Term
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Definition
| Marketing is part of the process of creating and delivering goods and services to customers and it involves all of the activities associated with attracting and retaining loyal customers. |
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Term
| The secrets to successful marketing include |
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Definition
Understanding the company’s target customer needs, demands and wants before competitors are aware of them
Offering products and services that will satisfy those needs, demands and wants
Finding and utilizing the advertising medium that resonates best with your target customer
Spending marketing funds in a manner that will produce the most revenue with the least monetary expenditure |
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Term
| Winning marketing strategies are built on three vital sources: |
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Definition
| people, information, and technology |
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Term
| A guerilla plan differs from a traditional marketing plan by accomplishing 4 objectives: |
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Definition
Pinpointing the target markets the small company will serve
Determining the needs, wants and characteristics through market research
Analyzing a company’s competitive advantages and building a marketing strategy around them
Creating a marketing mix that meets customers needs and wants |
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Term
| Succesful small businesses use the special advantages they have built over their larger rivals: |
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Definition
| close contact with the customer, personal attention, focus on service, and organizational and managerial flexibility |
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Term
| What is CRM? (Customer Relationship Management) |
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Definition
ability to respond quickly and efficiently to their customers and foster long-term relationships that lead to repeat purchases.
This enables companies to collect meaningful information about their customers that can be compiled into a database that describes their best customers with their needs and buying habits documented. |
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Term
| What are the 11 guerilla marketing strategies that small businesses use to develop a competitive edge? |
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Definition
• Niche picking
• Entertailling (entertaining customers in retail settings)
• Branding consistency
• Emphasizing their uniqueness
• Connecting with their customers
• Focusing on customers needs
• Emphasizing quality
• Paying attention to convenience
• Concentrating on innovation
• Dedicating themselves to service
• Emphasis on speed |
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Term
| What is the ultimate differentiator that will imprint your brand and product in a customers mind? |
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Definition
uniqueness
-packaging and placement
-marketing and promotional materials
-store layouts
STAY CONSISTENT |
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Term
| Connecting with customers on an ___________ level is a huge advantage. |
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Definition
| emotional. *costs more to retain a customer that to establish a new one |
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Term
| What is TQM? (Total quality management) |
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Definition
| Find a problem, determine its cause and fix it. |
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Term
| Market segmentation, targeting and positioning involves six steps: |
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Definition
1. Market segmentation: identification of bases for segmenting the market
2. Market segmentation: developing profiles of resulting segments
3. Market targeting: developing measures of segment attractiveness
4. Market targeting: selecting the target markets
5. Product positioning: developing product positioning for each target market
6. Product positioning: developing a marketing mix for each target segment |
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Term
| To be maximally efficient market segments should exhibit the following characteristics: |
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Definition
| measurability, Accessibility, sustainability, action-ability |
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Term
Define:
Measurability
Accessibility
sustainability
action-ability |
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Definition
what is measurability or the degree to which the size and purchasing power of the segments can be measured.
Accessibility – the degree to which the segments can be effectively reached and served,
sustainability – the degree to which the segments are large and/or profitable enough
action-ability – the degree to which effective programs can be formulated for attracting and serving the segments. |
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Term
| what is Multivariable demographic segmentation? |
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Definition
| combines two or more demographic variables to determine a more focused subset |
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Term
| Bases for segmenting consumer markets are: |
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Definition
| Geographic segmentation, Demographic segmentation, Psychographic segmentation, Psychological, Behavioral, Generational cohort groups, preference, attittude |
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Term
| undifferentiated approach is a marketing strategy that does what? |
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Definition
| Businesses that employ this approach use price as the overriding issue and don’t try to distinguish any other characteristic about their product that would make it stand out. |
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Term
| the differentiated marketing approach is? |
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Definition
| where the firm decides to operate in several segments of the market and designs different offers for each segment. |
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Term
| The key account approach is? |
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Definition
| where a company will decide upon a target market and find the key players – those who have multiple channels of distribution – that they can appeal to. |
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Term
| what is the The co-branded approach? |
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Definition
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Term
| ***What happens when the national retailer decides to go elsewhere? What happens when someone offers them a better deal? What does Company X do? |
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Definition
