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Marketing
Exam 1
58
Marketing
Undergraduate 2
02/12/2008

Additional Marketing Flashcards

 


 

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Term
marketing
Definition
the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
Term
discover consumer needs
Definition
marketing's first task
Term
satisfying consumer needs by finding the right combo of product, price, promotion, and place
Definition
marketings 2nd task
Term
production or product orientation towards marketing
Definition
produce it, then let customers come to you
Term
sales orientation toward marketing (in 1920s they over produced, then tried to get customers to buy it)
Definition
produce it, then get customers to buy it
Term
marketing orientation toward marketing
Definition
find out what customers want, then produce it. **most prevalent
Term
market or value orientation toward marketing
Definition
understand and create value for customers. goal is to surpass satisfying customer need.
Term
definition of market/value orientation
Definition
an organization that has a market orientation focuses its efforts on 1) continuously collecting info about customers' needs and competitors' capabilities 2) sharing this information across departments, and 3) using the information to create customer value
Term
functional, social, personal, experiential,
Definition
benefits
Term
monetary, temporal, psychological, behavioral
Definition
costs
Term
environmental scanning
Definition
acquiring information outside organization to identify and interpret potential trends
Term
environmental forces affecting the organization, as well as its suppliers and customers
Definition
social, economic, technological, competitive, regulatory
Term
demographic shifts, cultural changes, consumer taste (Affecting folgers: McDs, starbucks, on the go, energy drinks, health concerns)
Definition
components of social environmental force that affects the organization, as well as its suppliers and customers
Term
macroeconomic conditions, consumer income (increase in DI, less time, dual incomes, more people can afford to go to starbucks)
Definition
components of economic environmental force that affects the organization, as well as its suppliers and customers
Term
components of economic environmental force that affects the organization, as well as its suppliers and customers
Definition
macroeconomic conditions, consumer income (increase in DI, less time, dual incomes,
Term
changing technology, ecological impact of technology, (disadvantage for folgers: wireless cafes. advantage: more time to stay at home and make Folgers.)
Definition
components of technological environmental force that affects the organization, as well as its suppliers and customers
Term
alternative forms of competition, components of competition
Definition
components of competitive environmental force that affects the organization, as well as its suppliers and customers
Term
laws protecting competition, laws affecting marketing mix actions, self regulation, consumerism (ex: for alcohol, firearms, tobacco)
Definition
components of regulatory environmental force that affects the organization, as well as its suppliers and customers
Term
Porter's Five Forces Model
Definition
Once you establish your corporate strategy (what industry you want to compete in), then you have to determine waht industry profitability is dependent on (industry competitiveness, availability of substitute products, potential entrants, supplier power, and buyer power
Term
Porter's Five Forces Model
Definition
Once you establish your corporate strategy (what industry you want to compete in), then you have to determine waht industry profitability is dependent on (industry competitiveness, availability of substitute products, potential entrants, supplier power, and buyer power
Term
industry competitiveness, availability of substitute products, potential entrants, supplier power, buyer power
Definition
5 forces of Porter's Model
Term
industry competitiveness (porters 5 forces)
Definition
low intensity of competition = higher profitabilty
low intensity--few firms, similar strategies, high product differentiation
*more firms = decreased profitability
Term
availability of substitutes (porters 5 forces)
Definition
customers can choose different products as substitutes.
**few or no substitutes equals higher profitability
• (gas, proprietary drugs)
o a lot of these hurt profitability
Term
o High barriers to entry = higher profitability
• This happens when:
 High capital requirements, economies of scale are present, high product differentiation, network externalities (technological or learning curve)
Definition
. Threat of potential entrants—(porters 5 forces)
Term
• Low #, high information (like car selling)
Definition
o Higher bargaining power when…
Term
 High number, low info
Definition
lower bargaining power when....
Term
star
Definition
market leader: high market growth rate, high relative market share
Term
question mark
Definition
high market growth rate, low relative market share
Term
cash cow
Definition
low market growth rate, high relative market share
Term
dog
Definition
low market growth rate, low relative market share
Term
market penetration (Ansoff)
Definition
when existing products break into existing markets
Term
product development (ansoff)
Definition
when new products break into existing markets (ex: Airbus—new jumbo jet)
Term
market development (ansoff)
Definition
when existing products break into new markets (ex: moving McDs into Europe, banks extending to diff campuses
Term
diversification (ansoff)
Definition
new products break into new markets
o Ex: When companies buy unrelated companies (Shakespeares breaks into the frozen pizza market
o Nabisco is bought by RJ firm
Term
grow sale through advertising, expand distribution, cut price
Definition
How to grow market share
Term
the strategic marketing process
Definition
1. Planning phase
o situation (SWOT) analysis
• identify industry needs
• analyze competitors
• assess own company
• research customers
o market-product focus and goal setting
• set market and product goals
• find points of difference
• position the product

