Exam 1 Flashcards
Marketing
The process of discovering and satisfying consumer needs
Exchange
The trade of things of value between buyer and seller so that each is better off after the trade.
Market
People with both the desire and the ability to buy a specific offering.
Target Market
One or more specific groups of potential consumers toward which an organization directs its marketing program.
The Four P’s
Product
Price
Promotion
Place
Marketing Mix
The controllable factors—product, price, promotion, and place—that can be used by the marketing manager to solve a marketing problem.
Environmental Forces
The uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.
Customer Value
The unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Relationship Marketing
Links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.
Marketing Program
A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
Market Segments
The relatively homogeneous groups of prospective buyers who (1) have common needs and (2) will respond similarly to a marketing action.
Marketing Concept
The idea that an organization should (1) strive to satisfy the needs of consumers while also (2) trying to achieve the organization’s goals.
Marketing Orientation
An organization with a market orientation focuses its efforts on (1) continuously collecting information about customers’ needs, (2) sharing this information across departments, and (3) using it to create customer value.
Customer Relationship Management
The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace and become advocates after their purchase.
Customer Experience
The internal response that customers have to all aspects of an organization and its offering.
Societal Marketing Concept
The view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.
Product
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.
Ultimate Consumers
The people who use the products and services purchased for a household. Also called consumers, buyers, or customers.
Organizational Buyers
Those manufacturers, wholesalers, retailers, service companies, nonprofit organizations, and government agencies that buy products and services for their own use or for resale.
Utility
The benefits or customer value received by users of the product.
Profit
The money left after a for-profit organization subtracts its total expenses from its total revenues and is the reward for the risk it undertakes in marketing its offerings.
Strategy
Choosing what to focus on and what not to focus on in order to deliver value to your customers and stakeholders
Organizational Purpose
Describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work.
Core Values
The fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
Mission
A statement of the organization’s function in society that often identifies its customers, markets, products, and technologies. Often used interchangeably with vision.
Organizational Culture
The values, ideas, attitudes, and norms of behavior that are learned and shared among the members of an organization.
Goals
Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.
Objectives
Statements of an accomplishment of a task to be achieved, often by a specific time. Also called goals.
Market Share
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Marketing Plan
A road map for the marketing actions of an organization for a specified future time period, such as one year or five years.
Marketing Dashboard
The visual display of the essential information related to achieving a marketing objective.
Marketing Metric
A measure of the quantitative value or trend of a marketing action or result.
Business Portfolio Analysis
A technique that managers use to quantify performance measures and growth targets to analyze their firms’ strategic business units (SBUs) as though they were a collection of separate investments.
Diversification Analysis
A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
Strategic Marketing Process
The approach whereby an organization allocates its marketing mix resources to reach its target markets.
Four guiding principles under the strategic marketing process:
Customers are different
Customers change
Competitors change and react
Organizational resources are limited
Situation Analysis
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.
SWOT Analysis
An acronym describing an organization’s appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.
Market Segmentation
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Customer Value Proposition
The cluster of benefits that an organization promises customers to satisfy their needs.
Points of Difference
Those characteristics of a product that make it superior to competitive substitutes.
Marketing Strategy
The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
Marketing Tactics
The detailed day-to-day operational marketing actions for each element of the marketing mix that contribute to the overall success of marketing strategies.
Organizational Strategy
A shared vision that an organization chooses for why it exists, what it will do, and how it will do it.
MCG Portfolio Analysis Matrix
Market Share vs Market Growth
Diversification Analysis/Ansoff’s Growth Matrix
New/Existing products vs. new/existing markets
Question mark product
Low Market Share, High Market Growth
Dog product
Low Market Share, Low Market Growth
Cow Product
High Market Share, Low Market Growth
Star Product
High Market Share, High Market Growth
Market Penetration Strategy
Existing product in existing market
Market Development Strategy
Existing product in new market
Product Development Strategy
New product in existing market
Diversification Strategy
New produit in new market
Three-step marketing process includes:
SWOT Analysis as a result of situation analysis
Developing a market focused value proposition
Designing market programs across the 4Ps
Developing a market focused value proposition is done through
Segmentation, Targeting, and positioning
Customer Centricity
A business strategy that’s based on putting your customer first and at the core of your business in order to provide a positive experience and build long-term relationships.
