Final Exam Flashcards
Marketing
Organizational function/processes for creating, communicating, delivering value to customers and managing customer relationships.
Marketing Concept
The entire company orients itself towards long term success.
Corporate Social Responsibility
Company’s voluntary responsibility (social, environmental, ethical) inside and outside of company.
Value
belief that a mode of conduct is personally and socially preferable to another.
Product
Bundle of physical, service or symbol to meet customer’s needs.
Need
Imbalance between consumer’s actual and desired states.
Customer Value
Relationship between sacrifice and benefits necessary to obtain benefits.
Markets
Group of people with sufficient purchasing power, authority and willingness to buy
What are the two criteria for value?
- Benefits (quality)
2. Sacrifice (price)
Customer Relationship Marketing
Creating database and establishing a trusted, up to date means of keeping track of a company’s customer base.
Customer Relationship Management
Using the information from customer database to build customer loyalty. Takes data to drive future marketing efforts.
What is the difference between customer relationship marketing and customer relationship management?
The first is the establishment of a database. The second is using the database to build customer loyalty.
Value Proposition
Organization’s statement on why a customer should buy a product.
What are the three marketing orientations?
Product orientation, sales orientation and marketing orientation.
Product Orientation
Produce a product efficiently and a good product will sell itself.
Sales Orientation
Products can only be sold through persuasive advertising and personal selling (sales pitches).
Marketing Orientation
Identify and satisfy customers’ needs.
Ethical Behaviour
Moral standards of behaviour expected by a society.
Triple Bottom Line
Financial, social and environmental effects of a firm’s policies.
Strategy
Plan guided by questions about future achievement.
Competitive Advantage
Strong point an organization can use in the business environment to stand out and be successful.
SWOT
Strength Weakness Opportunity Threat
Product-Market Growth Matrix (Ansoff’s strategy opportunity matrix)
Template to determine ways to grow business through new and existing customers and products.
Mission Statement
Statement of firm’s business after analyzing benefits that customers are looking for and analyzing environmental conditions.
Vision Statement
Statement outlining what the firm would like to accomplish in the short and long term.
What are Porter’s three competitive strategies?
Cost leadership, differentiation and focus.
What are the four strategies of marketing in terms of SWOT?
Aggressive, diversification, turnaround, defensive.
What position is aggressive and what should the company do?
The company has many strengths and opportunities. They should grow and expand.
What position is diversification and what should the company do?
The company has many strengths and threats. They should acquire more offerings.
What position is turnaround and what should the company do?
The company has many weaknesses and opportunities. They should fix internal problems to appeal to the market.
What position is defensive and what should the company do?
The company has many weaknesses and threats. They should fix everything.
What are the four parts of the Product-Market Growth Matrix?
Market penetration, product development, market development and diversification.
Market penetration
Selling more of the same product to the same market.
Product development
Selling new products to the same market.
Market development
Selling products to new markets.
Diversification
Making new products for new markets.
Marketing Plan
Detailed description of resources and actions needed to achieve stated marketing objectives.
Marketing Strategy
Company-wide program for selecting a particular target market then satisfying consumers in that market through the marketing mix.
Situation Analysis
SWOT analysis
Marketing Mix
Product, distribution, promotion, pricing.
Marketing Plan Loop
Collect data, analyze data, develop strategy, determine target market, establish tactics, insert controls and implementation.
5 Steps of consumer decision making process
Identify needs, search for information, evaluate alternatives, make a purchase, consider/review that purchase.
What influences the decision-making process?
Previous experience making a particular purchase, brand loyalty and demographic factors.
External influences on decision making
Impact of others, economic conditions.
Internal influences on decision making
Personality, self-concept and psychological factors.
Business to Business, B2B
Business buying products from other businesses. Less buyers, more volume. Decisions made as a team.
Buying Center
Participants in organizational buying decision.
Network perspective
Perspective of organization’s network (ie suppliers, government, customers).
Weak Ties
Connections once removed from organization’s connections (ie suppliers suppliers).
Market Segmentation
Organization consumers into groups based on what those in each group have in common.
Positioning
Market strategy concerned with going for a particular place in the market.
What are the categories of characteristics used to segment the market?
