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Marketing Test 1
Marketing Test Chap 1-7
94
Business
09/19/2010

Additional Business Flashcards

 


 

Cards

Term
What is marketing?
Definition

 

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Term
What are the two facets of marketing?
Definition

1. A philosophy, an attitude, perspective, management

2. is a set of activities ( products, distribution, promotion, pricing)

Term
Define Exchange and what must exist for exchange to exist.
Definition

People giving up something to receive something they rather have.

 

Conditions for exchange to exist. 1. At least 2 parties 2. somthing of value 3. communication and delivery 4. freedom to accept and reject 5. desire to deal with the other party

 

Exchange may not take place even if conditiong are met.

An agreement mut be reached

marketing occurs even if  exchange doesn't exist

Term
What are the marketing management philosophies?
Definition

Production Orientation- internal capabilites of firm. What can we make or do best?

 

Sales Orientation- aggressive sales techniques and belief that high sales result in high prices. How do we sell more aggressively?

 

Market Orientation- satisfying needs and want, while meeting objectives. What do customers wand and need?

 

Societal Orientation- satisfying needs and wants while enhancing individual and societal well being. What do customers wand and need and how can we benefit society?

 

Term

What is marketing orientation?

 

Definition

A sale doesn't depend on a aggresive sales force but rather on a customers decision to purchase a product.

Term
How do you achieve marketing orientation?
Definition

- obtain info about customers, competitors, and markets

- examine info from a total business perspective

- determine how to deliver superior customers perspective

- implement actions to provide value to customers

Term
The marketing concept what is it?
Definition

- 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

Term
What is societal marketing orientation, and ways for it to exist?
Definition

 

An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests.

ex. 

Less toxic products
More durable products
Products with reusable
or recyclable materials
Term
Differences btw sales and marketing orientation?
Definition

Sales oriented firms tend to be inward thinking and focus on selling what the organization makes rather than what the market wants. Defines its business on goods and services.

 

Market orientation defines its business as the benefits its customers seek

 

The two can be compared in five characteristics.

 §Organization’s focus

§Firm’s business
§Those to whom the product is directed
§Firm’s primary goal
§The tools used to achieve those goals
Term
Define customer value?
Definition
the relationship btw benefits and the sacrifice necessary to obtain those benefits.
Term
What are the 5 customer value requirements?
Definition

- Offer products that preform

- earn trust

- avoid unrealistic pricing

- give the buyer facts

- offer organization wide commitment in service and after sale support

Term
What is customer satisfaction?
Definition

 

The feeling that a product met or exceeded the customer’s expectations.

Term
Describe Relationship marketing
Definition
focusses on keeping realtionships with new and current customers
Term
What are the steps taking in building relationships
Definition

customer oriented personel

employee training programs

empowered employees

team work

 

 

Term
Defining a business firm?
Definition

-Enusure a customer focus

-Encouages inovation and creativity

-stimulates an warness of changes in customers prefrences

Term
review slide on sales and market orientation chp 1 slide 22
Definition
Term
What is strategic planning?
Definition
The managerial process of creating and maintaining a fit btw the organixations objectives and resources and evolcing market opportunities. The goal is long term profitability and growth.
Term
What is a market plan, and why write one.
Definition

A writeen document that acts as a guidebook of marketing activities for the marketing manager.

 

You wirte  marketing pland becuase it provides a basis for comparison of actual and expected preformance, provides clearly stated sctivities to work toward, serves as a refrence, provides an examinination or the marketing enviroment, allows entry into the marketplace with awarness.

Term
Review slides on stategic planning.
Definition
Term
What does the business mission answer?
Definition

Answers the question " What business are we in"

Focuses on the market rather than the good or service

Strategic business units (SBU'S) may also have a mission statement

 

 

Term
What are strategic business units?
Definition

A distinct mission and specific target market.

Control over its resources

Its own competitors

Plans independent of other SBU's

Term
What is a marketing objective?
Definition
A statement of what is to be accomplished through marketing activities.
Term
What are the four marketing objectives?
Definition

realistic

measurable

time specific

consistent with and indicate the organizations priorities

Term
What criteria must exist for good marketing objectives to exist?
Definition

1. communicate marketing management philoshphy

2. provide management direction

3. motivate employees

4. Force executives to think clearly

5. Allow for better evaluation of results

 

Term
Review SWOT Analysis sheet.
Definition
Term
What is enviromental scanning?
Definition

The collection and interpretation of info about forces, events, and relationships in the external envrioment that may affect the future of the organization of the implementation of the marketing plan

Term
Review components of a situation analysis sheet.
Definition
Term
What is competitive advantage?
Definition
the set of unique features of a compnay and its products that are preceived by the target market as significant and surperios to the competition.
Term
what are the three types of competitive advantage
Definition

1. Cost

2. Product/ service differentiation

3. niche strategies

Term
What is cost competitive advantage.
Definition

being the low-cost competitor in an industry while maintaining satisfactory profit margins.

