Final Exam Study Guide
Final Exam Study Guide MKT1211K
Popular in PRINCIPLES OF MARKETING
Popular in Marketing
This 37 page Study Guide was uploaded by Lia Pearson on Saturday October 10, 2015. The Study Guide belongs to MKT1211K at Jamestown Business College taught by Mrs. Halftown in Summer 2015. Since its upload, it has received 266 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Jamestown Business College.
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Date Created: 10/10/15
Chapter 1 Guided Notes 1 Provide a detailed de nition for the term Marketing Marketing is the activity set of institutions and processes for creating capturing communicating delivering and exchanging o erings that have value for customers clients partners and society Marketing is the bridge that allows potential customers to be introduced to the sellers product or services 2 Explain in detail each of the core aspects of marketing a Marketing is about satisfying customer needs and wants In order to be successful with marketing you have to know who you are marketing to your target market and what their needs and wants are When marketing it is imperative to success that you target a population that not only has the want for the product but the means to purchase the product For example if you market a 100000 dollar car in a poor target market you would not make as many sales as you would if you were to market to a wealthier set of people b Marketing entails an exchange Proper marketing leads to an exchange of goods or services from the seller to the buyer Marketing draws the potential buyer in which is good news for the seller Not only is the exchange good for the seller because he is making a profit but it is good for the consumer as well as they are receiving something at a fair value Once a customer has purchased a product or service the seller can then use the information given to them by the client and their purchase history to form a bond with the client which can serve as a useful marketing tool Forming relationships with consumers inspires loyalty which is good for sales as well c Marketing requires product price place and promotion decisions a Product In order for someone to purchase something it has to have value to the buyer In marketing value is created by developing a variety of o erings and di erent options to the potential buyer This includes goods services and ideas All three of these things can work together to increase the value of the product in the eyes of a potential buyer When a product has a high perceived value in the eyes of consumers it translates into sales which translate into more money for the firm Goods things you can touch Example baseball Services intangible customer benefits produced by people or machines Example concert tickets Ideas concepts philosophies and opinions Example a biker safety sign b Price Price does not always translate directly to money In fact price is everything that the buyer gives up in exchange for the seller s product or service These things include money time and energy all things that have value Therefore the price of the good or service must align with the buyer s perception of value of the good or service in order to make sales c Place Place represents all of the activities necessary to get the product to the right consumer when that consumer wants it Place more commonly deals specifically with retailing and marketing channel management Marketing channel management also known as supply chain management is the set of approaches and techniques that firms use to e iciently and e ectively integrate their suppliers manufacturers warehouses stores and other firms involved in the transaction such as s transportation company into a seamless value chain in which merchandise is produced and distributed in the right quantity to the right location and at the right time while also minimizing costs and satisfying service quality d Promotion Promotion is communication by a marketer that informs persuades and reminds potential buyers about a product or service to in uence their opinions and elicit a response Promotion generally can enhance the initial value of the product or service that is being promoted d Marketing can be performed by both individuals and organizations a B2C business to consumer i Provide an example I see an advertisement on TV for a new pair of designer sunglasses b B2B business to business i Provide an example The manufacturer of the designer sunglasses contacts several retail stores informing them of their newest design c C2C consumer to consumer i Provide an example I purchase the pair of designer sunglasses from the store I love them so much that I decide to tell five of my closest friends about the sunglasses why they are so great and why they should purchase a pair for themselves e Marketing impacts various stakeholders Although marketing is a way to facilitate the sale of products or services to customers or clients it is also much more Marketing can affect many other stakeholders such as supply chain partners and even society as a whole Partners in the supply chain which include wholesalers retailers and other firms such as transportation or warehouse companies are all effected by marketing Marketing can also aim to benefit society at large For example ads for milk sell more milk and encourage a healthier society one with more calcium and stronger bones f Marketing helps create value a ProductionOriented Era In the beginning of the 20th century most firms were production oriented and they believed that a good product would sell itself Manufacturers focused on product innovation and not with satisfying the needs of individual consumers Retail stores were considered places to hold merchandise until a consumer wanted it