Chapter 1--Marketing Planning Flashcards
What is Marketing?
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its shareholders
What is the Product Orientation Philosophy in Marketing?
Production of a high-quantity of product to satisfy pent-up demand (1850s to early 1900s, Ford Model T)
What is the Sales Orientation Philosophy in Marketing?
Hard core, high pressure sales techniques, like door-to-door salesmen, to respond to greater competition in the marketplace (1920s - 1950s)
What is the Market Orientation Philosophy in Marketing?
Based on the Marketing Concept, which says an organization must:
1) Understand the needs and wants of its customers
2) Put customer needs and wants first throughout the organization of the company, and
3) Align customer satisfaction with organizational objectives
This began in the 1950s and is the philosophy most modern companies hold
What is the Societal Marketing Orientation Philosophy in Marketing?
The Marketing Concept, plus:
4) Improvement of the well-being of society as part of the marketing process
What is the Internal Environment in Marketing, what are the variables of the Internal Environment, and how are they used??
Those areas within the marketing manager’s control. These include product, place (distribution), promotion, and price, as Controllable Variables.
These are adjusted based on the company’s strengths and weaknesses.
What is the External Environment in Marketing, how is it reacted to, and what are the elements?
Those areas outside of the marketing manager’s control that influence the product or service. The marketing manager must evaluate these for opportunities and threats and adjust Internal Variables accordingly.
Includes economic, political, legal (regulatory), natural, technological, socio-cultural, and competitive forces.
What is the Marketing Process?
A planning process undertaken by marketing managers at both strategic (what should be accomplished) and tactical (how) levels. Creates a Marketing Plan.
What are the steps of the marketing process?
1) Conduct a situation analysis
2) Set marketing objectives
3) Develop marketing strategies
4) Implement marketing strategies
5) Evaluate and measure whether objectives have been met
What goes into a Situation Analysis?
An evaluation of the Strengths and Weaknesses of the internal environment, and the Opportunities and Threats presented by the external environment (SWOT)
How is a Marketing Objective developed?
To address some element of the internal environment. Such objectives should be Specific, Measurable, Actionable, Realistic, and Time Oriented
How long are Marketing Plans developed for, and how many Marketing Objectives are included?
Typically 1 year; many
What is the ultimate purpose of marketing strategy development?
To determine how the company can obtain a sustainable competitive advantage (by looking at internal and external environments, and customer preferences)
What two main areas are addressed when determining a marketing strategy?
1) The target market (who are we targeting–never everyone), and
2) Marketing mix (the activities that will be done to the target market)
What activities are part of the Marketing Mix?
Market penetration (increase sales of existing products in existing markets) Market development (create new markets to sell existing products in) Product development (Introduce new products into existing markets) Diversification (Introducing new products into new markets)
