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Introduction To Marketing > Chapter 1: What Is Marketing > Flashcards

Chapter 1: What Is Marketing Flashcards

1
Q

Market Offering

A

A combination of products, services, information or experiences offered to a market to satisfy a need or want

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2
Q

Purpose of market offerings

A

To create a brand experience

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3
Q

Marketing Myopia

A

When a business lacks insight into how it is catering to it’s customers

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4
Q

Customer-perceived value

A

The difference between all benefits and costs (in the eye of the customer) of a market offering compared to competitors offerings

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5
Q

Customer satisfaction

A

The extent to which perceived product performance matches customer expectations

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6
Q

Exchange

A

The act of obtaining a desired object from someone by offering something in return

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7
Q

Relationship

A

Actions taken to build and maintain desirable exchange relationships with target audience

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8
Q

Market (Business Management)

A

The set of all actual and potential buyers of a product or service

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9
Q

Market (Economics)

A

The abstract mechanisms whereby supply and demand confront each other and deals are made

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10
Q

Strategic planning

A

The process of developing and maintaining a strategic fit between the organisations goals and capabilities

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11
Q

Strategic Business Units (SBUs)

A

a fully-functional unit of a business that has its own vision and direction.

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12
Q

Product or Market Combination (PMC)

A

a unique combination of a product for a specific group of customers.

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13
Q

Levels of planning within a market strategy

A

1) Concern or company
2) Strategic Business Units (SBUs)
3) Product or Market Combination (PMC)

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14
Q

Strength within SWOT analysis

A

Internal capabilities that may help a company reach its objectives

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15
Q

Weakness within SWOT analysis

A

Internal limitations that may interfere with a company’s ability to achieve its objectives

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16
Q

Opportunity within SWOT analysis

A

External factors that the company may be able to exploit to its advantage

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17
Q

Threat within SWOT analysis

A

Current and emerging external factors that may challenge the company’s performance

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18
Q

Vision statement

A

outlines the company’s long-term goals and aspirations for the future in terms of its long-term growth and impact on the world.

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19
Q

Mission statement

A

a simple statement about the goals, values, and objectives of an organization.

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20
Q

Marketing management

A

The art & science of choosing target markets and building profitable relationships with them

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21
Q

3 important questions within marketing management

A

1) Target Market —> What customers will we serve?
2) Value proposition —> How can we serve these customers the best?
3) Company objective —> What is the value you want to realise for your company?

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22
Q

Customer lifetime value

A

Value of the entire stream of purchases a customer makes over a lifetime of patronage

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23
Q

Importance of customer lifetime value

A
  • 5x cheaper to keep an existing customer than to acquire a new one
  • Transactions may not always be profitable in the beginning (cost of acquisition) but become very profitable thanks to the length of the customer retention
  • An emotional bond makes the customers come back
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24
Q

Marketing management process

A
  • Market is analysed
  • A strategy is defined
  • The market is Segmented
  • A target market is chosen
  • A positioning is chosen
  • The marketing mix is defined
  • The marketing mix is implemented & evaluated
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25
Q

STP process

A

The defining of the group of customers you can serve in a decent & profitable way

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26
Q

Segmentation

A

Dividing a market into distinct groups of buyers who have different needs, characteristics or behaviours and who might require separate products or marketing programs

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27
Q

Targeting

A

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

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28
Q

Positioning

A

Give the product/brand a clear/distinctive/desirable place in the minds of the target consumers relative to competing products through a clever marketing mix

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29
Q

Types of segmentation

A
  • Geographic segmentation
  • Demographic segmentation
  • Psychographic segmentation
  • Behavioural segmentation
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30
Q

Geographic segmentation

A
  • Countries/regions
  • Population/city size
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31
Q

Demographic segmentation

A
  • Age
  • Family life cycle stage
  • Ethnic group
  • Gender
  • Income
  • Occupation
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32
Q

Psychographic segmentation

A
  • Lifestyle
  • Personality
  • Social class
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33
Q

Behavioral segmentation

A
  • Usage rate
  • Brand loyalty
  • Occasions
  • Benefits sought
  • User status
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34
Q

Different targeting approaches

A
  • Micromarketing
  • Niche marketing
  • differential marketing
  • mass marketing
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35
Q

Buyer persona

A

A fictional profile of your ideal customer based on market research

36
Q

Micromarketing

A

Individual, personalized, local (ex: Nutella w personal name on packaging)

37
Q

Niche marketing

A

1 marketing mix for a niche

38
Q

Which targeting approach is common in start ups?

