Marketing Ch. 1 – Flashcards
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What does value reflect?
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the relationship of benefits to costs (what you get for what you give)
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In a marketing context, what do consumers seek in return for their money and scarce time?
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a fair return in goods/services
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What can promotion do?
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enhance a product's or service's value
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Entrepreneurs perform which of the following tasks in business ventures?
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- organizing - managing operations - assuming risk
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When Frito-Lay makes snacks, the company creates value. What are essential parts of this created value?
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taste and brand identity
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How can the influence of social responsibility be illustrated?
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by a firm's behavior
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What contributes to marketing's global presence?
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cheap foreign travel and internet
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What was the impact on manufacturers during the sales-oriented era?
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manufacturers had the capacity to produce more than consumers were able to buy
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What does a business need to do to better understand value and develop value-based marketing orientation?
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a business must understand what customers view as the key benefits of a given product or service and how to improve on them
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How can customer relationship management (CRM) and help marketers compete?
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CRM can help customers compete by collecting data about their customers' needs and then identifying their best customers for targeted products, services and promotions.
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Give an example of value cocreation
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Nike allows customers to design their own sneakers, which improves the value customers see in the brand.
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What is a characteristic marketers seek out in potential customers?
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- individuals and/or businesses who have an ability to buy the products or services - individuals and/or businesses who have an interest in the company's products
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If a consumer electronics firm acts on the philosophy that its new products should be compatible with existing products to develop long-term relationships with customers. The firm is acting on the basis of what?
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relational orientation
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What are two key elements marketers consider when determining price?
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- how much customers are willing to pay so that they are satisfied with the purchase - marketers must ensure the seller achieves a reasonable profit
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Business-to-business marketing can impact several aspects of business and society. What factors are affected?
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partners, employees and customers
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Cocreation
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a method of providing additional value customers by allowing them the opportunity to act as collaborators
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How does value-oriented marketers outperform their competition?
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satisfying needs and developing loyalty
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Nike and Reebok primarily make athletic shoes. How do these firms add value to their products?
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by offering customer designs under its brand and by enlisting popular celebrities to endorse their designs
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What do most marketers seek for in customers?
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an interest in the product they are selling as well as an ability to buy the product
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Firms become value driven by focusing on which on the following activities?
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building relationships, sharing information and balancing customer benefits and costs
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What do marketers share in a value-based, marketing-oriented firm?
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data about customers and integrate it across the firm's various departments
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Which one of the four Ps is responsible for creating value?
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product (the first of the four Ps)
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What are the core aspects of marketing?
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marketing helps create value and marketing entails an exchange
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Of the four Ps, what is price?
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whatever the buyer gives up in exchange for the product - for example, money, time or energy
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Marketing mix components (the four Ps)
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Product, Price, Place and Promotion
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Product
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creating value
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Price
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capturing value
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Place
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delivering value proposition
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Promotion
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communicating value
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What are the members of a typical supply chain in order from the first step in the supply chain to the last from top to bottom?
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1. supplier of raw materials 2. manufacturer 3. retailer selling finished goods
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Promotion is a component of the four Ps of marketing that is used by marketers to do what?
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inform, persuade and remind potential buyers about a product or service to influence their opinions and produce a response
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What is one of the elements of the four Ps that embodies all activities essential to get the product to the right customer when and where the customer wants it?
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Place
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What are two key elements marketers consider when determining price?
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marketers must figure out how much customers are willing to pay so that they are satisfied with the purchase and marketers must ensure the seller achieves a reasonable profit
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Definition of value
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reflects the relationship of benefits to costs, or "what you get for what you give"
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In the marketing mix, place is expected to do what?
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deliver value for the customer
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What are some examples of where consumer-to-consumer marketing might occur?
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buying an item from a neighbor's yard sale and making a purchase from craigslist.com
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If a car manufacturer wanted to segment its marketplace it would do what?
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divide consumers into groups based on their incomes and identify customer needs for different types of cars (such as sports cars, SUVs, and family sedans)
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What is promotion?
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the part of the marketing mix that communicates the value of the product to the consumer in many ways, such as advertising, social media and public relations
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What was the marketing focus in the production-oriented era?
