1. Introduction Flashcards
What is the definition of Marketing Management?
The process of planning, organizing, implementing, and controlling marketing activities to achieve organizational goals and satisfy customer needs.
Involves analyzing market opportunities, researching target markets, developing strategies, and managing the marketing mix.
What is the core idea of Marketing Management?
Creating value and building relationships.
It involves understanding and anticipating customer needs to design and deliver products effectively.
What is the strategic role of Marketing Management?
Aligning the company’s offerings with market demands to meet customer needs and achieve financial objectives.
What is a customer-centric approach in Marketing Management?
Prioritizing customer satisfaction and experience in every aspect of the marketing process.
List the key components of Marketing Management.
- Market Research
- Target Market Selection
- Marketing Strategy Development
- Implementation and Control
What is the difference between traditional and modern marketing management?
Traditional marketing was product-centric, while modern marketing is customer-centric.
How has digital marketing influenced Marketing Management?
It provides new opportunities for reaching customers, gathering insights, and personalizing marketing efforts.
What is the significance of adaptability in Marketing Management?
Marketing management must evolve with changing consumer behaviors, market conditions, and technologies.
What does market share indicate?
The percentage of total sales in a market captured by a company.
What are the key objectives of Marketing Management?
- Customer Satisfaction
- Profitability
- Market Share
- Brand Loyalty
- Sustainable Growth
Define Customer Satisfaction.
The extent to which a product or service meets or exceeds customer expectations.
Why is profitability important in Marketing Management?
It ensures marketing strategies lead to a positive return on investment (ROI).
What is Brand Loyalty?
A customer’s consistent preference for one brand over all others.
What does sustainable growth refer to?
The ability of a company to grow consistently over time without compromising its long-term viability.
What are the key activities in Product Planning and Development?
- Idea Generation
- Market Research
- Product Design and Development
- Product Launch
- Product Life Cycle Management
What is the definition of Pricing Strategies?
Setting the price for a product or service considering factors like production costs and market demand.
List the types of Pricing Strategies.
- Cost-Plus Pricing
- Value-Based Pricing
- Competitive Pricing
- Penetration Pricing
- Skimming Pricing
What is Distribution Management?
The processes and logistics of delivering a product from the manufacturer to the end customer.
What are the key components of effective Distribution Management?
- Channel Selection
- Logistics Management
- Inventory Management
- Channel Relationships
What does Promotion and Communication involve?
Activities that communicate the value of products or services to the target audience.
List the key promotional tools.
- Advertising
- Sales Promotion
- Public Relations (PR)
- Personal Selling
- Digital Marketing
What is Sales Promotion?
Short-term incentives, such as discounts, coupons, or contests, to encourage immediate purchases.
Define Public Relations (PR).
Managing the company’s image and building positive relationships with the public through media coverage, events, and other outreach efforts.
What does Personal Selling involve?
Direct interaction between sales representatives and potential customers to make a sale.
What is Digital Marketing?
Utilizing online platforms, including social media, email, and search engines, to reach and engage with customers.
What is Market Research and Analysis?
Systematically gathering, recording, and analyzing data related to the market, competitors, and consumers.
Why is Market Research important?
Provides insights needed to develop effective marketing strategies, reduce risk, and identify new opportunities.
What are the key research areas in Market Research?
- Consumer Research
- Competitor Analysis
- Market Trends
- Segmentation Analysis
Define Customer Relationship Management (CRM).
Strategies, practices, and technologies used to manage and analyze customer interactions and data throughout the customer lifecycle.
What are key activities in CRM?
- Customer Data Management
- Personalization
- Customer Engagement
- Customer Retention Strategies
Why is Marketing Management important?
Ensures alignment with customer needs, creates competitive advantage, optimizes resources, drives innovation and growth, and manages risks.
What does understanding Customer Needs and Wants involve?
Identifying, analyzing, and understanding the needs, wants, and preferences of customers.
What is Competitive Advantage?
Attributes that allow a company to outperform its competitors, achieved through product quality, customer service, innovation, and brand reputation.
Define Brand Image and Brand Reputation.
Brand image refers to the perception of a brand in consumers’ minds; brand reputation is the overall estimation of reliability, quality, and trustworthiness.
What does Driving Sales and Revenue Growth mean?
Increase in the amount of money generated from the sale of goods and services over time.
What are the types of markets?
- Consumer Market
- Business Market
- Global Market
- Non-Profit Market
Describe the Consumer Market.
Consists of individuals and households purchasing goods and services for personal use.
What are characteristics of the Business Market?
- Rational Decision-Making
- Smaller Market Size
- Longer Sales Cycles
What is the Global Market?
