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Marketing Exam 1

4 Ps of marketing
(aka the marketing mix) product, price, distribution (place), communications (promotion)
an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
core aspects of marketing
marketing helps create value, occuris in many settings, can be performed by both individuals and organizations, requires product, price, place, and promotion decisions, entails an exchange, is about satisfying customer needs and wants.
marketing entails an exchange
each party gives up something of value. the end is mutually beneficial.
the fundamental purpose of marketing is to ________ by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.
creating value
capturing value
price is everything a buyer gives up (money, time, energy) in exchange for the product. the key to determining ___ is to figure out how much customers are willing to pay and assess whether a profit can be made at that point.
delivering the value proposition
place, or supply chain management, descibes all activities necessary to get the product to the right customers _______.
communicating value
promotion is communiation by a marketer that _____ potential buyers about a product or service to influence their opinions or elicit a response.
marketing impacts stakeholders
society, customers, employees, supply chain
value driven companies
share information across their ogranizaiton, balance customer's benefits and costs, _____ with customers.
marketing and society focusing on many factors
product, marketing practices, communities, enviroment.
why study marketing?
half of every dollar spent pays for marketing costs, better informed consumers, demand for customer satisfaction.
the marketing evolution
production, sales, market, and value based
who can perform marketing?
individuals and orgainizations
how do firms become value driven?
sharing information, balancing benefits with costs, building relationships with customers.
production era
believed a good product would sell itself
sales oriented era
between 1920-50. production and distribution techniques became more sophisticated. they over produced so people had to do heavy doeses of personal selling and advertising.
market oriented era
after the war manufacturers had to turn their focus from the war to making comsumer products.
value based marketing era
companies turned their focus from creating a good marketing plan to creating value to their goods through marketing.
sustainable competitive advantage
an advantage over the ompetition that is not easily copied, and thus can be maintained over a long period of time.
four macro stategies for developing customer value
customer excellence, operational exellence, product excellence, locaitonal excellence
customer excellence
focuses on retaining loyal customers and excellenct customer service
operational excellence
achieved through efficient operations and excellent supply chain and human resource management
product excellence
having products with high percieved value and effective branding and positioning
locational excellence
having a good physical location and internet presence.
marketing plan
5 steps: 1. business mission and objectives. 2. situtation analysis (SWOT). 3. idenify opportunities (segmentation, targeting, and positioning) 4. implement marketing mix (product, price, place, promotion). 5. evaluate performance using marketing metrics.
planing phase
1. business mission and objectives. 2. situation analysis (SWOT)
implemnataion phase
3. idenify opportunities (segmentation, targeting, and positioning). 4. implement marketing mix (product, price, place, promotion). also know as the marketin strategy
control phase
5. evaluate performance using marketing metrics
1. difine the business mission
a braod discription of a firm's objectives and the scope of activities it plans to undertake. "what type of business are we? what do we need to accomplish?"
2. conduct a situtaion analysis using SWOT
assesses both the internal evionment with regard to its strengths weaknesses and the external enviroment in terms of its opportunities and threats.
3. identifying and evaluating opportunities using STP (segmentation, targeting, and posisitoning)
the firm divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets.
market sement consists of consumers who respond similary to a firm's marketing efforts.
evaluating each segment's attraactivness and decides which to pursue.
when the firm decides which segments to pursue, it must determine how it wants to be positioned within those segments.
4. implement marketing mix and allocate resources
4Ps. deciding who to do, how to do it, and how many resources shold be allocated to it.
5. evaluate performance using marketing metrics
final step in the planning process. includes evaluating the results of the strategy and implemenation program using marekting metrics.
portfolio analysis (BCG matrix)
stars, cash cows, question marks, dogs
upper left quadrant. occur in high growth markets and are high market share products
cash cows
lower left quadrant. are in low growth markets but are high market share products
quesiton marks
upper right quadrant. appear in high growth markets but have relatively low market shares; they are often the most managerially intensive products in that they require significant resources to maintain and potentially increase their market share.
lower right quadrant. are in low growth markets and have relatively low market shares.
four major growth strategies
market penetration, market development and the case for global expansion, product development, diversification.
market penetration
employes the existing marketing mix and focuses the firm's efforts on existing customers.
market development and the case for global expansion
employs the exisitng marketing offering to reach new market segments, whether domestic or international.
product devleopment
offers a new product or service to a firm's current target market.
introduces a new product or service to a market segment that currently is not served.
how do you create an ethical marketing climate?
having a set of values that guides decsion making and behavior.
ethical criticisms of marketing
high prices, deceptive practices, high pressure selling, shoddy or unsafe products, planned obsolesence, poor treatment of disadvantaged cunsumers, marketing's impact on society as a whole.