b SalesOriented Era In the 1920s to the 1950s production and distribution techniques became more sophisticated Because World War Two conditioned customers to consume less and manufacture items themselves manufacturers had the capacity to produce more than consumers wanted and were able to buy Overproduction was resolved by firms becoming more salesoriented and depending on heavy personal selling and advertisement c MarketOriented Era After World War Two was over manufacturers focused more on making consumer products Suburban communities began to pop up and shopping centers began to replace central business districts Products that were once limited in World War Two became more plentiful The United States entered a buyers market and when consumers again had choices they could make purchasing decisions based on factors such as quality convenience and price As a result manufacturers and retailers focused on consumer wants and needs before designs and prices were set d ValueBased Marketing Era Value re ects the relationship of bene ts to costs In marketing customers want fairness Value can be increased by introducing value cocreation a process where a consumer can personalize a product therefore increasing its value When the value of a product or service is increased a consumer is more likely to purchase resulting in more sales for the firm 3 Explain in detail how Marketing Firms Become More Value Driven Marketing firms become more value driven by focusing on four main activities 1 Sharing information about customers and competitors across their own organization and events with other firms 2 Striving to balance fairly the customers benefits and costs 3 Concentrating on building and maintaining relationships with customers 4 Taking advantage of new technologies and connecting with consumers using social media and mobile media Building relationships with customers uses a process called customer relationship management a business s philosophy and set of strategies programs and systems that focus on identifying and building loyalty among a firms most valued consumers 4 Explain in detail each of the reasons marketing is important a Marketing expands a rms global presence Marketing especially marketing through the use of social media and other online presences allows for a firms product or service as well as information regarding it to travel the globe at incredible speeds Not only does marketing through these paths help to expand a firms global presence but it enhances global career opportunities for marketing professionals as well b Marketing is pervasive across marketing channel members Firms do not work in isolation They use a marketing channel in order to achieve success Marketing channels allow for the expansion of career opportunities to marketing professionals Effectively managing supply chainmarketing channel relationships is important to success and customer satisfaction Without customers that are satisfied firms cannot grow c Marketing enriches society Socially responsible rms recognize that including a strong social orientation in business is a sound strategy that is in both its own and its customer s best interest It shows the consumer marketplace that the firm will be around for the long run and can be trusted with their business In a volatile market investors view firms with high levels of corporate responsibility and ethics as a safe investment d Marketing can be entrepreneurial Entrepreneurs are people who organize operate and assume the risk of a business venture Great and distinguished entrepreneurs have visions of how certain combinations of products and services can satisfy unfulfilled needs They find and understand a marketing opportunity conduct a thorough examination of the marketplace and develop and communicate the value of their product or service to the potential consumers similar to what marketing professionals do Chapter 2 Guided Notes 1 Explain the various components of a marketing strategy A marketing strategy has three basic components 1 The firms target market 2 The four P s The marketing mix 3 The bases on which the firm will be competitive on a long term basis The marketing mix is an important component as it sets the basis for the future and for more complex components A good marketing strategy helps a firm to be successful 2 Describe in detail the four macro strategies that are used to create and deliver value and to develop sustainable competitive advantages a Customer Excellence Customer excellence focuses on keeping as well as gaining long term loyal customers by providing them with excellent customer service Example A firm having a customer loyalty program b Operational Excellence Having efficient operations and having excellent supply chain management and strong relationships with the firms suppliers Example Keeping in touch with all the firms in the supply chain warehouses etc c Product Excellence Providing products to consumers that have a high perceived value effecting branding and effective positioning as well as maintaining and improving product quality Example a software update d Locational Excellence Location is perceived to be the most important aspect of a company Firms who wish to be successful have to be accessible to all consumers Example A McDonalds being across the street from a shopping mall 3 Describe the 5 stages of a marketing plan a Step 1 Define the Business Mission The business mission also known as the mission statement is a broad description of what the firm plans to so activities it plans to take part in as well as the main goals of the company Almost all businesses big or small have a mission statement A mission statement helps to show the consumers and potential investors what the company is all about b Step 2 