EXAM 1 STUDY GUIDE Flashcards
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. This is known as
Marketing
What are the two goals of marketing?
To discover needs and wants of customers
To satisfy the needs and wants of customers
What are the 4 requirements for marketing to occur?
- Two+ parties with an unsatisfied need
- A desire and ability to be satisfied
- A way for the parties to communicate
- Something to exchange
Who engages in marketing?
Everyone and every organization
What are the 3 types of marketing?
Business to consumer (B2C)
Business to business
(B2B)
Consumer to consumer
(C2C)
What type of customer participates in a business to consumer exchange?
End or ultimate user
What type of customer participates in a business to business exchange?
An organizational buyer
What occurs when someone is deprived of a basic necessity?
Need
What occurs when a need is shaped by a person’s knowledge, culture, and personality
Want
What does the marketing mix consist of?
Controllable factors
Product
Price
Promotion
Place
What are the 4 P’s of the marketing mix?
Product
Price
Promotion
Place
When asked about controllable factors what else is it referencing?
the marketing mix
The key to discovering and satisfying the needs and wants of customers is
Exchange
A good, service, or idea can be described as a
Product
Something that can be exchanged is described as what P?
Price
Communication between the buyer and the seller is known as which P in the marketing mix?
Promotion
Hoe the product gets ti the consumer is known as which P in the marketing mix?
Place
What term consists of the controllable factors—
product, price, promotion, and place—that can be used by the
marketing manager to solve a marketing problem.
The Marketing Mix
What term consists of people with both the desire and ability to buy a specific offering
Market
What term consists of one or more specific groups of
potential consumers toward which an organization directs its
marketing program.
Target Market
Customer’s perception of benefits of a product or service against the costs of acquiring and consuming it
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 is known as?
Customer Value
What term consists of the benefits or customer value received by users of the product.
Utility
What are the 5 types of utility?
Form Utility
Place Utility
Time Utility
Possession Utility
What type of utility deals with what type of product or production of good is valued?
Form Utility
What type of utility focuses on the value of availability and location of where consumers need them
Place Utility
What type of utility values convenience/ availability of getting the product/service in a timely matter
Time Utility
What type of utility values the ease of being able to purchase of the item or how easy it is to take possession of the item after purchase
Possession Utility
What type of utility values data that helps consumers make buying decisions
Information Utility
A cluster of benefits that an organization promises customers to satisfy their needs can be described as
Customer Value Proposition
when an organization 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. This is known as
Market Orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace is known as
Product Orientation
How do you employ marketing orientation?
By continuously collecting information about needs (Marketing Research)
Sharing information across departments
Using it to create value within the product or service
A road map for the entire organization for a specified future period of time, such as one year or five years is known as a
Business Plan
What type of plan focuses on decisions pertaining to all the functional departments and future growth strategies of a company and includes goals and missions for the organization?
Business plan
A road map for the marketing action of an organization for a specified time period. This is an integral part of the business plan.
Marketing Plan
An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals is known as
Strategy
The statements of an accomplishment of a task to be achieved, often by a specific time is known as a
Goal or Objective
The detailed, day-to-day operational marketing actions for each element of the marketing mix that contributes to the overall success of marketing strategies are known as
Marketing Tactics
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 is known as
Marketing Strategy
Specific action taken to support marketing strategies is known as
Marketing tactics
The action/ implementation that contributes to the success is known as a
Tactic
The key indicators for measuring the success of your objectives is known as
Key Performance Indicators (KPI)
Why is strategy needed?
- A business cannot be all things to all people
-Limited resources available - Need to decide where to focus
What organizational term focuses on the why the business exists and determines the core values, mission, and culture within the organization?
Organizational Foundation
What organizational term focuses on what the business does and what are the long term and short term goals/ objectives of the organization?
Organizational Direction
What organizational term focuses on the organization by level or by product?
Organizational strategies
The firm’s target market
marketing mix
and method of obtaining sustainable competitive advantage is known as the
Marketing strategy
Something your firm does better or goods/ service that is offered that competitors do not for possibly a short period of time is known as a
Competitive Advantage
Something the firm can persistently do better than its competitors that cannot be easily replicated is known as
Sustainable Competitive Advantage
a measure of the quantitative value or trend of a marketing action or result is known as the
Marketing Metric
What is the organizational purpose?
Core Values
Mission or vision
Organizational Culture
What is the purpose of the marketing metric?
You can’t manage what you don’t measure
The ratio of revenue of a firm to the total revenue of all firms in a industry is known as the
Market share
What is the formula to calculate market share?
Sales Revenue DIVIDED BY Total Industry Sales
The increase in demand for a type of product or service over time is known as the
Market Growth
What is the formula to calculate market growth?
(Current years sales- Previous years sales) DIVIDED BY
Previous Years Sales
What analysis is used to quantify performance measures and growth targets to analyze business units as separate investments
Business Portfolio Analysis
Which quadrant of the business portfolio analysis has a low market share and a high relative market share?
Cash Cows
Which quadrant of the business portfolio analysis has established and successful standard business units, has competition weakened, no serious investments, and produces cash?
Cash Cows
Which quadrant of the business portfolio analysis has a high market share and a hight relative market share?
Stars
Which quadrant of the business portfolio analysis has a low market share and a low relative market share?
Dogs
Which quadrant of the business portfolio analysis has a high market share and a low relative market share?
Question Marks
Which quadrant of the business portfolio analysis has profit potential and attracts competion that many need heavy investment is?
Stars
Which quadrant of the business portfolio analysis requires cash to build market share and builds into stars phase out?
Question Marks
Which quadrant of the business portfolio analysis has low profit potential and is usually discontinued
Dogs
An analysis used to help a firm search for growth opportunities is known as s
Diversification Analysis
Which quadrant of the diversification analysis has current markets and current products?