Geographics, demographics, psychographics and behavioral.
Target Market
Specific group the firm focuses on, as to use resources more efficiently.
Marketing Environment
Factors and forces that influence an organization’s ability to build and maintain relationships with their customers.
Differentiation
Process of distinguishing a product or service from others.
Attributes
Characteristics given to the product or service.
Perceptual positioning map
Display of location of products, brands or groups of different products in customers’ minds using dimensions (ie price, quality).
Positioning statement
Summarizes position, market segment, competitive advantage of the firm.
Brand
Name, term, symbol, design that identify seller’s products and differentiates from competitors’ products.
Brand name
Any part of a brand that can be spoken.
Brand mark
Any part of brand related to brand name but doesn’t involve numbers/letters.
Brand Statement
Clear spells out brand benefits to a target audience.
Brand Equity
Added value that a respected, well-known brand name gives to a product in the marketplace.
Product Life Cycle
Progression of a product through introduction, growth, maturity and decline stages.
What are three ways to measure brand equity?
Brand awareness, brand image and brand performance.
Brand Vision
Ideas of what the brand represents for its most important partners - its customers and employees.
Brand Identity
Visible elements of a brand that together identify and distinguish the brand in the consumers’ mind.
Core vision elements
2-5 most important, compelling and differentiating elements of the vision statement.
Brand Personality
Human characteristics associated with a brand.
Rebrand
Adopting new logo, symbol design to change image in consumers mind.
Brand Management
Process of maintaining, improving, upholding a brand so the name is associated with positive results.
Logo
Recognizable/distinctive design, symbol or stylized name for identifying an organization.
Personal Brand
How someone appears to the world.
Common features of successful brands (3Cs)
Competitive advantage, contribution, communication.
Offering
Describes solution to customer problem.
Product Offering
Combination of tangible goods, services, ideas and people.
Tangible Good
Good that can be touched and seen.
Services
Activities provided by other people.
Product Development Process
System of defined tasks and strategies required to develop a new product.
What are the four types of consumer products?
Convenience, shopping, specialty and unsought.
Convenience Products
Frequent and immediate use, minimal decision making. Ex: soft drink
Shopping Products
A product purchased after comparing other competing offers. Ex: furniture
Specialty Products
Prized brands. Ex: antiques
Unsought Products
Products for which consumers may not yet recognize the need. Ex: pet insurance.
Business Products
Purchased for use directly or indirectly in production of other goods/services for resale.
Product Mix
Assortment of product lines and individual product offerings that a company sells.
Product Depth
Different versions of a product item in a product line. Ex: Different flavours of toothpaste.
Product Width
Number of product lines a particular firm offers to the market.
What are the three characteristics of intangible services?
Inconsistent, inseparable (requires contact) and inventory (unstorable).
Non-Durable Goods
Last only 1-2 uses.
Price Elasticity
Customer’s responsiveness or sensitivity to change.
Price Objective
Provides direction to the whole pricing process; reflects a company’s marketing, strategic, financial, product goals and what the customer might expect to pay.
What are the four approaches to selling in marketing?
Profit-oriented, market share-oriented, market demand-oriented and volume-oriented.
Profit-Oriented approach
Maximize price based on competition and perceived value.
Market Share-Oriented approach
Try to increase share of the market no matter what happens to the industry sales.
Market Demand-Oriented approach
Considering the customer and what the market will bear.
Volume-Oriented approach
Looking to get a product turned over in the market rather than being too concerned about maximizing value or return.
When is price elasticity higher?
When there are substitute products, price differences are heavily promoted and prices are easy to compare.
When is price elasticity lower?
When there are a lack of substitutes, products are necessities and complementary products exist.
What are three factors influencing pricing?
What competitors are doing, economic forces and internal controls/costs.
What are the five pricing strategies?
Skimming, price penetration, matching competitor pricing, value oriented, prestige.
Skimming price strategy
When a firm believes it has some advantage and prices higher than competition and leverages based on strong brand, patent protection and overall image of quality.
Price penetration strategy
Prices lower than competitors, hoping for higher volume.
Matching competitors pricing
Exactly what the name states.