Conduct a Situation Analysis After the mission statement is established a situation analysis is then performed The firm uses SWOT as a guide to analyze Strengths Weaknesses Opportunities and Threats After SWOT has been examined the firm then uses CDSTEP Cultural Demographic Social Technological Economic and Political factors to consider any uncertainties and unexpected changes c Step 3 Identify and Evaluate Opportunities Using STP Companies use STP Segmentation Targeting and Positioning as a way to increase sales and profits The firm first divides the markets into different groups or segments and then decides which one is most beneficial for the firm to target Finally the firm decides how their products should be positioned to best meet the needs of the target market group that the firm has chosen d Step 4 Implement Marketing Mix and Allocate Resources In the fourth step the firm takes all of the information learned four P s market etc and puts it into action At this point marketers make decision on how to spend their limited resources in order to best benefit the firm e Step 5 Evaluate Performance Using Marketing Metrics The final step of this process is to evaluate the results of the strategy and implementation program using marketing metrics A metric is a measuring system that quantifies a trend By understanding the causes of performance the firm can then use that information to better the firm making adjustments where they are needed 4 Explain the concept of Market Share A market share is a percentage representing how much of a specific market any particular rm accounts for 5 Explain each quadrant in the Relative Market Share Matrix a Stars Stars are rapid growing yet usually short lived market share products Stars then usually turn into cash cows b Cash Cows Cash cows grow slowly over time and are high market share products c Question Marks Question marks are in high growth markets but are low in value Companies often turn them into cash cows or stars d Dogs Dogs are in low growth markets and have a fairly low market share value 6 Explain in detail each of the different growth strategies and provide an example for each a Market Penetration A market penetration strategy employs the existing marketing mix and focuses the firms efforts on existing customers An example of this strategy would be encouraging customers to purchase more when they visit b Market Development A market development strategy uses its existing marketing tactics to reach new market segments An example of this would be a show broadcasting on air in a new country c Product Development A product development strategy creates new products on a regular basis to keep consumers interested in and buying their products An example of this would be the IPhone 5 which upgraded to the IPhone 6 then the 6 Plus d Diversification Diversification strategy is implemented by marketing to a market segment that was previously untouched which opens up more doors to make a profit An example of this would be building a hospital in a place where there are no hospitals such as in the middle of the desert or the rainforest Chapter 3 guided notes The four E39s of Social Media Marketing 1 2 3 4 Excite gets consumers excited about a productHowever it must be relevant to their target audience Educate marketers have a chance to educate consumers about the value of the product the rm is offering to them Experience when a consumer can experience something before they purchase through methods such as an informational video or customer reviews This does not necessarily mean a physical trial such as a quot7day free trialquot Engage the main point is to engage consumers The hopeful end result is a purchase and hopefully loyalty to the company With engagement comes action on the part of the consumer Tvnes of Social Media 1 2 3 Social Networks Examples of these would be Facebook Linkedln and Google Media Sharing Sites YouTube Flickr lnstagram and SoundCloud would be good examples of media sharing sites ThoughtSharing Sites Blogs Microblogs Twitter and Pinterest would be examples of these Note Firms are most successful when they use a combination of these types of social media in their marketing tactics Firms choose which platforms to use based on close evaluation Types of Mobile Apps 1 2 3 Price Checking Apps Examples of these applications would be Amazon and Stylish Girl Fashion Apps stylecom and Pinterest would be good examples this Gami ed Apps Fouquuare making a game out of shoppingvisiting a store Note Mobile applications are a very important part of a marketing strategy as over 100 million people have smartphones and over half of those people purchase products through their phones Three Components of Social Media Strategy 1 Listen in order to be successful rms must pay attention to messages from all channels social media marketing such as the rm Radian 6 2 Analyze rms analyze through statistics such as click rate bounce rate conversion and keyword analysis 3 m rms then use all of the information to strategically make decisions Marketing Yourself Using Social Media 1 Social Reach how many people you in uence through social media An example of this would be how many views a youtube video has or how many followers or likes a person or business has on a social media platform 2 In uence the extent to which someone in uences another An example would be Kim Kardashian mentioning a certain product that she likes on her Twitter or Facebook and in response to this her followers also go out and purchase the same product that she purchased and enjoys using Note There is a rm called Klout which measures social media in uences This can be a useful tool for rms when evaluating their marketing strategy Social Media Savvy 1 Social media check