CH6: Marketing Management Flashcards
What is the purpose of marketing management?
To segment markets, select target segments, and position offerings to create value and meet organisational objectives.
How does marketing management create value in an organisation?
By identifying customer needs, delivering products that meet those needs, and using pricing, promotion, and distribution strategies to generate satisfaction and profit.
Define marketing.
Marketing is the process of communicating, creating, and delivering value to customers and managing relationships profitably.
What is marketing management?
It is the discipline of planning, implementing, analyzing, and controlling programs to reach target markets using marketing techniques.
Can a company survive without adopting the marketing philosophy?
No. Companies that ignore marketing often fail to understand customer needs, leading to poor sales and missed profit opportunities.
What is a marketing strategy?
A plan to achieve marketing objectives using variables like product, price, promotion, and place (4 Ps).
What are the additional 3 Ps for services marketing?
People, Process, and Physical environment.
Name six possible marketing objectives.
Achieve a specific sales volume, gain market share, become/maintain market leader, launch new products, achieve earnings per share, offer most cost-effective product.
What are characteristics of good marketing objectives?
Measurable, realistic, and time-bound.
What is market segmentation?
Dividing a heterogeneous market into homogeneous subsets with similar needs.
What is market targeting?
Selecting which market segments to focus on based on attractiveness and competitive position.
What is market positioning?
Creating a distinctive image of the product in the minds of the target audience.
List the four segmentation criteria.
Demographic, Geographic, Psychographic, Behaviouristic.
Give an example of demographic segmentation.
Targeting products based on age, income, gender (e.g., luxury cars marketed to high-income males aged 40–60).
What is a product in marketing?
Anything offered for acquisition, use, or consumption to satisfy needs, including goods, services, ideas, or people.
What is branding?
Creating a unique name, symbol, or design that distinguishes a product from competitors.
What are key characteristics of a good brand name?
Descriptive of benefits, easy to pronounce and remember, translatable into other languages, distinctive.
What is the floor price of a product?
The minimum price based on manufacturing and marketing costs.
What is penetration pricing?
Setting a low price to quickly gain market share.
What is mark-up pricing?
Adding a fixed percentage to the product’s cost.
What is target-return pricing?
Setting a price to achieve a specific return on investment.
What is perceived-value pricing?
Pricing based on the value customers believe the product offers.
Define value pricing.
Offering high-quality products at a low price.
What is going-rate pricing?
Pricing based on competitors’ prices.
What is marketing communication?
All communication between the seller and buyer aimed at influencing attitudes and buying behavior.
What are the five elements of promotion?
Advertising, Personal selling, Sales promotion, Publicity, Direct marketing.
What is advertising?
Paid, impersonal promotion by an identifiable sponsor to a target audience.
What is personal selling?
Direct interaction between sales reps and potential buyers, often face-to-face.
Name and describe the three types of sales reps.
Recruiters: find new clients, Order-takers: routine visits, Supporters: assist other reps.
What is sales promotion?
Short-term incentives like coupons, contests, and free samples to stimulate buying.
Define publicity.
Unpaid media coverage to create awareness and favorable opinion.
What is direct marketing?
Using direct communication channels like email, SMS, or phone to reach and engage consumers.
What is a distribution channel?
A chain of intermediaries that help move the product from producer to consumer.
What are the three types of distribution coverage?
Intensive – many intermediaries (e.g., soft drinks), Exclusive – few selected outlets (e.g., luxury cars), Selective – only selected efficient intermediaries (e.g., electronics).
Why do intermediaries exist despite increasing product cost?
They bridge time, place, and possession gaps between producers and consumers.
How has the Internet transformed marketing?
It provides consumers with more product choices, price comparisons, and convenience while enabling organisations to reach wider markets and communicate more efficiently.
What devices do consumers use to access digital platforms?
Desktops, laptops, smartphones, and tablets.
What opportunities does digital marketing offer to organisations?
Expansion into new markets, new services, advanced communication techniques, competitive parity with larger firms, skill development for staff.
What are some examples of companies that disrupted industries using digital platforms?
ASOS.com (clothing), Amazon.com (books and retail), iTunes (music), Expedia (travel).
Why are social networks important in digital marketing?
They are part of consumers’ daily lives and provide a space for brands to engage, build relationships, and promote products directly.
Name five social platforms that are important for marketers.
Facebook, Google+, LinkedIn, Instagram, Twitter.
How has ASOS leveraged digital marketing effectively?
By interacting with customers in social media spaces and evolving into a global brand through consistent digital engagement.
Why is an engaging online presence crucial in modern marketing?
Because consumers expect interactive, value-driven experiences, and digital visibility drives market share and customer loyalty.
What is the risk for companies that neglect digital marketing?
Loss of market share, irrelevance, and inability to compete in the modern, fast-paced consumer environment.
What is essential for survival in today’s consumer market?
A well-developed and continuously updated digital strategy.
What is the primary responsibility of marketing management in the value chain?
Identifying customer needs and creating targeted strategies to meet those needs.
What core activities does marketing management include?
Market segmentation, targeting and positioning, product, pricing, promotion, and distribution decisions.
What additional strategic roles does marketing management play?
Environmental scanning, market research, consumer behavior analysis, supporting strategic planning.
Why is knowledge of customer needs critical in marketing?
Because customer preferences constantly evolve, and businesses must adapt strategies to remain relevant and competitive.
In one sentence, summarize the role of marketing management.
Marketing management aligns the organisation’s offerings with customer needs to create value, drive demand, and sustain long-term business success.