 

Ex: obtain inexpensive raw materials, create efficient plant operations, design products for ease of manufacture, control OH cost, avoid marginal customers.

Term
What is product service differentiation?
Definition
the provision of somthing that is unique and valuable to buyhers beyond simply offering a lower price than the competition
Term
What are some examples of product/ service differnentiation?
Definition

Brand names

storn dealer network

product reliability

image

serivce

Term
Descirbe a Niche competitive advantage
Definition

The advantage achieved when a firm seeks to target and effectively serve a small segemnt of the market

ex. fly fishing

 

Used by small companies with limited resources, used in limited geographic market, product line may be focused on a specific product category

Term
What are some souces of sustainable competitive advantage.
Definition
Patents, copyrights, locations, equipment, tech,, customer service, promtion
Term
What are the sources of competitive advantage
Definition
Cost, product/ service differentiation, niche stratgeies
Term
Review strategic alternatives
Definition
Term
What are the portfolio matrix strategies
Definition
Build, hold, harvest, divest
Term
what is marketing strategy
Definition
the activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutaully satisfying exchanges with target markets.
Term
What are some target market strategies?
Definition

1. segment the mrket based on groups with similar charcteristics

2.Analyze hte maket base on attractiveness of market segments

3. select one or more target markets

4.appeal to the entire market with one marketing mix

 

Term
What is the marketing mix
Definition
a unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
Term
The four p's of marketing?
Definition

Price

Promotion

Place

product

Term
What are ethics and morals
Definition

Ethics- are the moral principles or valus that generally goern the conduct of an individaul

 

Morals- are the rules people develop as a result of cultural values and norms.

Term
What are the three ethical development levels and describe.
Definition

Preconventional- more childlike, based on what will be punished and rewarded

Conventional- expectations of society

Postconventional- More mature- concern about how they judge themselves over the long run

Term
What is a code of ethics?
Definition

A guideline to help marketing mangers and other employees make better decisions

Helps identify acceptable business practice, helps control behavior internally, avoid confussion, facilitaes discussion about right and wrong

Term
What is a traget market?
Definition
group most likely to buy a firms product
Term
Socail factors influence?
Definition

products purchased

prices paid for products

effectiveness off promotions

how, where, and when people purchase

Term
What are the core american values?
Definition

self sufficiency

upward mobility

work ethic

conformity

Term
The socail factors that affect marketing are?
Definition
Values, time pressure, component lifestyle, changing role of women
Term
describe tweens
Definition

age 8-14

pop. 29 millinos

purchasing power of 39 billion

Emerging as the richest generation and most influential

Term
Descirbe Generation Y
Definition

Born btw 1979 and 1994

pop. 60 million

200 billion purchasing power

word of mouth marketing in effective

impatient, family oriented, inquisitive, opinionated, diverse, time managers, street smart

Term
Describe Generation X
Definition

Born btw 1965 and 1978

pop. 40 milllion

savvy and cynical consumer

entering money making year

 

Term
describe baby boomers
Definition

born btw 1946 and 1964

pop. 77 million

1 trillion in spending power

income will continue to gron as the keep working

Term
describe economic factors in the external marketing enviorment
Definition

Distribution of consumer debt

inflation

recession

 

Term
Describe purchasing power
Definition
a comparison of the relative cost of a standard of goods and services in different geographic areas
Term
What is a multinational corp.
Definition
Move resources, goods, and service, and skills across national boundaries without regard for the country in which the headquarters are located.
Term
What is global marketing
Definition
marketing that targets markets throughout the world, has become imperative for business.
Term
What is a global vision
Definition
recognizing and reacting to international marketing opportunities.
Term
What are some benefits of globalization
Definition

expands econmic freedom

spurs competition

raising productivity and living standards

offers access to foriegn capital

acts as a check on government power

promotes higher labor and enviromental standards

Term
What are some fears of globalization?
Definition

milions have lost jobs

millions fear loosing jobs

outsourcing

 

