Marketing Test 1 (Texas Tech, Harper) – Flashcards
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What is the Marketplace?
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refers to the world of trade
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What can the marketplace be segmented into?
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groups of people who are pertinent to an organization for particular reasons
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What are the marketing mix or four p's of marketing?
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Product, Price, Place, and Promotion
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What do the four p's comprise in a business?
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the controllable set of decisions or activities that the firm uses to respond to the wants of its target markets
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What is the goal of the product?
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create value
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what is marketing?
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the activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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What is the fundamental purpose of marketing?
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create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs
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what is an exchange?
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the trade of things of value between the buyer and the seller so that each is better off as a result
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what are the 4 steps in the exchange system?
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good/services producers (sellers) -> communications and delivery -> customers/consumers (buyers) -> money and information
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What are goods?
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items that you can physically touch
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what are services?
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intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
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what are ideas?
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thoughts, opinions, and philosophies
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what is the goal of price?
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capturing value
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what is price?
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everything a buyer gives up--money, time, and or energy-- in exchange for the product
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what is price based off of?
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the potential buyers belief about its value/ how much a buyer is willing to pay for the believed value
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what is the goal of place?
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delivering the value proposition
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what does place represent?
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all the activities necessary to get the product to the right customer when that customer wants it
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what does place deal closely with?
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supply chain management
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what is supply chain management?
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set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and other firms in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, at the right time, while minimizing systemwide costs and satisfying the service levels required by the customer
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what is the goal of promotion?
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communicating the value proposition
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what is promotion?
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communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions and elicit a response
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what does promotion enhance?
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a products or services value
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what is B2C?
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business to consumer marketing which is the process by which businesses sell to consumers
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what is B2B?
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business to business marketing which is the process of selling merchandise or services from one business to another
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what is C2C?
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consumer to consumer marketing this came with the advent of various internet auction sites and social media, consumers have started marketing their products and services to other consumers
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who all does marketing affect?
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customers, clients, wholesalers, retailers, or other intermediaries such as transportation or warehousing companies
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what and when was the production-oriented era?
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around the turn of the 20th century, believed that a good product would sell itself
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what and when was sales-oriented era
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between 1920 and 1950, production and distribution techniques became more sophisticated and the Great Depression and WW11 conditions customers to consume less or manufacture items themselves, so they planted victory gardens instead of buying produce.
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what and when was the market-oriented era?
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after ww11, soilders returned home, and got new jobs, manufacturers turned from focusing on the war efforts toward making consumer products
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what is the value-based marketing era?
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most successful firms today are market oriented. this means they generally have transcended a production or selling orientation and attempt to discover and satisfy their customers needs and wants
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what is value?
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reflects the relationship of benefits to costs, or what you get for what you give.
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what is value cocreation?
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customers can act as collaborators to create the product or service. example when nike allows customers to custom design their shoes
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why do we use the procedure of balancing benefits with costs?
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value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings so that we are never falling behind
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why do we build relationships with customers?
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to build relationships, firms focus on the lifetime profitability of the relationship not how much money is made during each transaction
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what is customer relationship management (CRM)
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a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers
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why is marketing important?
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advises production about how much of the company's product to make and then tells logistics when to ship it
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what are the 4 things that make marketing necessary?
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-can be entrepreneurial -expands global presence -enriches society -pervasive across channel members
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what 4 components makes up the supply chain?
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raw material, manufacturer, retailer, consumer
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what is the marketing channel?
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groups of a firm that make and deliver a given set of goods and services
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how does marketing enrich society?
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can develop greener products, making healthier food options and safer products in this direction, and improving their supply chains to reduce their carbon footprint
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what is an entrepreneur?
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people who organize, operate, and assume the risk of a business venture
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what is marketing strategy?
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identifies a firms target market(s), a related marketing mix (the four p's), and the bases on which the firm plans to build a sustainable competitive advantage
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what is a sustainable competitive advantage?
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an advantage over the competition that is not easily copied and can be maintained over a long period of time
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what are the four macro, or overachieving, strategies that create and deliver value?
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customer excellence, operational excellence, product excellence, locational excellence
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what is customer excellence?
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focuses on retaining loyal customers and excellent customer service
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what is operational excellence?
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achieved though efficient operations and excellent supply chain and HR management. getting the right product, to the right people, at the right place, at the right time
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what is product excellence?
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having products with high perceived value and effective branding and positioning
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what is locational excellence?
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having a good physical location and internet presence "location, location, location"
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what is marketing plan?
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written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the four p's, action programs, and projected or pro-forma income (and other financial) statements
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what are the three major phases of the marking plan?
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planning, implementation, and control
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what is the planning phase?
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marketing executives, in conjunction with other top managers, define the mission and/ or vision of the business
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what is the implementation phase?
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marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning
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what is the control phase?
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entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective actions
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what is a mission statement?
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broad description of a firms objectives and the scope of activities it plans to undertake
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what does the mission statement answer?
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what type of business are we? and what do we need to do to accomplish our goals and objectives?
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what is a situation analysis?
