Marketing: MKT 3343 Exam 1 TXST (ANDERSON)
Terms in this set (74)
Marketing seeks to discover the needs and wants of prospects and satisfy them. Essential to this process is the idea of exchange, which refers to?
the trade of things of value between buyer and seller so that each is better off after the trade
What is required for marketing to occur?
- 2 or more parties w/ unsatisfied needs
-desire and ability 2 be satisfied
-way to communicate
-something to exchange
(product, service, idea, something of value
an industry refers to?
organizations that develop similar offerings
what is the fundamental need for marketing?
to satisfy consumer wants and needs
to be considered as apart of the firm's market, the customer must?
have a desire and ability to buy
the primary interest of marketers when focusing on a target market is?
concentrating on the needs of some potential customers
what are the 4 P's
product, price, place and promotion
social, economical, technological, competitive and regulatory forces are considered what kind of forces?
Define an intermediate consumer?
Business to business consumers
what is an example of a business to business consumer?
Intel selling a processor to Dell
What is marketing's goal?
to discovery and satisfy needs
What is an example of a final or end consumer?
Myself buying groceries from the grocery store
What is the triple bottom line?
people, profit and planet; long- term welfare
Define what a final consumer is
a consumer is is the final step of the marketing transaction. The end person/ person of possession
List the 5 Environmental forces
social, economical, technological, competitive, and regulatory
What is specific to the 5 environmental forces?
they are external and uncontrolable
What is specific to the 4 P's of marketing?
they are internal and controlable
If I go to a car dealer because I saw an ad for a car sale, looked around, but did not buy a car... Did marketing occur?
No, because there NEEDS to be an exchange.
define the marketing mix
mixing the 4 P's the way that makes the best sales.
define target market
groups with the desire and ability to buy that you focus on
Define Product, an aspect of the marketing mix
good, service or idea that satisfies consumers' needs and provides value
Whats important about the marketing mic aspect, Price?
price maximizes revenue, able to compete with competitors
placement, distribution, getting it to the consumer
what is promotion?
there is a life saving pharma drug that millions of people use everyday. there are two prime groups that truly depend on this drug. 1) 20-50 yr olds who make 100,000 a year and 2) 20-50 yr olds who make 20,000 a year. Now your company decides to charge the 1st group $15, while charging the 2nd group $5. What would this act be called or considered?
define social responsibility
The idea that organizations are part of a larger society and are accountable to that society for their actions
What are social forces?
the demographic characteristics of the population and its culture
What are the 4 forms of competiotion?
Monopolistic, pure, monopoly, and oligopoly
What is monopolistic competition?
when seller compete with sustainable/ similar products within a price range
what is pure competition?
where there is a large number of seller and low barriers to entry
Ex- ebay, farmer's market
what is a pure monopoly?
an organization that has no competitors, sole source of supply
ex- electric or water company
what is a oligopoly?
few sellers control the supply Ex- cell phone companies
what are the the 3 business organizational levels?
corporate, strategic business unit (SBU), functional level
define the corporate level of an organization
represents the overall strategy for the entire organization
define the SBU (strategic business unit) level of an organization
subsidiary/ division that markets a set of related offerings to a defined target market
define the functional level of an organization
groups of specialists (departments) that create value for the organization
what is a high involvement product?
tend to be expensive, have serious personal consequences and/or reflect one's self image
ex- house, really really fancy watch
what is a moderate involvement product?
less expensive than high, less risk and easier to get rid, length of loans are less compared to high I products like homes
ex- cars, computers
what is a low involvement product?
routine purchases; shoes, groceries, clothing
what is cognitive dissonance?
post- purchase anxiety; did I make the right choice?
what are the 3 types of income?
gross, disposable and discretionary
define gross income
amount of money made in a year
define disposable income
amount of money an individual is left with after taxes are taken out
define discretionary income
-amount of money an individual has left after necessities are taken out in addition to taxes
-amount you have to do what you want with
what is environmental scanning?
is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends and threats
what is the difference between marketing strategy and tactics?
strategy: how the goal with be accomplished (plan for the campaign/ month)
tactic: day 2 day actions with the marketing mix
what are the 3 types of organizations
for-profit, non-profit and government angency
define a for-profit company
seek to earn profit
what is an example of a non- profit company?
Susan G Koleman, Red Cross, Ronald McDonald House
what is a government agency?
federal, state or local unit that provides a specific service
ex- IRS, post office, DPS
what is the difference between a marketing plan and a business plan?
a marketing plan is a road map for the marketing actions of an organization for a specified period. while a business plan is a road map for the ENTIRE company for a time.
what is an example of a long-range marketing plan?
goals for a marketing campaign ( sell a certain # of tickets for an event)
what is an annual review
it's a marketing plan that reviews all the long- range plans and strategies that were successful and those that were not
define "share of wallet"
$ out of a consumers' wallet ( what else the customer could buy with the $) (anything else in addition to competitors)
what is market share?
The ratio of sales revenue of the company to the total sales revenue of all companies in the industry, including the company itself.
what is the marketing program?
integrating the marketing mix to provide a good, service and/or idea to prospects
define a companies' mission
a statements of an organization's function in society; needs to be clear, challenging and compelling
does Medtronic's mission statement meet the definition?
"To contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life."
what are a companies core values?
principles that guide a firms conduct over time; inspire and motivate; set tone for firm
who are stakeholders?
employees, customers, shareholders, board of directors, suppliers, distributors, creditors, unions, government and local communities
what is the difference between shareholders and stakeholders?
shareholders: owners (physically or stock wise)
stakeholders: people affected with the companies positive or negative repercussions
what is a product that the "baby boomer" generation would buy?
long-term care insurance
what are the 5 steps of the purchase decision process?
problem recognition, information search, alternative evaluation, purchase decision, post-purchase behavior
what is market penetration
Current products in current markets
what is product development?
new products in a current market
what is market development?
current products in a new market
what is diversification?
new products in a new market
Bud light company wants to branch out into fruity beverages, they come up with "Lime-a-rita"
what kind of diversification analysis would you classify this as?
define the product involvment structure
how much the consumer invests, thinks about, puts effort into about what they are buying
KNOW FIGURE 2-4
cash cows, dogs, stars and question marks
What is market penetration?
Current market with current products
What is market development?
Current product in a new market
What is Diversification
New products in a new market
What is product development?
New products in a current market