Term
| What does google, AOL instant messenger, and ebay have in common? |
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Definition
| each firm provides a great vale, each firm gives more to its customers than those customers spend in terms of their time and money |
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Term
| Why does great technology mean very little? |
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Definition
| it means very little unless customers believe it gives them a more valuable experience than its competition does. |
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Term
| Give some daily examples of marketing |
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Definition
| daily tasks such as agreeing to do the dishes for coffee, fill up your car with gas, attend a class that you have chosen and paid for, buy music off itunes |
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Term
| What does the American Marketing association state that marketing is? |
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Definition
| Marketing is 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. |
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Term
| What is a marketing plan? |
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Definition
| Written document composed of analysis of current marketing situation, opportunities and threats, marketing objectives, and strategy ( four P's) action program, and projected income. |
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Term
| What does the definition of marketing imply? |
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Definition
| good marketing is not random. it requires thoughtful planning with an emphasis on ethical implications of any of those decisions on society in general. |
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Term
| what are the four P's of marketing? |
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Definition
| Product, price, promotion, place. how the product or will be concieved or designed, how much should it cost, where and how it will be promoted, and how it will get to the consumer. |
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Term
| What is fundamental to marketing success? |
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Definition
| understanding the marketplace, especially consumer needs and wants, is fundamental to marketing success. |
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Term
| Give an example of how the company crest can be segmented or divided. |
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Definition
| they could divide them into adolescent, adult and senior users, or perhaps into smokers, coffee drinkers, and wine drinkers. |
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Term
| What would marketers prefer to do? what do they do instead in terms of targeting? |
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Definition
| Marketers prefer to sell their products and services to everyone, but its not practical to do so. They instead target and seek customers who have interest and ability to buy. |
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Term
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Definition
| Trade of things of value between buyer and seller, so each is better of as a result. |
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Term
| How is marketing divided? |
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Definition
| by the four P's. Product, Price, Promotion, Place |
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Term
| Give an example of the exchange underpinning of Seller-Buyer relationships. |
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Definition
| The goods/services producers ( sellers0 give communications and delivery to the buyers, the buyers give info and money. |
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Term
| In terms of product, what is marketings overall goal? |
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Definition
| to create value by developing a variety of offerings, including goods, services, and ideas to satisfy customers needs. |
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Term
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Definition
| goods are items you can physically touch |
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Term
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Definition
| intangible customer benefits that are produced by people or machines and cannot be separated from the producer. |
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Term
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Definition
| include thoughts, opinions, and philosophies, and intellectual concepts such as these also can be marketed. example would be bicycle safety to schools, give talks, etc. |
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Term
| Give some key points about price. |
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Definition
Everything has a price, monetary or nonmonetary.
Everything the buyer gives up, money time, energy, in exchange for the product. |
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Term
| How do marketers determine price? |
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Definition
| on the basis of the potential buyer's belief about its value. |
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Term
| Give some key facts about Place |
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Definition
it is also refered to as supply chain management.
describes all the activities necessary to get the product to the right customer when the customer wants it. |
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Term
| what is supply chain managment? |
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Definition
| refers to a set of approaches, and techniques that firms employ efficiently and effectively integrate their suppliers, manufacturers, warehouse, stores and other firms involved in the transaction, such as transportation companies, into a seamless value chain where merchandise is delivered in the right quantity, right location, right time, etc. it is very important. profits will suffer if you dont have good supply chain managment. |
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Term
| Give some key facts about promotion |
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Definition
Even the bet products and services can go unsold if marketers cannot communicate their value to customers.
it is the communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions of elicit a response.
it creates an image for the company |
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Term
| What is B2C and B2B marketing? |
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Definition
| Since it would be complicated to buy everything from the manufactueres, retailers step in and add value. B2C is business to consumer, is where businesses sell to consumers in smaller amounts. B2B is business to business, where one business sells to another. Consumer to Consumer C2C is like when someone sells you stuff on ebay |
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Term
| True or False: Marketing occurs only in profit making businesses. |
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Definition
| False: marketing can occur at a college or university, hospitals, museums, etc |
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Term
| How does marketing help less developed countries? |
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Definition
| by linking buyers and sellers together. exposing people to an array of products not once had. |
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Term
| What are the four areas of marketing history? and some details on each. |
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Definition
1.) production oriented era- henry ford- a good product would sell itself
2.) sales oriented era- 1920-1950- producers could produce more than consumers wanted to buy, so businesses became sales oriented.
