First 20 Questions

Needs, Wants, and Demand

• Needs

  • States of felt deprivation

• Wants

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

• Demands

  • Human wants that are backed by buying power

SWOT

• Strengths, weaknesses, opportunities, threats

  • An overall analysis of a company

Benchmarking

• Comparing the companies products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance

Segmentation

Market Segmentation

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

Age and Life-Cycle Segmentation

• Dividing a market into different age and life-cycle groups.

Behavioral Segmentation

• Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Benefit Segmentation

• Dividing the market into segments according to the different benefits that consumers seek from the product.

Cross-market Segmentation

• Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Demographic Segmentation

• Diving the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Gender Segmentation

• Dividing a market into different segments based on gender

Geographic Segmentation

• Dividing a market into different geographical units, such as nations, states, regions, countries, cities, or even neighborhoods.

Income Segmentation

• Diving the market into different income segments

Intermarket Segmentation (Cross-market)

• Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries

Market Segmentation

• Diving the market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.

Occasion Segmentation

• Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Psychographic Segmentation

• Dividing a market into different segments based on lifestyle or personality characteristics

Target Market

• A set of buyers who share common needs or characteristics that a company decides to serve

Positioning

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

Differentiation (product, customer, channel, price)

• Actually differentiating the market offering to create superior customer value

Value Proposition

• The full mix of benefits upon which a brand is positioned

Competitive Advantage

• An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices.

Direct Marketing

• Engaged directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

Product adaptation

• The process of changing a product to meet the needs of customers in a market other than the one in which it is made for.

Customer Relationship Management

• The overall process of building and maintaining profitable relationships with customers by delivering superior customer value and satisfaction

Promotional Mix (Marketing Communications Mix)

• The specific blend of promotional tools that the company uses to persuasively communicate customer value and build customer relationships

Marketing Mix

• The set of tactical marketing tools-- Product, place, price, promotion -- that the firm blends to produce the response it wants in the target market

Cause Related Marketing

• Marketing that is carried out by a for-profit business to advance a charitable cause or better society.

Advertising Appeal

• Communication strategies that marketing and advertising professionals use to grab attention and persuade people to buy or act.

Advertising

• Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

Channel Differentiation

• Companies can achieve competitive advantage through the way they design their distribution channels' coverage, expertise and performance.

Word of Mouth Marketing

• The impact of the personal words and recommendations of trusted friends, family, associates, and other consumers on buying behavior

PLC (product life cycle) •

• The amount of time spent in each stage will vary from product to product, and different companies have different strategic approaches to transitioning from one phase to the next.

IMC: Integrated Marketing Communications

• Carefully integrating and coordinating the companies many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

Pricing Strategies

Break-Even Pricing

• Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.

Competition-Based Pricing

• Setting prices based on competitors strategies, prices, costs, and market offerings.

Cost-Based Pricing

• Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Cost-Plus Pricing

• Adding a standard markup to the cost of the product

Customer Value-Based Pricing

• Setting price based on buyers perceptions of value rather than on the seller's cost.

Good-Value Pricing

• Offering just the right combination of quality and good service at a fair price.

Markup Pricing

• Adding a standard markup to the cost of the product

Target Return Pricing

• Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.

Value-Added Pricing

• Attaching value-added features and services to differentiate a company’s offers and charging higher prices.

Based-Point Pricing

• Pricing in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.

Dynamic Pricing

• Adjusting prices continually to meet changing conditions and situations in the marketplace

FOB-Origin Pricing

• Pricing in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination

Freight-Absorption Pricing

• Pricing in which the seller absorbs all of part of the freight charges in order to get the desired business.

Geographical Pricing

• Setting prices for customers located in different parts of the country or world.

Market-Penetration Pricing

• Setting a low price for a new product in order to attract a large number of buyers and a large market share.

Market-Skimming Pricing (Price Skimming)

• Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but profitable sales

Optional-Product Pricing

• The pricing of optional or accessory products along with a main product

Personalized Pricing

• Adjusting prices in real time to fit individual customer needs, situations, locations, and buying behaviors.

Product Bundle Pricing

• Combining several products and offering the bundle at a reduced price.

Product Line Pricing

• Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations, of different features, features, and competitors prices.

Promotional Pricing

• Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.

Psychological Pricing

• Pricing that considers the psychology of process and not simply the economics; the price is used to say something about the product.

Reference prices

• Prices that buyers carry in their minds and refer to when they look at a given product.

Segmented Pricing

• Selling a product or service at two or more prices, where difference in prices is not based on differences in costs.

