achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
the portion of the company's purchasing that a company gets in its product categories
food co gets share of stomach
the number of units sold by the firm relative to the number of units sold inthe entire market (Munits):
MSunits = Sunits / Munits
the ____ network is made up of the company suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system
Marketing consists of our primary elements: produc, price, distribution, and communication. These are the primary elements in what is know as the marketing mix. The communication component of marketing is further divided into the four primary categories:
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
the set of controllable tactical marketing tools:
(4Ps-product, price, place, and promotion) that the firm blends to produce the response it wants in the target market
Through strategic planning, the company decides what it wants to do with each business unit
involves deciding on marketing strategies that will help the company attain its overall strategic objectives
the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
used because surprises occur during implementation of marketing plans
Actually differentiating the market offering to create superior customer value
- 1st level: product attributes (least desirable, easily copied) -- Pampers diaper fluid absorption, fit, disposability
- 2nd level: benefit -- FedEx has guaranteed on-time delivery
- 3rd level: beliefs and values -- engage customers on deep, emotional level -- Pampers benefits baby sleep/development
Retailers oftenprice their store brands lower than comparable national brands.
Store brandsyield higher profit margins for the reseller.Store brandsgive re sellers exclusive products that cannot be bought from competitors
- Acquisition, buying of a whole company, patent, or license to produce someone else's product
- New Product development: original products, product improvements/modifications, and new brands developed form the firm's own research and development
the systematic search for new-product ideas
Major sources of new-product ideas include internal sources and external sources such as customers, competitors, distributors and suppliers.
business demand that ultimately comes form the demand for consumer goods (from that business).
consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make special purchase effort
High price, Exclusive distribution, carefully targeted promotion by producer and resellers
Ex) Luxury Goods, Rolex
purchases for further processing or for use in conducting business
Includes: Materials and Parts, Capital Items, Supplies and services
online social communities-blogs, social networking Web sites, or even virtual worlds-where people socialize or exchange information and opinions
the buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit
raw materials (farm and natural products) and manufactured materials and parts (component materials and component parts).
setting price based on buyer’sperceptions of value rather than on the seller’s cost
price is considered before marketing program is set
1.design a good product
2.determine product costs
3.set price based on cost
4. convince buyer's of value
adding a standard markup to the cost of a product
generally ignores consumer demand and competitor prices does not lead to best price (simplifies pricing)
setting price to break even on the costs of making and marketing a product or setting price to make a target return.
*fixed cost/ (price-variable cost)
*total revenue= total cost
does not take into account the price-demand relationship
setting prices based on competitor's strategies, prices, costs, and market offerings
how does this company compare with customer value? no matter, what price, must give customers superior value for that price`
measure of sensitivity of demand to changes in price, how responsive demand will be to change
elastic: demand changes greatly, lower prices to produce more total revenue
inelastic: demand doesn't budge,don't lower prices
When the demand responds substantially to price changes.
%change in q/ % change in price
If >1, elastic
If <1, inelesatic