Market Penetration
Which quadrant of the diversification analysis has current markets and new products?
Product Development
Which quadrant of the diversification analysis has new markets and current products?
Market Development
Which quadrant of the diversification analysis has new markets and new products?
Diversification
An example of which quadrant of the diversification analysis can be described as selling more Ben & Jerry’s super premium ice cream to Americans?
Market Penetration
An example of which quadrant of the diversification analysis can be described as selling Ben & Jerry’s super premium ice cream to Brazilians for the first time?
Market Development
An example of which quadrant of the diversification analysis can be described as selling a new product such as children’s clothing under the Ben & Jerry’s brand to Americans
Product Development
An example of which quadrant of the diversification analysis can be described as selling a new product such as children’s clothing under the Ben & Jerry’s brand to Brazilians for the first time?
Diversification
Which quadrant/ strategy seeks to increase sales of existing products to existing markets?
Market Penetration
Which quadrant/ strategy creates growth by selling new products in existing markets?
Product Development
Which quadrant/ strategy introduces existing products to new markets?
Market Development
Which quadrant/ strategy emphasizes both new products and new markets to achieve growth?
Diversification
Tylenol Rapid Release spent years perfecting what goes into our medicine and now they’ve perfected the way it comes out. This pitch can be described as which quadrant under diversification analysis?
Product Development
Starbucks created a new product called Starbucks coffee liqueur this can be described as which quadrant/strategy?
Diversification
The Nintendo Wii being advertised for an older generation to play can be described to show which quadrant/ strategy?
Market Development
The Starbucks Rewards app is being used to satisfy which quadrant/ strategy under the diversification analysis?
Market Penetration
What does the marketing plan consist of?
- Analysis of current situation (SWOT)
- Marketing objectives and strategies in terms of 4 P’s
- Action program (tactics)
- Projected income or other measures of success
-Budget
Which analysis involves 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.
Situation Analysis
an approach whereby an
organization allocates its marketing mix resources to reach its target markets this is known as
Strategic Marketing Process
FINISH CHAPTER 2
the process of continually acquiring information on
events occurring outside the organization to identify and
interpret potential trends is known as
Environmental Scanning
T/F- Environmental scanning asks the question “What trends might affect marketing in the future?”
True
What are some examples of social forces?
Demographic shifts
Cultural changes
For population trends go to powerpoint 3 flashcards
What term describes a
population according to selected characteristics such as age, gender, ethnicity, and income
Demographics
A group of people
of the same generation is known as
Generational Cohort
Which generation was born between 1946-1964. Has a population of 76 million, will all be 65+ by 2030, and is known as the wealthiest generation?
Baby Boomers
Which generation was born between 1965-1976. Has a population of 50 million and is known for fleece and jeans. They are latchkey kids that are self-reliant, diverse, family- oriented, and better educated. They are the largest number of business travelers and are known as the sandwich generation
Generation X
Which generation was born between 1977-1994. This generation has a population of 70-80 million and are focused on personal experiences, beginning careers, and their work/life balance. This generation is nicknamed millennials
Generation Y
Which generation was born between 1995-2010. This generation values choice, technology, and broad diversity. This generation is tough for marketer and focuses on balance of shareholders, employees, and society. Nicknamed - digital natives
Generation Z
combinations of the marketing mix that reflect the unique attitudes,
ancestry, communication
preferences and lifestyles of
different races this is known as
Multicultural Marketing
What are some examples of economic forces?
Macroeconomic conditions
Consumer incomes
What are some examples of technological forces?
Changing technology
Technology’s impact on customer value
Technology enabled data analytics
What are some examples of competitive forces?
Alternative forms of competition
Small businesses
What are some examples of regulatory forces?
Laws protecting competition
Laws affecting marketing mix actions
Self-regulation
Costs that must be
incurred by a new
entrant into a market
that incumbents do
not have or have not
had to incur are known as
Barriers to Entry
What act protects against restraints in trade?
Sherman Antitrust Act (1890)
Which act forbids any actions that lessen competition
Clayton Act (1914)
Which act cannot discriminate in prices charged to different purchases (e. g. small businesses) of the same product where it may lessen competition?
Robinson-Patman Act (1936)
Which act states that no deceptive ads are allowed to be published
Federal Trade Commission Act of 1914 (FTC)
An approach to marketing that acknowledges 4 key principles:
1 ) recognition of marketing’s greater purpose
2) consideration of stakeholders and their interdependence
3) the presence of conscious leadership, creating a corporate culture
4) the understanding that decisions are ethically based.
This approach is called?
Conscious marketing
The moral principles and values that govern t he actions and decisions of an
individual or group is known as
Ethics
Rules of conduct or action formally recognized as binding or enforced by a
controlling authority (such as government)
Often based on ethical considerations and
values
This term is
Legal
Why businesses engage in ethical marketing (list competitive advantages discussed in class)
Customers more likely to buy your product
▻ Build a good relationship with customers long term
▻ Customer will likely be more satisfied with purchase, thereby spreading good word of mouth
▻ Builds loyalty among customers
▻ Improves brand’s reputation and credibility
▻ Customers advocate when firm is facing times of crisis
T/F- Engaging in ethical marketing practices can lead to a competitive advantage for firms. This type of marketing takes a long time to build up, but only a moment to destroy
True
idea that organizations are part of a larger society and are accountable to that society for their actions this is known as
Social Responsibilty
A means to measure
performance, according to
economic, environmental,
and social criteria is known as
Triple Bottom Line
marketing efforts to produce, promote and reclaim environmentally sensitive products is known as
Green Marketing
when charitable contributions by the
organization are tied directly to revenues produced through promotion of products this is known as
Cause Marketing
