question

Power shift to customers

answer

Rather than businesses having the ability to manipulate customers via technology, customers often manipulate businesses because of their access to information. Companies have to ensure they maintain their loyalty towards customers.

question

Massive Increase in Product selection

answer

The variety and assortment of goods and services offered for sale on the internet and in traditional stores is staggering.

question

Audiences media fragmentation

answer

Changes in media usage and the availability of new media outlets have forced marketers to rethink the way they communicate with potential customers.

question

Changing value propositions

answer

In situations when a customer sees a product as a commodity they will turn to the most convenient less expensive option.

question

Shifting demand patterns

answer

Changes in technology have shifted customer demand for certain product categories.

question

Privacy, security and ethical concerns

answer

Changes in society have made our society much more open than in the past.

question

Unclear Legal Jurisdiction

answer

When a company does business in more than one country, that company often faces a dilemma with respect to different legal systems.

question

What is marketing?

answer

Process of creating, communicating, delivering, and exchanging that have value for the customers, clients, partners and society at large.

question

What is a market?

answer

A collection of buyers and sellers

question

marketspace

answer

electronic marketplaces unbound by space or time

question

Metamarket

answer

a cluster of closely related goods and services that center around a specific consumption activity

question

metamediary

answer

provides a single access point where buyers can locate and contact many different sellers in the megamarket.

question

Exchange rules

answer

1. There must be at least two parties to exchange 2. Each party has something of value to the other party. 3. Each party must be capable of communication and delivery. 4. Each party must be free to accept or reject the change 5. Each party believes it is desirable to change with the other party

question

Form utility

answer

products high in form utility have attributes or features that set them apart from the competition. Often this results from using high qualities. EX Ruth's Chris

question

Time utility

answer

Products high in time utility are available to customers when they want them.

question

place utility

answer

Products high in place utility are high when customers want them, which is typically wherever the customer is located at the time.

question

Possession utility

answer

Deals with the transfer of ownership or title from marketer to customer. For example: a furniture store that offers easy credit terms and home delivery

question

Psychological utility

answer

Deliver positive experimental or psychological attributes that customers find satisfying. EX: sporting event

question

Tactical planning

answer

Adressses specific markets or market segments and the development of marketing plans

question

Competetive intelligence

answer

involves analyzing the capabilities, vulnerabilities and intentions of the competition

question

Internal analysis

answer

Involves the objective review of internal information pertaining to the firms current strategy and performance, as well as the future availability.

question

environmental scanning

answer

analysis of the external environment, involves economic, political, cultural, legal that may effect the future of the business

question

situation analysis

answer

refer to the overall process of collecting and interpreting internal, competitive and environmental information

question

2) situation analysis

answer

An in depth analysis of the organizations internal and external environments

question

2) Marketing plan

answer

a written document that provides the blueprint or outline of the organizations marketing activities, including the implementation, evaluation and control of those activities.

question

2) What does a marketing plan explain?

answer

1. Explains how the organization will achieve its goals and objectives 2. serves as a "road map" for implementing the marketing strategy 3. instructs employees as to their roles and functions 4. provides specifics regarding the allocation of resources, specific marketing tasks, responsibilities of individuals, and the timing of marketing activities.

question

2) what is key to a marketing plan?

answer

implementation

question

2) Mission statement

answer

- Answers: What business are we in -clear and concise - Explains the organizations reason for existence

question

2) Vision statement

answer

- Answers.. "what do we want to become" - Tends to be future oriented - represents where organization is headed

question

2) Elements of the mission statement

answer

- Who are we - Who are our customers - What is our operating philosophy - What are our core competencies or competitive advantage? - What are out responsibilities with respect to being a good steward of our human, financial, and environmental resources

question

2) Mission width and stability

answer

Width- too broad or too narrow Stability- frequency modifications

question

2) What companies have customer focused mission statements?

answer

-Southwest airlines -Ben and Jerry's - Tylenol -The American Red cross

question

2) The central means for

answer

- utilizing and integrating the organizations resources - carrying out the organizations mission - Achieving the organizations desired goals and objectives

question

2) Functional goals and objectives

answer

- All businesses functions must support the organizations mission and goals - functional objectives should be expressed in clear simple terms - all functional objectives should be reconsidered for each planning period

question

What are functional strategies designed for?

answer

to integrate efforts focused on achieving the areas stated objectives.

