Marketing Exam Flashcards
Stars
SBUs whose products have a dominant market share in high-growth markets
Question Marks
SBUs whose products have a low market share in high growth markets
Cash Cows
SBUs whose products have a dominant market share in a low-growth market
Dogs
SBUs nobody wants
Triple Bottom Line
Management seeks to maximize financial, social, and environmental bottom lines
What is marketing first and foremost about?
Satisfying customer needs
What is the evolution of the marketing concept?
The idea that organizations succeed when they satisfy customers needs
CX (Customer Experience)
The overall assessment of every interaction the customer has experienced with a business
What is the production era?
- Marketing dominated by a production orientation
- A management philosophy that emphasizes the most efficient ways to produce and distribute products
- At the beginning of the industrial revolution, when demand for products outstripped supply
What does Triple Bottom Line put emphasis on?
Sustainability, accountability, ROI, and ROMI (return on marketing investment)
Perceived Value
The ratio of perceived benefits to perceived costs
What is disruptive marketing?
- Stepping outside of the box
- The only way to stay in business for the long term
What is World Trade?
Refers to the flow of goods and services among different countries
Countertrade
- In some countries sufficient
- Cash or credit is not available. Firms work out deals to trade their producers.
Steps in the decision process to enter global markets
Step 1: Wether to go global
Step 2: Which market(s) to enter
Step 3: Level of commitment
Step 4: How to adapt marketing mix strategies (localize and standardize)
What do tarrifs do?
Affect the price of goods sold internationally
What are some elements of the external enviroment?
Economic environment, competitive environment, political/legal environment, sociocultural environment, decisions in the domestic market, decisions in the global market
Marketing Mix Strategies
- Straight extension
- Product adaptation
- Product invention
- Backward invention
Straight extension
Offer the same product into a foreign market
Product Adaptation
Some changes in the product depending on what country it is being sold in
Product Invention
Create a new product for the new market
Backward Invention
Take an existing product and defeature it
Competition in the Microenvironment
Involved three types of decision making
Competition in the macroenvironment
- Monopoly
- Oligopoly (small number of sellers w/ substantial market share)
- Monopolistic Competition (May sellers who compete for buyers in a market - small market share)
- Perfect Competition (Many sellers each offering the same good at the same price with the same level of demand)
Xenocentrism
When someone believes another country is better than their own in some way
Ex) Americans believe Germans make better cars
Ethnocentrism
The belief that your country is better than another
Levels of Business Planning
- Strategic Planning
- Functional Planning
- Operational Planning
Strategic Planning
Planning done by corporate and/or SBU-level management
1) Define the mission
2) Evaluate the internal and external environment
3) Set organized or SBU objectives
4) Establish the business portfolio
5) Develop growth strategies
Functional (Market) Planning
Planning done by top functional-level management, such as the firm’s chief marketing officer
1) Perform a situation analysis
2) Set marketing objectives
Operational Planning
Planning done by supervisory managers
1) Develop action plans to implement the marketing plan
2) Use marketing metrics to monitor how the plan is working
* Products to produce (the portfolio)
* Identifying target markets (functional plan)
* Specific new producer ad language, media, selection, cities to run in etc.
What makes a good mission statement?
Can’t be too narrow, broad, or short sighted
Internal Environment
A firm’s strengths and weaknesses
- Technologies/patents
- Physical facilities
- Financial stability
- Supplier relationships
- Reputation
- Strong brands
- Human Capital
What is a SWOT Analysis
Strengths, weaknesses, opportunities, and threats
BCG Growth Share Matrix
Classifies various SBUs into one of four categories based on the SBU market growth rate and relative market share
SBU
Strategic business unit
Product-Market Growth Strategies Matrix
Displays the product-market growth matrix which characterizes different growth strategies according to type of market and type of product
Market Penetration Strategy
Seek to increase sales of existing products to existing markets
Product Development Strategy
Create growth by selling new products in existing markets
Market Development Strategy
Introduce existing products to new markets
Diversification Strategy
Emphasizes both new products and new markets to achieve
What are two measures of actual performance
1) Activity metrics
2) Outcome metrics
ROMI
Return on marketing investment
What is ROMI
Revenue (or profit) generated by investment in a given marketing program divided by the cost of the program at its given level of risk
What is a internal company data system
- Information generated from within the company, often through their intranet and marketing dashboards
- Used to produce reports on sales and marketing activities
- Includes sales records: who buys what in what quantities at what intervals
- Commonly accessed by marketers via secure intranets
Cross-Sectional
Study a fresh sample of people each time
Longitudinal
Follow the same sample of people over time
Descriptive Research
-Systematically investigates a marketing problem
-Conclusions based on a large representative sample of research participants
-Results expressed in quantitative terms
Mail questionnaire advantages and disadvantages
Advantages
- Respondents feel anonymous
- Low Cost
- Good for ongoing research
Disadvantages
- It may take a long time
- Low rate of response; many consumers may not return questionnaires
- Inflexible questionnaire format
- The length of the questionnaire is limited by the respondents
Probability Sampling
Each member of the population has some known chance of being included
Simple Random Sample
Systematic sampling procedure
Stratified Sample
Researchers obtain more accurate results when they carefully design and implement good sampling techniques.
Where does a CRM capture information?
CRM captures information at each customer touchpoint
Non-probability sampling
A sample in which personal judgment is used to select respondents
Data mining
The process by which analysts identify unique patterns of behavior in big data
Data Warehouse
A system to store and process data
