question

Marketing

answer

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return (managing profitable customer relationships)

question

Needs

answer

States of felt deprivation. Includes food, clothing, warmth, safety, belonging & affection, knowledge, and self expression

question

Wants

answer

The form human needs take as they are shaped by culture and individual personality. Shaped by one's society and are described in terms of objects that will satisfy needs. When backed by buying power, these become demands.

question

Demands

answer

Human wants that are backed by buying power

question

Market Offerings

answer

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

question

Market

answer

The set of all actual and potential buyers of a product or service

question

Marketing myopia

answer

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

question

Exchange

answer

The act of obtaining a desired object from someone by offering something in return

question

Marketing management

answer

The art and science of choosing target markets and building profitable relationships with them

question

Customer relationship management

answer

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

question

Customer perceived value

answer

The customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers

question

Customer satisfaction

answer

The extent to which a product's perceived performance matches a buyer's expectations

question

Consumer-generated marketing

answer

Brand exchanges created by consumers themselves-both invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers

question

Production concept

answer

The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency. **Can lead to marketing myopia

question

Product concept

answer

The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements

question

Selling concept

answer

The idea that consumers will not buy enough of the firm's products unless undertakes a large-scale selling and promotion effort

question

Marketing concept

answer

The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

question

Customer lifetime value

answer

The value of the entire stream of purchases that the customer would make over a lifetime of patronage

question

Share of market/Share of customer

answer

The portion of the customer's purchasing that a company gets in its product categories. Banks: "Share of wallet" Supermarkets and restaurants: "Share of stomach" Car companies "Share of garage." Airlines: "Share of travel"

question

Customer equity

answer

The total combined customer lifetime values of all of the company's customers

question

Societal Marketing concept

answer

The idea that a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests

question

Value proposition

answer

The full positioning of a brand- the full mix of benefits upon which it is positioned. Answers customer's question, "Why should I buy your brand rather than a competitor's?"

question

Customer-managed relationships

answer

Marketing relationships in which customers, empowered by today's new digital technologies, interact with companies and with each other to shape their relationships with brands

question

Partner relationships management

answer

Working closely with partners in other company departments and outside the company to jointly bring greater value to customers

question

1. Needs/wants/demands 2. Market offerings 3. Value/Satisfaction 4. Exchanges and relationships 5. Markets

answer

5 Core customer and marketplace concepts

question

1. Understand the marketplace and customer needs/wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships & create customer delight 5. Capture value from customers to create profits & customer equity

answer

5 Step Marketing Process

question

Attract new customers by promising superior value and keep & grow current customers by delivering satisfaction

answer

Goal of marketing

question

Marketing Mix

answer

The set of controllable tactical marketing tools- product, price, place, and promotion- that the firm blends to produce the response it wants in the target market

question

-Consumer research -Product development -Communication -Distribution -Pricing -Service

answer

Core marketing Activities

question

1. What customers will we serve (target market)? 2. How can we serve these customers best (value proposition)?

answer

2 Important Questions Marketers must Ask

question

Strategic Planning

answer

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketplace opportunities

question

1. Production 2. Product 3. Selling 4. Marketing 5. Societal marketing concepts

answer

5 Concepts under Which Organizations design & carry out marketing strategies

question

1. Company Profits 2. Consumer Wants 3. Society's interests

answer

Companies should balance 3 considerations in setting their marketing strategies:

question

Mission Statement

answer

Statement of the organization's purpose- what it wants to accomplish in the larger environment

question

Business Portfolio

answer

The collection of businesses and products that make up the company

question

Portfolio Analysis

answer

The process by which management evaluates the products & businesses that make up the company

question

Growth-Share Matrix (stars, cash cows, question marks, dogs)

answer

A portfolio-planning method that evaluates a company's strategic business units (SBUs) in terms of its market growth rate and relative market share.

question

Stars

answer

High-growth, high-share businesses or products. Often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows

question

Cash Cows

answer

Low-growth, high-share businesses or products. These established & successful SBUs need less investment to hold their market share. Thus, they produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment

question

Question Marks

answer

Low-share business units in high-growth markets. Require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out.

question

Dogs

answer

Low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

question

Club Marketing Programs

answer

Offer members special benefits and create member communities (i.e., Harley Owners Group)

question

Butterflies

answer

Good fit between company's offerings and customer's needs; high profit potential

question

True Friends

answer

Good fit between company's offerings and customer's needs; highest profit potential

question

Strangers

answer

Little fit between company's offerings and company's needs; lowest profit potential

question

Barnacles

answer

Limited fit between company's offerings and customer needs- low profit potential

question

Strategic Business Units (SBUs)

answer

Classified as stars, cash cows, question marks, or dogs.