3.)Market oriented era- After WW2, new jobs needed, market centers opened up, consumer became king. businesses discovered marketing during this time.
4.) Value based marketing era - value reflects relationship of benefits to costs, what you get for what you give. businesses needed to provide more than giving the customers what they wanted. thus value was born and can be created in many ways. |
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Term
| When a consumer buys one good over another, what are they doing? |
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Definition
| Making a trade off. Businesses must understand the key benefits of a product, and how to improve on them. the other side of the equation is providing at a lower cost. |
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Term
| How do firms compete on the basis of value? |
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Definition
| Consistentently creating and delivering value is difficult in a world of changing perceptions. marketers need to keep an eye on the marketplace to stay ahead of competition |
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Term
| How do firms become value driven? |
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Definition
1.) Sharing information- must share info collected from consumers and competitors so everyone is on same page.
2.) Balancing benefits with costs- they must use available consumer data to find opportunities in which they can satisfy their customers needs and develop long term loyalties.
3.) building relationships with customers- businesses need to think about their customer orientation in terms of relationship rather than transaction. |
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Term
| What are the three types of orientations? |
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Definition
Transactional- regards buyer seller relationship as series of induvidual transactions, anything that happened before or after the transaction isnt important.
relational orientation- based on philosophy buyers and sellers need to develop a long term relationship.
Customer relationship managment ( CRM)- set of strategies, programs, and systems focusing on identifying and building loyalty among the firms most valued customers.they collect info on customers needs, and use that info to target their customers with the products, services, and special promotions that appear most important. |
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Term
| Why is marketing important? |
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Definition
| it advises production across all sectors, tells people how much to make, and when to ship it. It enriches society, makes life easier and provides employment, pervasive across the supply chain and organization, expands firms global prescence, and can be entreprenueral. |
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Term
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Definition
| the group of firms that make and deliver a given set of goods. |
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Term
| what are the three missions that improve society ( based on ben and jerry's example) |
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Definition
| Product, economic, and social |
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Term
| What is the strategic market planning process? |
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Definition
| represents a series of steps a marketer goes through to develop a strategic marketing plan |
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Term
| what is a marketing plan? |
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Definition
| written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategies ( the four P's) action program, and projected income |
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Term
| What are the 5 steps of a marketing plan? |
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Definition
1.) defining mission or vision
2.) performing a situational analysis
3.) Identifying and evaluating opportunities ( segmentation, targeting, and positioning)
4.) Implementing a marketing mix and resources.
5.) evaluating a performance. |
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Term
| what are the three phases of marketing plan? |
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Definition
planning- define mission, evaluate situation.
implementation- identify opportunities, STP, marketing mix
control phase- evaluate performance |
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Term
| What is a mission statement? |
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Definition
| a broad description of a firms objectives and the scope of activities it plans to undertake to answer two questions. what type of business are we, and what do we need to do to accompish our goals. |
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Term
| What is a sustainable competitive advantage? |
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Definition
| its a key goal or objective often impeded in a mission statement, and something the firm can do persistantly better than other competitors. |
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Term
| What does a competitive advantage act like? |
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Definition
| A wall, that the firm has built around its position in a market. eventually it will erode, but the wall is key to financial success in the long run. |
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Term
| What is a situational analysis? |
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Definition
| Second step in a marketing plan. uses SWOT anaylsis. strengths weaknesses, opportunities, threats. |
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Term
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Definition
| Segmenting, Targeting, Positioning. firms use to identify and evaluate opportunities to increase sales and profits. |
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Term
| What is a market segment? |
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Definition
| group of consumers who respond similiarily to a firms marketing efforts. |
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Term
| What is market segmentation? give an example |
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Definition
| process of dividing markets into groups of customers with different needs, wants, or characteristics who might appreciate products or services geared to them. EX: disney segmenting singles and couples, families with older kids and adults, or families with younger kids by offering pleasure island, epcot, or magic kingdom. |
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Term
| What is target marketing or targeting? |
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Definition
| process of evaluating attractivness of various segments and deciding which to pursue. EX: soft drink manufacturers, targeting kids with fruit drinks, caffeine free, etc. |
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Term
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Definition
| Process of defining the marketing mix variables to give target customers clear, distinctive, desirable understanding of the product in comparison with competing products. Ex: disney defines itself as entertainment. firms are typically more successful when they focus on those opportunities that build on their strengths relative to the competition. |
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Term
| After the firm has does the STP analysis, decided what to do, and how many resources need to be alocated to it, what is the fourth step? |
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Definition
| marketers implement the marketing mix, four P's of marketing. |
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Term
| what is important about creating a product and value for a firm? |
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Definition
| the key to marketing success is the creation of value. Ex: sirius radio having a lot of radio stations. |
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Term
| What are the three price basing strategies? |
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Definition
| cost, competitor, and value based. |
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Term
| what is cost based pricing? |
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Definition
| strategy that involves determining the costs of producing a product and adding a fixed amount to arrive at the selling price. |
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Term
| what is competitor based pricing |
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Definition
| involves pricing below, at, or above those competitors offerings. |
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Term
| What is value based pricing? |
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Definition
| Strategy that determines the customers percieved value for the product and prices accordingly. |
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Term
| value based pricing has what? |
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Definition
| a direct impact on profits. |
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Term
| after the firm has created value for a product, what is the next step? |
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Definition
| to make the product readily accessible when and where the customer wants it. Ex: staples opening a website, kiosk, store, delivery, etc. |
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Term
| after finding a place, price, and promotion for a product, what comes next? |
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Definition
| promotion, they must communicate the value of a product. ex: television, raidio, magiznes, etc. |
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Term
| What is the relative marketing share? |
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Definition
| measure of products strength in a particular market, sales of the focal product divded by sales achieved by the largest firm in the industry. |
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Term
| what is a market growth rate? |
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Definition
| annual rate of growth of the specific market in which the product competes. |
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Term
| How do some firms do portfolio analysis for their products. |
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Definition
| by putting them in a 2x2 matrix. circles represent brands, and the size is proportional to the sales. horizontal axis represents relative market share, and the vertical axis the market growth rate. |
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Term
| what are the four symbols for a BCG growth share matrix. |
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Definition
stars- upper left quadrant, occur in high growth markets. heavy resource investment.
cash cows- lower left quadrant, low in growth markets but high in market share products
question marks- upper right quadrant- high growth markets, low market shares, require high resources.
