Exam 1 Flashcards
Marketing
- The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives
- Focuses on discovering and satisfying consumer needs
Marketing ‘s 1st Task
Discovering consumer needs
Marketing’s 2nd Task
Satisfying consumer needs
Potential Consumers
People with the desire & the ability to buy a specific product
Target Market
One or more specific groups of potential consumers toward which an organization directs its marketing program
Controllable Marketing Mix Factors (The 4 P’s)
(1) Product, (2) Price, (3) Promotion, (4) Place
Uncontrollable Environmental Factors
social, economic, technological, competitive, regulatory
Requirements for marketing to occur
- At least two parties with unsatisfied needs
- A desire and ability for parties to be satisfied
- A way for the parties to communicate
- Something to exchange
Marketing Program
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
Customer Value
The unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and after-sale service
Market-oriented Organization
Characterized by
1) Customer Orientation
2) Competitor Orientation
3) Inter-functional coordination
Mass Customization
Tailoring goods/services to individual customers’ tastes in high volumes at a relatively low cost
Relationship Marketing
Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits
Organization
A legal entity that consists of people who share a common mission
Strategy
An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals
Mission
A statement of the organization’s function in society that often identifies its customers, markets, products, and technologies
Three Levels of Strategies in Marketing
(1) Corporate, (2) Strategic Business Unit, (3) Functional Strategy
Elements of Organizations’ Foundation
(1) Core Values, (2) Mission Statement, (3) Organizational Culture
Core Values
The fundamental, passionate, and enduring principles of an organization that guide its conduct over time
Mission Statement
A statement of the organization’s purpose - what it wants to accomplish in the larger environment
Organizational Culture
The set of values, ideas, attitudes, and behavioral norms that is learned and shared among an organizations’ members
BCG Matrix
A planning tool that uses quadrant graph representations of a company’s products/services to help the company decide what it should keep, sell, or invest more in
Dog (BCG Matrix)
- Companies whose product has a low market share and is at a low growth rate
- Should be sold, liquidated, or reposited
- Located in the BCG Matrix’s lower right grid quadrant
Cash Cow (BCG Matrix)
- Low growth, high market share
- Value can be easily calculated since cash flow patterns are highly predictable
- Located in the BCG Matrix’s lower left grid quadrant
Stars (BCG Matrix)
- Products with high market share and make up sizeable portion of that market
- Located in the BCG Matrix’s upper left grid quadrant
Question Marks (BCG Matrix)
- High growth, low market share
- Located in the BCG Matrix’s upper right grid quadrant
Four Market-Product Categories
(1) Market Penetration, (2) Market Development, (3) Product Development, (4) Diversification
Principles underlying the strategic marketing process
(1) Customers are different, (2) Customers change, (3) Competitors change & react, (4) Organizational resources are limited
Environmental Forces
Social, economic, technological, competitive, regulatory