Term
4 stages of multinational companies
Definition

1.Operate in one country, sell in another

2. set up foreign subsidiaries to handle sales

3. operate an entire line of business in another country

4. virtual business

Term
Define Culture
Definition
the common set of values shared by its citizens that determine what is socially accpetable
Term
Define a tariff and quota
Definition

A tariff is a tax on imports

A quota is a limit on the amount of goods entering a country

Term
Define Boycott
Definition
Exclusion of products from a country
Term
What is the Uraguay Round?
Definition
agreement that has dramatically lowered trade barriers
Term
What is NAFTA
Definition
agreement btw Canada, US, mexico
Term
What considerations do marketers take when looking at a demographic makeup
Definition

population density

urban or rural

personal income

Age

Term
Shortages of natural resources create?
Definition

international dependencies

shifts of wealth

inflation and recession

export opportunities if resources are abundant

stimulus for military intervention

Term
What are the levels of risk levels for five methods of entering the global marketplace?(lowest to highest)
Definition

Exporting, licensing, contract manufacturing, JV, Direct investment

Term
What is Exporting, buyer for export, export broker, Export agents?
Definition

Exporting is selling domestic goods to another country

Buyer for export - assumes all ownership n risk and sells globally for its own account

Export broker- brings buyer and seller together

Export Agent- acts as a manufacturing agent in foreign market , lives in foreign market

Term
What is licensing
Definition
Legal Process allowing use of patents/ knowledge ...
Term
What is contract manufacturing
Definition

Private-label manufacturing by a foreign country

 

Term
what is a JV
Definition
Domestic firm buys/joins a foreign company to create a new entity
Term
What is a direct investment
Definition
Active ownership of a foreign company/ manufacturing facility
Term
Place (Distribution)
Definition

 

uAdequate distribution is necessary for success in global markets
Some countries have complicated systems
Lack of distribution infrastructure and cultural differences create problems
uInnovative distribution systems can create competitive advantage
Term
Things to consider when pricing
Definition

 

uMust consider transportation and insurance costs, taxes and tariffs
uDetermine what customers will spend
uEnsure that foreign buyers will pay price
uMay need to simplify a product to lower price
uDon’t assume that low-income countries       are willing to accept lower quality
Term
What is dumping
Definition

 

Trying to increase an overseas market share
Temporarily distributing products to overseas markets to offset slack demand at home
Lowering unit costs by exploiting large-scale production

 

-Attempting to maintain stable prices during periods of exchange fluctuations
Term
What is countertrade
Definition
A form of trade in which all or part of the payment for goods or services is in the form of other goods and services
Term
Know slide 23 chapter 5
Definition
Term
Define consumer behavior
Definition
how consumer make purchase decisions and how consumers use and dispose of products
Term
What are the steps in the cosumer decision making process?
Definition

need recognition

information search

evaluation of alternatives

purchase

post purchase behavior

Term
What is an evoked set
Definition
group of brands resulting from an information search, from which a buyer can choose
Term
What is Cognitive Dissonance, and how can it be reduced.
Definition

inner tension that a consumer experiences after recognizing an inconsistency btw behavior and values or opinions. Can be reduced, by seeking info that reinforces decision, avoiding info that contradicts purchase, and revoking the desicion by returning the product

Term
Name some social influences
Definition

refrence groups

opinion leaders

family members

Term
What is perception
Definition

 

Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

Term
Define Maslows Hierarchy of Needs
Definition
A method of classifying human needs and motivations into five categories in ascending order of importance
Term
What are the two types of learning
Definition

Experiential- An experience changes behavior

Conceptual- Not learned through direct experience

Term
Define Beliefs and attitudes
Definition

A belief is an organized pattern of knowledge that an individaul holds true to hir or her world

An attitude is a learned tendency to respond consistently toward a given object

Term
What is a business product
Definition

 

§Are used to manufacture other products
§Become part of another product
§Aid the normal operations of an organization
§Are acquired for resale without change in form
Term
What is stickiness
Definition

a measure of a webites effectiveness

stickiness= frequency*duration*site reach

Term
define keiretsu
Definition
a network of interlocking corporate affiliates
Term
Define Disintermediation
Definition
the elimination of intermediaries such as distributers from a marketing channel
Term
Explain what the North american industry classification system (NAICS) is
Definition
provides a common industry classification system
Term
What is the multiplier effect
Definition

 

Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Term
What is a buying center
Definition
all those person in an organization who become involved in the purchase decision