marketing finals Flashcards
what is marketing
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.
4 requirements for marketing to occur
- two or more parties with unsatisfied needs
- a desire and ability to satisfy
- a way for the parties to communicate
- something to exchange
whats the difference between a consumer needs and wants
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
how is the marketing concept
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.
marketing mix programs
products –> consumer –> wants and needs
price –> costs –> cost to satisfy
place –> convenience –> ease of buying
promotion –> communication –> give and take
what are the three value strategies of relationship marketing
best products
best price
best service
why is relationship marketing important
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
what are the three concepts of social responsibility
profit responsibility –> owner, stockholders
stakeholder responsibility –> suppliers/distributors, employees, customers
societal responsibility –> public interest groups, ecological environment, general public –> through sustainability/sustainable marketing
what are the two sustainable marketing types
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
what is a strategy
strategy is a course of action that gives unique customer experience to achieve long-term goal
what is a strategic business unit (SBU)
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
what do strategy invisionary organizations do
successful organizations must be forward-looking, anticipating, and responding quickly and effectively to future events
a visionary organization must..
- specify its organizational foundation (why does it exist?) –> core values, mission and vision, organizational culture
- specify its organizational direction (what will it do?) –> business, goals/objectives both long-term and short-term
- specify/formulate its organizational strategies (how will it do it?) –> by level (corporate, SBU, functional), and by product (good, service, ideas)
explain about the organizational foundation
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
to set a strategic direction, an organization needs to answer two difficult questions:
where are we now? –> competencies, customers, competitors
where do we want to go? –> set a direction and allocation to move to that direction
what is a business portfolio analysis? (BCG matrix)
to determine which strategic business units (SBUs) that generate cash and which ones need cash to fund the organization’s growth opportunities
what are the market growth rates
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
what is diversification analysis (market product strategy)
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
the strategic marketing process
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
whats the difference between marketing strategy and marketing tactics
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
Six marketing forces
environmental forces
social forces
economic forces
technological forces
competitive forces
regulatory forces
environmental forces
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
