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Marketing Test Chapters 1-7
Terms in this set (50)
-a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction.
-an organizational activity, set of institutions, and process.
-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.
-Entails processes that focus on delivering value and benefits to customers, not just selling goods and services.
-At least two parties, something of value, communication and delivery, freedom to accept or reject, desire to deal with other party
-Exchange may not take place even if conditions are met.
-An agreement must be reached.
-Marketing occurs even if exchange does not take place.
-internal capabilities of the firm
-Field of Dreams orientation
-"If you build it, they will come."
-Doesn't consider if what is produced meets market needs
-focus: What can we make or do best?
-aggressive sales techniques and belief that high sales result in high profits
Selling Things & Collecting Money
-Disregards market needs and consumer demand.
-Despite the quality of sales force, often cannot convince people to buy what is neither wanted nor needed.
-focus: How can we sell more aggressively?
-satisfying customer needs and wants while meeting objectives
-Focusing on customer wants and needs to distinguish products from competitors' offerings
-Integrating all the organization's activities to satisfy these wants
-Achieving the organization's long-term goals by satisfying customer wants and needs legally and responsibly
-Obtain information about customers, competitors, and markets
-Examine the information from a total business perspective
-Determine how to deliver superior customer value
-Implement actions to provide value to customers
-focus: What do customerswant and need?
-satisfying customer needs and wants while enhancing individual and societal well-being
-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
-focus: What do customers want/need, and how can we benefit society?
sales vs marketing orientation
-Those to whom the product is directed
-Firm's primary goal
-Tools the organization uses to achieve its goals
-what the firm makes
-goods and services
-max sales volume
-promotion to succeed
-what the market wants
-benefits that customers seek
-satisfying needs of groups
-coordinate marketing activities to succeed
customer value requirements
-Offer products that perform
-Avoid unrealistic pricing
-Give the buyer facts
-Offer organization-wide commitment in service and after-sales support
-Co-creation with customers
The customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations.
-Strategy that focuses on keeping and improving relationships with customers.
Successful strategies need:
-Effective Training Programs
--Every employee represents the firm in the eyes of the customer.
-Employee training programs
--Employees are given more authority to solve customer problems on the spot.
--Emphasizing cooperation over competition while helping a customer
why study marketing?
-important to society
-important to business
-good career opps
-the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.
-What is the organization's main activity at a particular time?
-How will it reach its goals?
Strategic Business Units
-A distinct mission and specific target market
-Control over its resources
-Its own competitors
-A single business or a collection of related businesses
-Plans independent of other SBUs
Ansoff's Opportunity Matrix
-MarketPenetration: Increase market share among
Development: Attract new customers to
-Product Development: Create new products for
-Diversification: Introduce new products
into new markets
Starbucks sells more coffee to customers who register their reloadable Starbucks cards.
Starbucks develops powdered instant coffee called Via.
Starbucks opens stores in Brazil and Chile
Starbucks launches Hear Music and buys Ethos Water.
boston consulting group- portfolio matrix
The assumption is that market share and profitability are strongly linked
fast growing market leader, Stars usually have large profits but need cash to finance growth. A marketing tactic is to protect market share by reinvesting earnings in product improvement, distribution, promotion, and production efficiency. Strive to capture new users as they enter the market
is an sbu that generates more cash than it needs to maintain its market share, It is in a low-growth market, but the product has dominant market share. The marketing strategy is to maintain market dominance by being the price leader and by making technological improvements. Allocate excess cash to high-growth prospects.
shows rapid growth but poor profit margins, It has a low market share in a high-growth industry. It needs a great deal of cash to prevent conversion to dog status. Strategies are to invest to gain better market share, acquire competitors, or drop the SBU
has low growth potential and a small market share, Most dogs leave the market. The strategy options are to divest or harvest
portfolio matrix strategies
Hold: If an SBU is a successful cash cow, a goal would be to hold or preserve market share.
Harvest: This is an appropriate strategy for all SBUs except stars. The basic goal is to increase short-term cash return without much concern for the long-run impact.
Build: If an SBU has the potential to be a star, building would be an appropriate goal.
Divest: Getting rid of SBUs with low shares of low-growth markets is often appropriate. Problem children and dogs are suitable for this strategy.
general electric model
-The third model for selecting strategic alternatives is the General electric model.
-The GE model determines resources allocation to SBUs by determining market attractiveness and company strength.
-In the graphic, business position (horizontal axis) measures if the company is well positioned to take advantage of opportunities in the taret market. Market attractiveness (vertical axis) measures how attractive a market is for a company to enter. Some measurements are profitability, competition, customer price sensitivity, and rapid growth.