question

Implementation

answer

- Involves activités that execute the functional strategy

question

what are the two markets of functional markets?

answer

-external - internal

question

What must a company rely on for its functional strategy to be implemented properly

answer

Internal market

question

evaluation and control

answer

Designed to keep planned activities on target with goals and objectives. coordination and open communication among functional areas are critical issues Evaluation and control is both an ending and beginning

question

Is a marketing plan the same as a business plan?

answer

NO

question

Tips for using the marketing plan structure

answer

Plan ahead revise, then again Be creative Use common judgement and sense Think ahead to implementation Update regularly Communicate to others

question

A good marketing plan will

answer

Explain both the present and future situation of the organization specify the outcomes that are expected describe the specific actions that are to take place identify the resources that will be needed permit the monitoring of each action and its results.

question

What are the changes in the focus and content of strategic plans over the last 2 decades?

answer

1. renewed emphasis Advent of balanced strategic planning

question

What comes with the customer focused strategic plan?

answer

-puts customer needs and wants first - focuses on longterm, value added relationships - focuses on understanding customers in ways that enhance sustainable competitive advantages - instills a corporate culture that places customers at the top of the organizational hierarchy - finds ways to cooperate with suppliers and competitors to serve customers more effectively and efficiently.

question

balanced strategic planning

answer

Aligns four complementary perspectives 1. financial indicators 2. customers 3. internal processes 4. Learning and growth

question

How successful firms use the balanced score card?

answer

-translate the strategy into operational terms - align the organization to strategy - make strategy everyones everyday job - make strategy a continual process - mobilize change through executive leadership

question

3) Conducting a situation analysis

answer

- Analysis alone is not a solution - data is not the same as info - The benefits of analysis must outweigh the costs -Conducting a situation analysis is a challenging exercise

question

What resources are important for availability?

answer

financial, human, experience - financial tend to get the most attention

question

Is organizational culture and structure important?

answer

Yes, problems can arise when marketing does not hold a prominent position on the organizational hierarchy can be affected by mergers

question

Brand competetiors

answer

Markets products with similar features and benefits to the same customers at similar places

question

product competitors

answer

compete in the same product class, but with products that are different in features, benefits and price

question

generic competetiors

answer

market very different products that solve the same problem or satisfy the same basic customer need

question

Total budget competitors

answer

Compete for the limited financial resources of the same customers

question

Is economic growth inevitable?

answer

Yes, and it has a profound impact on marketing strategy

question

what are the general economic conditions?

answer

Inflation, employement, income, interest rates, taxes, trade restrictions, tariffs, business cycle

question

what are consumer issues

answer

Willingness to spend, confidence, spending patterns

question

What is frontage technology

answer

advances that are noticeable to customers Examples: smartphones, gps, etc

question

What is backstage technology

answer

Advances that are not noticeable to customers.. these advances make marketing activities more efficient and effective

question

What are sociocultural trends

answer

Social and cultural influences that cause changes in attitudes, beliefs, norms, customs and lifestyles Sociocultural forces can have a profound effect on the way customer live and buy products changes in customer demographics and values have a considerable impact on marketing

question

What is the growing importance of corporate affairs?

answer

Many firms have corporate affairs specialists on staff to track emerging trends and develop strategies for dealing with external concerns

question

What is the difference between secondary and primary data?

answer

Secondary is already compiled while primary is raw data.

question

What are the typical problems in data collection?

answer

-severe information overload -time expense of collecting data -organizing the vast amount of data and information collected during the situation analysis -incomplete or inaccurate assessment of the situation that the data should address.

question

5) Segmentation and Target Marketing

answer

The goal is to identify specific customer needs. It has to be more than demographics

question

Buyer behavior and consumer markets

answer

Often irrational and unpredictable can progress through 5 stages. Does not follow these stages in sequence strong brand loyalty can move consumers directly from need to purchase Includes parallel decisions -- what to buy -- where to buy

question

The consumer buying process

answer

Need Want Demand

question

The consumer buying process: information search

answer

Marketing activities ca stimulate a desire for information Sources of information

question

What does the amount of time, effort, and expense dedicated to information search depend on?

answer

- degree of risk involved in the purchase -amount of expertise with the product category -actual cost of the search

question

What is a evoked set?

answer

a narrowed down set of alternatives that the consumer is considering

question

How do consumers evaluate products?