Value Oriented/Everyday Low pricing strategy
Emphasizes benefits of product in comparison to price/quality of competitors - used by high volume retailers who can afford to set lower prices and use economies of scale.
Prestige Pricing strategy
Extreme version of skimming strategy, setting high price to match high quality and exclusivity.
What are three pricing tactics?
Odd pricing, price lining, price bundling.
Odd pricing tactic
Based on psychology - price the number lower. Ex: 3.99 instead of 4.
Price Lining tactic
One firm charges a series of prices. Good for companies that have multiple products in one product line. Some consumers will go for the high prices, some will go for lower prices. Ex: Honda civic coupe, sport, regular,etc.
Price bundling tactic
Complementary products and services bought together for one bundled price. Ex: Vacation packages.
Distribution
Movement of goods and services from producers to consumers.
Marketing Channels
System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer.
Direct marketing channel
Company sells directly to customers, no intermediaries.
Indirect marketing channel
Includes intermediaries. More expensive but product gets distributed more widely.
Supply Chain Management
Control of purchasing, processing, deliver through which raw materials are transformed into products and made available to final customers.
Integrated Channel System
Combined/coordinated system of the separate elements to provide a harmonious system that works smoothly
eBusiness
Conducting online transactions with customers by collecting and analyzing business information, carrying out exchanges and maintaining online relationships.
What are two ways that a supply chain can gain an advantage?
Source raw materials from a supplier that has higher ethical standards and transport goods across international borders with the assistance of a global logistic agency.
Global Logistic Agency
Coordinates logistics of supply and distribution in a global scope.
External forces to be considered in global trade
International trade regulations, micro/macro economics, socio-demographic patterns, technological innovations.
What are three types of channel structures?
Exclusive, selective, intensive.
Exclusive channel structure
Giving one company the right to sell product in an area.
Selective channel structure
Only a few companies have the right to sell a product in a given area.
Intensive channel structure
Many firms are allowed to sell a company’s products in an area.
Outsourcing
Using outside vendors to produce goods and services formerly products in house.
Promotion
Communication link between buyer and seller - informing, persuading, influencing customer’s purchase decision.
Integrated Marketing Communications
Coordination of all promotional activities in order to produce a unified, customer-focused promotional message.
What does IMC require and involve?
Require: consistency in logo, tagline, color scheme, use of spokesperson.
Involve: advertising, sales promotion, personal selling, direct response, public relation, social media.
What are the elements in the AIDA model?
Attention, Interest, Desire, Action.
Creative Processes
Advertiser’s desired message is crafted into words, sounds, symbols, jingles, imagery.
Media Planning
Determining the best combination of media to achieve marketing campaign objectives.
What are the four steps in media planning?
Examine media options available.
Determine cost in relation to message’s reach.
Match cost against advertising budget.
Schedule time/space based on availability.
What are the 3 parts of creative advertising?
Creative brief, big idea, creative appeal.
What are the 3 parts of media planning?
Reach, frequency and media schedule.
Public Relations
How the organization relates to its external environment.
Publicity
Public info about company, product or service appearing in mass media as news item.
3 types of publicity
News release, press conference, sponsorship
Crisis Management
effort to handle all effects of unfavorable publicity/event, get rid of negative publicity.
What are 3 essential steps in crisis management?
Respond quickly, disclose as much as possible.
Communicate all action.
Make noticeable changes that will prevent future occurrences.
Sales Promotion
What pushes the buyer to make a purchase decision
Profit Margins
Amount that revenue exceeds cost
What are some sales promotion strategies?
Contest, coupons, discounts, premium, rebate, sampling, loyalty program.
Push strategies
Take product straight to customer and engage them - personal selling.
Pull strategies
Get customers to be attracted to company through sales promotion and advertising. Ex: customer pulled to the store or website.
Direct Reponse
Telemarketing, direct mail, broadcast, print - used when company has some contact info for target of message, seeks to drive desire and action.
Outside sales
Sales people going outside office to meet potential customers.
What qualities do sales professionals require?
Patience, perseverance, confidence, organizational skills, social skills, persuasiveness, empathy.
Seven steps of sales cycle
Generate leads, qualify leads, approach and probe, develop/propose solutions, handle objections, close the sale, follow up.
