1the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
marketing
2low propensity among a firms customer base to consider switching to other providers
retention
3Marketing planning steps
1. perform a situation analysis
2. set marketing objectives
3. develop marketing strategies
4. implement and control the marketing plan
43 c model
customer <-----> company <------> competition <------>
5stp model
strategy:
segmentation
targeting
positioning
64 p model
product, price, place, promotion
7An umbrella plan for the overall direction of the corporation developed above the SBU level.
corporate level strategic planning
8Planning that occurs within each of the firm's SBU's designed to meet individual performance requirements and contribute satisfactorily to the overall corporate plan.
SBU level strategic planning
9
A popular approach for in-firm portfolio analysis that categorizes business units' level of contribution to the overall firm based on market growth rate and competitive position.
BCG Growth-Share Matrix
10BCG Matrix (purpose and uses)
contributes to decision making about internal cash generation and usage across SBUs. also used for investment decisions
11a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring the bundle of benefits
value
12a person gives something of value for something desired
exchange
13business philosophy that emphasizes an organization-wide customer orientation with the objective of achieving long-run profits
marketing concept
14post marketing concept approaches
Differentiation Orientation
Market Orientation
Relationship Orientation
One-to-One Marketing
15Communicating and delivering value in different ways to different customer groups.
differentiation orientation
16
the implementation of the marketing concept, based on an understanding of customers and competitors
market orientation
17Investing in keeping and cultivating profitable current customers instead of constantly having to invest in gaining new ones.
relationship orientation
18Directing energy and resources into establishing a learning relationship with each customer and connecting that knowledge with the firm's production and service capabilities to fulfill that customer's needs in as customary a manner as possible.
one-to-one marketing
19Change drivers affecting the future of marketing (5)
1) shift to product glut and customer shortage
2) shift in info power from marketer to consumer
3) shift in generational values and preferences
4) shift to distinguishing marketing (big m) from (little m)
5) shift to demanding return on marketing investment
20some type of utility that a company and its products provide its customers
benefits
21the want-satisfying power of a good or service
utility
22the level of liking an individual harbors for an offering
satisfaction
23a customer's commitment to a company and its products and brands for the long run
loyalty
24
A customer changes from purchasing one product to purchasing another competing product.
customer switching
25the unique value that a product or service provides to its customers and how it is better than and different from those of competitors
value proposition
26
the ongoing process of developing and implementing market-driven strategies for an organization
marketing planning definition
27companies or businesses are like elephants on a walk (there are leaders in the industry and other follow behind). Various reasons to why some may want to trail behind (safer etc) may eventually break off and find a new path and become a leader themselves. strategic marketing helps businesses find the right time to do so.
elephants concept
28BCG Matrix (labels)
stars - high share, high growth
cash cows - high share, low growth
dogs - low share, low growth
problem children/question marks - low share, high growth
29what decisions could derive from a BCG Matrix with SBU's placed in the matrix?
whether or not to invest or divest in the SBU
30the verbal articulation of an organizations purpose or reason for existence
mission statement
31discussion of what the company would like to become in the future
vision
32general statements of what the firm wishes to accomplish in support of the mission and vision
goals
333 generic business strategies
broad cost leadership, broad differentiation, focused strategy
343 competitive strategies
low cost, differentiation, and focus (niche)
35The activities a firm can do exceedingly well.
core competencies
36
A firm's core competencies that are superior to those of their competitors.
distinctive competencies
37The resulting advantage a firm has when it invests in distinctive competencies.
sustainable competitive advantage
38Micheal Porter's five forces model (draw, label, explain)
threat of new entrants - how strong are entry barriers
rivalry amongst existing firms - how much direct competition
threat of substitute products
bargaining power of buyers - degree customers affect prices and product offerings
bargaining power of suppliers - raise prices or affect quality
39product/market strategies (draw, label, explain)
market penetration - existing customers, existing products
product development - new products, existing customers
market development - existing products, new customers
diversification - new products, new customers
40dividing a market into meaningful smaller markets or submarkets based on common characteristics
segmentation
41evaluating market segments and making a decision about which among them shows the most promise for development
targeting
42
the communication of sources of value to the customer so they can easily make the connection between their needs and wants and what the product has to offer
positioning
43The process of examining new business opportunities to improve organizational performance.
opportinity analysis
44three inter-related activities
op identification
op evaluation - Matches attractiveness of an opportunity with the potential for uncovering a market niche which depends on
op organization matching - Determines whether an identified market opportunity is consistent with the definition of the firm's business station, mission statement, and distinctive competencies
45Criteria for Effective Segmentation
Is the segment of sufficient size?
Is the segment readily identifiable and can it be measured?
Is the segment clearly differentiated on one or more important dimensions?
Can the segment be reached in order to deliver the value of the product?
46four main segmentation approaches
geographic
demographic
psychographic - (personality, activities, interests)
behavioral - benefits sought/product usage patterns
47three factors used to analyze market segments (targeting process)
segment size and growth potential, competitive forces related to the segment, strategic fit of the segment
48target marketing approaches (5)
undifferentiated
differentiated
concentrated - target large portion of small market
combined - meeting needs of two segments but nit perfectly for either
customized (one-to-one)
49purpose of perceptual map
compares attributes to gauge customer perceptions of each competitors delivery against those attributes
50
Using the marketing mix approach to change present consumer perceptions of a firm's product or service.
repositioning