The international marketplace where goods and services are bought and sold across national borders.
Define the Non-Profit Market.
Involves organizations that operate for purposes other than generating profit, focusing on social, educational, or humanitarian goals.
What are the Core Concepts of Marketing?
- Needs, Wants, and Demands
- Market Offerings
- Value and Satisfaction
- Exchange and Relationships
- Markets
What are Needs, Wants, and Demands?
- Needs: Fundamental human requirements.
- Wants: Form needs take when shaped by culture.
- Demands: Wants backed by purchasing power.
What are Market Offerings?
The combination of products, services, information, or experiences offered to satisfy customer needs and wants.
What types of Market Offerings exist?
- Products
- Services
- Experiences
Define Value in marketing.
The customer’s perception of the benefits received from a product or service relative to its cost.
What does Satisfaction refer to in marketing?
A measure of how well a product or service meets or exceeds customer expectations.
What is the role of Exchange in marketing?
The act of obtaining a desired product or service from someone by offering something in return.
What is a Market?
All actual and potential buyers of a product or service sharing a particular need or want.
List the Functions of Marketing.
- Market Research
- Product Development
- Pricing
- Promotion
- Distribution
- Sales
What methods are used in Market Research?
- Primary Research
- Secondary Research
What does market research involve?
Systematically gathering, analyzing, and interpreting data about a market, including potential customers, competitors, and market trends.
What are the two main types of market research?
- Primary Research: Collecting original data through surveys, interviews, focus groups, and observations.
- Secondary Research: Analyzing existing data from reports, studies, and market analyses.
Why is market research important?
- Informed Decision-Making: Provides data for product development, pricing, and marketing strategies.
- Identifying Opportunities: Helps identify new growth opportunities.
- Competitive Advantage: Keeps businesses ahead of competitors.
What is product development?
The process of creating new products or improving existing ones to meet customer needs and preferences.
List the steps in product development.
- Idea Generation
- Concept Development
- Design and Prototyping
- Testing and Feedback
- Launch
What is the importance of product development?
- Meeting Customer Needs: Ensures products solve specific problems.
- Innovation: Drives the introduction of new features or products.
- Market Expansion: Opens up new markets or segments.
What does pricing involve?
Determining the amount of money customers will pay for a product or service.
What are some pricing strategies?
- Cost-Plus Pricing
- Value-Based Pricing
- Penetration Pricing
- Skimming Pricing
Why is pricing important?
- Revenue Generation: Directly impacts company revenue.
- Market Positioning: Signals product value and quality.
- Customer Perception: Influences purchasing decisions.
What does promotion involve?
Communicating the value of a product or service to the target market.
What are some promotional tools?
- Advertising
- Sales Promotions
- Public Relations
- Personal Selling
What is the importance of promotion?
- Brand Awareness: Increases awareness of the product.
- Persuasion: Aims to convince customers to purchase.
- Customer Engagement: Builds relationships with customers.
What is distribution in marketing?
Ensuring that products are available to customers where and when they need them.
List the types of distribution channels.
- Direct Distribution
- Indirect Distribution
- Omni-Channel Distribution
Why is distribution important?
- Customer Convenience: Ensures products are available at convenient times.
- Market Reach: Expands accessibility to a larger audience.
- Efficiency: Reduces costs in transportation and storage.
What is the sales process?
Converting potential customers into actual buyers through direct interactions.
What are some sales techniques?
- Consultative Selling
- Cross-Selling and Upselling
- Follow-Up
Why is sales important?
- Revenue Generation: Primary driver of business revenue.
- Customer Relationship Building: Opportunity to build strong relationships.
- Feedback Loop: Gathers valuable customer feedback.
What are the types of marketing orientations?
- Production Orientation
- Product Orientation
- Sales Orientation
- Market Orientation
- Societal Orientation
What characterizes production orientation?
- Efficiency Focus
- Standardization
- Cost Leadership
Provide an example of production orientation.
Automobile manufacturing, e.g., Ford’s Model T.
What are the limitations of production orientation?
- Customer Needs Overlooked
- Market Saturation
What characterizes product orientation?
- Quality and Innovation
- Product-Centric
- Technology-Driven
Provide an example of product orientation.
Apple Inc.
What are the limitations of product orientation?
- Market Misalignment
- Neglect of Customer Feedback
What characterizes sales orientation?
- Aggressive Sales Tactics
- Short-Term Focus
- Volume-Driven
Provide an example of sales orientation.
Door-to-door sales.
What are the limitations of sales orientation?
- Customer Alienation
- Unsustainable Growth
What characterizes market orientation?
- Customer-Centric
- Market Research
- Adaptability
Provide an example of market orientation.