Dogs- lower right quadrant- low growth markets, low market shares. |
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Term
| what is the strategic business unit? |
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Definition
| division of the firm that can be managed and operated independantly, may have a different mission than other divisions. |
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Term
| what is the product line? |
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Definition
| group of products that consumers may use together or percieve as similiar in some way. |
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Term
| give an example of SBU and product line. |
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Definition
| ex: within daimler chrysler the mercedes car dealership consists of mercedes benz, smart, etc. chrysler consists of chysler, dodge, and jeep. there are several product lines within mercedes, sedans, coupes, convertibles, etc. |
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Term
| what is step 5 of the marketing plan and what does it consist of? |
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Definition
| evaluating the results of a strategy. did it achieve its performance goals, can be evaluated several ways including brand awarness. |
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Term
| Stategic planning is not ________ |
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Definition
| sequential. products can move back and forth among many steps. |
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Term
| What is a market penetration strategy? |
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Definition
| employs the existing marketing mix and focuses the firms efforts on existing customers. ex: attracting new consumers to the firms target market, or encouraging current customers to patronize the firm and buy more merchandise. |
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Term
| What is a market development strategy? |
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Definition
| growth strategy that offers a new product or service to a firms current target markets, whether international or domestic. |
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Term
| What is a product development strategy? |
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Definition
| growth strategy that offers a new product or service to a firms current target market. ex: time having many magazines such as people, in style, parenting, health. |
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Term
| what is the diversification strategy? |
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Definition
| firm introduces a new product or service to a market segment it does not currently serve. ex: related or unrelated. |
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Term
| what do macro strategies focus on? |
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Definition
| they focus on elements of excellence to create and deliver value and to develop sustainable competitive advantages. |
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Term
| what are three macro strategies? |
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Definition
customer excellence- loyal customers and excellent customer service.
operational excellence- efficient operations and excellent supply chain managment.
product excellence- high quality products, effective braning and positioning.
all of these gain customer value. |
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Term
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Definition
| branch of ethical study that examines ethical rules and principles within a commertional context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce. |
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Term
| What is marketing ethics? |
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Definition
| examines those ethical problems that are specific to the domain of marketing. anyone advertising or promoting needs to realize ethical implication of their actions. it is the root cause of most ethical concerns. |
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Term
| What is an ethical climate? |
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Definition
| Set of values within the marketing division that guides decision making and behavior |
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Term
| Once values are understood, what must the firm do? |
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Definition
| develope a set of implicit and explicit rules |
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Term
| What might cause problems in business ethics? |
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Definition
| the competing influence of personal ethics |
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Term
| from the american marketing associations code of ethics, what are the 5 categories of ethical values? |
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Definition
| honesty, responsibility, fairness, respect, oppenness |
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Term
| what are 3 of the general norms of the amacoe |
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Definition
1.) marketers must do no harm
2.) marketers must foster trust in the marketing system.
3.) marketers must embrace, communicate, and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. |
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Term
| dilemma's with competing outcomes happens: |
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Definition
| nearly every day in thousands of business enviroments. |
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Term
| to avoid ethical consequences, what must firms do? |
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Definition
| the long term goals must be aligned with the short term goals of each induvidual. |
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Term
| to align personal and corporate goals, what must a firm do? |
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Definition
| strong ethical climate, explicit rules for governing a firms transactions including a code of ethics, and a system for rewarding and punishing behavior |
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Term
| What is corporate social responsibility? |
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Definition
| a company's voluntary actions to address the ethical, social, and enviromental impacts of its business operations and the concerns of its stakeholders. |
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Term
| What are the four steps for a simple framework for ethical decision making? |
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Definition
step 1- identify issues
step 2- gather info and identify stakeholders.
step 3- brainstorm alternative
step 4- choose a course of action |
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Term
| How do marketers introducce the ethics into the planning phase? |
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Definition
| simply by including ethical statements in the firms mission or vision statement. ex general mills switching to whole grains |
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Term
| How do marketers introduce ethics in the implementing phase? |
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Definition
| a firms target market can lead to charges of unethical behavior. groups may be responsive to the firms efforts and still not represent an appropriate target market, thus the firm can serve this market but should not. ex P and G serving with limited too. souring decisions also pose a problem. who is responsible for ensuring safe work enviroment? once a strategy is implemented controls must be in place |
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Term
| how do marketers implement ethics into the control phase? |
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Definition
| systems must be in place to ensure that ethical issues raised was actually successtfully implemented, and must be able to react to change. |
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Term
| What are the 6 tests of ethical action? |
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Definition
publicity test
moral mentor test
admired observer test
transparency test
the person in the mirrior test
the golden rule test |
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