Chapter 1 Flashcards
What is marketing?
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What are the four elements of the marketing mix?
- Product
- Price
- Place
- Promotion
What can be marketed?
- Goods
- Services
- Ideas
- People
- Places
What is the value of marketing?
Satisfying customer needs in a profitable manner.
What are the perspectives from which value can be understood?
- Customers
- Producers
- Society
What is a market?
All consumers who share a common need that can be satisfied by a specific product and have the resources, willingness, and authority to purchase.
What is a marketplace?
Any location or medium used to facilitate an exchange.
Marketing includes many different activities more than just _______.
sales and advertising
What is the definition of exchange in marketing?
Occurs when one party gives up something in return for receiving something else.
What are the conditions for exchange?
- At least two people or organizations must be willing to make a trade
- Have something the other party wants
- Agree on value of exchange and terms
- Each party free to accept or reject exchange
What are the different types of offerings in marketing?
- Consumer goods/services
- Business-to-business goods/services
- Not-for-profit marketing
- Idea, place, and people marketing
What defines the marketing concept?
Identifying and satisfying the needs of consumers to ensure profitability.
What is a need in marketing?
Difference between actual and desired state, which can be physiological or psychological.
What are wants?
Desire to satisfy a need in a particular way, influenced by history, past experience, and culture.
What is demand?
Customers’ desires for products coupled with the resources needed to obtain them.
What is collaborative consumption?
Consumers increasingly prefer to rent rather than purchase the products they use.
What is utility in marketing?
The sum of benefits a consumer receives from use of a product.
List the types of utility.
- Form utility
- Place utility
- Time utility
- Possession utility
What is sustainability in marketing?
Creating products that meet present needs while ensuring future generations can have their needs met.
The evolution of the marketing concept includes the Production era, Selling era, _______ era, and Triple bottom-line era.
Relationship
What characterizes the Production Era?
Marketing dominated by a production orientation, emphasizing efficient production and distribution.
What is the focus of the Selling Era?
A managerial view of marketing as a sales function, emphasizing aggressive promotional activities.
What is the Relationship Era focused on?
A consumer orientation that emphasizes satisfying customers’ needs and wants.
What is the Triple Bottom-Line Era?
Management seeks to maximize financial, social, and environmental bottom lines.
What is the value proposition?
The whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself.
True or False: Marketing activities lead to value creation through innovations that enhance customer benefits and reduce costs.
True
What is green marketing?
A type of sustainable business practice focused on environmentally friendly products.
What skills will marketers need to succeed in a ‘Big Data’ era?
[Skills related to data analysis, ethical decision-making, and digital marketing strategies]
What does the term ‘microcelebrity’ refer to?
People ‘packaging’ themselves with their social media profiles.
What are the benefits of marketing for society?
Profits can be made while contributing positively to society and the planet.
Value is the ratio of _______ to perceived costs from the customer’s perspective.
perceived benefits
What distinctive competency does Coca-Cola utilize to achieve competitive advantage?
Distribution and marketing communications
This competency helps maintain brand loyalty and market share.
What distinctive competency does Apple use to differentiate itself?
Product quality and design
Apple’s innovation in design and technology attracts a loyal customer base.
What distinctive competency does Amazon.com leverage?
Fulfillment and distribution
This competency enhances product availability and customer convenience.
What is Starbucks’ distinctive competency?
Product quality
High product quality contributes to customer satisfaction and loyalty.
What does ‘Consumer Generated Value’ suggest about market dynamics?
Everyday people are generating value instead of just buying it
This shift indicates a change in how consumers interact with brands.
True or False: Stressing socially responsible decisions is bad for business.
False
Socially responsible practices can improve brand image and customer loyalty.
What are some criticisms faced by marketing?
Dark side marketing and consumption issues
These criticisms highlight ethical concerns within the marketing industry.
What does marketing facilitate in terms of value?
Exchanges that create, communicate, and deliver value to customers
Marketing plays a crucial role in connecting sellers with customers.
What questions do marketers typically ask as part of the marketing process?
Product benefits, capabilities, additional customer groups, changes in technology, changes in social and cultural values, environmental issues, legal and regulatory issues
These questions guide strategic marketing decisions.
A marketing _______ outlines the strategies for targeting specific customer segments.
plan
A marketing plan is essential for organized and effective marketing efforts.
A _______ market consists of a broader audience without differentiation.
mass
Mass marketing targets a wide audience with a single marketing approach.
What is a market segment?
A subgroup of a larger market
Identifying market segments helps in targeted marketing efforts.
What does positioning refer to in marketing?
The process of creating a distinct image of a product in the consumer’s mind
Effective positioning can enhance competitive advantage.