| This is basically what happened to Rubbermaid when they decided to align themselves with Wal-Mart. Good orders good strategy but when Wal-Mart needed 5 cents off of each piece and Rubbermaid determined that that five cents was all the profitability they had built into the business then Rubbermaid had to file for bankruptcy. Lesson One – there will always be someone cheaper regardless of how low your price is. You have to build more into your business than just price. A differentiated approach works best when the company is diversified enough to limit their potential downside by not producing exclusively for a single complex. |
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Term
| ***Let’s look at Tommy Hilfiger’s current position. He is producing solely for Macy’s. Is this a good thing or a bad thing for Tommy? Who wins from this position? While you may think that Macy’s wins because they are the only people carrying Tommy but what happens when sales slump and they cut back on Tommy’s orders? Where does Tommy Hilfiger go? |
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Definition
| Product positioning is a concept that has gained a great deal of support within the past few years both from a manufacturer’s perspective and from a retailer’s perspective. As retailing has become more consolidated with fewer big players differentiation has become a much more important concept. When department stores were first conceptualized and built in the 1800’s they served as the market where consumers went to find the latest merchandise. They didn’t have television, or movies, or the internet or even magazines or catalogs. It was this single place. As America grew it became way over-stored and differentiation became the mantra that retailers went by. Instead of looking just like their neighbor they wanted to look like a unique entity. Like Marshall Fields. |
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Term
| ***How did Marshall Fields differentiate itself from its competitors and why? |
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Definition
| Differentiation is what drives new development and continues to fuel niche markets. It is simply not enough to have the best design – that is a subjective attribute – it must be the best design with the proper positioning. |
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Term
| what are the six different product positioning strategies identified in the marketing world? |
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Definition
1. Positioning on specific product features
2. Positioning on benefits, problem solutions or needs
3. Positioning for specific usage conditions
4. Positioning for user category
5. Positioning against another product
6. Positioning for product class dissociation. |
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Term
| what are some steps in marketing research ? |
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Definition
| defining the objective, collecting the data, analyzing and interpreting the data, and finally utilizing what has been learned. |
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Term
| Market research firms fall into 3 groups: |
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Definition
syndicated-service research firms: these firms gather periodic consumer and trade information that they sell for a fee to customers
Custom marketing: research firms are hired to carry out specific research projects. They design the study and the report becomes the clients.
Specialty-line marketing: research firms provide a specialized service to other research marketing firms and company marketing research departments. |
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Term
| ten most common activities that market researchers perform : |
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Definition
| determination of market characteristics, measurement of market potentials, market-share potentials, sales analysis, studies of business trends, competitive product studies, short-range forecasting, new-product acceptance potential long-range forecasting and pricing studies. |
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Term
| Effective market research involves 5 steps: |
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Definition
| 1) defining the problem and research objectives, 2) developing the information sources, 3) collecting the information, 4) analyzing the information and 5) presenting the findings. |
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Term
| what are Three types of research projects? |
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Definition
| exploratory (gathering the preliminary data), descriptive (describing certain magnitudes) and causal (testing a cause and effect relationship). |
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Term
| Researchers use two main research instruments in collecting data, which are: |
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Definition
| – questionnaires and mechanical devices. |
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Term
| Three important decisions form the sampling plan for questionnaires: |
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Definition
| who is being surveyed (the sampling unit), how many people should be surveyed (the sampling size) and how should the respondents be chosen (sampling procedures) |
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Term
| what is the marketing mix? |
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Definition
| mixture of controllable marketing variables that are used to attain the requisite level of sales in the target market. |
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Term
| what are the four primary elements of a marketing mix ? |
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Definition
| product, price, place and promotion. |
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Term
| Several steps should be considered when developing product : |
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Definition
| a firm must invest in understanding how the product is actually going to be used by the buyers, it must modify the product to make it easier and correct mistakes that have gone into it, it must design effective manuals and instructional material before the product is launched and it must provide education and training to buyers to improve actual use. |
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Term
| A company’s competitive advantage stems from the many discrete activities a firm performs in: |
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Definition
| designing, producing, marketing, delivering and supporting its products. |
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Term
| what is The concept of the value chain ? |
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Definition
| a tool for analyzing the sources of competitive advantage. |
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Term
| The value chain breaks a firm down into all of its strategically relevant activities and potential sources of differentiation. Each value chain consists of nine generic categories of activities that are interconnected. These components are subdivided as to whether they are primary or support activities. List the primary activities and the support activities. |
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Definition
Primary activities
1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing and sales
5. Service
Support activities:
6. Firm infrastructure
7. Human resource management
8. Technology development