understanding social media and understanding how to best use social media to the advantage of the rm Being aware of your personal social media presence is an important aspect of being successful as a marketing professional Chapter 5 Guided Notes Outline how a company s immediate environment their customers company capabilities competitors and corporate partners affects their marketing strategy Customers firms use information about consumers such as purchase history etc as well as consumer trends to make informed decisions when marketing in order to increase factors such as sales customer loyalty and consumer creation Company capabilities The opportunities placed in front of a firm can either make or break a marketing strategy It is Vital for the success of a firm to properly assess and choose opportunities that will best suit the wants and needs of the firms target market Competitors Competitors will always be a concern for firms and therefore it is critical to understand their competitors strengths weaknesses and possible reactions to the firms marketing strategies Firms try very hard to impress potential customers because without them the firm would not have two legs to stand on and would most certainly fail Corporate partners Most all firms operate in sync with other firms that help them to keep business running smoothly The firms that work together to produce end goals are corporate partners Corporate partners use information that they learn and share it with other firms in the partnership which in turn helps all firms in the chain to succeed and grow L02 Explain how marketers use each element of their macroenvironment to make decisions Culture Culture is broadly defined as the shared meanings beliefs morals values and customs of a group of people Culture gets passed down through generations over time using words literature and institutions There are two basic forms of culture including countrv culture and regional culture Regional culture the way consumers make purchasing decisions based on where they live EX Marketing CocaCola as soda or pop depending on the area the consumers are living and what they commonly used for lingo Country culture visible nuances such as artifacts behavior dress symbols physical settings ceremonies language differences colors tastes and food preferences Demographics Demographics indicate the characteristics of human populations and segments In marketing demographics are used to identify consumer markets Some demographics include age gender race and income All of these demographics are very important when it comes to marketing if you do not know who your target market is a firms marketing strategy is less likely to have a successful end result Generation Z Digital Natives People who are categorized as generation Z were raised in a world where technologies such as social networks laptops and the internet were commonplace Because of this familiarity with technologies generation Z is much more globally connected than the generations previous to them This generation has more exposure to threats such as crime or terrorism because of this as well and tend to have more in common with their generation X parents Generation Y Millennial This set of people was born between 1977 and 2000 and consists of over 60000 Americans This cohort is post world war two and most are children of baby boomers Generation Y varies the most in age from teens all the way to adults who are starting their own families This generation puts strong emphasis on balance in life and breaks previous marriage standards having more single parents and partners who coparent Millenials are very tech savvy due to exposure to various technologies since birth Generation X This generation includes people born between 1965 and 1976 and represents around 41 million Americans Generation X people grew up in homes where both parents worked and faced the 50 percent possibility of having parents that ended up getting a divorce Because of this upbringing most generation X people attempt to shield their own children from threats or disappointments Generation X people possess higher spending power because they tend to get married later in life as well as purchase homes later in life as well They somewhat dislike shopping and are more cynical than their counterparts making them astute difficult customers Generation X people are very shopping savvy Baby Boomers This group of people consists of people who were born after world war two between the years of 1946 and 1964 This group accounts for 78 million Americans the largest group in the United States This group produces many consumers who are 50 plus years of age which effects marketing strategies Many baby boomers are now collecting social security which puts stress on the economy Baby boomers tend to be very individualistic and pride themselves in selfcare This group greatly in uences trends especially in the workplace Marketing adjusts to the needs of this group An example of this would be offering larger print books for those who are losing their vision Social Trends Social trends are ideas that trend within a population such as being price conscientious trying to be healthier greener or retaining consumer privacy Price sensitivity Also known as thrift this is when people embrace the idea of spending less and actively search out ways to better do so As the economy suffers more and more people become price sensitive causing them to buy more small purchases and sacrificing the larger ones An example of this would be sacrificing a big vacation and spending the money you saved on expensive Chanel lipsticks Health and Wellness Concerns Health and wellness concerns especially those for children are becoming more and more prevalent This trend has a lot to