question

Boston Consulting Group

answer

A leading management consulting firm that developed the best-known portfolio planning method (Growth-share matrix)

question

Product/Market Expansion Grid

answer

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

question

Market Penetration

answer

A strategy for company growth by increasing sales of current products to current market segments without changing the product

question

Market Development

answer

A strategy for company growth by identifying & developing new market segments for current company products

question

Product Development

answer

A strategy for company growth by offering modified or new products to current market segments

question

Diversification

answer

A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets

question

Downsizing

answer

Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company's overall strategy

question

Market Strategy

answer

The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

question

Market Segmentation

answer

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

question

Market Targeting

answer

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter

question

Positioning

answer

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the mind of your target consumers

question

Differentiation

answer

Actually differentiating the market offering to create superior customer value

question

SWOT Analysis

answer

An overall evaluation of the company's Strengths, Weaknesses, Opportunities, and Threats

question

Return on Investment

answer

The net return from a marketing investment divided by the costs of the marketing investment. It measures the profits generated by investments in marketing activities.

question

Value Chain

answer

The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

question

Value Delivery Network

answer

The network made up of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system

question

Product

answer

The goods-and-services combination the company offers to the target market

question

Price

answer

Amount of money customers must pay to obtain the product

question

Place

answer

Includes company activities that make the product available to target consumers

question

Promotion

answer

Activities that communicate the merits of the product and persuade target customers to buy it

question

4 Cs

answer

1. Customer solution (product) 2. Customer cost (price) 3. Convenience (place) 4. Communication (promotion)

question

Marketing Implementation

answer

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives

question

Marketing Control

answer

The process of measuring and evaluating the results of marketing strategies & plans & taking corrective action to ensure that objectives are achieved

question

Operating control

answer

Checking on-going performance against the annual plan and taking corrective action when necessary

question

Strategic Control

answer

Looking at whether the company's basic strategies are well-matched to its opportunities

question

Marketing Environment

answer

The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

question

Microenvironment

answer

The actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

question

Macroenvironment (often considered uncontrollable)

answer

The larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces

question

Marketing Intermediaries

answer

Firms that help the company to promote, sell, & distribute its goods to final buyers. Includes resellers, physical distribution firms, marketing service agencies, & financial intermediaries

question

Resellers

answer

Distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers

question

Physical distribution firms

answer

Help the company stock and move goods from their points of origin to their destinations

question

Marketing Service Agencies

answer

Marketing research firms, advertising agencies, media firms, and marketing consulting firms that help the company target and promote its products to the right markets.

question

Financial intermediaries

answer

Include banks, credit companies, insurance companies, and other businesses that help finance transactions or insure against the risks associated with the buying & selling of goods

question

Public (there are 7)

answer

Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. (Financial, Media, Government, Citizen-Action, Local, General, & Internal)

question

Financial Publics

answer

Influences the company's ability to obtain funds. Banks, investment houses & stockholders are the major financial publics

question

Media Publics

answer

Carries news, features, and editorial opinion. Includes newspapers, magazines, and radio & TV stations

question

Government Publics

answer

Management must take government developments into account. Marketers must often consult the company's lawyers on issues of product safety, truth in advertising, & other matters.

question

Citizen-Action Publics

answer

A company's marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, & others. Its public relations department can help it stay in touch with consumer & citizen groups

question

Local Publics

answer

Includes neighborhood residents & community organizations. Large companies usually appoint a community relations officer to deal with the community, attend meetings, answer questions, and contribute to worthwhile causes

question

General Public

answer

A company must be concerned about their attitude towards its products and activities. Their image of the company affect their buying

question

Internal Publics

answer

Includes workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate these.

question

Demography

answer

The study of human populations in terms of size, density, location, age, gender, race, occupation & other statistics

question

Baby Boomers

answer

The 78 million people born during the baby boom following World War II and lasting until 1964 (1946-1964). Wealthiest generation in US history. Often split into 3 groups by marketers: leading edge-boomers, core boomers, & trailing edge boomers

question

Generation X

answer

49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom

question

Economic Environment

answer

Factors that affect consumer buying power & spending patterns

question

Consumer Markets

answer

individuals & households that buy goods & services for personal consumption

question

Business Markets

answer

Buy goods & services for further processing or for use in their production process

question

Reseller Markets

answer

Buy goods and services to resell at a profit

question

Government markets

answer

made up of government agencies that buy goods and services to produce public services or transfer the goods and services to others who need them

question

International Markets

answer

Buyers in other countries, including consumers, producers, resellers, and governments

question

Millennials AKA Generation Y AKA Echo Boomers

answer

83 million children of the baby boomers, born between 1977 and 2000

question

Industrial Economies

answer

These economies constitute rich markets for many different kinds of goods

question

Subsistence Economies

answer

These economies consume most of their own agricultural and industrial output and offer few market opportunities

question

Developing Economies

answer

These economies can offer outstanding marketing opportunities for the right kinds of products

question

Engel's Laws

answer

Differences noted more than a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises

question

Natural Environment

answer

Natural resources needed as inputs by marketers or that are affected by marketing activities

question

Environmental Sustainability

answer

Developing strategies and practices that create a world economy that the planet can support indefinitely

question

Technological Environment

answer

Forces that create new technologies, creating new product & market opportunities. Perhaps the most dramatic force now shaping our destiny

question

Consumer Product Safety Commission

answer

Sets safety standards for consumer products & penalizes companies that do not meet them

question

Political Environment

answer

Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

question

Cultural Environment

answer

Institutions & other forces that affect society's basic values, perceptions, preferences, & behaviors

Marketing Principles and Concepts – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards