Definition
-1890
-first anti trust act
-prohibits monopolies and activities (price fixing, predatory pricing) that restrain trade or competition in interstate commerce |
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-1936
-anti price discrimination
-amends clayton act to define price discrimination as unlawful
-empowers FTC to establish limits on quantity discounts, forbid some brokerage allowances, and prohibit promotional allowances except when made available on proportionately equal terms |
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Term
| Socially responsible behavior |
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Definition
-enlightened companies encourage managers to look beyond what the regulatory system allows and simply "do the right thing"
-socially responsible firms actively seek out ways to protect long-run interests of their consumers and environment |
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Definition
-companies link themselves to worthwhile causes to exercise social responsibility and build more positive images
-some companies founded entirely on cause-related mission ex: TOMS
-cause-related marketing has become primary form of corporate giving
-lets companies "do well by doing good"
-stirs controversy- critics worry that cause-related marketing is more a strategy for selling than a strategy for giving
-can greatly benefit both company and cause- company gains an effective marketing tool while building more positive public image and charitable organization gains greater visibility and new sources of funding and support |
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Definition
-institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors
-shows trends toward "cocooning," a lessening trust of institutions, increasing patriotism, greater appreciation for nature, changing spiritualism, search for more meaningful and enduring values |
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Term
| Responding to the marketing environment |
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Definition
-whenever possible, smart marketing managers will take a proactive rather than reactive approach to the marketing environment
-companies can passively accept the marketing environment as an uncontrollable element to which they must adapt- avoiding threats and taking advantage of opportunities as they arise
-can take proactive stance, working to change the environment rather than simply reacting to it |
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Definition
| -changing age structure, shifting family profiles, geographic population shifts, a better educated and more white-collar population, and increasing diversity |
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Definition
-fresher understandings of customers and marketplace derived from marketing information that become the basis for creating customer value and relationships
-companies creating customer insights teams- collect customer and market information from wide variety of sources and then use info to develop important customer insights from which company can create more value for customers |
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Definition
-electronic collections of consumer and market information obtained from data sources within the company network
-can provide strong competitive advantage |
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Term
| Competitive marketing intelligence |
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Definition
-systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
-goal is to improve strategic decisions making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats
-good marketing intelligence can help marketers gain insights into how consumers talk about and connect with their brans |
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Definition
-systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
-gives marketing researchers insights into customer motivations, purchase behavior, and satisfaction
-can help them to access market potential and market share or measure effectiveness of pricing, product, distribution, and promotion activities
-4 steps: defining problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings |
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Definition
| -marketing research to gather preliminary information that will help define problems and suggest hypotheses |
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Definition
| -marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers |
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Definition
| -marketing research to test hypotheses about cause-and-effect relationships |
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Term
| Defining the problem and research objectives |
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Definition
-first step of marketing research process
-most difficult, but most important
-guides entire research process
-after problem is defines, researcher must set research objectives- 3 types of objectives: exploratory, descriptive, and causal resrarch |
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Definition
-information that already exists somewhere, having been collected for another purpose
-internal database
-can tap into external information sources- commercial data services and government sources
-can buy secondary data reports
-commercial online databases
-usually can be obtained more quickly and at a lower cost than primary data
-can sometimes provide data an individual company cannot collect on its own- information that either id not directly available or would be too expensive to collect
-can present problems- needed information may not exist, and when data can be found information might not be very useable
-researcher must evaluate secondary information carefully to make sure it is relevant, accurate, and impartial |
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Definition
-information collected for specific purpose at hand
-need to make sure research is relevant, accurate, current, and unbiased
-collecting primary data calls for decisions on research approaches, contact methods, sampling plan, and research instruments |
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Term
| Commercial online databases |
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Definition
| -collections of information available from online commercial sources or accessible via the internet |
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Definition
-gathering primary data by observing relevant people, action, and situations
-observe consumer behavior to get insights they can't obtain by simply asking customers questions
-ex: some companies have observation labs
-observe what customers do and what they are saying
-provides information that people are unwilling or unable to provide
-problems- some things simply can't be observed- feelings, attitudes, motives, or private behavior, also observations can be very difficult to interpret
-because of problems, researchers often use observations along with other data collection methods |
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Term
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Definition
-form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environment"
-observers are often trained anthropologists and psychologists or company researchers and managers
-ex: Kraft Canada sent executives to observe actual family life in a dozen diverse canadian homes
-allows companies to zero in on customers' unarticulated desires |
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Term
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Definition
-gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
-most widely used method for primary data collection
-best suited for gathering descriptive information
-major advantage= flexibility- many different kinds of information in many different situations
-phone, mail, in person, on web
-problems: unable to answer Qs because can't remember or have never thought about it, people unwilling to respond to unknown interviewers, may answer Qs even when don't know answer just to seem informed, may try to help interviewer by giving pleasing answers, or busy people may not take time
-mail- large amounts of info at low cost, but not flexible, take longer to complete, response rate vert low
-telephone interview- best method for gathering info quickly, can explain questions, but cost is higher and people might not want to discuss personal questions with interviewer, and introduces interview bias
-individual interviewing- flexible, but costly
-group interviewing- 6-10 people = focus group interviewing |
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Term
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Definition
-gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
-best suited for gathering causal information
-ex: before adding new item to menu, McDonalds might use experiments to test effect on sales of two different prices it might change |
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Definition