do with the doubling of teenage obesity over the past twenty years This has effected marketing by regulating marketers to produce food in more reasonably proportioned sizes Greener Consumers Green marketing involves a strategic effort by firms to supply customers with environmentally friendly merchandise Many consumers are becoming more and more concerned with the environment and this concern fuels their spending habits Marketers can combat this by offering greener options to consumers Privacy Concerns Do to the steady increase in identity theft and theft in general consumers are becoming more and more concerned about their privacy when purchasing items Marketers can combat this by offering a higher level of privacy for consumers A TimePoor Society With more and more people working full time jobs and sometimes multiple jobs for that matter it is becoming harder for consumers to find leisure time for themselves Therefore marketers must give consumers time appropriate products in order to make sales Technological Advances In the past decade the value of both products and services has increased due to technological advances Because of the increased internet use and availability and dependability on mobile devices increases sales in those areas and marketers use that information to better target consumers to purchase from them rather than from other firms Economic Situation Marketers monitor the general economic situation both in their home country and abroad because it effects the way consumers purchase merchandise and spend money Some factors that in uence the state of an economy include the rate of in ation foreign currency exchange rates as well as interest rates PoliticalRegulatory Environment The politicalregulatory environment compromises of political parties government organizations legislation and laws Organizations must fully understand and comply with any legislation regarding fair competition consumer protection or industry specific regulation The government enacts laws focused on ensuring that companies compete fairly With one another Business to Business Marketing a Business to business marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services for consumption by the purchasing organization and or resale by wholesalers and retailers A typical B2B marketing transaction includes a wholesaler selling to a retailer who in turn sells the product to consumers through B2C B2B tends to be more complex than the other forms of marketing as It has to go through more levels on the supply chain before it reaches it target B2B products do not always have to be goods they can also be services or service providers within a supply chain An example of this would be the UPS company delivering the product from the wholesaler to the retailer B2B rms focus on serving speci c types of customer markets by creating value for those customers Derived Demand a Derived demand re ects the link between consumers demand for a company39s output and the company39s purchase of the necessary inputs to manufacture those outputs An example of this would be if a stapler company needs more staplers made it would order more metal from the metal company to be made into the staplers the rm sells B2B Markets 1 2 3 Manufacturers and service providers a Manufacturers purchase raw materials components and parts that allow them to make and market their own goods and ancillary services An example of this would be Volkswagen owning the Audi Bentley Bugatti Lamborghini and many other famous models utilizing many different parts to make these various models Resellers a Resellers are marketing intermediaries that resell manufactured products without signi cantly altering their form b Retailers represent resellers and engage in B2B transactions when they purchase merchandise for their stores xtures capital investments leasing locations and nancing operations Institutions a Institutions such as hospitals educational organizations and religious organizations also purchase all sorts of goods and services For example public schools set aside budgets for books and school supplies for students b Public institutions engage in BZB relationships to ful ll their needs for capital construction equipment supplies food and janitorial services 4 Government a Governments are one of the largest purchasers of goods and services For instance governments purchase and invest in things such as technologies health care services and human services The business to business buying process 6 stages 1 Need recognition a In the rst stage the buying organization recognizes through either internal or external sources that it has an unful lled need 2 Product Speci cation a After recognizing the need and considering alternative solutions a rm decides on which speci cations of the product will best suit the rms needs 3 RFP request for proposals Process a The request for proposals is a common process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or speci cations b Smaller rms may lack the ability to attract broad attention to their requests so they might turn to a web portal or an internet website whose purpose is to be a major starting point for users when they connect to the web An example of this would be gurucom c Small to medium sized rms can use platforms online such as guru as well to be successful 4 Proposal analysis vendor negotiation and selection a The buying organization in conjunction with its critical decision makers evaluates all of the proposals it receives through RFP and decides on which one would be the best suited for the goals and ultimate success of the rm39s goals 5 Order speci cation a In the fth stage the rm places its order with the supplier it chose That includes a detailed description of the goods prices