corporate social responsibility
refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its shareholders. firms with strong ethical climates tend to be more socially responsible.
four steps in the ethical decision making framework
1. identify issues, 2. gather information and identify stakeholders. 3. brainstorm alternatives. 4. choose a course of action.
the six tests of ethical action
publicity, moral mentor, admired observer, transparency, person in the mirror, golden rule.
publicity test
would i want to see this action that i'm about to tae descibed on the front page of the local paper?
moral mentor test
would the person i admire the most engage in this activity?
admired observer test
would i want the person i admire most to see me doing this?
transparency test
could i give a clear explanation for the action i'm contemplating?
person in the mirror test
will i be able to look at mysef in the mirror and respect the person i see there?
godlen rule test
would i like to be on the recieving end of this action and all its poetential consquences?
the marketing environment
consumers, immediate environment, macro environment, legislation
immediate environment
successfullly leveraging company capabilities , competitors and competitve intelligence, coroporate partners
macro enviroment
culture, demographics, social trends, technological advances, economic situation, political / regulatory environment
make up america's fastest growing group.
baby boomers
78 million. 1946-1964. individualistic, enjoy liesure time, obsession with youth.
generation X
1986-1976. 41 million. latchkey children. cynical
generation Y
various the most in age. stong emphasis on balancing work and life.
no quite teenagers, but not young children either. first generation born into the internet era
cunsumer, company, cause
To become value driven, firms should:
share information across the entire organization about customers and competitors. balance relationships with customers beyond thinking about individual transactions. balance benefits with costs to create value for customers.
________________ is communication by a marketer that informs, persuades, and reminds potential customers.
The marketing goal of getting the "right quantities to the right locations, at the right time" is:
supply chian management
When referring to "exchange," marketers are focusing on
the trading of things of value.
Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase _________ marketing.
When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
Based on the BCG portfolio analysis, products in low-growth markets that have received heavy investments and now have excess resources to spin off are:
Building a competitive advantage based on location is sustainable because:
it is not easily dupilicated
Firms achieve ___________ through efficient procedures and excellent supply chain management.
operational excellence
Effective promotion enhances a product or service's:
perceived value.
The basic difference between a good and a service is a good:
can be physically touched.
Based on the BCG portfolio analysis, products in low-growth markets that have received heavy investments and now have excess resources to spin off are:
cash cows.
Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the ____________ era of marketing.
In ________________ pricing, the firm first determines the perceived worth of the product from the customer's point of view and then prices accordingly.
value based
A ___________ is a group of products that consumers may use together or perceive as similar in some way.
E-books, in addition to being an alternative product form, provide __________ value creation through access via the Internet.
Firms with strong ethical climates tend to:
be more socially responsible.
During which phase of the strategic marketing plan would the firm address the question of, "Is the firm prepared to support the development of an ethical climate?"
Almost every organization includes values and ethics as part of their mission statement and includes a set of explicit rules in the company's employee handbook. Once the rules are in place there must be:
a system of controls that rewards appropriate behavior and punishes inappropriate behavior.
Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because:
they interact directly with consumers.
Marketers need to include blogs in the marketing plans because:
they can gain important feedback on products and product uses.
Firms use _______________ to collect, and synthesize information about their position with respect to their rivals.
competitive intelligence.
Improved computer storage capabilities, and the manipulation of consumer information has increased consumers':
privacy concerns.
The firms that work along with the focal firm to provide goods and services to consumers are viewed as:
corporate partners.
Marketers to _______________ income groups attempt to create value by offering one-of-a-kind products and exclusive services.
When evaluating competitors, marketers need to assess competitors':
strengths, weaknesses, likely reaction to marketer's activities
Using profit as the sole guide for corporate action can lead to:
short-term profits but long-term loss of customers.
Though Asian Americans comprise only 3 percent of the U.S. population, they represent:
the fastest growing minority population.
In addition to marketing goods, marketers also work with ______________, which are the intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
value statements
Some firms like Nike and Mars, Inc, the maker of M&M's, involve customer directly in the design of products and services to create additional value and strengthen the relationship between the customer and the firm. This practice is known as:
value co-creation
A document that analyzes the current marketing situation, opportunities and threats for the firm, marketing objectives in terms of the four Ps, action plans and pro forma financial statements is known as a:
marketing plan.
Trevor has looked at strengths and weaknesses, and opportunities and threats, and he is systematically examining alternatives. He is likely using:
scenario planning
The Johnson & Johnson Credo developed by Robert Wood Johnson is often cited as an important document because:
it guided company executives in a difficult decision-making time with very specific advice.
When developing a marketing strategy, ethics:
should be considered throughout the process, using different questions at different stages.