A

Niche marketing

39
Q

Differentiated marketing

A

Different marketing mixes for different segments

40
Q

Which marketing mix is more expensive (research, planning, channel management) but better for long term results?

A

Differentiated marketing

41
Q

Mass marketing

A

1 marketing mix for the whole segment

42
Q

Brand perceptual map

A

A graph that displays how the brand is perceived in the market

43
Q

USP

A

Unique Selling Point

44
Q

What is a limitation to the use of the brand perceptual map?

A

The brand perceptual map only has 2 axes, reality is much more

45
Q

Positions in a market

A
  • Market leader
  • Challenger
  • Market follower
  • Niche company
46
Q

Market leader

A

Company with the highest market share, determines price levels, innovative, largest promotional budget

47
Q

Challenger

A

2nd biggest company in market, fights for market share

48
Q

Market follower

A

Company that wants to keep its current position in the market

49
Q

Niche company

A

Company that picks a small and well-chosen segment

50
Q

Which company within a market determines price levels

A

Market leader

51
Q

Which company within a market fights for market share

A

Challenger

52
Q

Which company within a market tries to maintain it’s position

A

Market follower

53
Q

Production concept

A

Consumer will favour products that are available and highly affordable

54
Q

In what year was the production concept founded?

A

1900

55
Q

What is the management focus of the production concept?

A
  • Improving production (goal = mass production)
  • Improving distribution efficiency (goal = largely available at low price)
56
Q

What are the different marketing management orientations

A
  • Production concept
  • Product concept
  • Selling concept
  • Marketing concept
  • Societal marketing concept
  • Sustainable marketing concept
57
Q

Product concept

A

Consumers will not buy enough of the firm’s product unless it undertakes a large-scale selling and promotion effort

58
Q

In what year was the product concept founded?

A

1915

59
Q

What is the management focus of the product concept?

A
  • Improving products
  • Attention for marketing myopia
60
Q

Marketing concept

A

Achieving organisational goals depending on:
- knowing the needs and wants of the target group(s)
- satisfying these needs better than competitors do
- building a long-lasting relationship with customers

61
Q

In what year was the marketing concept founded?

A

1960

62
Q

What conditions need to be met for the marketing concept to work?

A
  • customer-driven companies: start from the desires and needs (consumer minded)
  • market research needs to be an essential part of company policy
  • Meeting existing and latent needs of consumers
  • sense and response philosophy
  • continual effort to find the right product for their customers
  • competitor analysis
63
Q

Societal marketing concept

A

A company’s marketing decisions should take into consideration:
- consumer’s wants
- company requirements
- society’s interests
- corporate social responsibility (CSR)

64
Q

In what year was the societal marketing concept founded?

A

1975

65
Q

Corporate social responsibility (CSR)

A

a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

66
Q

Sustainable marketing concept

A

Seeks ways to profit by serving immediate needs and the best long-run interests of their consumers and communities

67
Q

In what year was the sustainable marketing concept founded?

A

2005

68
Q

Market strategy

A

The marketing logic by which the company hopes to create this customer value and achieve these profitable relationships

69
Q

4 P’s

A
  • Product
  • Price
  • Place
  • Promotion
70
Q

4 C’s

A
  • Customer solution
  • Customer cost
  • Convenience
  • Communication
71
Q

7 P’s (extended mix for services)

A
  • Product
  • Price
  • Place
  • Promotion
  • People
  • Physical Evidence
  • Process
72
Q

Customer satisfaction

A

The extent to which the perceived product performance matches customer expectations

73
Q

What happens when product performance < expectations

A

Customer is dissatisfied

74
Q

What happens when product performance = expectations

A

Customer is satisfied

75
Q

What happens when product performance > expectations

A

Customer is delighted

76
Q

Customer relationship management (CRM)

A

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and customer satisfaction

77
Q

Consumer-generated marketing

A

A marketing strategy that utilises user-created material to promote and market the brand and its products

78
Q

Value chain

A

The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products

79
Q

Share of customer

A

The portion of the customer’s purchasing that a company gets in its product category (similar to market share)

80
Q

Customer equity

A

The total combined customer lifetime values of all of all of the company’s current and potential customers

81
Q

Butterfly customers

A

Short term customers with high profitability

82
Q

True friend customers

A

Long term customers with high profitability

83
Q

Stranger customers

A

Short term customers with low profitability

84
Q

Barnacle customers

A

Long term customers with low profitability

85
Q

What type of customer has the highest profit potential?

A

True friend customers

86
Q

What type of customer has the lowest profit potential?

A

Stranger customers

Introduction To Marketing (3 decks)

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