-Planning - the process of anticipating future events and determining strategies to achieve organizational objectives in the future.
-Marketing Planning - designing activities relating to marketing objectives and the changing marketing environment.
-Marketing Plan - a written document that acts as a guidebook of marketing activities for the marketing manager.
The creation and implementation of a complete marketing plan will allow the organization to achieve marketing objectives and succeed.
However, the marketing plan is only as good as the information it contains and the effort, creativity, and thought that went into its creation.
business mission statement
target market strategy
Answers the question, "What business are we in?"
The business mission profoundly affects the firm's long-run resource allocation, profitability, and survival
Business mission statements that are stated too narrowly suffer from marketing myopia
Strengths and Weaknesses are an internal assessment. Opportunities and Threats are an external environment assessment.
Environmental scanning is 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.
-cost: A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.
Having a cost competitive advantage means being the low-cost competitor in an industry while maintaining satisfactory profit margins
-product/service differentiation: A product/service differentiation competitive advantage exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition. Examples include:
Strong dealer network
-niche: A niche competitive advantage seeks to target and effectively serve a single segment of the market. A nice competitive advantage:
Is used by small companies with limited resources
May be used in a limited geographic market
is a statement of what is to be accomplished through marketing activities. To be useful, stated objectives should be:
Compared to a benchmark
-appeal to the entire market with one marketing mix
-concentrate on one marketing segment
-appeal to multiple markets with multiple marketing mixes
-A defined group most likely to buy a product
-Changes as consumers age
-External elements change consumers' desires
a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
Evaluation and Control
A marketing audit is...
After the audit, three tasks remain:
-Profile and make recommendations about weaknesses and inhibiting factors as well as strengths and new opportunities.
-Ensure that the role of the audit has been clearly communicated.
-Make someone accountable for implementing recommendations
Effective Strategic Planning
The following factors maintain order and keep people and organizations from running amuck:
-Formal and informal groups
-An active civil society
The moral principles or values that generally govern the conduct of an individual or a group.
-There is no law for "cutting in line."
-Cutting in line would anger most other people.
People usually base their individual choice of ethical theory on their life experiences.
Ethical Behavior in Business
ethics: The moral principles or values that generally govern the conduct of an individual.
morals: The rules people develop as a result of cultural values and norms.
Ethical Development Levels
-Preconventional Morality: Based on what will be punished or rewarded
Self-centered, calculating, selfish
-Conventional Morality: Moves toward the expectations of society
Concerned over legality and the opinion of others
-Postconventional Morality: Concern about how they judge themselves
Concern if it is right in the long run
ethical decision making
extent of problems
top management action
probability of ham
time until consequences
code of ethics:
-Helps identify acceptable business practices
-Helps control behavior internally
-Avoids confusion in decision making
-Facilitates discussion about right and wrong
Foreign Corrupt Practices Act (FCPA)
-Prohibits U.S. corporations from making illegal payments to foreign officials.
-Has been criticized for putting U.S. businesses at a disadvantage.
-Has encouraged some countries to implement their own anti-bribery laws.
Corporate Social Responsibility
Corporate social responsibility is a business's concern for society's welfare.
Stakeholder theory says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation.
-Socially responsible companies will outperform their peers.
-It is in business's best interest to find ways to attack society's ills.
The development and marketing of products designed to minimize negative effects on the environment or improve the environment.
-Environmentally aware customers pay more for products
-Companies must try to educate customers of environmental benefits
-For-profit and non-profit organizations cooperate to generate funds.
-Generates about $7 billion annually
-Too many causes lead to customer cause fatigue
The factors within the external environment that are important to marketing mangers can be classified as social, demographic, economic, technological, political and legal, and competitive.
You must first understand how customers buy, where they buy, what they buy, and when they buy.
You must understand what drives consumer decisions.
You must identify the most valuable customers and understand their needs.
You must understand the competition.
attitudes, values, lifestyles
Social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans.
Social factors influence the products people buy, the price paid, the effectiveness of specific promotions, and how, where, and when people expect to purchase products.
Self-sufficiency: Every person should stand on his or her own two feet.
Upward mobility: Success comes with getting an education, working hard, and playing by the rules.
Work ethic: Hard work, dedication to family, and frugality are moral and right.
Conformity: No one should expect to be treated differently from everybody
Sets with similar terms
Marketing exam 1
Marketing - chapters 1-2
Marketing Chapter 2
Marketing ch. 1,2, and 4