Uniform-Delivered Pricing

• Pricing in which the company charges the same price plus freight to all customers, regardless of their location.

Zone Pricing

• Pricing in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price

Marketing Research Methods

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

Observational research

• Gathering primary data by observing relevant people, actions, and situations

Online focus group

• Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior

Online marketing research

• Collecting primary data through internet and mobile surveys, online focus groups, consumer tracking, experiments, and online panels and brand communities

Survey research

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

Market-penetration Pricing: Setting a low price for a new product in order to attract a large number of buyers and a large market share.

Chapter 14-17 Vocab

Intermediaries

• Offer producers greater efficiency in making goods available to target markets. Through contracts, experience, specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own.

Advertising

• Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

Affordable Method

• Setting the promotion budget at the level management thinks the company can afford

Buzz Marketing

• Cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities

Competitive-Parity Method

• Setting the promotion budget to match competitors outlays

Content Marketing

• Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels

Direct and digital marketing

• Engaged directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

Five A’s

• The five customer journey stages on the path from awareness of a brand to advocating it to others: awareness, appeal, ask, act, and advocacy

Integrated marketing communications (IMC)

• Carefully integrating and coordinating the companies many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

Nonpersonal communication channels

• Media that carry messages without personal contact or feedback, including major media, atmospheres, and events

Objective-and-task method

• Developing the promotion budget by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget

Percentage-of-sales method

• Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

Personal communication channels

• Channels through which two or more people communicate directly with each other, including face-to-face, on the phone, via mail or email, or even through an internet “chat”

Personal Selling

• Personal presentation by the firms sales force or the purpose of engaging customers, making sales, and building customer relationships

Promotional mix (Marketing communications mix)

• The specific blend of promotional tools that the company uses to persuasively communicate customer value and build customer relationships

Public Relations

• Building good relations with the company's various publics by obtaining favorable publicity, building a good corporate image, and creating favorable events, stories, and other marketing content

Pull Strategy

• A promotional strategy that calls for spending a lot on consumer advertising, -promotion, and other content to induce final consumers to engage with and buy the product, creating a demand vacuum that “pulls” the product through the channel

Push Strategy

• A promotion strategy that calls for using the salesforce and trade promotion to push the product through channels. The produced promotes the product to channel members who in turn promote it to final consumers

Sales Promotion

• Short-term incentives to encourage the purchase or sale of a product or a service

Advertising agency

• A marketing services firm assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs

Advertising Budget

• The dollars and other resources allocated to a product or a company advertising program

Advertising media

• The vehicles through which advertising messages are delivered to their intended audiences

Advertising objective

• A specific communication task to be accomplished with a specific target audience during a specific period of time

Advertising strategy

• The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media

Creative concept

• The compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way

Execution styles

• The approach, style, tone, words, and format used for executing an advertising message

Native advertising

• Advertising or other brand-produced online content that looks in form and function like the other natural content surrounding it on a web or social media platform

Return on advertising investment

• The net return on advertising investment divided by the costs of the advertising investment

Approach

• The sales step in which a salesperson meets the customer for the first

Business Promotions

• Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

Closing

• The sakes step in which a salesperson asks the customer for an older

Consumer promotions

• Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customers relationships

Customer sales force structure

• A sales force organization in which salespeople specialize in selling only to certain customers or industries

Event marketing (sponsorships)

• Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

Follow-up

• The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

Handling objections

• The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying

Inside Sales force

• Salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers

Outside Sales force (field sales force)

• Salespeople who travel to call on customers in the field

Preapproach

• The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call

Presentation

• The sales step in which a salesperson tells the “value story” to the buyer, showing how the companies offer solves the customers problems

Product sales force structure

• A sales force organization in which salespeople specialize in selling only a portion of the companies product or lines when

Prospecting

• The sales step in which a salesperson or company identifies qualified potential customers

Sales force management

• Analyzing, planning, implementing, and controlling sales force activities

Salesperson

• An individual who represents a company to customers by performing one or more of the following activities: Prospecting, communicating, selling, servicing, information gathering, and relationship building

Sales Quota

• A standard that states the amount a salesperson should sell and how sales should be divided among the companies products

Selling Process

• The steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation, and demonstration, handling objections, closing, and follow-up

Social Selling

• Using online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance

Team selling

• Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts

Territorial Sales force structure

• A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the companies full line

Trade promotions

• Sales promotion tools used to persuade resellers to carry a brand, give it self space, and promote it in advertising