delivery dates and in some cases penalties for noncompliance after that the supplier sends an acknowledgement that it has received the order and lls it by the speci ed date 6 Vendor performance assessment using metrics a just as in the consumer buying process rms analyze their vendors performance so they can make decisions about their future purchases the difference in the BZB setting is the fact that the analysis is typically more formal and objective and uses metrics such as delivery quality customer service and issue resolution Chapter 9 Segmentation Targeting and Positioning Identify the ve steps in the segmentation targeting and positioning process summarize each step Step 1 Establish Overall Strategy or Objectives Step 2 Segmentation Methods Step 3 Evaluate Segment Attractiveness Step 4 Select Target Market Step 5 Develop Positioning Strategy Outline the different methods of segmenting a market Geographic Demographic Psychographic Geodemographic Bene t Behavioral Segmentation Describe how rms determine whether a segment is attractive and therefore worth pursuing Articulate the difference among targeting strategies Concentrated ta rgeting strategy Differentiated targeting strategy Undifferentiated targeting strategy Micromarketing De ne positioning and describe how rms do it Chapter 12 Developing New Products Identify the reason firms create new products Firms create new products to keep Up with chanaina customer needs to avoid market saturation to manaae risks throuah diversity to keep up with fashion cycles and improve business relationships In depth descriptions Keeping up with changing customer needs when they add products services and processes to their offerings firms can more effectively by satisfying the changing needs of their current and new customers or by keeping customers from getting bored with the current product or service offering Avoiding market saturation the longer a product exists on the market the higher the likelihood that the market will become Without new products or services the value of the firm will ultimately decline Managing risk through diversitv firms use to create a broader portfolio of products which helps them to diversify their risk and enhance the firm value better than a single product can As the saying goes don t put all of your eggs in one basket Keeping Up with fashion cvcles in industries that rely on and experience such as books apparel arts and software markets most sales come from new products Because of this and mainiain iiieii markei Improving business relationships new products do not always target end consumers sometimes they function to improve relationships with suppliers Having new products entails communication with the suppliers retailers and all aspects of the supply ehain There are more partnership opportunities Define the term pioneersbreakthroughs Pioneers also known as are truly new product introductions or newto theworld products that create new markets These products can add tremendous to a firm Pioneers are first The pioneers become readily recognizable to consumers and thus establish a Studies have found that market pioneers can command a greater market share over a longer period of time than firms that enter the market later down the road can o It is important to remember though that Sometimes imitator companies have more capital and resources and end up gaining a higher market share than the original pioneer s product 0 An example would be the Prius which was the first car to run with the help of a large battery that aids in operation Another example would be the iPod which was the first touch screen MP3 player Describe the different groups of adopters articulated by the diffusion of innovation theory Innovators Buyers who want to be the to have the newest product They and are 0 Typically innovators about the product category by subscribing to trade and specialty magazines talking to other experts visiting productspecific blogs and forums that describe the new products and attending productrelated forums seminars and special events 0 Innovators only for any new product or service Earlv Adonters o The second group to purchase the product They generally and instead wait only purchasing the product after careful review and analysis This group in the market 0 Early adopters are crucial for bringing the other three buyer categories to the market Earlv Maioritv This group is srusiai ii makes up such a large portion of the market 0 Members typically wait until the bugs have all been worked out of the product before purchasing When early majority customers enter the market the number of competitors in the marketplace usually also has reached its peak so Late Maiority This group is the 0 At this stage the product has usually and its These consumers like to and until they are no longer available Explain the stages involved in developing a new product or service Idea Generation to generate new ideas for products a firm may use its own internal and ssvsispmsni Concept Testing refers to the process in which a These reactions hello to enable the developer to a and determine if the idea is worth developing or not Product Develooment entails a process of A is then created After that developers move on to and In the firm attempts to determine whether the product will for which it was intended ln tirms use potential customers who to determine its functionality performance potential problems and other issues specific to its use Market Testing of products grouped into two segments Firms conduct before they actually bring a product to market to determine how many customers will try and then continue to use the product or service according to a s mall group of potential consumers is a method of of a new Product and introduces the offering to a prior to a national launch Product Launch the firm determines sets a selects a sets a and a a and then nationwide to consumers Timing is also important when launching a product can be done through trade shows trade promotions and introductory price promotions is often set thorough a manufacturer s suggested retail price also known as the Retailers sometimes receive a or Evaluation of Results after the product has been launched marketers must undertake a critical to determine whether the product and its launch were a and if any are needed at all Describe the various product life cycle concepts Introduction Stage The for a new innovative product or service usually starts with a single firm and are the ones to try the new offering The introduction stage is characterized by due to its high start up costs and as the product begins to take off If the product is successful Growth Stage The growth stage of the product life cycle is marked by a The market becomes more c and c which increases the potential for or service Also during this stage firms attempt to reach by and accordingly Maturity Stage The cf the product life cycle is for market share among rms Marketing costs as these firms compete for the Because of this prices usually begin to Decline Stage Firms with products in this stage either of diehard consumers or those with special needs or they At this stage Chapter 10 Terms 1 Churn the number of participants who discontinue use of a service divided by the average number of total participants 2 Data raw numbers or other factual information that on their own have limited value to marketers 3 Data mining uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables 4 Data warehouses large computer les that store up to billions of pieces of individual data 5 Experimental research type of quantitative research that systematically manipulates one or more variables to determine which variables have an effect on other variables 6 Experiment type of quantitative research that systematically manipulates one or more variables to determine which variables have an effect on other variables same as experimental research per say 7 Focus group interviews a small group of persons come together for an intensive discussion about a particular topic 8 lndepth interview trained researchers ask questions listen to and record the answers and then pose additional questions to clarify or expand on a particular issue 9 Information data that is interpreted resulting from organizing analyzing and interpreting data 10Marketing research consists of a set of techniques and principles for systematically collecting recording analyzing and interpreting data that aids in decision making 110bservation entails examining purchase and consumption behaviors through personal or video camera scrutiny 12Panel data information collected over time from a group of consumers which is then carefully organized into different panels of data 13Primary data data collected to address speci c research needs This includes focus groups indepth interviews and surveys 14Scanner data used in quantitative research obtained from the scanner readings of UPC labels at the checkout counter 15Secondary data pieces of information that have been collected prior to the start of the focal research process 16Structured questions closed ended questions for which a discrete set of response alternatives or speci c answers is provided for respondents to evaluate 17Survey a systematic means of collecting information from people using a questionnaire 18Syndicated data data available for a fee from commercial research rms such as symphony IRI 19Unstructured questions open ended and allow respondents to answer in their own words Chapter One Terms Marketing the activity set of institutions and processes for creating capturing communicating delivering and exchanging offerings that have value for customers clients partners and society at large Marketing Plan plan that speci es the marketing activities for a speci c period of time Exchange the trade of things of value between the buyer and the seller so that each is better off as a result Marketing Mix also known as the four P39s product price place and promotion Goods items that you can physically touch Services intangible customer bene ts that are produced by people or machines and cannot be separated from the producer ldeas include concepts opinions and philosophies BZB marketing products or services are sold from one business to another business BZC marketing products or services are sold from the business directly to the consumer C2C marketing consumers are selling products or services directly to other consumers Value re ects the relationship of bene ts and costs or what you get for what you give Value cocreation when customers have the option to take part in the design of their product or service creating value in the eyes of the consumer Relational orientation thinking of customers in terms of relationships rather than in terms of transactions Customer relationship management CRM A business philosophy and set of strategies programs and systems that focus on identifying and building loyalty among the rms most valued customers Supply chainzMarketing Channel a group of rms that work together to get products or services to consumers Entrepreneurs people who organize operate and assume the risk of a business venture Chapter Two Terms Marketingstrateg identi es a rms target markets identi es a related marketing mix four P39s and identi es the bases on which the rm plans to build a sustainable advantage Sustainable competitive advantage an advantage over the competition that is not easily copied and thus can be maintained over a long period of time Customer excellence is achieve when