Marketing test1 – Flashcards
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Marketing (operational definition)
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A set of activities: -product-place-promotion-price -philosophy-attitude-perspective-management orientation.
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Marketing (conceptual definition)
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Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
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Organizational culture
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It is not about the customer. Employee satisfaction!
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Exchange
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-People giving up something to receive something they would rather have. -Conditions: 1. At least two parties 2. Something of value 3. Communication and Delivery 4. Freedom to accept or reject 5. Desire to deal with other party *May not take place even if conditions are met. *An agreement must be reached. *Marketing occurs even if exchange doesn't take place.
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Marketing Management Philosophies
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1. Production 2. Sales 3. Market 4. Societal
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Production Philosophy
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Focuses on the internal capabilities of the firm. *Works best when Demand>Supply. *Not the best focus. Focus-What can we make or do best?
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Sales Philosophy
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Aggressive sales techniques and belief that high sales result in high profits. Focus- How can we sell more aggressively?
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Market Philosophy
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Satisfying customer needs and wants while meeting objectives. Focus- What do customers want and need?
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Societal Philosophy
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Satisfying customer needs and wants while enhancing individual and societal well-being. (see word 12) Focus-What do customers want and need, and how can we benefit society?
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Marketing Concept
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The idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives. 1. Focusing on customer wants and needs to distinguish products from competitor's offerings. 2. Integrating all the organization's activities to satisfy these wants. 3. Achieving the organization's long-term goals by satisfying customer wants and needs legally and responsibly.
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Achieving a Marketing Orientation
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1. Obtain info. about customers, competitors, and markets. 2. Examine the information from a total business perspective. - How much can we produce? - How many customers can we serve? - How will stakeholders be affected? 3. Determine how to deliver superior customer value. 4. Implement actions to provide value to customer.
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Societal Marketing
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An organization exists not only to satisfy customer wants but also to preserve or enhance individuals' and society's long-term best interests. -Less toxic products. -More durable products. -Products with reusable or recyclable materials.
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Sales Orientation VS. Marketing Orientation
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1. Organization's focus: Sales (inward) VS. Customer (outward). 2. Firm's business: Goods VS. Benefits. 3. Those to whom the product is directed: Everybody VS. Specified. 4. Firm's primary goal: Short (maximum sales volume) VS. Long-Term Value (customer satisfaction). 5. The tools used to achieve those goals: Intense Promotion VS. Integrated Marketing Efforts.
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Customer Value
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The relationship between benefits and the sacrifice necessary to obtain those benefits. *The value/effort that the customer has to put into the product.
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Customer Value Requirements
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1. Offer products that perform. 2. Earn trust. 3. Avoid unrealistic pricing. 4. Give the buyer facts. 5. Offer organization-wide commitment in service and after-sales support. 6. Co-Creation (allowing people to be a part of the process).
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Customer Satisfaction
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The customers' evaluation of a good or service in terms of whether it has met their needs and expectations. Goal: To exceed those expectations.
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Building Relationships
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A strategy that focus on keeping and improving relationships with current customers. -Customer-oriented personnel. -Employee training programs. -Empowered employees. -Teamwork.
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Use "customer benefits" instead of "goods/services"
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-Ensures a customer focus. -Encourages innovation and creativity. -Stimulates an awareness of changes in customer preferences.
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Why study marketing?
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1. Plays an important role in society. 2. Vital to business survival, profits, and growth. 3. Offers career opportunities. 4. Affects your life every day.
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Vital marketing activities for organizations
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1. Assess the wants and satisfaction of customers. 2. Design and manage product offerings. 3. Determine prices and pricing policies. 4. Develop distribution strategies. 5. Communicate with present and potential customers.
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Strategic Planning
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The managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities. The goal is long-term profitability and growth. -Marketing environment makes organizational environment change.
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Marketing Plan
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A written document that acts as a guidebook of marketing activities for the marketing manager. Answers questions: 1. What is the organization's main activity? 2. How will the organization meet its goals? *What can help us? *Who can hurt us? *Why are we doing it?
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Why write a marketing plan?
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1. Provides a basis for comparison of actual and expected performance. 2. Provides clearly stated activities to work toward common goals. 3. Serves as a reference for the success of future activities. 4. Provides an examination of the marketing environment. 5. Allows entry into the marketplace with awareness.
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Marketing Plan Elements
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1. Business Mission Statement 2. Objectives 3. Situation or SWOT Analysis 4. Marketing Strategy -Target Market Strategy -Marketing Mix (4 Ps) 5. Implementation Evaluation Control -Because the market is always changing.
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Business Mission Statement
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1. Answers the question, "What business are we in?" 2. Focuses on the market(s) rather than the good or service. -Analysis of present or future customers. -"Marketing Myopia" *Guides the organization. *Critical to success. *There is a difference between Mission Statement and Vision.
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*Marketing Objective
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A statement of what is to be accomplished through marketing activities. -Good Marketing Objectives are: 1. Realistic 2. Measurable 3. Time Specific 4. Consistent with and indicating the priorities of the organization.
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S.W.O.T. Analysis
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1. Internal Strengths 2. Internal Weaknesses 3. External Opportunities 4. External threats
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Environmental Scanning
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The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. *Monitoring of the environment. -Changing preference. -Regulations. -Competitive Activity. -Economic Factors.
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Competitive Advantage
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The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. Types: 1. Cost. 2. Product/Service Differentiation. 3. Niche.
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Cost
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Being the low-cost competitor in an industry while maintaining satisfactory profit margins.
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Product/Service Differentiation
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The provision of something that is *unique* and valuable to buyers beyond simply offering a lower price that the competition's. -Brand names -Strong dealer network -Product reliability -Image -Service
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Niche
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When a firm effectively serves a small target market with specialized needs. -Small companies with limited resources -Limited geographic market -Specific product category
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Sources of Sustainable Competitive Advantage
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-Patents -Copyrights -Locations -Equipment -Technology -Customer Service -Promotion
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Strategic Direction/Strategic Alternatives
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1. Market Penetration (Present Product/Present Market) 2. Product Development (New Product/Present Market) 3. Market Development (Present Product/ New Market) 4. Diversification (New Product/New Market)
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Market Penetration
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Increases market share among existing customers. -VIP reward programs, student ID discount
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Product Development
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Create new products for existing markets. -Technology development. -Create a need (Ex. iPhone 6)
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Market Development
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Attract new users to existing products. -Starbucks in China. -Developed a market for coffee.
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Diversification
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Introduce new products into new markets -McDonald's in India. -Online MBA Programs.
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Boston Consulting Group Portfolio Matrix
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1. Stars (High Growth Rate/High Market Share) -Fast-growing market leaders. 2. Problem Children/Question Mark (High/Low) -Rapid growth but poor profit margins. 3. Cash Cows (Low/High) -Generates more cash than needed to maintain. -Ex. Coffee Pods 4. Dogs (Low/Low) -Low growth potential and small market share.
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Marketing Strategy
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The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets. Processes: 1. Segment -Life style Demographic + Cultural Development 2. Analyze -Make Groups - Assess the value of those groups (pick the valuable ones) 3. Target -Who is the target?
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The Marketing Mix
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A unique blend of product, distribution (place), promotion, and strategies designed to produce mutually satisfying exchanges with a target market.
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Product
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Physical unit-Package-Warranty-Service-Brand-Image-Value Products can be -Tangible goods -Ideas -Services
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Place
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- Product availability where and when customers want them. - All activities from raw materials to finished products. - Ensure products arrive in usable condition at designated places when needed.
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Promotion
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-Role is to bring about exchanges with target markets by: 1. Informing 2. Educating 3. Persuading 4. Reminding -Includes integration of: 1. Personal selling 2. Advertising 3. Sales promotion 4. Public relations
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*Price
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-Price is what a buyer must give up to obtain a product. -Competitive weapon. -Price x Units Sold= Total Revenue *The most flexible of the 4 Ps- quickest to change *Price dictates value->in the eyes of the consumers.
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Follow-up on the Marketing Plan
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Implementation -Product-Place-Promotion-Price Evaluation -Objectives met? Control -Audits -comprehensive -systematic -independent -periodic
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Effective Strategic Planning
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-Continual attention -Creativity -Management Commitment
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Ethics
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The moral principles of values that generally govern the conduct of an individual.
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Morals
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The rules people develop as a result of cultural values and norms.
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Code of Ethics
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A guideline to help marketing managers and other employees make better decisions. -Helps identify acceptable business practices -Helps control behavior internally -Avoids confusion in decision making -Facilitates discussion about right and wrong
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Corporate Social Responsibility
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A business's concern for society's welfare. Ex. Dawn's Do More than Dishes Campaign.
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Sustainability
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The idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities *to build profits and help the world at the same time.*
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Stakeholder Theory
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Policy -Employees -Management -Customers -Local Community -Suppliers -Owners
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Discuss Corporate Social Responsibility
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Philanthropic- Be a good citizen. Ethical- Do what is right. Legal- Obey the Law. Economic- Be profitable.
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*Cause-Related Marketing
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The corporative efforts of a "for-profit" firm and a "non-profit" organization for mutual benefit. -Is this company committed? -How is the program structured? -Who does the program benefit? -How will the organization that benefits use of money? -Is the program meaningful to me? -How does our company benefit from this cooperative agreement?
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Federal Trade Commission
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Regulates unfair methods of competition. -Penalties for deceptive advertising. -Require support for claims. - Shut you down-anti-trust
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FDA
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Food and Drug Administration. The agency that is responsible for determining if a food or drug is safe and effective enough to be sold to the public.
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Self-Regulation
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Motivations: 1. Customer trust and confidence 2. Avoid government interference.
