Term
| what are the 4 premises of the marketing concept |
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Definition
1. consumper orientation
2. continuous marketing research
3. all organizational activities and strategies are integrated
4. aims to convert satisfied consumers into loay consumers |
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Term
| what is the selling concept |
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Definition
| the selling concept is an approach to business that focuses on heavy selling of existing products. it is an "inside out approach" that begins in the factory, focuses on existing products, and aims to achieve it's end goal of making profits through sales volume by selling and promotion their product |
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Term
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Definition
customer value is the difference between the benefits a customer gains from owning and using a product and the cost of obtaining the product.
ex- the benefits of owning an iphone may outweigh the various costs associated with obtaining it |
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Term
| what is the difference between features and benefits? |
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Definition
| features are the attributes of the product while benefits are the attributes that you will actually use |
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Term
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Definition
| customer satisfaction is the customers conscious evaluation of a product or service's feature, or the product/service itself. |
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Term
| what are satisfaction judgements based on? |
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Definition
satisfaction judgements are based on:
1. past experiences
2. the information and promises being made by marketing organizations
3. company's competitors or competing products
4. what seems like fair value |
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Term
| "Generally, consumer satisfaction depends on the product's ________ relative to the buyer's _______" |
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Definition
| generally, consumer satisfaction depends on the product's performance relative to the buyer's expectations |
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Term
| "_________ alone does not achieve loyalty" |
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Definition
| satisfaction alone does not achieve loyalty |
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Term
| what are the five different levels of relationships? |
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Definition
1. basic
2. reactive
3. accountable
4. proactive
5. partnership |
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Term
| what are the three relationship ties? |
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Definition
1. financial benefits
2. social benefits
3. structural ties |
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Term
| what are financial benefits of a relationship |
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Definition
financial benefits are method used by business to create closer ties with their customers by offering them financial benefits
ex- loyalty programs |
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Term
| what are social benefits of a relationship |
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Definition
a business will focus on strengthening their relationship with the consumer via the strengthening of social bonds by learning about their customers needs and then individualizing and personalizing those needs in their products/services
ex- netflix recommendations
target catelogs |
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Term
| what are structural ties of a relationship |
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Definition
structural ties are the the links an organization may provide to a consumer to assist with its own business. however, not every organization wants close ties with its consumers
ex- a website where you can track your order |
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Term
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Definition
| customer lifetime value is the amount of time which revenues for a given customer over time will exceed the company's cost of attracting, selling and servicing that customer. This focuses more on lifetime revenues and costs rather than single transactions |
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Term
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Definition
| competitive advantage is satisfying target customers needs better than your competitivors |
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Term
| how does one perform competitor anaylsis? |
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Definition
ask the following:
1. who are your competitors?
2. what are their objectives?
3. what strategies are they using?
4. what are their strengths and weaknesses? |
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Term
| porter's five forces model shows what? |
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Definition
porter's five forces shows that the competitiveness of an industry or segment is influenced by:
1. threat of new entrants
2. bargaining power of suppliers
3. bargaining power of buyers
4. threat of substitutes |
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Term
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Definition
includes:
time a cost of entry
specialist knowledge
economies of scale
cost advantages
technology protection
barriers to entry |
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Term
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Definition
the competitiveness of an industry and its players plays a larger role in the other four forces and, in turn, is largely influenced by the other four forces. it is largely based upon:
number of competitors
quality differences
other differences
switching costs
customer loyalty
costs of leaving market |
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Term
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Definition
number of suppliers
size of suppliers
uniqueness of servies
your ability to substitute
cost of changing
substitute performance |
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Term
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Definition
number of customers
size of each order
differences between competitors
price sensitivity
ability to substitute
cost of changing |
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Term
| overall cost leadership competitive strategy |
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Definition
can offer lower price than competitors
ex- coles |
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Term
| differentiation competitive strategy |
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Definition
concentrates on highly differentiated products
ex- apple |
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Term
| focus competitive strategy |
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Definition
| concentrates on a small piece of the market |
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Term
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Definition
largest market share
leads others in price changes, new products, and promotional spending
should constantly remain vigil on its competitors |
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Term
| how does the market leader maintain position? |
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Definition
1. expanding the total market by creating new users
2. protecting market share
3. expanding market share |
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Term
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Definition
the market challenger tries to aggressively expand market share by attacking the market. this position is usually adopted by firms that are second and third or lower in an industry.
often engages in high risk high pay off strategies. however, these attack strategies require some sort of sustainable competitive advantage over the leader, such as a lower price |
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Term
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Definition
| allows dominant firms to lead the way and keeps close tabs on the leaders activities in order to copy (improve) upon the leaders product releases and marketing efforts. |
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Term
| the three types of market followers: |
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Definition
1. the cloner: closely copies the leaders products, distribution, advertising, and marketing moves
2. the imitator: copies some things form th eleader but maintains some differentiation in terms of packaging, pricing, and other factors.
3. the adaptor: builds on the leader's products and marketing programs, often improving them |
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Term
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Definition
slow but growing rate of sales and market share
relatively low market impact, aims to attract minimal attention of competition in the market
gets to know the target group so well it can meet its needs better than other firms that casually sell to this niche
ex- product or feature specialist, service specialist |
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Term
| what is included in the marketing mix |
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Definition
1. products, goods, services and experiences
2. promotion
3. price
4. placement logistics
5. people
6. processes
7. physical evidence |
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Term
| what influences/affects the seven P's |
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Definition
| the seven P's are influenced by target customers and intended positioning |
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