marketing finals

Question 1

what is marketing

Answer 1

marketing is a set of institutions, activities, and processes of creating, delivering, communicating, and exchanging offerings that have value for the customers, partners, clients, and society at large.

Question 2

4 requirements for marketing to occur

Answer 2

1. two or more parties with unsatisfied needs
2. a desire and ability to satisfy
3. a way for the parties to communicate
4. something to exchange

Question 3

whats the difference between a consumer needs and wants

Answer 3

A need is when somebody feels deprived for their daily necessity like clothes or food
A want is a felt need shaped by the person’s characteristic, culture, and personality

Question 4

how is the marketing concept

Answer 4

The marketing department does research to discover the needs of potential customers in the market. Then, they search for products to satisfy consumer needs by designing a marketing program that has the right combination of the 4Ps (price, product, place, promotion). They produce products, services, and ideas and give them to potential customers in the market.

Question 5

marketing mix programs

Answer 5

products –> consumer –> wants and needs
price –> costs –> cost to satisfy
place –> convenience –> ease of buying
promotion –> communication –> give and take

Question 6

what are the three value strategies of relationship marketing

Answer 6

best products
best price
best service

Question 7

why is relationship marketing important

Answer 7

because a firm can’t succeed by just having a one-off transaction. gaining customers loyalty by providing unique value is important for the business success

Question 8

what are the three concepts of social responsibility

Answer 8

profit responsibility –> owner, stockholders
stakeholder responsibility –> suppliers/distributors, employees, customers
societal responsibility –> public interest groups, ecological environment, general public –> through sustainability/sustainable marketing

Question 9

what are the two sustainable marketing types

Answer 9

green marketing: marketing efforts to produce, promote, and reclaim environmentally sensitive products
cause marketing: occurs when the charitable promotion of a firm is directly connected/tied to the consumer’s revenue, produced through the promotion of its one product

Question 10

what is a strategy

Answer 10

strategy is a course of action that gives unique customer experience to achieve long-term goal

Question 11

what is a strategic business unit (SBU)

Answer 11

a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined target market –> managers set up a more specific strategic direction for their businesses –> levels in multimarket or multiproduct firm

Question 12

what do strategy invisionary organizations do

Answer 12

successful organizations must be forward-looking, anticipating, and responding quickly and effectively to future events

Question 13

a visionary organization must..

Answer 13

1. specify its organizational foundation (why does it exist?) –> core values, mission and vision, organizational culture
2. specify its organizational direction (what will it do?) –> business, goals/objectives both long-term and short-term
3. specify/formulate its organizational strategies (how will it do it?) –> by level (corporate, SBU, functional), and by product (good, service, ideas)

Question 14

explain about the organizational foundation

Answer 14

mission/vision: a statement of the organization’s function in a society that often identifies its customer, market, product, or technologies –> clear, concise, meaningful
core values : fundamental, passionate, and enduring principles that guide its conduct over time –> capture the collective heart and soul of the organization
organization culture : the set of values, ideas, norms of behavior that is learned and shared among the organization

Question 15

to set a strategic direction, an organization needs to answer two difficult questions:

Answer 15

where are we now? –> competencies, customers, competitors
where do we want to go? –> set a direction and allocation to move to that direction

Question 16

what is a business portfolio analysis? (BCG matrix)

Answer 16

to determine which strategic business units (SBUs) that generate cash and which ones need cash to fund the organization’s growth opportunities

Question 17

what are the market growth rates

Answer 17

stars –> high market share & high market growth –> well established, have fantastic opportunities
cash cows –> high market share & low market growth –> well established but aren’t growing and have low opportunities
question mark –> low market share & high market growth –> have opportunities that no one knows what to do, need serious thoughts as to whether increased investments is warranted
dogs –> low market share & low market growth –> market presence is weak, difficult to make profit, many dogs eventually leave the market

Question 18

what is diversification analysis (market product strategy)

Answer 18

help a firm search for growth opportunities through new or current markets, and new or current product
1. market penetration –> current markets and current products
2. market development –> new markets, current products
3. product development –> current markets, new products
4. diversification -> new markets, new products

Question 19

the strategic marketing process

Answer 19

the process of maintaining and developing a strategic fit between the organization’s goals and capabilities and changing market opportunities
1. planning phase –> SWOT analysis –> identify trends, analyze competitors, assess the organization, research the organization’s current and prospective customers
2. market product focus and goal setting –> Select target market, point out differences, set goals –> use SMART analysis (smart, measurable, attainable, relevant, time base)
3. design marketing program –> marketing strategy and tactics, implementation phase: obtain resources, design market organization, define task, deadlines,etc, execute marketing program. evaluation phase : compare results with goals to identify deviations. exploiting positive deviations and correcting the negative ones

Question 20

whats the difference between marketing strategy and marketing tactics

Answer 20

marketing strategy is a long-term goal to encourage customers to make repeat order
marketing tactics is a day-to-day operational marketing actions –> review and improve current membership offerings, introduce new customer service, and provide more special discounts

Question 21

Six marketing forces

Answer 21

environmental forces
social forces
economic forces
technological forces
competitive forces
regulatory forces

Question 22

environmental forces

Answer 22

changing marketing environment can generate opportunities and threats to be managed
environmental scanning : the process of acquiring information on events outside the organization to identify and interpret potential threats