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build a good product and it will sell itself
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What was the marketing focus in the sales-oriented era?
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lots of advertising and personal selling are the keys to success
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What was the marketing focus in the marketing-oriented era?
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a growing focus on meeting customer needs and wants
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What was the marketing focus in the value-based marketing era?
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there is more to marketing than just meeting needs and wants; consumers also expect a fair return for the price they pay
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What is a core aspect of marketing, borrowed from economics?
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Exchange
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Definition of exchange
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a transaction in which things of value are traded by buyers and sellers
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What were manufacturers in the production-oriented marketing era concerned with?
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efficient production, not with satisfying needs of consumers
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In order to compete successfully most firms today, operating in the market orientation phase of marketing, have to provide what to their customers?
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better value-based marketing than their competitors
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In what ways can marketing impact a firm?
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develops value and advises production
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Why is a strong supply chain important?
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it helps to get merchandise to customers when and where they want it
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Which of the following are examples of consumer cost?
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time and price
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What kind of offering is a service?
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it is an intangible asset that involves a performance, or an effort by the provider, that cannot be physically possessed
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In what chronological sequence did marketing evolve beginning from oldest to most recent from top to bottom?
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1. production-oriented era 2. sales-oriented era 3. market-oriented era 4. value-based marketing era
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Business-to-business (b2b) example
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manufacturer sells a computer to a retailer
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Business-to-consumer (b2c)
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retailer sells a computer to customer A.
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Consumer-to-consumer (c2c)
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customer A sells the computer to his friend
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What is a business philosophy that focuses on identifying and building loyalty among the firm's most valued customers?
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customer relationship management
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What statements are true about the marketplace?
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the marketplace can be divided into categories that are important to and organization for specific reasons and the marketplace refers to the world of trade
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Supply chain/marketing channel definition
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a group of firms that make and deliver a set of goods and services -when materials or products are transported to a different location, sometimes it requires they be stored in a warehouse operated by yet another organization
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What describes the fundamental purpose of marketing?
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to create value and to satisfy consumer needs
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Business-to-business definition
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firms marketing directly to each other
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What are associated with marketing, as defined by the American Marketing Association?
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processes used to create value for clients, institutions that facilitate the exchange of offerings that have value for customers, and activities that communicate offerings that have value for society at large
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Value-based marketing firms implemented their strategies according to what?
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customers value
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Many of the most successful American firms believe that marketers should focus on which of the following beyond developing and marketing products and brands?
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social responsibility and financial profitability
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What is most important in a relational orientation?
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lifetime profitability is more important than the amount of money made during each transaction
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What is it called when a consumer gives up money (or something of value) in order to receive something else of value?
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an exhange
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What were the primary characteristics of the market-oriented era?
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it was a buyer's market and products were designed to focus on consumers' needs
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An example of a service?
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staying at a hotel and taking flight to NY
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What were the primary characteristics of the market-oriented era?
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products were designed to focus on consumers' needs and it was a buyer's market
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How do successful airlines create value?
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by offering many flights to destinations the consumer wants
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What are goods?
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items you can personally touch
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What is one main challenge for companies?
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providing products that meet customers' needs and wants while providing greater value than their competitors
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What are some reasons that marketing is considered important?
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marketing expands global presence and virtually every person and organization is involved in marketing
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Entrepreneurs used marketing to do what?
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communicate value and examine the marketplace
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What to value-oriented marketers measure?
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the benefits that customers perceive against the cost of their offerings
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Which of the following are members of the supply chain?
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retailers and manufacturers
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During the sales-oriented era, firms found an answer to their overproduction how?
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by focusing on selling
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What does good supply chain management create?
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a seamless value in which merchandise is produced and distributed in the right quantities, to the right locations, and the right time, while minimizing system-wide costs and maximizing satisfaction of the value required by customers
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What do products include?
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goods, services, and ideas (such as opinions and philosophies)
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What is a marketing plan?
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a strategy developed by companies that specifies marketing activities for a specific period of time
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What are some examples of value cocreation?
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client interacting sales associate who takes information on how to customize apparel, a clothing company allowing customers to personalize the fit of a pair of jeans and buying a customized cake from a bakery