answer

As bundles of attributes, each having a different level of importance.

question

What are some potential intervening factors?

answer

-Unforeseen circumstances - Angered by the salesperson or sales manager - Unable to obtain financing -Customer changes mind

question

What are the key issues in the purchase decision stage?

answer

Product availability **

question

Why does post purchase evaluation consider?

answer

The connection between the buying process and developing long term customer relationships

question

What are the four possible outcomes of post purchase evaluation?

answer

-Delight -Satisfaction -Dissatisfaction -Cognitive Dissonance

question

When is cognitive dissonance more likely to occur?

answer

-Dollar value of the purchase increases -opportunity costs of rejected alternatives are high -purchase decision is emotional involving

question

What are the factors that affect the consumer buying process?

answer

-Decision making complexity -Individual influences -Social influences - situational influences

question

What are the four types of business markets?

answer

Commercial markets reseller markets government markets institutional markets

question

What are the unique characteristics of business markets

answer

The buying center hard and soft costs reciprocity mutual dependence

question

What are the 7 steps of the buying process?

answer

1. Problem Recognition 2. Develop product specifications 3.Vendor Indentification and Qualification 4. solication of proposals or bids 5. vendor slection 6. order processing 7. Vendor performace review

question

What are some characteristics of mass marketing?

answer

Involves no segmentation whatsoever Is an undifferentiated approach works best when the needs of an entire market are homogeneous is effect from a production standpoint results in lower marketing costs Is inherently risk and vulnerable to competitors

question

What is a multisegment approach?

answer

Attracting buyers in more than one segment by offering a variety of products that appeal to different needs

question

What is One to one marketing?

answer

Involves creating an entirely unique product offering for each customer

question

What is mass customization?

answer

An extension of one to one marketing Refers to providing unique solutions to individual customers on a mass scale

question

What is permission marketing?

answer

Customers choose to become a member of the firms target market Key advanta

question

What is a market segmentation?

answer

Involves selecting the most relevant characteristics to identify and define the target market or market segment

question

What criteria should successful market segments fulfill?

answer

identifiable and measurable substantial accessible responsive viable and sustainable

question

How do you target non customers?

answer

- understanding the reasons why they do not buy, and then finding ways to remove those obstacles. - Removng obstacles to purchase, whether they exist in product design, affordability, distribution co

question

Q1 ____ is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits.

answer

Commoditization

question

Which of the following changes occurring in todays economy has NOT been caused by the growth of the Internet?

answer

Rising prices for most products

question

Although mass media audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage?

answer

It is now easier to reach small, highly targeted audiences.

question

Changing value provisions in todays economy -- such as the changes caused by the growth in e-commerce-- have forced marketers to learn a tough lesson about customers. What is that lesson?

answer

Customers will turn to the most convenient,least expensive alternative in situations.

question

In 2005, the American Marketing Asscoiation changed the definition of marketing that stood for 20 years. The major changes in the definition included a shift from delivering the 4 P's to delivering ____ and a shift from creating exchanges to creating _____

answer

Value; customer realtionships

question

Which of the following IS NOT one of the five conditions of exchange in marketing?

answer

Each party must be capable of immediate delivery

question

Furniture mart offers services such as financing and home delivery to its customers. What type of utility is Furniture Mart trying to increase?

answer

Possession utility

question

All of the following are reasons for the general decline in customer satisfaction over the past 20 years except

answer

Product quality is much lower now than at any time in the past.

question

In the airline industry, companies like American, delta, and US Air have a difficult time competing because their industry has become commoditized. What does this mean for firms in the airline industry?

answer

There is very little differentiation among product offerings in the industry.

question

In the traditional transactional marketing approach, the ultimate goal of marketing is to

answer

acquire new customers and complete a large number of transactions

question

One of the four key issues in conducting a situation analysis is that data does not represent information

answer

TRUE

question

When a firm is analyzing its objectives, resources, and organization culture, it is examining its external environment

answer

FALSe

question

In the customer analysis model, when we talk about the WHAT questions, we are talking about identifying the influences that affect the buying process

answer

FALSE WHAT entails an assessment of how customers consume and dispose of the firms products

question

In many buying situations, customers will buy one product because it complements another product. In these cases of _____ demand, the demand of one product depends on the demand of another product.

