Chapter 1: Why Marketing Matters Flashcards
Marketing
The act of creating, communicating, and delivering value to an audience.
What is the role of a marketer?
To manage customer relationships with an organization
Customer Value
The value a customer gains from a product, compared to how much it cost to obtain it.
What benefits can consumers get from a product or service?
Monetary or Nonmonetary benefits
Perceived Benefits
Positive outcomes of a product or service
How does a company create value?
A company creates value when the product or service being produced is equal or greater than its production costs.
What is key to producing value?
The key to producing value is catering to a consumers wants and needs.
___% of new products fail
80
Why do new companies fail?
New companies often fail because they do not communicate their value to potential customers.
Supply Chain
A supply chain is comprised of several interlocked companies that help products reach a consumer.
Who is involved in the supply chain?
Manufacturers, wholesalers, retailers, transportation companies.
Logistics
Logistics plan, implement and control the flow of goods and knowledge all the way to consumers.
In the 1920s companies used a marketing strategies called
Production Orientation
Describe Production Orientation
Production Orientation focuses on create quality goods efficiently.
Sales Orientation
Persuading consumers to buy new products and
Sales Orientation was important to what era?
The Great Depression
When did the sales orientation method end?
At the end of WWII
Describe the Marketing Concept
Believed that prolonged success comes from a company-wide effort to please consumers
Describe Customer Orientation
The concept of customer orientation states that everyone in a company should assess and satisfy consumer needs
Describe Relationship Marketing
Relationship marketing is a method of marketing where organizations cultivate relationships with their consumer bases.
How can a company foster a relationship with their customers?
A company can foster a relationship with their customers by using user data to customize their shopping experience.
Exchange
The act of trade between a buyer and a seller
What is the process of exchange between a buyer and seller?
Creating -> Communicating -> Delivering
Needs
States of depriviation
Wants
Needs shaped by culture
The Housing Crisis of 2007 was caused by what?
Marketers who encouraged consumers to buy homes they couldn’t afford.
Marketing Mix
What a organization can do to influence consumer demand
What are the 4 P’s of Marketing?
Product, Price, Promotion and Place
Product
Products are goods, services or ideas.
Price
Price is how much money, time, or effort that is exchanged.
Revenue
Revenue is how much is earned from selling a good.
Place
Places are the locations used by a company to make products available to consumers.
Why would a consumer by a substitute product?
Consumers will purchase a substitute product if the product they are after is unavailable.
Locations, transpotation, logistics and supply chains are examples of what aspect of the marketing mix?
Place
Promotion
Promotion is the communication of a products value to the consumer
Advertising, sales promotion, personal selling, and public relations are examples of what aspect of the markeing mix?
Promotion
Give examples of promotion
Promotion includes commercials, coupons, sponsored events, and giveaways.
The marketing mix is successful when…..
The four P’s value is maximized
Why is social media a great tool for promotion?
It is accessible to a wide audience and is cheap to use.
Companies can grow by
expanding into international markets
Globalization
Globalization is the interconnectedness of the global economy.
NAFTA
North American Free Trade Agreement
Describe NAFTA
NAFTA relaxed trade restrictions between the U.S, Canada, and Mexico.
Global Marketing
Global Marketing is addressing customers, markets, and competition on a global scale.
Brand
Brands are the names, terms, symbols, and designs a firm uses.
Marketing Analytics
Marketing Analytics are metrics that helps marketers analyze the outcome of a marketing initiative.
Ethics
Ethics are societal moral standards
Who published the marketing code of ethics?
The American Marketing Association
What ethical norms should marketers follow?
Do no harm
Foster Trust in the Marketing System
&
Embrace Ethical Values
What Ethical Values should marketers have?
Honesty, Responsibility, Fairness, Respect, Transparency, and Citizenship
Ethical decisions should be made because
It builds trust between consumers and firms, and showcases good business practices
What is Step 1 of the Ethical Decision-Making Framework?
‘Determine the unbiased facts
What is Step 2 of the Ethical Decision-Making Framework?
Identify the ethical issue
What is Step 3 of the Ethical Decision-Making Framework?
Identify affected stakeholders
What is Step 4 of the Ethical Decision-Making Framework?
Consider alternative solutions
What is Step 5 of the Ethical Decision-Making Framework?
Consider how decisions affect stakeholders
What is Step 6 of the Ethical Decision-Making Framework?
Discuss decisions with stakeholders
What is Step 7 of the Ethical Decision-Making Framework?
Make Decision
What is Step 8 of the Ethical Decision-Making Framework?
Analyze decisions outcome overtime
Nonprofit Organization
A organization that makes profit for the general public
Hospitals, Charities, Universities, Zoos and Churches are examples of what?
Nonprofits