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uses SWOT assesses both the internal environment with regard to its strengths and weaknesses and the external environment with its opportunities and threats. also should asses the opportunities and uncertainties of the marketplace due to changes in cultural, demographic, social, technological, economic, and political forces (CDSTEP)
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what is SWOT?
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internal- strengths & weaknesses external- Opportunities and threats
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what is a market segment?
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consists of consumers who respond similarly to a firm's marketing efforts
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what is market segmentation?
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the process of diving the market into groups of customers with different needs, wants, or characteristics-- who therefore might appreciate products or services geared especially for them
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what is target marketing or targeting?
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each segment get evaluated for its attractiveness and then decide which to pursue, then that group gets marketed to
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what is market positioning?
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involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
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what is the only thing that actually brings in money and therefore influences revenues?
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pricing
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what is the integrated marketing communication (IMC)?
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represents the promotion P of the four P's, it encompasses a variety of communication disciplines--advertising, personal selling, sales promotion, public relations, direct marketing, and online marking including social media-- in combination to provide clarity, consistency, and maximum communicative impact
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What is strategic business unit (SBU) or product line level of the firm?
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the level where portfolio analysis is typically performed
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what is a product line?
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a group of products that consumers may use together or perceive as similar in some way
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what is market share?
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percentage of a market accounted for a specific entity, and is used to establish the product's strength in a particular market
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what is relative market share?
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provides managers with a products relative strength, compares with that of the largest firm in the industrys
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what is market growth rate?
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annual rate of growth of the specific market in which the product competes
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what are stars?
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occurs in high growth markets and are high market share products
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what are cash cows?
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low-growth markets but are high market share products
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what are question marks?
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appear in high-growth markets but have relatively low market shares; thus, they are often the most managerially intensive product in that they require significant resources to maintain and potentially increase their market share.
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what are dogs?
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low growth markets and have relatively low market shares
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what is the market penetration strategy?
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employs the existing marketing mix and focuses the firms effort on existing customers
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what is the market development strategy?
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employs the existing product in a new market
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what is the product development strategy?
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offers a new product or service to a firm's current target market
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what is a diversification strategy?
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the last of the growth strategies introduces a new product or service to a market segment that currently is not served
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what is an ethical climate?
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the process of creating a strong climate includes having a set of values that guides decision makings and behavior
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what is corporate social responsibility (CSR)?
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generally entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders
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what are the steps in the framework for ethical decision making?
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1. identify issues 2. gather information and identify stakeholders 3. brainstorm and evaluate alternatives 4. choose a course of action
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what does employee's consist of
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employees families
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who does customers consist of
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current and potential customers
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who does marketplace consist of
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partners and competitors
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what does society consist of
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community and environment
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what is at the heart of the marketing environment?
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consumers
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what are the aspects of the immediate environment of marketing?
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company, competition, corporate partners
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what are the aspects of the macro environment of marketing?
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culture, demographics, social, technology, economics, political/legal
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what do marketers use the analysis of their external environment?
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SWOT, to categorize any opportunity as attractive. if it appears attractive they also need to assess it in terms of their existing conpetencies
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why is it important to know your competitors?
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affects immediate environment. therefore critical that marketers understand their competitors stregnths weaknesses and likely reactions to the marketing activities that their own firm undertakes
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why is it important to know your corporate partners?
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few firms operate in isolation. a great deal of suppliers and manufacturers go into making every product or service available
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what is culture?
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shared meanings, beliefs, morals, values, and customs of a group of people
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what is country culture?
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the culture that is more specific to a certain country
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what is regional culture?
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affects the way people might refer to a particular product category like soft drinks
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what is demographics?
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indicate the characteristics of human populations and segments, especially those used to identify consumer markets
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what are generational cohort?
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a group of people of the same generation baby boomers gen x gen y gen z
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what is gen z known as and known for?
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digital natives, born into a world full of electronic gadgets
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what is gen y known as and known for?
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millennials, children of baby boomers
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what is gen x known for?
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first generation of latchkey children (both parents worked) 50% divorced parents
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what are the baby boomers known for?
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hard workers, all moving into retirement and collecting social security
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what is the importance of income?
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higher groups are growing while middle and lower groups' purchasing power is declining
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what is the importance of education?
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more education=more income=more money to buy products
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what is the importance of gender?
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gender roles are fading therefore we are beginning to have to market our products to both males and females
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what is the importance of ethnicity?
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by 2050 we are expected to be all minorities
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what are the 3 social trends?
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health and wellness concerns greener consumers privacy concerned
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what is the importance of health and wellness?
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people are making healthier options to tackle child obesity, pandemics, and epidemics
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what is the importance of green marketing?
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involves a strategic effort by firms to supply customers with environmentally friendly merchandise
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what is the importance of privacy concerns?
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customers are dealing with loss of privacy, identity theft, calling issues, and emailing issues
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what 3 aspects of technology has impacted marketing?
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-new products -new forms of communication -new retail channels
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what is inflation?
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persistent increase in the prices of goods and services
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what is interest rates?
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represents the cost of borrowing money
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what are the 3 most important economic factors?
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inflation, foreign currency fluctuation, and interest rates