2. marketing plan...implementation
3. results....control phase
Term
product, price, promotion, place
Definition
the marketing mix
Term
how to analzye competitors
Definition
• Look at:
• Strategies
• Reaction patterns
o Actions by competitors that become predictable over time (we don’t want this)
o Ex: airplane routes—NWA looks at what SWA does and follows that (bc SWA always does same thing)—drops fares for promotion.
• Why? Tells other companies they won’t achieve market penetration by other airlines dropping fares
 Protects position
• Objectives
• Strengths and weaknesses
Term
Goods strategic orientation focuses on:
Definition
focuses on:
o Products
o Top down strategy development
• Corporate → business unit→ market management→ consumer
o Maximizing efficiencies and profit
• Involves standardization and often a short-term perspective
Term
service strategic orientation
Definition
focuses on
o Services (intangible processes and competencies)
• Indirectly for goods that are exchanged
o Bottom-up strategy development
• (consumer as partner/co-producer)
 mass customization and relationship marketing
o maximizing organizational learning
• using customers, suppliers, distributors, etc
• wealth is obtained from application of knowledge/skills
 NOT from tangible resources or goods
Term
implications of service orientation
Definition
• Change in marketing’s normative values
o Goods-centered view values tangibility, standardization, and nonperishability
o Service orientted view values customization, coproduction, and continuous customer involvement
• Exchange value is determined by customer
o No inherent value in brand/product, only in customer perceptions of brand
Term
need for service strategic orietnation
Definition
we need this bc of growing economic importance, outsourcing, information/knowledge now the ke source of competitive advantage, and easy access has led to commoditizaton of goods
Term
marketing stimuli and other stimuli affect buyers characteristics and buyer's decision process, which in turn affects the buyer's ultimate decision
Definition
model of buying behavior
Term
consumer buying process (PrIEPPp)
Definition
• 1. Problem recognition→ 2. information search→4. Evaluation of alternatives 4. purchase decision→ 5. postpurchase behavior
Term
innate needs
Definition
• Physiological needs for food, water, air, clothing, shelter, and sex
• Also known as biogenic or primary needs
• Also sleep, survival needs, human contact
Term
acquired needs
Definition
• Needs that are learned in response to one’s culture or environment (such as the need for esteem, prestige, affection, or power).
• Also known as psychogenic or secondary needs
Term
power, affiliation, achievement
Definition
what is the trio of needs?
Term
• lowest to highest→
o innate needs (food, air, water, etc) → safety and security needs (protection, order, stability) → social needs (affection, friendship, belongings)→ ego needs (prestige, status, self-esteem) → self actualization (self-fulfillment)
Definition
Maslow's hierarchy of needs (fits in with problem recognition)
Term
how we conduct the information search (stage 2 of consumer buying process)
Definition
internal sources, group sources, marketing sources, public sources, experiential sources (trial)
Term
o Reassuring buyers through ads and personal communications
o Providing quality post-sale service
Definition
How can marketers help reduce doubt?
Term
 Level of satisfaction = actual performance minus expectations
Definition
expectancy gap theory
Term
routine decision making
Definition
o Low involvement (almost subconscious) ex: grocery stores
o Few if any alternatives considered (like most supermarket items)
Term
limited decision making
Definition
o Medium involvement, several alternatives considered
• Ex small household appliances, like blenders…you look at some, pick the best one. With middle priced items
Term
extensive decisionmaking
Definition
High involvement, a lot of time and effort spent, information search and alternative evaluation occur
• ex: car purchase, house
Term
total set (decision making sets)
Definition
—theoretical, doesn’t exist in reality, we can’t ever know ALL alternatives (like all watches)
Term
awareness set (decision making sets)
Definition
largest set we are aware of. Process starts here
Term
(consideration set-decision making sets)
Definition
I will actually consider these (not Rolex)
Term
choice set--decision making sets)
Definition
narrow down choices
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