Marketing Study Guide Part 1 Flashcards
(42 cards)
Definition of Marketing
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
What is the main concept of marketing?
entails processes that focus on delivering value and benefits to customers, not just selling goods and services
What does marketing help create?
value
Define and describe the exchange that occurs when sellers ad buyers meet
at least two parties
each party has something of value (to the other party)
each party can communicate and deliver value
each party is free to accept or reject the exchange offer
each party wants to deal with the other party
exchange may not take place even if conditions are met
an agreement must be reached
marketing occurs even if exchange does not take place
4 P’s of Marketing
Product, price, place and promotion
Product
goods-items that you physically touch
services- intangible benefits, may include the experience
Price
everything the buyer gives up - including money, time energy - in exchange for the product
Place
getting the product to the right customer; supply chain management
Promotion
communicating a product’s value to customers
What is an example of a Business 2 Business transaction?
manufacturer to retailer
Example of a Business 2 Consumer transaction?
retailer to customer
What is the definition of value?
the relationship of benefits to costs, what the consumer gets for what they give
What is the difference between transactional and relational customer relationships?
Transactional- each transaction is a separate event, prior knowledge is not important (McDonald’s)
Relational: buyers and sellers establish long-term relationship (5-star hotel)
What does CRM stand for? How is it useful?
Customer relationship management: database used to gather and track customer data points
What is the definition of marketing strategy?
a firm’s target market, marketing mix, and the method of obtaining a sustainable competitive advantage
What is a sustainable competitive advantage?
something that a company can persistently do better than its competitors
Three macro strategies for developing customer value
Operational excellence, customer intimacy and product leadership
Operational excellence
performance is good enough lower costs increase convenience obtain reliability become easy to use Tradeoffs- lower performance, lower customization, lower level of service
Customer intimacy
performance is just right high level of customization high levels of service offers a complete solution access to a wide selection feeling of an experience tradeoffs: high costs, somewhat lower performance
Product leadership
performance is never good enough
access to high performance (latest technologies)
linked with aesthetics and style
portray sophistication
tradeoffs: higher costs, lower customization
How does a company survive as a product leader? Customer intimacy company? Operationally excellent company?
Product leader: product development lifecycle, always create new product life cycles, “fencing”-gentle, combatants are well protected
Customer intimacy: share of wallet strategy, “capture” a customer, then get all their money, and “boxing”-can get hurt, but ref and gloves
Operational excellence: volume strategy, “street fight”-dirty and ugly
Marketing plan
analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy (the 4 P’s), action programs, and methods of evaluation
What are the three phases of the marketing plan?
Planning phase: define the mission and vision of the business, evaluate the situation both inside and outside of the organization
Implementation phase: identify and evaluate different opportunities, using: segmentation, targeting, positioning and the 4 P’s
Control Phase: evaluating the performance of the marketing strategy using marketing metrics
What is a mission statement? Why is it important for a company to develop a strong mission statement?
it is a broad description of a firm’s objectives and the scope of activities it plans to undertake
It’s important to develop one so that they can communicate their goals to a customer searching for a product