Marketing Midterm 1

Needs

State of felt deprivation

What are the three types of needs

Physical- need for clothing, food and safety

Social- Belonging and affection

Individual- knowledge and self expression

Wants

The form of human needs take as they are shaped by culture and individual personality

Demands

When backed by buying power wants become _____

Market offerings

Combinations of products, services, or experiences offered to a market to satisfy the needs and wants of customers.

Market myopia

Sellers are so taken with their products that they focus only on existing wants and needs and lose sight on underlying customer needs

Value and Satisfaction

Customers form expectations about the ____ and ____ that various market offerings will deliver and buy accordingly.

Exchange

The act of obtaining a desired object from someone by offering something in return

What is the goal of exchange

Maintain and grow desirable relationships

Market

The set of actual and potential buyers of a product or service

Value proposition

Set of benefits and values it promises to consumers to satisfy their needs

Production concept

Hold that consumers will favor products that are available and highly affordable

Improving production and distribution efficiency

What does managment focus on in production concept

Product Concept

Holds that consumers will favor products that offer the most in quality, performance and innovative features

Making continues products

What does management focus on in the product concept

Selling concept

Holds that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

Sell what the company makes rather than to make what the market wants

What is aim of management in the selling concept

Marketing concept

Holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do.

Customer-centered-sense

What is the philosophy for management under the market concept

Societal marketing concepts

Holds that marketing strategy should deliver value to consumers in a way that improves both the consumers and society’s well being

What are the 4 p’s of marketing

Product, price, placement, promotion

Perceived value

Consumers judge based on _____

Customer lifetime value

The value of the entire stream of purchases a customer makes over a lifetime of patronage

Customer Equity

The total combined customer lifetime value of all the company’s current and potential customers

Business portfolio

The collection of businesses and products that make up the company

Market penetration

Company growth by increasing sales of current products to current markets segments without changing the product

Market Development

Identifying and developing new markets for its current products

Product development

offering modified or new products to current markets

Diversification

Starting up or buying businesses beyond its current product and markets

Downsize

Companies must also develop plans to ______ their portfolios

1. Grown to fast

2. Enter areas where it lacks experience

What are two reasons a company might downsize

Market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors who might require separate marketing strategies

Market Segment

Consists of consumers who respond in a similar way to a given set of marketing efforts

Market targeting

Evaluating each market segments attractiveness and selecting one ore more segments to enter

Positioning

Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

Differentiation

_____the company’s market offering to create superior to create superior customer value

Marketing mix

The set of tactical marketing tools that the firm blends to produce the response it wants in the larger market

Strengths, Weaknesses, Opportunities, Threat

What does SWOT stand for

Microenvironment

Actors close to the company that affects its ability to engage and serve its customers

Macroenviroment

Larger societal forces that affect the microenvironment

Market Intermedaries

Help the company promote, sell, and distribute its product to final buyers

Resellers, market service agencies, physical distribution firms, financial intermediaries

What are examples of market intermediaries

Publics

Any group that has an actual or potential interest in or impact on an organizations ability to achieve its objective

Demography

Study of human populations, including size, density, distribution, age, gender, race, and how they change over time due to births, deaths, and migration.

Political Environment

Consists of laws government agencies and pressure groups that influence or limit various organizations and individuals in a given society

Cultural Environment

Institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors

Internal Databases

Collections of consumer and market information obtained from data sources within the company’s network

Marketing Research

Systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization

Exploratory Research

Gather preliminary information that will help define the problem and suggest hypotheses

Secondary data

Information that already exists somewhere having been collected for another purpose

Primary data

Consists of information collected for the specific purpose at hand

Survey Research

Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior