Principles of Marketing Ch. 1, 2, and 4 – Flashcards
Unlock all answers in this set
Unlock answersquestion
What is Marketing?
answer
A philosophy, an attitude, a perspective, a management orientation PLUS a the 4P's
question
American Marketing Association Definition
answer
Marketing is the process of planning and executing the 4P's to create exchanges that satisfy individual and organizational goals
question
The 4P's
answer
Product, (stemming from product is) price, distribution, and promotion
question
The Concept of Exchange
answer
The idea that people give up something to receive something they would rather have
question
The necessary conditions for exchange are
answer
have at least two parties, something of value, communication and delivery, freedom to accept or reject, and desire to deal with other party
question
The Marketing Management Philosophies are
answer
Production, Sales, Market, and Societal
question
Define Production
answer
Focus on efficiency of internal operations
question
Define Sales
answer
Focus on aggressive sales techniques and believe that high sales result in high profits
question
Define Market
answer
Focus on satisfying customer needs and wants while meeting objectives
question
Define Societal
answer
Focus on satisfying customer needs and wants while enhancing individual and societal well-being
question
The guiding factor with all orientations (the four marketing management philosophies) should be
answer
the determination of what customers want, not what management thinks should be produced or sold
question
Production involves which 4P?
answer
Price
question
Sales involves which 4P?
answer
Promotion
question
Market involves which 4P?
answer
Product
question
Societal involves which 4P?
answer
Distribution
question
Production focuses on
answer
*efficiency* saving money, lower costs, and tightening budget (Ex: homogeneous products like toilet paper)
question
Sales focus on
answer
*aggressive* only cares about selling (higher sales = higher profits)
question
Market focuses on
answer
*satisfying customer needs* research, cares about customer, and product convenience
question
Societal focuses on
answer
*customer needs and societal well-being* cares about society (Ex: make a recyclable product to help society while making a profit)
question
Sales Orientation
answer
Focus is internal, aggressive selling goods and services to everyone while aiming for maximum sales volume using the tool of promotion
question
Market Orientation
answer
Focus is outward, satisfying wants and needs of people, focusing on specific groups, aiming for the goal of satisfying the customers using the tool of coordinating the use of all marketing activities
question
Target Market
answer
specific group of people with a need or want (Ex: *Walmart* production, societal, and Market)
question
Relationship Marketing
answer
The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms
question
Requirements for Building Relationships
answer
Know who your customers are, know what they value, know what they want to buy, and know how they prefer to interact
question
Why study Marketing?
answer
It plays an important role in society, it is vital to business survival profits and growth, it offers career opportunities, it affects your life every day, half of every dollar spent pays for marketing costs, better-informed consumers, and a demand for customer satisfaction
question
Strategic Planning Equation
answer
Resources and objectives + Evolving marketing opportunities = Long run profitability and growth
question
The Marketing Plan
answer
A written document that acts as a guidebook of marketing activities for the marketing manager
question
Marketing Plan Process
answer
First create a business mission statement, then come up with objectives, then situation or SWOT analysis, then marketing strategy, then implementation evaluation control
question
Defining the Business Mission
answer
Focuses on the market(s) rather than the good or service and strategic business units may also have a mission statement
question
Example of a Business Mission
answer
*Northwest* Education, Sports, Entertaining, Job Preparation
question
Marketing Myopia
answer
Being too narrow and short-term; too broad won't have direction; markets served and customer benefits = good mission statement
question
Strategic Business Units (SBUs)
answer
Large organization needed to be broken down into smaller departments, each department requires its' own strategies and funding
question
Characteristics of a Strategic Business Unit
answer
A distinct mission and specific target market, control over their resources, their own competitors, and plans independent of other SBUs
question
Marketing Objectives must be
answer
realistic, measurable, time specific, and consistent with organization's priorities
question
Define the marketing objective Realistic
answer
realistic goal
question
Define the marketing objective Measurable
answer
how you're going to meet your goal
question
Define the marketing objective Time Specific
answer
Ex: check every month to make sure you're accomplishing goals
question
SWOT Analysis includes
answer
Strengths, Weaknesses, Opportunities, and Threats
question
Strengths
answer
Things the company does well
question
Weaknesses
answer
Things the company does not do well
question
Opportunities
answer
Conditions in the external environment that favor strengths
question
Threats
answer
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness
question
Strengths and weaknesses are a ____________ assessment.
answer
Internal
question
Opportunities and Threats are a ____________ assessment.
answer
External
question
SWOT Analysis
answer
helps firms identify their competitive advantage
question
Internal SWOT analysis includes
answer
Things we can control like: Production costs, marketing skills, employee capabilities, financial resources, available technology, superiority in manufacturing, service, quality, value perception, and company/brand image
question
External SWOT analysis includes
answer
Things we can't control like: Social, Demographic, Economic, Technological, Political/Legal, and Competitive
question
Social
answer
Ex: # of high school students or social media
question
Demographic
answer
Ex: age, income, gender, marriage status
question
Economic
answer
Ex: Employment rate
question
Political/Legal
answer
Ex: laws on commerce
question
Competitive
answer
Ex: can't control what competitors do
question
Define Environmental Scanning
answer
Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the marketing plan implementation
question
What happens in an environmental scanning
answer
Examination of macro environmental forces (External SWOT analysis components), helps identify market opportunities, and provides guidelines for design of marketing strategy
question
Environmental Scan is only used for ___________
answer
External SWOT analysis
question
Competitive Advantage
answer
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 (What they do better than anyone else)
question
Examples of Competitive Advantage
answer
Southwest Airline Baggage or Northwest textbook rentals
question
Types of Competitive Advantage
answer
Cost, Product/Service Differentiation, and Niche Strategies
question
Cost
answer
being the low cost competitor in an industry while maintaining satisfactory profit margins (innovations, efficiency, design, and experience)
question
Product/Service Differentiation
answer
advantage achieved when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than the competition (brand names, network, reliability, and image) Ex: google fiber
question
Niche Stategies
answer
advantage achieved when a firm seeks to target and effectively serve a small segment of the market (having a business in only one region, being the only producer for a certain need)
question
Define Niche
answer
Product that is extremely desirable
question
Sustainable Competitive Advantage
answer
An advantage that cannot be copied by the competition
question
Organization's Skills and Assets
answer
Patents, Copyrights, Locations, Equipment, Technology, Customer Service, and Promotion
question
Portfolio Matrix
answer
Tools for allocating resources on the basis of relative market share and market share and market growth rate
question
Star
answer
High growth, Market leaders, Require cash, and Large profits
question
Cash Cow
answer
Low growth, High market share, and High cash flow
question
Problem Child
answer
High growth, Low market share, Need cash, and Poor profit margins
question
Dog
answer
Low growth, Low market share, and Minimal cash flow
question
Star Examples
answer
smartphone
question
Problem Child Examples
answer
smart HDTV or hybrid cars
question
Cash Cow Examples
answer
cable TV, Internet, or cell phone service
question
Dog examples
answer
VHS tapes or flip phones
question
Benefits of marketing
answer
competitive advantage and allocation of resources
question
Market Share
answer
stops at 100%, increases by taking from someone, lose by someone taking from you (your percentage of a product you're selling)
question
Market
answer
to infinity, contracts or expands by economy, demographics, etc. (the product)
question
Strategies for Resource Allocation
answer
Build, Hold, Harvest, and Divest
question
Build
answer
Provide financial resources if SBU (Problem Child) has potential to be a Star
question
Hold
answer
Preserve market share if SBU is a successful Cash Cow. Use cash flow for other SBUs. "Stay put" - already making money, don't need help
question
Harvest
answer
Increase short-term cash return. Appropriate for all SBUs except Stars
question
Divest
answer
Get rid of SBUs with low shares in low-growth markets. This is the dog
question
Prospects
answer
most attracted customers
question
Target Market Strategy
answer
Segment the market based on groups with similar characteristics, analyze the market based on attractiveness of market segments, and select one or more target markets
question
The Marketing Mix
answer
Using the 4P's to produce exchanges with a target market
question
Product Strategies
answer
product is the heart of the marketing mix and is the start of the 4 P's -includes a physical unit package, warranty, service, brand, image, and value
question
Distribution (place) Strategies
answer
Anything to do with getting a product to a customer -product availability -involves all activities from raw materials to finished products
question
Promotion Strategies
answer
Anything you can do to make a product more visible -Role is to bring about exchanges with target markets -Includes integration of personal selling, advertising, sales promotion, and public relations
question
Pricing Strategies
answer
-The most flexible of the 4 P's - Price X Units sold = Total Revenue
question
What does following up the marketing plan include
answer
Implementation, Evaluation, Control, and Marketing Audit
question
Implementation
answer
execution of plan is where a plan fails - timelines, budgets, communication
question
Evaluation
answer
monitor plan - track revenue/sales - formal and informal control programs
question
Control
answer
control the plan
question
Marketing Audit
answer
always taking an audit of our plan -Includes Comprehensive, Systematic, Independent, and Periodic
question
Define The Marketing Audit
answer
A thorough, systematic, periodic evaluation of the goals, strategies, structure, and performance of the marketing organization
question
Define Target Market
answer
A defined group most likely to buy a firm's product
question
External Marketing Environment
answer
is not controllable, ever-changing marketplace, and environmental scanning
question
The poverty of time
answer
A lack of time to do anything but work, commute to work, handle family situations, do housework, shop, eat, sleep
question
A lot of ________ parent families work now
answer
two
question
On average providing for kids is ______________ from __________ to ____________
answer
$250,000 from birth to eighteen
question
________ percent of all females are in the workforce
answer
58
question
Demographic Factors
answer
Age, Location, and Race and Ethnicity
question
Generation Y
answer
called Millennials, age group under 25, product has to be cool, they have a lower work ethic, respond better to different types of ads, and love customized products and services
question
Generation X
answer
are savvy and cynical consumers, indulge themselves with meals/alcohol clothing and electronics, and when they like somethings, they're really into it
question
Baby Boomers
answer
Cohort, Cherish youth convenience and individuality, and politics love this group because they have time and money
question
Older Consumers
answer
Age 65+, healthier wealthier and better educated, know exactly what they want and need, not happy with advertising treatment, healthcare is big in this group
question
Multiculturalism
answer
When all major ethnic groups in an area--such as a city, county, or census tract--are roughly represented
question
New technology is a weapon against __________ and _________
answer
inflation and recession
question
Inflation
answer
decrease of the value of money
question
Recession
answer
period of negative growth in the economy
question
U.S. excels at _________ and ________ research
answer
basic and applied
question
Information technology and the internet have _________ productivity
answer
increased
question
When it comes to Political and Legal Factors, Laws and Regulations Protect
answer
Businesses, society, consumers, and new technology (Ex: FDA and FTC and identity theft and privacy)
question
FDA
answer
Food and Drug Administration
question
FTC
answer
Federal Trade Commission
question
Regulatory Agencies
answer
Consumer Product Safety Commission, FTC, and FDA
question
Competitive Factors are
answer
-Competition for Market Share and Profits - Global Competition
question
Market Share shortened Definition
answer
our sales compared to available sales
question
Example of Competition for Market Share and Profits
answer
e- books are competition for Barnes and Noble
question
Global Competition
answer
More foreign firms are entering U.S. market, Foreign firms in U.S. now compete on product quality, and Global markets are highly competitive
question
Ethical Behavior in Business
answer
- Judgments Vary -Just because something is legal, doesn't mean it is ethical
question
Code of Ethics
answer
A guideline to help marketing managers and other employees make better decisions
question
Corporate Social Responsibility
answer
Philanthropic, Ethical, Legal, and Economic
question
Philanthropic
answer
Be a good citizen
question
Ethical
answer
Do what is right
question
Legal
answer
Obey they law
question
Social Responsibility Define Economic
answer
Be profitable
question
#4- A company that has a market orientation and adheres to the marketing concept does NOT
answer
d) Fuel sales growth through the application of aggressive sales techniques
question
#15- There are many different kinds of cheese, but only Jarlsberg Lite has 50% less fat, 60% cholesterol, and 100% of the taste of other kinds of cheese. This describes Jarlesberg Lites:
answer
b) Competitive Advantage
question
#22- Every night Universal Studios Japan hosts a firework display. The theme park recently came under Government investigation when allegations were made that the park was detonating more than 50 lbs. of explosives in its nightly fireworks displays. In small nations, the use of explosives is stringently controlled. This is an example of how ______ factors influence a business
answer
b) Legal & Political
question
#13- One of the divisions of manufacture and markets health and beauty. This business has its own accounting engineering
answer
e) SBU's
question
#16- SBU's are classified as ___________ are market leaders and growing fast
answer
d) stars
question
#9- ___________ is the primary tool used by sales oriented org to achieve its corporate goals
answer
b) promotion
