Chapters 1-4 Exam Review – Flashcards

The main goal of this stage of the STP process is to ensure that the market segments that have been constructed by the firm meet with basic requirements and guidelines, which will make them usable segments and potential target markets. The best way to think about this step of the STP model is to think about it a review checkpoint.

The trade of things of value between the buyer and the seller so that each is better off as a result.

1. Marketing helps create value 2. Marketing is about satisfying customer needs and wants 3. Marketing entails an exchange 4. Marketing requires product, price, place, and promotion decisions

Marketers must determine the price of a product on the basis of the potential buyer's belief about ifs value.

Giving the customer the greatest value for their money

Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a reponse

Production-Oriented Era Sales-Oriented Era Market-Oriented Era Value Based Marketing Era

Production-Oriented Era- Around the turn of the twentieth century, most firms were production oriented and believed that a good product would sell itself. Sales-Oriented Era- Between 1920 and 1950, production and distribution techniques became more sophisticated, and the Great Depression and World War ii conditioned customers to consume less or manufacture items themselves, so they planted victory gardens instead of buying produce. As a result, manufacturers has the capacity to produce more than customers really wanted or were able to buy. Market-Oriented Era- Manufacturers turned from focusing on the war effort toward making consumer products. Manufactures and retailers thus began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products and services. Value-Based Marketing Era- They generally have transcended an production or selling orientation and attempt to discover and satisfy their customers' needs and wants.In order for manufacturers to compete successfully they need to be able to give their customers greater value than their competitors did.

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship

A 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 Ps, action programs, and projected or pro forma income (and other financial) statements

Customers act as collaborators with a manufacturer or retailer to create the product or service

Marketing is the activity, set of institutions and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is the activity that creates value for customers.

Price: Capturing value-Marketers must determine the price of a product carefully on the basis of the potential buyer's belief about its value. Everything the buyer gives up money, time, energy - in exchange for the product.

Is an advantage over the competition that is not easily duplicated and thus can be maintained over a long period of time. Ex: location, cost, customer servic

Firms achieve operational excellence through their efficient operations, excellent supply chain management, and strong relationships with their suppliers

In most cases, a single strategy, such as low prices or excellent service =, is not sufficient to build a sustainable competitive advantage.

S-Strength W-Weakness O-Opportunity T-Threat SWOT assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market

Marketing positioning 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.

S-Segmentation T-Targeting P-Positioning The firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position is products and services to meet the needs of those chosen targets best.

BCG is Boston Consulting Group Matrix Stars-Products, high growth markets Cash Cows-Products, low-growth markets but high market share Question Marks-High Growth Markets but relatively low market share Dogs-Low-growth markets and low market share

Market Penetration- Employs the existing marketing mix and focuses the firm's efforts on existing customers. Market Development- Employs the existing marketing offering to reach new market segments, domestic or international Product Development- Offers a new product or service to a firm's current target market Diversification- Introduces a new product or service to a market segment that currently is not served; either related or unrelated.

A competitive advantage based on location is sustainable because it is not easily duplicated. Ex: Starbucks and McDonalds

Place: Delivering the Value Proposition- Place more commonly deals specifically with retailing and marketing channel management.

Excite customers with relevant offers Educate them about the offers Help them Experience products, directly or indirectly Give them an opportunity to Engage with their social network

A website created by a company and often used to educate customers. Ex: Starbucks, Wegman's, and GE

Pinterest allows people to pin merchandise, services, recipes, or ideas onto a virtual bulletin board. Marketers can receive unlimited exposure to their products and services as like-minded people share pinned items and services.