-personal interviewing that involves inviting 6-10 people to gather for a few hours with trained interviewer to talk about a product, service, or organization
-interviewer "focuses" the group discussion on important issues
-researchers watch from behind one way glass and record comments
-has become one of major qualitative marketing research tools for gaining fresh insights into consumer thoughts and feelings
-challenges: hard to generalize from small group, and consumers in focus groups not always open and honest about real feelings, behavior, and intentions in front of other people |
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Term
| Online marketing research |
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Definition
-collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior
-internet well suited to quantitative research- conducting marketing survey and collecting data
-advantages- speed, low cost, more interactive and engaging, easier to complete, less intrusive, higher response rates
-developing qualitative approaches- online depth interviews, focus groups, blogs, and social networks |
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Term
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Definition
-gathering small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
-advantages- bring people together from different parts of country or world, researcher can conduct from anywhere, and results are almost immediate
-problems: lack real world dynamics |
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Term
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Definition
-segment of the population selected for marketing research to represent the population as a whole
-ideally, sample should be representative so that the researcher can make accurate estimates of thoughts and behaviors of larger population
-designing sample requires 3 decisions: who, what sample size, how |
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Term
| Customer relationship management |
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Definition
-managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
-by using CRM to understand customers better, companies can provide higher levels of customer service and develop deeper customer relationships |
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Term
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Definition
| -process by which companies create value for customers and build strong customer relationships in order t capture value from customers in return |
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Definition
-states of felt deprivation
-include basic physical needs for food, clothing warmth and safety
-social needs for belonging and affection
-individual needs for knowledge and self expressions |
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Definition
-the form human needs take as they are shaped by cultural and individual personality
-shaped by one's society and described in terms of objects that will satisfy those needs |
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Definition
-human wants that are backed by buying power
-given their wants and resources, people demand products with benefits that add up to the most value and satisfaction |
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Term
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Definition
| -some combination of products, services, information, or experiences offered to a market to satisfy a need or want |
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Definition
-mistake of paying more attention to specific products a company offers than to the benefits and experiences produced by these products
-focus only on existing wants and lose sight of underlying customer needs |
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Definition
-act of obtaining a desired object from someone by offering something in return
-marketing occurs when people decide to satisfy needs and wants through exchange relationships |
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Definition
-set of all actual and potential buyers of a product or service
-buyers share a particular need or want that can be satisfied through exchange relationships
-marketing means managing markets to bring about profitable customer relationships |
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Term
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Definition
-art and science of choosing target markets and building profitable relationships with them
-marketing manager's aim is to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value |
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Definition
| -idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency |
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Definition
-idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements
-product quality and improvement are important parts of most marketing strategies
-focusing only on company's products leads to marketing myopia |
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Term
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Definition
-idea that consumer will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort
-selling concept typically practices with unsought goods-those that buyers do not normally think of buying
-don't want to focus on creating sales transactions rather than on building long-term profitable customer relationships |
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Term
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Definition
-philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
-customer focus and value are paths to sales and profits
-marketing concept is customer-centered "sense and respond" philosophy
-job is not to find right customers for your product but to find right products for your customers |
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| Societal marketing concept |
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Definition
-idea that company's marketing decisions should consider consumer's wants, the company's requirements, consumers' long-run interests, and society's long-run interests
-calls for sustainable marketing |
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Term
| Customer relationship management |
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Definition
| -overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction |
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Definition
-customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
-customer buys from firm that offers the highest customer-perceived value
-customers do not judge values and costs accurately or objectively, they act on perceived value |
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Term
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Definition
-extent to which a products perceived performance matches a buyers expectations
-outstanding marketing companies go out of their way to keep important customers satisfied
-higher levels of customer satisfaction lead to greater customer loyalty, which in turn results in better company performance
-smart companies aim to delight customers by promising only what they can deliver and then delivering more than they promise |
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Term
| Customer-managed relatioships |
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Definition
-marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands
-greater consumer control means that in building customer relationships, companies can no longer rely on marketing by intrusion- instead, marketers must practice marketing by attraction |
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Term
| Consumer-generated marketing |
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Definition
-brand exchanges created by consumers themselves- both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
-might happen through uninvited consumer-to-consumer exchanges in blogs, video-sharing sites, and other digital forums
-companies are inviting consumers to play a more active role in shaping products and brand messages
-customers are having an increasing say about every thing from product design, usage, and packaging to pricing and distribution |
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Term
| Partner relationship managment |
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Definition
| -working closely with partners in other company departments and outside the company to jointly bring greater value to customers |
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Term
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Definition
-value of the entire stream of purchases that the customer would make over a lifetime of patronage
-losing a customer means losing more than a single sale, it means losing entire stream of purchases that the customer would make over a lifetime of patronage |
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Definition
-portion of the customer's purchasing that a company gets in its product categories
-good customer relationship management can help marketers increase their share of customer
-to increase share of customer, firms can offer greater variety to current customers |
