Some marketing related definitions
cread525's 2016-11-04 04:59
Course preferred definition: Marketing is activity, set of institutions and processes for creating, communicating, deliver and exchanging offerings that have value for customers, clients, partners and society at large
Micromarketing: How individual organisations direct marketing activities and allocates resources to benefit customers
Macro Marketing: Study of flow of a nations goods and services to benefit society
Utilities: Benefits or customer value received by users of the product
Need: A state of felt deprivation of some basic satisfaction
Wants: Desires for specific satisfiers of the deeper needs
Demands: Wants for specific products that are backed by an ability and willingness to buy them
Market Offerings: Some combination of goods/services/experiences that can be offered to a market to satisfy need or wants
Market: Market = Actual buyers + Potential Buyers
Exchange: Way to obtain products or services; four conditions must be satisfied for exchange.
Marketing Management Choosing target markets and building profitable relationships with them
Negative Demand Major part of market dislikes product
No Demand Consumers are unaware /uninterested in product
Latent demand More demand than being satisfied
Faltering demand Demand for product is declining
Irregular demand Demand pattern is irregular i.e., seasonal
Full Demand Demand is more than the company can handle
Unwholesome demand Market wants unwholesome products (e.g., cigarettes.)
Integrated Marketing Builds customer relationships transforming the market strategy into action. Consists of company's marketing mix
CRM CRM is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction that encompasses all facets of getting initial customers, keeping those customers and getting new customers.
Customer Satisfaction Value created through the exceeding of customer expectations
Strategic Planning Task of selecting an overall company strategy for long-run survival and growth (Includes maintaining a strategic fit between organisations goals and capabilities
Mission Statement Outlines the company's purpose, states what it wants to accomplish, guides all organisations actions
Value Chain The series of internal departments that carry out value creating activities to design, produce, market, deliver and support a firm's products.
Value Delivery Network Comprises the company, its suppliers, distributors and ultimately, customers who partner with each other to improve performance of entire system
Marketing Implementation plan process that turns marketing strategies and plans into marketing activities in order to accomplish strategic marketing objectives
Micro-Environment Forces close to the organisation that affect its ability to serve its customers
Macro-Environment Larger Societal forces that affect the organisations whole microenvironment
MIS Develops Information and helps managers use it more effectively
Research Design: a plan that specifies what information marketers will collect and what type of study they will undertake
Secondary Data Data that has been collected for some purpose other than the problem at hand
Primary Data Data from research conducted to help in making a specific decision
Exploratory Research: gather preliminary information to define the problem and suggest hypotheses
Descriptive Research to describe things, such as the market potential for a product
Causal Research to test hypotheses about cause-and-effect relationships.
Focus Group A 1-3 hour interview by a trained moderator in a non-structured natural manner with a small group of 8-12 homogenous pre-screened respondents
Survey Questionnaire Defined as carefully selected array of questions
Culture Set of basic values, perceptions, wants and behaviours learned by a member of society from family and other important institutions.
Sub Culture a group of people with shared value systems based on common life experiences and situations
Social Class relatively permanent and ordered divisions of society whose members share similar values, interests and behaviours
Personality Unique psychological characteristics that lead to relatively consistent and lasting responses to our environment.
Perception process by which people select, organise and interpret information to form a meaningful picture of the world.
Belief Assumptions and convictions (internal feeling) that an individual or a group hold to be true regarding concepts, events, people, and things (even though that belief may be unproven or irrational
Attitude tendency to respond positively or negatively towards a certain idea, object, person, or situation. It is the way to express or apply one's values and beliefs though behavior.
E (2) enable
T Target Market
Goods Tangible object/thing that can be offered to a market that might satisfy a want or need.
Services An intangible 'product' in the form of an activity, benefit or satisfaction that one party can offer to another not resulting in the ownership of anything
Product Quality Ability of a product to perform its functions
Product Features Technical characteristics of the offering. Consumers seek value and need satisfaction. Product feature decisions must reflect consumer needs and perceptions, affordable value and company cost.
Product Design Combines attention to style with enhanced performance
Line filling: adding items within the existing product range of the line
Upward Stretch Introducing items to higher end of market
Downward Stretch Offering items to lower end of the market
Customer-Centred Development Focuses on solving customer problems and create more satisfying customer experiences
Two-way Stretch Upward and Downwards stretching
Team Based Development Company departments work together in cross-functional teams
Systematic development NPD process should be systematic and holistic to ensure that new ideas that emerge do not falter
Product Modification Strategies Altering a product characteristic
Market Modification Strategies Increasing product's use among existing customers
Brand A name, term, sign, symbol, design or a combination of these that identifies the goods or services of one seller or group of sellers
Monopolistic Competition a. Many buyers and sellers trading over a range of prices b. Products may be differentiated (usually slightly but enough to be unique)
Oligopolistic competition a. Few sellers each sensitive to the other's pricing & strategies. b. Barriers to entry prohibit new sellers from entering the market. c. If the government regulation is weak, oligopolies will collude with one another to set prices like the monopolists.
Pure monopoly: a. A single seller, e.g., government, or regulated/unregulated monopoly. i. Pricing may be linked to other than cost or profit factors, including fear of competition entering or regulation.
Pure competition: a. Many buyers and sellers trading in a uniform commodity so that no one agent affects pricing. b. Going rate pricing is the rule. c. Marketing research, product development, advertising, and sales promotion play little or no role.
Market Skimming Prices Setting a high initial price for a new product to 'skim' maximum revenue from segments willing to pay high price.
Market Penetration Prices Setting a low initial price for a new product to attract a large number of buyers and large market share.
Value Delivery Network comprises the company, suppliers, distributors and ultimately customers who 'partner' with each other to improve the performance of the entire system.
Horizontal Conflict: occurs between firms at the same level of the channel. Dealers and franchises of the same firm within the same market may argue about each other's competitive practices.
Vertical Conflict Refers to problems between firms at different levels in the channel.
Vertical Marketing Network Vertical Marketing Networks: Comprises producers, wholesalers and retailer acting in as a unified system.
Horizontal Marketing System Formed when two or more companies at one level join to pursue a new marketing opportunity
Hybrid Marketing Channel Utilise more than one channel to reach customers more effectively and with greater flexibility
Specialty Stores Carry narrow product lines
Department Stores Carry wide variety of lines
Supermarkets Feature low-cost, high volume, self-service food, laundry and household items
Superstores, Combination stores and hypermarkets Variations on much larger versions of supermarkets offering other lines and or services
Push Strategy The company pushes the product through intermediaries
Pull Strategy Company promotes directly to final consumers creating a demand which it fulfills through intermediaries
Sales Promotion Short-term incentives to encourage the purchase or sale
Customer Database Organised collection of comprehensive data about individual customers or prospects, including geographic, demographic, psycho graphic and behavioral data.
Legal Compliance • Legal compliance is a culture ○ Can only be fostered by top management commitment and implemented through continuing education
Legal Education ○ Programs cover relationships with competitors, suppliers, and other parties (e.g. patent licensees), and the industry itself. § Courts expect members of marketing organisation to have proper education § Firms must not avoid their responsibilities in this regard.
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