Amazon.
What are the advantages of market orientation?
- Customer Loyalty
- Competitive Edge
What characterizes societal orientation?
- Sustainability Focus
- Social Responsibility
- Long-Term Impact
Provide an example of societal orientation.
Patagonia.
What are the advantages of societal orientation?
- Brand Image
- Employee Engagement
Define the marketing environment.
All the external and internal factors that affect a company’s marketing activities.
What are the components of the marketing environment?
- Microenvironment
- Macroenvironment
Why is understanding the marketing environment important?
- Strategic Planning
- Adaptation and Innovation
- Competitive Advantage
What does the microenvironment consist of?
Immediate factors that directly impact a company’s ability to serve its customers.
List the key elements of the microenvironment.
- Suppliers
- Competitors
- Customers
- Marketing Intermediaries
- Publics
What is the impact of the macroenvironment?
Influences the company’s broader strategic direction.
List the key elements of the macroenvironment.
- Economic Environment
- Political and Legal Environment
- Technological Environment
- Socio-Cultural Environment
What is the socio-cultural environment?
Socio-cultural factors include societal values, attitudes, demographics, and cultural trends.
Understanding these aspects helps companies align their products and marketing strategies with the values and preferences of their target audience.
How have companies adapted to changing consumer health trends?
Companies in the food and beverage industry, such as Nestlé, have shifted towards offering healthier product options.
This shift is in response to consumers becoming more health-conscious.
What does the environmental/natural environment encompass?
The natural environment encompasses ecological and environmental factors such as climate change, resource availability, and environmental sustainability.
Companies are increasingly focusing on sustainable practices.
What is environmental scanning?
The systematic process of gathering, analyzing, and interpreting information about the external environment to identify opportunities and threats.
It helps organizations anticipate changes and gain a competitive advantage.
What are the key techniques used in environmental scanning?
- SWOT Analysis
- PESTEL Analysis
These techniques help identify strengths, weaknesses, opportunities, threats, and macro-environmental factors.
What is SWOT Analysis?
A tool used to evaluate the internal strengths and weaknesses of an organization, as well as the external opportunities and threats.
It includes internal attributes like brand reputation and external factors like new competitors.
What are the components of PESTEL Analysis?
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
It analyzes factors that may impact an organization.
What is the importance of environmental scanning?
- Proactive Decision-Making
- Strategic Planning
- Risk Management
- Resource Allocation
It helps organizations anticipate and respond to environmental changes.
What are the key factors in microenvironment analysis?
- The Company
- Suppliers
- Marketing Intermediaries
- Competitors
- Customers
- Publics
These factors have a direct impact on the company’s operations.
What are the key factors in macroenvironment analysis?
- Demographic
- Economic
- Natural
- Technological
- Political/Legal
- Cultural
These factors have an indirect impact on the company.
What is the difference between micro and macro environment?
- Microenvironment: Direct impact, easier to control
- Macroenvironment: Indirect impact, harder to control
Microenvironment includes competitors and customers; macroenvironment includes economic trends.
What is marketing planning?
The process of researching and analyzing market opportunities, setting marketing objectives, and developing strategies and tactics.
It ensures that marketing strategies align with the company’s overall goals.
What are the key steps in marketing planning?
- Situation Analysis
- Setting Marketing Objectives
- Developing Marketing Strategies
- Budgeting and Resource Allocation
- Creating an Action Plan
These steps help structure effective marketing efforts.
What is the purpose of situation analysis in marketing planning?
To understand the current market conditions and the company’s position within the market.
Tools used include SWOT and PESTEL analyses.
What types of marketing objectives can be set?
- Financial Objectives
- Customer-related Objectives
- Brand Objectives
These objectives can include increasing revenue or enhancing customer satisfaction.
What are the core strategies in developing marketing strategies?
- Segmentation, Targeting, and Positioning (STP)
- Marketing Mix (4Ps)
STP helps identify key market segments, while the 4Ps cover product, price, place, and promotion.
What does marketing implementation refer to?
The process of executing the marketing plan by coordinating people, resources, and activities.
It ensures that marketing objectives are achieved effectively.
What are the key components of marketing implementation?
- Organizational Structure
- Communication
- Resource Allocation
- Monitoring and Control
- Problem-Solving and Adaptation
These components ensure effective execution of the marketing plan.
What is the purpose of monitoring and control in marketing implementation?
To track progress against the marketing plan and make necessary adjustments.
Techniques include performance metrics and feedback loops.
What is the significance of aligning planning and implementation in marketing?
Effective marketing requires the seamless integration of planning and implementation.
Coordination, communication, and evaluation are key factors for success.
