Part 1: The market-led organization

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Part 1: The market-led organization
2013-11-04 14:36:23

marketing flash cards
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  1. marketing concept
    the achievement of corporate goals through meeting and exceeding customer needs better than the competition.
  2. key components of marketing concept
    customer orientation, integrated effort, goal achievement
  3. customer orientation
    corporate activities are focused upon providing customer satisfaction
  4. integrated effort
    all staff accept the responsibility for creating customer satisfaction
  5. goal achievement
    the belief that corporate goals can be achieved through customer satisfaction
  6. customer value
    perceived benefits - perceived sacrifice
  7. forms of customer value
    price value, performance value, emotional value, rational value
  8. marketing
    the delivery of value to customers at a profit
  9. business orientations
    production orientation, sales orientation, customer orientation
  10. production orientation
    production capabilities -> manufacture product -> customers
  11. sales orientation
    products and services -> aggressive sales effort -> customers
  12. customer orientation
    customer needs -> potential market opportunities -> marketing products and services -> customers
  13. traits of market oriented businesses
    • customer concern through business
    • know customer choice criteria and match with marketing mix
    • segment by customer differences
    • invest in market research (MR) and track market changes
    • welcome change
    • try to understand competition
    • marketing spend regarded as an investment
    • innovation rewarded
    • search for latent markets
    • be fast
    • strive for competitive advantage
  14. traits of internally oriented businesses
    • convenience comes first
    • assume price and product performance key to most sales
    • segment by product
    • rely on anecdotes and received wisdom
    • cherish status quo
    • ignore competition
    • marketing spend regarded as a luxury
    • innovation punished
    • stick with the same
    • why rush?
    • happy to be me-too
  15. efficiency
    concerned with inputs and outputs
  16. effectiveness
    doing the right things
  17. efficiency vs effectiveness
    • ineffective + inefficient = goes out of business quickly
    • effective + efficient = thrives and does well
    • ineffective + efficient = dies slowly
    • effective + inefficient = survives
  18. value based marketing
    objective in marketing is maximization of shareholder value
  19. marketing planning process
    • business mission
    • marketing audit
    • SWOT analysis
    • marketing objectives (strategic thrust, strategic objectives)
    • core strategy
    • target markets (competitive advantage, competitor targets)
    • marketing mix decisions
    • organization and implementation
    • control
  20. marketing environment
    the forces and actors that affect a company's ability to operate effectively in providing products and services to its customers and it includes the micro- and macro- environments
  21. microenvironment
    consists of the actors in the firm's immediate environment or business system and include: suppliers, customers, distributors, and competitors
  22. macroenvironment
    consists of a number of broader forces that affect not only the company but also the other actors in the microenvironment and include: physical, political/legal, economic, social, and technological
  23. economic forces
    economic growth and unemployment, interest rates and exchange rates, taxation and inflation
  24. social forces
    demographic forces, cultural forces, corporate social responsibility and marketing ethics, and the consumer movement
  25. political and legal forces
    the european union, pro-competitive legislation, consumer legislation, and codes of practice
  26. physical forces
    climate change, pollution, conservation of scarce resources, recyclable and non-wasteful packaging, use of environmentally friendly ingredients, and animal testing of new products
  27. technological forces
    lives and company's fortunes can both be affected significantly by technology in a multitude of ways
  28. environmental scanning
    the practice of monitoring and analyzing a company's marketing environment
  29. responses to environmental change
    • environmental change (the initial change)
    • ignorance then┬ádelay (barriers to change)
    • 3 options:
    • gradual strategic repositioning
    • retrenchment (deals with efficiency problems but not effectiveness issues)
    • radical strategic repositioning (riskier than the gradual)
  30. dimensions of customer behaviour
    • who is important in the buying decision?
    • how do they buy?
    • what are their choice criteria?
    • where do they buy?
    • when do they buy?
  31. who buys?
    • initiator: the person who begins the process of considering a purchase
    • influencer: the person who attempts to persuade others in the group concerning the outcome of the decision
    • decider: the individual with the power and/or financial authority to make the ultimate choice regarding which product to buy
    • buyer: the person who conducts the transaction
    • user: the actual consumer/user of the product
  32. how they buy?
    • B2C: need recognition/problem awareness, information search, evaluation of alternatives, purchase, post-purchase evaluation of decision
    • B2B: need recognition/problem awareness, determination of specification and quantity of needed item, search for and qualification of potential sources, acquisition and analysis of proposals, evaluation of proposals and selection of supplier(s), selection of an order routine, performance feedback and evaluation
  33. choice criteria
    • technical: reliability, durability, performance, style/looks, comfort, delivery, convenience, taste
    • economic: price, value for money, running costs, residual value, life cycle costs
    • social: status, social belonging, convention, fashion
    • personal: self-image, risk reduction, morals, emotions
  34. personal influences
    information processing, motivation and values, beliefs and attitudes, personality, lifestyle, lifecycle
  35. social influences
    culture and subculture, social class, reference groups
  36. influences on organizational purchasing behaviour
    • buy class: straight re-buy, modified re-buy, new task
    • product type: product constituents, product facilities, MRO's
    • importance of purchase: large sums of money, uncertainty of outcome
  37. just-in-time (JIT)
    minimize stocks by organizing a supply system that provides materials and components as they are required
  38. vertical electronic marketplace
    industry specific
  39. horizontal electronic marketplace
    cross industry boundaries and cater for supplies such as MROs, companies seeking supplies place their offers and potential vendors bid for the contracts
  40. relationship marketing
    process of creating, developing and enhancing relationships with customers and other stakeholders
  41. reverse marketing
    process whereby the buyer attempts to persuade the supplier to provide exactly what the organization wants
  42. internal market information
    marketing databases, customer relationship management (CRM) systems (allows measurement of customer retention, defect, and acquisition), website analysis
  43. market intelligence
    secondary research, marketing research, ad hoc and continuous research (ad hoc - focuses on a specific problem and collects data at one point in time) consumer panels (large number of consumers needed over a length of time), custom research and syndicated or omnibus research (research collect by firms on regular basis then sold to other firms), television vierweship panels, and exploratory descriptive an casual research
  44. stages in the marketing research process
    • initial contact: ex a quick online search for information*
    • research brief: meeting to decide the form of the research, includes background info., sources of info., scale of the project, and timetable*
    • research proposal: includes a statement of objectives, what will be done, timetable, and costs*
    • data collection stage: qualitative, quantitative, focus groups, depth interviews, observation, ethnographic research, surveys**
    • data analysis and interpretation: common mistakes are infer cause and affect when only association has been established & interpretation of means and percentages are subject to sampling error

