What are the criteria for an exchange to occur?
- Two+ Parties with Unsatisfied Needs
- A Desire and Ability to be Satisfied
- A Way for the Parties to Communicate
- Something to Exchange
What are the types of utility?
- Form utility: raw materials/components à finished goods/services
- § Place utility: goods/services available where consumers want them
- § Time utility: goods/services available when consumers want them
- § Possession utility: ability to transfer ownership
What are the different marketing orientations?
- Production:"A good product will sell itself"
- Sales: "Creative advertising and selling will overcome consumers' resistance and persuade them to buy"
- Marketing: "The consumer rules! Find a need and fill it."
- Relationship: "Long-term relationships with customers and other partners lead to success"
- Social: "Connecting to consumer via Internet and social media sites is an effective tool."
What types of value strategies are used by organizations?
What are the 4 P’s?
What are the types of customers that a firm might have?
- Butterflies: high profitability, low loyalty
- true friends: high profitability, high loyalty
- strangers: low profitability, low loyalty
- barnacles: low profitability, high loyalty
What are the different types of organizations?
What are the components of the organizational foundation?
- Core values: the fundamental, passionate, and enduring principles that guide its conduct over time
- Mission: a statement of the organizations function in society, often identifying its customers, markets, products, and technologies
- Organizational culture: how a company is
What’s a SWOT analysis?
- § Strengths=I
- § Weaknesses=I
- § Opportunities=E
- § Threats=E
What are the types of competitive advantage?
- § Cost:keep the cost, hence the prices, of a product or service below those of a competitor and to target wide market
- § Product/service differentiation:offer products or services that are unique and of superior value compared with those of competitors but ti a wide target market
- § Niche: offer products and services at a low price while still offering value to a narrow target market
What’s the BCG matrix?
- Stars: High-growth, high-share businesses or products. They often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
- Cash Cow: Low-growth, high-share businesses or products. These established and successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment.
- Question Marks:Low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it.
- Dogs: Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
BCG PORTFOLIO ANALYSIS
- Harvest: appropriate for all types of SBU’s except stars. Goal is to increase short-term cash return.
- Divest: appropriate for question marks and dogs. Involves getting rid of the SBU
- Build: appropriate for question marks believed to have the potential to be a star.
- Hold: Appropriate for a very successful cash cow.Involves maintaining market share.
What’s diversification analysis/Ansoff’s matrix?
- Market Penetration: A strategy for company growth by increasing sales of current products to current market segments without changing the product.Consider collaboration.
- Market Development: A strategy for company growth by identifying and developing new market segments for current company products. Consider exporting, buying companies, or licensing.
- Product Development: A strategy for company growth by offering modified or new products to current market segments. Invest in R&D.
- Diversification: A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.Create new business units, buy subsidaries, technology shares.
Why is it important to have SMART goals?
- Goals convert an organization’s mission and business into long
- and short-term performance targets.
What are the different methods of structuring an organization?
- ¡ Segmentation: Dividing the market into subsets of consumers
- such that each subset has consumers who are similar to one
- another and different from consumers in other subsets.
- ¡ Targeting: Selecting the segments that are worthy of pursuit
- and finding ways to reach them.
- ¡ Positioning: the process by which the firm creates a distinct
- image and identity for the brand and its product(s) relative to
- the competition.
What are the five different segmentation strategies?
- One product – Multiple segments
- Multiple products – multiple segments
- Mass customization
- No individual segments; Everyone gets treated the same way
- Lower marketing and production costs
- Product may not adequately satisfy consumer needs
ONE PRODUCT – MULTIPLE SEGMENTS
- One product marketed to more than one segment
- Modifications made to the promotions intended for each
- Reduces cost associated with developing several products
- May mean better quality
- Product may not adequately satisfy consumer needs in all segments
MULTIPLE PRODUCTS – MULTIPLE SEGMENTS
- Different products marketed to different segments
- Modifications made to the product and the promotions
- intended for each segment
- May address customer needs better
- Very expensive
- Can lead reductions in quality
- Pursue large shares of only one or a few segments
- Often adopted by firms who are entering the marketplace
- Able to gain a strong market position because it addresses the needs
- of its customers well. More effective and more efficient.
- More risky because dependent on just a few segments
- One product tailored to every customer (no segments)
- Cater to individual needs at scale. Built-to-order (BTO).
- Possible only because of technological innovations
- CRM systems can be very useful
- Cater to every individual consumer’s needs.
- Need to have production processes that make this possible
What are the bases of segmentation?
- 1. geographic - region
- 2. demographic - household size, age, gender, income, ethnicity
- 3. psychographic - lifestyle
- 4. behavioral - product features, usage rate
Grouping products and the market-product grid
- Link between segments and market offerings.
- Shows size of market and relevant product
What are the criteria for selecting segments to target?
- Identifiable and measurable segments
- Large and/or growing segments
- Segments that are not currently being served
- Accessible segments
- Segments that fit your brand image
What are the different positioning strategies?
- Product positioning: introduce new products
- Product re-positioning: refresh old products
- Head-to-head positioning
- Differentiation positioning
- Use or application
- Product user
- Product class
What are the constraints on doing research?
- Time: When do you need an answer?
- Money: How much do you have to spend on answering the
- Human resources: How many participants do you need? How
- many people do you need to do the research?
What are the different types of data collected?
- Collected specifically for current purpose.
- Could be internally or externally collected.
- Examples: Experiments, Test Markets, Focus Groups, Surveys, Observations,
- Interviews, etc.
- Collected for some other purpose.
- External (census, Gallup polls, etc.)
- Internal (input and output metrics)
- Ideal for idea generation.
- Involves few respondents.
- Ideal for testing a hypothesis.
- Usually requires many respondents
What are the advantages/disadvantages of primary vs. secondary data? When would you collect one versus the other?
- Primary Data
- • Tailored to your needs.
- • Can be expensive (in
- terms of time, money,
- • You may not have the
- capability to collect the
- Secondary Data
- • Generally cheaper in terms
- of time and money.
- • May not be specific to your
- Data may be out of
- Population may not be
- Data may not be what
- you’re looking for
Behavioral Segmentation- quantity consumed OR- number of store visits in a time period*frequency marketing
- 80% of a firm's sales are obtained from 20% of its customersex. data usage from cell phone carriers
- stealing business from one product to another of the same company- based in segmentation
- product competes directly with competitors on similar product attributes and target markets
Focusing only on existing wants and losing sight of underlying consumer needs.
The total combined customer lifetime values of all of the company's customers.
Porter’s generic strategies
The series of departments that carry-out value creating activities to design, produce, market, deliver, and support a firm's products.
Value Delivery Network
The network made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
a specialized observational approach in which trained observers seek to discover subtle behavior and emotional reactions as consumers encounter products in their "natural use environment"
the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions
estimating the value of a forecast with no intervening steps. For example how much milk should i buy?
starting with the last known value of the item being forecast, listing the factors that could effect the forecast, assessing positive of negative effects, and making the final forecast
involves extending a pattern observed in past data into the future
keep the costs of a product below competitors
offer unique products of superior value to a competitor to a target market
keep the cost below competitors and narrowed for a certain market
offering better products to a narrow market