Term
| What are the three basic building blocks of marketing and how do they relate? |
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Definition
1) Creating value for customers -->
2) attracting and keeping the right customers -->
3) drives profitability |
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Term
| What are the three types of strategy? |
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Definition
1) Corporate
2) Business
3) Marketing |
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Term
| Describe corporate strategy |
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Definition
| What business should we be in? |
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Term
| Fill in the blank: Specialists perform _______ than ________ |
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Definition
| Specialists perform BETTER than GENERALISTS |
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Term
| Describe business strategy |
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Definition
| How do we compete effectively in a given business? |
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Term
| Describe marketing strategy |
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Definition
| How do we orchestrate the marketing mix to deliver value to a particular market segment? |
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Term
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Definition
| Product, Price, Promotion, Place |
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Term
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Definition
| Creating, communicating, and delivering value to customers that benefit the organization and its stakeholders |
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Term
| What are the 3 important marketing concepts? |
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Definition
1) Marketing is exchange of value
2) Marketing facilitates exchange and delivery of value through the 4 P's
3) Satisfy customer needs |
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Term
| What is marketing's role within the firm? |
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Definition
| Meeting a chosen customer's functional and emotional needs |
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Term
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Definition
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Term
| The ultimate marketing goal |
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Definition
| Attract, Satisfy, and retain target cutomers |
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Term
| What is customer acquisition? |
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Definition
1) Find new ways to acquire customer profitability
2) Acquire with less up front sales
3) Acquire higher value customers |
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Term
| What are sales per customer? |
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Definition
1) Increase "share of customer" who buy from you and competitor
2) Generate add on sales |
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Term
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Definition
1) Increase price
2) Shift purchases toward higher margin products
3) Change customer behavior so less they're less expensive to serve
4) Discourage or terminate unprofitable customers |
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Term
| What is customer retention? |
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Definition
1) Eliminate root cause of customer defections
2) Actively recover customer who have just left
3) Develop loyalty initiatives
4) Acquire more loyal cusomers |
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Term
| Customers that complain usually end up staying with the company, true or false? |
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Definition
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Term
| What is the SWOT analysis? |
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Definition
| Strength, Weakness, Opportunities, and Threats (strength and weakness are INTERNAL to the company, opportunities and threats are EXTERNAL to the company) |
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Term
| What are the 6 rights of Marketing Strategy? |
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Definition
1) Right Product
2) RIght message
3) To the right customer
4) At the right time
5) In the right place
6) For the right price |
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Term
| What do programmed costs result from? |
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Definition
| Attempts to generate sales volume from advertising, and sales salaries |
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Term
| What are committed costs? |
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Definition
| They're required to maintain the organization such as: rent, administration and clerical salaries |
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Term
| What are committed costs? |
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Definition
| They're required to maintain the organization such as: rent, administration and clerical salaries |
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Term
| What are committed costs? |
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Definition
| They're required to maintain the organization such as: rent, administration and clerical salaries |
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Term
| What are two costs that vary with output level? |
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Definition
1) cost of goods solds
2) Expenses |
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Term
| How do you find total cost? Total cost = ----- ----- + ----- ----- |
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Definition
| Total Cost = Fixed Cost + Variable cost |
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Term
| How do you find unit margin? Unit Margin = ______ - ______ |
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Definition
| Unit Margin = Price - Unit Variable Cost |
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Term
| Unit Margin is usually represented as a percentage of selling price, what is the equation to find percent margin? |
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Definition
| Percent Margin = Unit Margin/Price |
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Term
| What is the equation for Unit Contribution? |
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Definition
| Unit Contribution = Price - Unit Variable Cost |
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Term
| If V is the total number of units a firm sells what is the equation of total contribution? |
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Definition
| Total Contribution = (P - Unit Contribution) x V |
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Term
| What exactly is total contribution? |
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Definition
| Total contribution is the amount available to the firm to cover fixed costs and profit after variable cost has been deducted from total revenue |
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Term
| You have 600 units of hammers, they sell for $7.50 each, the unit variable cost is $4, the unit contribution is $3.50 what is the TOTAL CONTRIBUTION? |
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Definition
| $7.50-$4.00= $3.50 x 600 = $2,100 TOTAL CONTRIBUTION |
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Term
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Definition
| It does NOT vary with output |
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Term
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Definition
| It does vary with output level |
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Term
| What is the Break Even Analysis? (BEV) |
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Definition
| Total revenue crosses total cost on a graph. (There 2 lines cross each other) BEV = fixed cost/ price - unit VC |
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Term
| What is the customer life and retention? |
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Definition
| Customer life expectancy increases exponentially with customer retention. |
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Term
| There is only one boss who is that? |
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Definition
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Term