9. Procurement |
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Term
| What is Value and how is it measured? |
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Definition
| Value is the amount buyers are willing to pay for what a firm provides them and is measured by total revenue, a reflection of the firm’s product commands and the units it can sell. |
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Term
| when does Profitability occurs |
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Definition
| when the value a company commands exceeds the costs involved in creating the product. |
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Term
| What are value activities? |
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Definition
| Value activities are the physically and technologically distinct activities a firm performs; they are the building blocks of their inherent value. |
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Term
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Definition
| Margin is the difference between total value and the collective cost of performing the value activities. |
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Term
| what are primary activities? |
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Definition
| Primary activities are those that are involved in the creation of the product, its sale and transfer to the buyer as well as after sale assistance. |
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Term
| what are support activities? |
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Definition
| Support activities provide purchased inputs, technology, human resources and other firm-wide functions. |
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Term
| The four categories of support activities a |
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Definition
| re procurement, technology development, human resource management and company infrastructure. |
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Term
| Linkages can lead to competitive advantage in two ways: |
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Definition
| optimization and coordination. |
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Term
| Linkages arise from generic causes that include: |
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Definition
| the same function can be performed in different ways, the cost or performance of direct activities is improved by greater efforts in indirect activities, activities performed inside a firm reduce the need to demonstrate or explain a service or product in the field, and the quality assurance functions can be performed in different ways. |
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Term
| A marketing strategy consists of three parts: |
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Definition
Part one describes the size, structure and behavior of the target market, along with the planned production positioning and the sales, market share and profit goals that are anticipated in the first few years,
part two outlines the product’s planned pricing, distribution strategy and marketing budget for the first year, and
part three describes the planned long-run goals and marketing mix strategy over time. |
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Term
| what are the four dimensions of scope affecting the value chain? |
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Definition
Segment scope refers to the product varieties produces and buyers served.
Vertical scope is the extent to which activities are performed in-house instead of by independent firms.
Geographic scope is the range of regions, countries, or groups of countries in which a firm competes with a coordinated strategy.
Industry scope refers to the range of related industries in which the firm competes with a coordinated strategy. |
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Term
| An integrated marketing mix consists of four major tools : |
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Definition
| advertising, sales promotion, publicity and personal selling. |
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Term
| Advertising performs the following functions: (6 things) |
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Definition
• Awareness building – potential prospects may refuse to see sales reps if they do not have prior knowledge of the brand
• Comprehension building – for products with new features and technology, advertising can serve to educate the consumer
• Efficient reminding – if consumers have prior knowledge of the product but are unwilling to commit, advertising will serve to keep the buyer apprised
• Lead generation –advertising carrying return coupons can generate sales leads
• Legitimization – sales representatives routinely use tear sheets of ads to legitimize the brand to the buyer
• Reassurance – advertising can remind customers how to use the product and reaffirm the validity of the purchase |
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Term
| Effectively trained sales personnel can make three important contributions: |
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Definition
| increase stock positions, build enthusiasm, and missionary sell – setting up new accounts. |
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Term
| ________ is the most common form of guerilla marketing. |
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Definition
publicity
Every time the reader picks up an issue of Lucky or In Style and sees what is hot and where to get it, this is publicity that has been invited, solicited and paid for.
There are, however, other levels of publicity much harder to achieve and that is the celebrity status. |
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Term
***
What celebrities do you see are important for product validation these days? Do you think that they have legitimate staying power? |
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Definition
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Term
| Marketing media is defined as |
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Definition
| any sales presentation that is impersonal in nature and is paid for by an identified sponsor, It is a billion dollar industry whose sole function is to inform customers of their choices and influence their buying decisions |
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Term
| 7 steps to The Marketing plan: |
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Definition
1. Executive summary – this presents an abbreviated version of the proposed plan for quick management skimming
2. Current marketing situation – this presents relevant background data on the market, product, competition, distribution and macro-environments
3. Opportunity and issue analysis – this summarizes the main opportunities, threats, strengths/weaknesses and issues facing the product that the plan must address
4. Objectives – this defines the goals the plan wants to reach in the areas of sales volume, market share and profit
5. Marketing strategies – this presents the broad marketing approach that will be pursued to meet the plan’s objectives
6. Projected profit and loss statement – this summarizes the financial payoff from the plan
7. Controls – this tells how the plan will be monitored. |
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