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Term
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Definition
-total combines customer lifetime values of all of the company's customers
-ultimate aim of customer relationship management it to produce high customer equity
-measure of the future value of the company's customer base
-customer equity can be a better measure of a firm's performance than current sales and market share |
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Term
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Definition
-vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large information res
-digital age has provided marketers with exciting new ways to learn about and track customers and create products and services tailored to individual customer needs
-most dramatic digital technology
-online marketing is fast growing form of marketing |
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Term
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Definition
-process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
-sets the stage for the rest of planning in the firm
-starts strategic planning process by defining overall purpose and mission then setting company objectives and goals, and designing the business portfolio, and then planning marketing and other functional strategies |
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Term
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Definition
-statement of the organization's 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
-mission statements should be market oriented and defined in terms of satisfying basic customer needs
-should be meaningful and specific yet motivating
-should focus on customer and the customer experience the company seeks to create |
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Term
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Definition
-collection of business and products that make up the company
-best business portfolio is one that best fits the company's strengths and weaknesses to opportunities in the environment
-business portfolio planning involved 2 steps: company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment, and it must shape future portfolio by developing strategies for growth and downsizing |
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Definition
-process by which management evaluates the products and businesses that make up the company
-company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones |
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Definition
-portfolio-planning method that evaluates a company's strategic business units in terms of its market growth rate and relative market share
-stars- high growth, high share businesses or products, often need heavy investments to finance rapid growth
-cash cows- low growth, high-share businesses or products, established and successful SBUs need less investment to hold their market share
-question marks- low share businesses and products, require a lot of cash to hold their share
-dogs- low growth, low share businesses and products, may generate enough cash to maintain themselves but do not promise to be large sources of cash |
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Term
| Product/market expansion grid |
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Definition
-portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
-useful devise for identifying growth opportunities |
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Term
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Definition
| -company growth increasing sales of current products to current market segments without changing the product |
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Term
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Definition
| -company growth by identifying and developing new market segments for current company products |
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Definition
| -company growth by offering modified or new products to current market segments |
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Definition
| -company growth through starting up or acquiring businesses outside the company's current products and markets |
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Definition
-series of internal department that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
-firm's success depends not only on how well each department performs its work but also on how well the various departments coordinate their activities
-company's value chain is only as strong as its weakest link |
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Definition
| -network make up of the company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system |
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Definition
-marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
-company decides which customers it will serve, identifies total market and divides into smaller segments, selects most promising segments, and focuses on serving and satisfying the customers in these segments |
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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 |
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Definition
| -group of consumers who respond in a similar way to a given set of marketing efforts |
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Definition
-process of evaluating each market segment's attractiveness and selecting one or more segments to enter
-a company should target segments in which it can profitably generate the greatest customer value and sustain is over time
-most companies enter a new market by serving a single segment, and, if it proves successful, they add more segments |
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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
-marketers plan positions that distinguish their products from competing brands and give them the greatest advantage in their target markets
-company first identifies possible customer value differences that provide competitive advantages on which to build the position
-effective positioning begins with differentiation
-once company has chosen desired position, it must take strong steps to deliver and communicate that position to target consumers |
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Term
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Definition
-set of tactical marketing tools- product, price, place, and promotion- that the firm blends to produce the response it wants in the target market
-consists of everything the firm can do to influence the demand for its product
-4 Ps: product, price, place promotion
-effective marketing program blends each marketing mix element into an integrated marketing program designed to achieve the company's marketing objectives by delivering value to customers
-marketing mix constitutes company's tactical tool kit for establishing strong positioning in target markets |
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Term
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Definition
-overall evaluation of the company's strengths, weaknesses, opportunities, and threats
-strengths- internal capabilities, resources, and positive situational factors that may help the company serve its customers and achieve its objectives
-weakness- internal limitations and negative situational factors that may interfere with the company's performance
-opportunities- favorable factors or trends in the external environment that the company may be able to exploit
-threats- unfavorable external factors or trends that may present challenges to performance
-goal is to match company's strengths to attractive opportunities in the environment, while eliminating or overcoming the weaknesses and minimizing threats |
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Term
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Definition
| -turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives |
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Term
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Definition
-measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved
-many surprises occur during implementation of marketing plans so marketers myst practice constant marketing control
-4 steps:
-management sets specific marketing goal
-measures performance in the marketplace
-evaluates causes of any differences between expected and actual performance
-take corrective action to close gaps between goals and performance |
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Term
| Return on investments (marketing ROI) |
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Definition
-net return from marketing investment divided by costs of marketing investment
-both R and I are uniformly measured in dollars
-company can assess ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share
-marketers using customer-centered measures of marketing impact, such as customer acquisition, customer retention, customer lifetime value, and customer equity |
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