a rm develops valuebased strategies for retaining loyal customers and provides outstanding customer service Operational excellence the second way in which to achieve a sustainable competitive advantage through a rm39s ef cient operations excellent supply chain management and strong relationships with their customers Product excellence the third way to achieve a sustainable competitive advantage occurs by providing products with high perceived value and effective branding and positioning Locational excellence having the product or service available in a location that is convenient for the customer Marketing plan a written document composed of an analysis of the current marketing situation opportunities and threats for the rm SWOT analysis marketing objectives and strategies four P39s and projected income Planning phase marketing executives along with other top managers de ne the mission and or the vision of the business Implementation phase marketing managers identify and evaluate different opportunities using STP and then implement the marketing mix using the four P39s Control Phase entails evaluating the performance of the marketing strategy using marketing metrics and taking any corrective actions Mission statement a broad description of a rm39s objectives and the scope of activities it plans to undertake de ning the goals of the rm Situation analysis SWOT when a rm evaluates its internal and external environment including strengths weaknesses opportunities and threats STP segmentation targeting and positioning Market segment groups of people who respond similarly to marketing tactics Market segmentation the process of dividing the market into groups of customers with different needs wants or characteristics Target marketingtargeting when a rm evaluates the attractiveness of each segment and chooses which one to target Market positioning involves the process of de ning the marketing mix variables so that target customers have a clear distinctive desirable understanding of what the product does or represents in comparison with competing products Products include goods services and ideas that can be sold to the consumer Metric measuring system that quanti es a trend dynamic or characteristic Market share the percentage of the market accounted for by a speci c entity Relative market share provides managers with a products relative strength in the market Market growth rate the annual rate of growth of the speci c market in which the product competes Market penetration strategy employs the existing marketing mix and focuses the rms efforts on existing customers Market development strategy employs the existing marketing offering to reach new market segments whether domestic or international Product development strategy offers a new product or service to the rm39s current target market in hopes of keeping the customers interest Diversi cation strategy introduces a new product or service to a market segment that is currently not served Related diversi cation the current target market shares something in common with the new opportunityproductservice Unrelated diversi cation the new business lacks any common elements with the present businessopportunityproductservice Chapter Three Notes Social media content distributed through online and mobile technologies to facilitate interpersonal interactions Creators hip cool contributors sit at the cutting edge and plan to stay there Social media gives them new ways to post and share their clever and creative ideas Bonders are social butter ies who use social media to enhance and expand their relationships which they consider allimportant in their lives Professional constantly on the go and busy who want to appear efficient with everything together They use social media to demonstrate just how smart they really are Sharers really want to help others and are constantly informed on the newest trends and are sharing them with others through social media Blog an internet diary Corporate blogs blogs created by companies with the goals of the company in mind Professional blog blogs written by people who review and give recommendations on products and services Personal blogsblogs written by people that receive no products or muneration for their efforts Microblog a blog that shows short sentences short videos or individual images Gami cation when companies build loyalty by making patronage into a game of sorts Sentiment analys allows marketers to analyze data from these sources to collect consumer comments about companies and their products Hits total requests for a page or clicks Page view how many people view each page of a site Bounce rate the percentage of times the visitor leaves the site almost immediately Click path shows how users proceed through information on a website Conversion rates a measure that indicates what percentage of visitors acts as the rm hopes such as purchasing the product clicking or enrolling Keyword analysis determines which keywords consumers use to search the internet and nd the products or services that they are looking for Social reach refers to how many people a person in uences on social media In uence the extent of how one person in uences another Chapter Four Terms Business ethics refers to the moral or ethical dilemmas that might arise in a business setting Marketing ethics examines those ethical problems that are speci c to the domain of marketing Ethical climate includes having a set of values that guides decision making and behavior in the business setting Corporate social responsibility entails voluntary actions taken by a company to address the ethical social and environmental impacts of its business operations and the concerns of its stakeholders
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