| What does person variability mean? |
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Definition
| People are not all the same |
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Term
| What is situation variability? |
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Definition
| People make choices depending on the situation |
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Term
| What are all markets ultimately? |
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Definition
| All markets ultimately are people |
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Term
| What are the 2 main types of markets? |
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Definition
1) Consumer (B2C- business to consumer)
2) Business (B2B- business to business) |
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Term
| What 2 buyers are in B2B? |
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Definition
| Individual and group buyers |
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Term
| What are the 5 things that "float" around the Buying Center? |
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Definition
| Buyers, Influencers, Deciders, Gatekeepers, and Users |
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Term
| What 2 buyers are in the B2C? |
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Definition
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Term
| What are the 5 things that "float" around the Family Buying Center? |
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Definition
| Buyers, Influencers, Deciders, Gatekeepers, and Users |
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Term
| In the family buying center what are influencers also known as? |
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Definition
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Term
| What is the definition of Consumer Market? |
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Definition
| Purchasers who intend to benefit from or consume the purchased product for personal use, not intending to make profits. |
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Term
| What is consumer behavior? |
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Definition
| The acts, processes and social relationships displayed by individuals or groups before, during and after an exchange |
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Term
| What does the model of consumer behavior look like? |
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Definition
| Stimuli (Product, Price, etc) --> Organism (buyer's characteristics) --> Response (Buying attitudes, the purchase) |
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Term
| What are the 5 steps in the consumer behavior process? |
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Definition
| Problem recognition, information search, evaluation of alternatives, purchase and post-purchase evaluation |
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Term
| What is problem recognition? |
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Definition
| Discrepancy between actual and desired state, and why and how consumers get interested. |
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Term
| What is information search? |
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Definition
| Sources of information such as: Personal, commercial, public, and experiential |
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Term
| What is evaluation of alternatives? |
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Definition
| The question: What drives the purchase behavior? -Multiattribute attitude model and value analysis |
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Term
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Definition
| When, Where, How and How much |
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Term
| What is post-purchase evaluation? |
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Definition
| Delight, satisfaction or dissatisfaction |
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Term
| What are some psychological factors influencing consumer behavior? |
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Definition
| - Motivation, Values and beliefs, personality, lifestyle |
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Term
| What are some sociocultural factors influencing consumer behavior? |
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Definition
| -Referencer groups, family, culture, social networks |
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Term
| What are some situational factors influencing consumer behavior? |
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Definition
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Term
| What percentage of purchasing is for children? |
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Definition
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Term
| A firm doesn't define itself by the product it sells but by: |
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Definition
| By the customer benefit provided |
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Term
| Are marketing campaigns individualized? |
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Definition
| YES, if not they should be! |
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Term
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Definition
| Identifying and targeting your key customers |
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Term
| What is the marketing mix? |
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Definition
| The set of activities comprising a firm's marketing program. |
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Term
| What is product line breadth? |
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Definition
| Product line breadth decisions are how many different lines the company will offer. |
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Term
| What is product line length? |
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Definition
| How many items there will be in a line providing coverage of different price points. |
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Term
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Definition
| How many types of a given product there will be |
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Term
| What is a marketing channel? |
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Definition
| The network which a firm goes to market |
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Term
| What is direct distribution? |
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Definition
| There is no independent party between the firm and its customers |
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Term
| What is indirect distribution? |
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Definition
| There is a third party involved |
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Term
| What is dual distribution? |
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Definition
| Different systems are used to reach each market segment efficiently and effectively |
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Term
| What are the six M's in planning a communications strategy? |
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Definition
1) Market
2) Mission
3) Message
4) Media
5) Money
6) Measurement |
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Term
|
Definition
| The focus is on intermediaries |
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Term
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Definition
| The end consumer develops such an insistence on the product that the consumer "pulls" it through the channel of distribution |
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Term
| What are the 5 C's when developing a marketing strategy? |
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Definition
1) Customers
2) Company
3) Competitors
4) Collaborators
5) Context |
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Term
| What is the equation for the selling price? |
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Definition
| Selling Price = Cost/ 1- [percent margin/100] |
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Term
| How do attitudes of a consumer help company's? |
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Definition
| A consumer's attitude can tell a company whether or not the consumer likes the product or not. |
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