answer

Derived

question

In competitive sports drink market, gatarode pays very close attention to the activities of Powerade, a major ___ competitor that markets drinks that are similar to features and benefits

answer

Brand

question

The most important economic reality of the U.S. over the last 50 years is virtually all citizens have become wealthier

answer

FALSE, the steady shift away from a tangible-dominant economy

question

Which of the following cultural values is not typically associated with american consumers?

answer

Greater focus on long term goals

question

One of the key issues with internal data sources is they are often expensive to collect

answer

False

question

The sheer volume of available information on the economy, population and business activities is the major stregth of most ____ data sources

answer

government

question

Compared to most primary data, secondary data have the main advantage of being up to date

answer

FALSE

question

"Microsoft Windows platform is a dominate player in the market for personal computer operating systems. By continously upgrading and stretching the technology underlying its Windows system, Microsoft is pursuig a strategy of customer intimacy. "

answer

FALSE, Product leadership

question

A degree of intangibility in your marketing goals is to make it difficult for competitors to determine the firm's marketing strategy.

answer

False promote comparisons with rival firms

question

Agressive Diversification Turnaround defensive

answer

Many internal strengths/many external op many internal strengths/many external threats many internal weaknesses/many external op Many internal weaknesses/many external threats

question

The structured nature of a SWOT analysis ensures that data and information are correctly categorized.

answer

FAlSe

question

Strengths are typically based on the existence and nature of the resources and relationships possessed by the firm.

answer

True

question

"According to the SWOT matrix, managers must focus on connecting the firm's strength to its opportunities. "

answer

TRUE

question

Goals can be defined as quantitative guidelines that help firms achieve desired results.

answer

FALSE

question

Part of the Blue Ocean Strategy's four actions framework is deciding which factors should be reduced well below the industry's standard.

answer

TRUE

question

"According to the common sources of competitive advantages, brand loyalty falls under the relational category. "

answer

True

question

"Opportunities and weaknesses typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm. "

answer

False, not in the firm

question

The best strategic focus option for a firm with many internal strengths and many external opportunities is diversification.

answer

False

question

Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the SWOT section of Motorola's marketing plan.

answer

False

question

In today's business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from relationships to transactions, and from competition to collaboration.

answer

FAlse Realtionship to competetion

question

Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture real time financial performance metrics.

answer

False The value created by an organizations intangible assets

question

The Balanced Performance Scorecard cautions business leaders to look at strategy and performance through four interrelated perspectives. Which of the following IS NOT one of these

answer

Vision and strategy perspective

question

_____ firms are those that successfully generate, disseminate, and respond to market information.

answer

Market-oriented

question

Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20th century, firms tended to focus strictly on _____ rather than on developing relationships with customers.

answer

Efficiency and quality

question

t is a well-known fact that most American firms focus on short-term results and tend to ignore long-range strategy. Why is this mindset not a good approach when dealing with marketing strategy?

answer

Because the results of marketing activities occur over longer planning horizons

question

In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management?

answer

Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources

question

While all marketing plans face a number of obstacles in development and implementation, _____ is by far the most commonly occurring obstacle across most firms.

answer

Inadequate communication

question

Which of the following IS NOT a purpose of a marketing plan?

answer

t explains how marketing activities mesh with other functional areas

question

Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the _____ section of Motorola's

answer

Evaluation and control

question

n developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the _____ section of the marketing plan.

answer

most readers of a marketing plan are busy and value condensed information.

question

With respect to developing a marketing plan, what does it mean for a marketing plan outline to be consistent?

answer

The outline should have some connection to other functional area plans

question

When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a:

answer

Competitive advantage

question

All organizations need a _____, the central scheme for utilizing and integrating resources in the areas of production, finance, research and development, human resources, and marketing to carry out the organization's mission and achieve desired goals and objectives.

answer

Corporate strategy

question

Sears at one time lost sight of its mission and jumped into markets that did not fit its strengths. This occurred because Sears lacked a mission statement with the appropriate:

answer

Width

question

Which of the following is one of the five basic questions that a good mission statement should answer?

answer

What is our operating philosophy

question

When creating a corporate vision statement, organizations are attempting to answer which of the following questions?

answer

What do we want to become

question

Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:

answer

A situation analysis

question

Which of the following statements best describes the nature of a marketing plan?

answer

It clearly outlines the organizations makrketing activitites

question

Which of the following statements best describes the nature of a marketing plan?

answer

It clearly outlines the organizations makrketing activitites

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