Chap 2

Question 1

Marketing management process:

Answer 1

Is the process of: Planning marketing activities Set objectives, evaluate opportunities, create marketing strategies, prepare marketing plans, develop marketing program Directing the implementation of the plans. Controlling these plans Measure results, evaluate progress

Question 2

Strategic management planning:

Answer 2

The job of planning strategies to guide a whole company.

Question 3

Marketing strategy:

Answer 3

Specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market.

Question 4

Target market:

Answer 4

A fairly homogenous group of customers to whom a company wishes to appeal.

Question 5

Marketing mix:

Answer 5

The controllable variables the company puts together to satisfy the target group. NOTE! Customers are not a part of the marketing mix they are the target.

Question 6

Target marketing:

Answer 6

A marketing mix that is tailored to fit some specific target customers.

Question 7

Mass marketing:

Answer 7

The typical production-orientated approach. The same marketing mix vaguely aims at “everyone”. Mass marketing assumes that everyone is the same.

Question 8

The four Ps:

Answer 8

Product, Price, Place, Promotion. The four Ps are needed in a marketing mix and they are equally important. We develop a product to satisfy the target customer. We find a way to reach our target customers’ place. We use promotion to tell the target customers the product. And we set price after estimating expected customer reaction to the total offering and the costs of getting it to them.

Question 9

Product – the good or service for the target’s needs:

Answer 9

This area is concerned with developing the right “product” for the target market. This offering may by a physical good, a services or a blend of both.

Question 10

Place – reaching the target:

Answer 10

A product reaches costumers through a channel of distribution.

Question 11

Channel of distribution:

Answer 11

Is any series of firms or individuals that participate in the flow of products from producer to final user or consumer.

Question 12

Promoting – telling and selling the customer:

Answer 12

Telling the target market or others in the channel of distribution about the “right” product. Promotion can focus on acquiring new customers or retaining current customers. Promotion includes personal selling, mass selling and sales promotion.

Question 13

Personal selling:

Answer 13

Involves direct spoken communication between sellers and potential customers.

Question 14

Customer service:

Answer 14

A personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase.

Question 15

Mass selling:

Answer 15

Is communication with large numbers of customers at the same time. The main form of mass selling is advertising – any paid form of non-personal presentation of ideas, goods or services. Publicity is any unpaid form.

Question 16

Sales promotion:

Answer 16

Refers to those promotion activities other than advertising, publicity and personal selling that stimulate interest, trial or purchase by final customers or others in the channel.

Question 17

Marketing plan:

Answer 17

Is a written statement of marketing strategy and the time-related details for carrying out the strategy. It should spell out the following in detail: What marketing mix will be offered, to whom and for how long What company resources (=costs) will be needed and at what rate What results are expected

Question 18

Implementation:

Answer 18

Putting marketing plan into operation.

Question 19

Operational decisions:

Answer 19

Short run decisions to help implement strategies.

Question 20

Marketing program:

Answer 20

Blends all of the firm’s marketing plans into one “big” plan. Target market + Marketing mix = Marketing strategy. Marketing strategy + Time-related details and control procedures = Marketing plan. Marketing plan + Other marketing plans = Marketing program.

Question 21

Customer equity:

Answer 21

Expected earnings stream of firm’s current and prospective customers over some period of time.

Question 22

Breakthrough opportunities:

Answer 22

Opportunities that help innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.

Question 23

Competitive advantage:

Answer 23

Means that a firm has a marketing mix that the target market sees as better than a competitor’s mix. An advantage is only successful if it allows the firm to provide superior value and satisfy customers better than some competitor.

Question 24

Marketing strategy planning process:

Answer 24

It is useful to think of it as narrowing down process: External market environment Customers, Company, Competitors S.W.O.T. Segmentation and targeting, differentiation and positioning Marketing mix (four Ps + target market)

Question 25

S.W.O.T. analysis:

Answer 25

Strength, weaknesses, opportunities and threats.

Question 26

Differentiation:

Answer 26

The marketing mix is distinct from and better than what is available from a competitor.

Question 27

Market penetration:

Answer 27

Trying to increase sales of a firm’s present products in its present markets – probably through a more aggressive marketing mix.

Question 28

Market development:

Answer 28

Trying to increase sales by selling present products in new markets.

Question 29

Product development:

Answer 29

Offering new or improved products for present markets.

Question 30

Diversification:

Answer 30

Moving into totally different lines of business.