    • exploratory research: can be conducted where * are in the the process
    • descriptive or casual research: can be conducted where ** are in the the process
  45. marketing information systems
    a system in which marketing information is formally gathered, stored, analyzed and distributed to managers, in accord with their informational needs on a regular planned basis.
  46. market segmentation
    the identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy
  47. benefits of market segmentation
    • better matching of customer needs gives
    • improved customer retention
    • enhanced opportunities for growth
    • enhanced profitability
    • more effective targeting of communications
    • opportunities of segment dominance
  48. consumer segmentation
    • behavioural: benefits sought, purchase occasion, purchase behaviour, usage, perceptions and beliefs
    • psychographic: lifestyle, personality
    • profile: demographic, socio-economic, geographic
  49. segmenting organizational markets
    criteria: organizational size, industry, geographic location, choice criteria, purchasing organization
  50. criteria for successful segmentation
    • effective
    • measurable
    • accessible
    • actionable
    • profitable
  51. target marketing
    refers to the choice of specific segments to serve and is a key element in marketing strategy
  52. target marketing strategies
    • undifferentiated marketing: marketing mix -> whole market
    • differentiated marketing: marketing mix specifically for a specific segment, focused marketing
    • customized marketing: marketing mix specific to each customer
  53. positioning
    the act of designing the company's offering so that it occupies a meaningful and distinct position in the target customer's mind
  54. keys to successful positioning
    • clarity
    • consistency
    • credibility
    • competitiveness
  55. repositioning
    changing the target markets, the differential advantage, or both