Exam 1 Flash Cards
Marketing
The process of creating, distributing, promotion, and price goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
How do customers determine value?
Consumer benefits minus Consumer costs
How do consumers determine satisfaction?
Satisfaction is when consumer benefits outweigh consumer costs
What part of the satisfaction model do marketers have more control over?
Consumer costs
What is an exchange?
The provision or transfer of goods, services, or ideas in return for something of value
Marketing Mix
Four marketing activities- product, pricing, distribution, and promotion - that a firm can control to meet the needs of consumers within its target market
Pricing
Relates to decisions and activities associated with establishing pricing objectives and policies and determining product prices
Distribution
Products must be available at the right time and in convenient locations
Promotion
Relates to activities used to inform individuals or groups about the organization and its products
Product
A good, service or idea
Goods
An entity you can touch
Services
The application of human and mechanical efforts to people or objects to provide intangible benefits to customers
Ideas
Concepts, philosophies, images, and issues
Strategic Planning
The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan
Core Competency
Things a company does extremely well, which sometimes give it an advantage over its competition
Competitive advantage
The result of a company matching a core competency to opportunities it has discovered in the marketplace
Marketing opportunity
A combination of circumstances and timing that permits an organization to take action to reach a particular target market
Strategic window
Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market
SWOT analysis
Assessment of an organization’s strengths, weaknesses, opportunities, and threats
What are the two primary questions to be answer in a mission statement?
What are the goals and vision/long term view of the organization
What are the qualities of good objectives?
Should be expressed in clear, simple terms, should be measurable, should use a specific time frame, and should be achievable
What is a strategic business unit?
A division, product line, or other profit center within the parent company
Boston Consulting Group Matrix
A market growth or market share matrix used to determine marketing strategy
Dogs
Have a subordinate share of the market and low prospects for growth
Cash Cows
Have a dominant share of the market, but low prospects for growth; generate more cash than is required to maintain market share
Stars
Products with a dominant share of the market and good prospects for growth; use more cash than they generate in order to finance growth’
Question Marks
Have small share of a growing market and require a large amount of cash to build market share
Brand Competitors
Market products with similar features and benefits to the same customers at similar prices
Product Competitors
Compete in the same product class but market products with different features, benefits, and prices
