Exam #1 Flashcards
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large.
Marketing
The trade of things of value between buyer and seller so that each is better off.
Exchange
Individuals buying for themselves and their households.
Ultimate Consumer
Consumers that buy for their own use or resale
Organizational Consumers
What is the 1st Objective of Marketing?
Discovering the Wants and Needs of Customers.
What is the purpose of Market Research?
To find what customers want and need
One that stops or could stop the progress, operation, or functioning of something.
Showstopper
Difference between Need and Want
Need = survival, necessity Want = satisfy an urge, personal desire
consists of people with both the desire and ability to buy a specific product.
market
consists of the marketing manager’s controllable factors (the 4Ps of Marketing) that can be taken to solve a marketing problem.
marketing mix
Consists of one or more specific groups of potential customers toward which an organization directs its marketing program
target market
What is the 2nd Objective of Marketing?
Satisfying consumer needs
What is the Marketing Concept and How to thru Market Orientation
Market Evolution
is the unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service.
customer value
Quantifies the total revenue or profit each target market customer generates over some time frame
VLC (Value of a Loyal Customer)
What are the (5) Considerations of Customer Relationship Marketing (CRM)
ID – Understand – Perception – Choice - Advocate
The benefits or customer value received by users of the product (Form – having product purchase options; Time – having the product available when needed; Place – having the product available where needed; Possession – having possession (financing)) options
utility
Legal entities of people who share a common mission which motivates it to develop offerings that create value for both the entity and its customers.
Firm, Company, Corporation, Organization
Federal, state, county, or city unit that provides a specific service to its constituents.
government
A nongovernmental organization that serves its customers but does not have profit as an organizational goal.
Not for Profit
is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses are subtracted from its total sales
profit
3 Levels of Organizational Strategy
Corporate – long term goals, overall direction, and current planning; Business Unit - achieve corporate goals, guide units, performance oriented; Functional - specific task or job within an organization’s business unit
A statement of the organization’s scope, often identifying its customers, markets, products, technology, and values. Often used interchangeably with vision.
mission statement
An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.
strategy
Convert the mission into targeted levels of performance to be achieved by a specific time.
Goals or Objectives
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
market share
A measure of the value or trend of a marketing activity or result
metric
The visual display of essential marketing information
Marketing Dashboard
A portfolio of company investments
BCG (Boston Consulting Group) Matrix
Penetration - Product Development - Market Development - Diversification
The (4) segments of a Diversification Analysis
Planning – Implementation - Control ; An approach whereby an organization allocates its marketing mix resources to reach its target markets
3 Phases of the Strategic Marketing Process
Involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in light of the organization’s plans and the external factors and trends affecting it.
Situation Analysis
is an acronym describing an organization’s appraisal of its internal strengths and weaknesses and its external opportunities and threats
SWOT
Consider prospective buyers in terms of groups or segments that have common needs and will respond similarly to a marketing action.
Market Segmentation
Those characteristics of a product that make it different than or superior to competitive substitutes.
Point of Difference
The means by which a marketing goal is to be achieved, usually characterized by a specific target market and a marketing program to reach it.
Marketing Strategy
Detailed day-to-day operational decisions essential to the overall success of marketing strategies.
Marketing Tactic
To monitor the activities of a plan or organization so that the objectives or goals remain on target and are achieved
Purpose of the Control Phase
Customers are different. Customers change.Competitors change and react.Organizational resources are limited
Strategic Marketing Process Principles
Competitive - Economic – Regulatory – Social - Technological
5 Business Environmental Forces
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
Environmental Scanning
Characteristics of the population such as: age, gender, ethnicity, income, occupation, values …
Demographic
Includes the set of values, ideas, and attitudes that are learned and shared among the members of a group
Culture
The income, expenditures, and resources that affect the cost of running a business or household.
economy
A period of temporary economic decline during which trade and industrial activity are reduced.
recession
A general increase in prices and fall in the purchasing value of money.
Inflation
Types of Consumer Income
Gross , disposable, discretionary
Inventions or innovations from applied science or engineering research.
Technological Force
Refers to the alternative firms that could provide a product to satisfy a market’s need. (Pure Competition,Monopolistic Competition, Oligopoly, Monopoly)
Competition
Consists of restrictions state and federal laws place on business with regard to its activities.
Regulation
Based on society’s values and standards and are enforceable in the courts.
laws
The moral principles and values that govern the actions and decisions of an individual or group.
ethics
Considers certain individual rights or duties as universal, regardless of the outcome.
Moral Idealism
Focuses on the greatest good for the greatest number
Utilitarianism
The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
consumer behavior
The 5 stages (extended rational model) a buyer passes through in which a buyer decides which products and services to buy;
Problem Recognition-Information Search-Assessing Value-Purchase Decision-Postpurchase Behavior
Purchase Decision Process
A favorable attitude toward and consistent purchase of a single brand over time
brand loyalty
Physiological - Safety - Social - Personal – Self Actualization
5 Stages of the Hierarchy of Needs
Energizing force that stimulates behavior to satisfy a need.
motivation
The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
perception
Consistent behaviors or responses to recurring situations.
personality
A method of segmentation that divides the market into groups based on social class, lifestyle and personality characteristics
Psychographic – VALS
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.
subculture
Units such as manufacturers, retailers, or government agencies that buy goods and services for their own use or for resale.
Organizational Buyers
The North American industry classification system Is the standard used by the federal government in classifying establishments for the purpose of collecting, analyzing and publishing statistical data related to the US business economy.
NAICS
The demand for industrial products and services is driven by, or derived from, demand for consumer products and services.
Derived Demand
A buying center is made up of several people in an organization who participate in the buying process.
Buying Center
Physiological - Safety - Social - Personal – Self Actualization
5 Stages of the Hierarchy of Needs
Laws to protect producers
patent, copyright, trademark
5 Generational Cohorts
Gen A (Tweens) – Gen Z (Teens) – Gen Y (Millennials – Gen X – Baby Boomers
