mcq 20% Flashcards
What is mktg
companies create value for cust, build strong cust relationship to capture value from cust in return
How do calculate value?
benefit divide cost
What are the 5 ‘not’ for our cust?
- not an interruption of our work (they are the purpose of it)
- not someone to argue with ( they brings us their wants; if we have insufficient imagination, we will endeavour to handle them profitably)
- not dependent upon us (we depend on them)
- not a rank to our business (they are part of us)
- not a statistic (human being equipped with biases, prejudices, emotions)
What are the 5 steps marketing process?
- understand the marketplace and cust needs and wants
- design a cust value driven mktg strategy
- construct an integrated mktg program that delivers superior value
- build profitable relationships and create cust delight
- capture value from cust to create profits and cust equity
What are consider cust needs? (4)
States of deprivation
Physical
Social
Indiv
What does physical cust needs include? (4)
food, clothing, warmth, safety
What does individual cust needs include? (2)
knowledge and self affection
What does social cust needs include? (2)
belonging and affection
What’s cust wants?
form that needs take as shaped by culture and indiv personality
What is cust demands
wants backed by buying power
What is market offerings?
Combination of products, services, info, offered to market to satisfy need or want
How does marketers meet cust value / satisfaction
need to set the right lvl of expectations, not too high / low
How to define markets?
Set of actual and potential buyers of a product
What are the 2 major envir forces?
suppliers, consumers
What is marketing management?
Choosing target markets and building profitable relationships with them
How to select cust to serve? (2)
Marketing segmentation
Dividing the markets into segments of cust
Target marketing
Choose which segments
What’s value proposition?
Set of benefits or values a company promises to deliver to cust to satisfy their needs
What should company consider in order to achieve societal marketing? (4)
A company should make good marketing decisions by considering :
Consumer’s wants
Company’s requirements
Consumer’s long term interests
Society’s long run interests
How is the marketing landscape changing? (4)
Not for profit mktg growth
Sustainable marketing
Rapid globalisation
Digital marketing
What are the social criticisms of mktg? (7)
Acquisition of competitors
Decreases competition
Detrimental to consumer choice = acquisition will not go thru
barriers to entry
Unfair competitive mktg prac
Deceptive prac
High-pressure selling
Planned obsolescence
Profiteering
What is sustainable mktg?
Meeting needs of cust while preserving the ability of future gen to meet their needs
What is consumerism?
Organised movement of citizens and gov agencies to improve the rights and power of buyers in relation to sellers
What is environmentalism?
Organised movement of concerned citizens, business, gov agencies to protect and improve people’s living envir
What is envir sustainability?
seeking profit while planning to help the planet
What are the 5 factors of envir sustainability?
Pollution prevention
Product stewardship
Design for envir (DFE)
New clean tech
Sustainability vision
What is product stewardship?
Involves minimising the pollution from production and all envir impact throughout the full product life cycle
What does it mean to have sustainability vision?
Guide to the future that shows how the company’s products and services, processes, policies must evolve and what is needed to get there
How to be a sustainable company?
Goes beyond caring for the needs of tdy cust and has concern for tmr cust and the broader world
What are the 4 sustainable mktg principles?
Consumer oriented
Consumer value mktg
Innovative mktg
Sense of mission mktg
What is sense of mission mktg?
Define mission in broad social terms rather than narrow product terms
What are the 4 mktg ethics?
Broad guidelines
Cover distributor relations, ads, standards, cust service, pricing, product dev, general ethics standards
Everyone must flw
Relationship w corporate sustainability (Balance among profit, planet, people)
How does the international trade system works? (4)
tariffs, quotas, exchange controls, nontariff trade barriers
What is quotas?
limits on the amount of foreign imports (to protect domestic industry and employment)
What is exchange controls?
limit on the amount of foreign exchange and exchange rate against other countries
What is nontariff trade barriers
biases against bids or restrictive product standards
How does economic factors reflect country’s attractiveness?
Industrial structure
Income distribution
Why does fcmg target low income households?
More profit margin, low purchasing power but large base of customer
What are the factors within political legal environment? (5)
Country attitude toward int bullying
Gov bureaucracy
Political stability
Monetary reg
Countertrade is non-cash payment
What are the activities involve in countertrade? (3)
Barter = exchange of goods and services
Compensation / buyback = sale of a plant or equipment and the payment in resulting products
Counter Purchases = when seller receives payment and agrees to spend some money in other country
What are the factors when companies decide to go global? (6)
Can the company understand the consumers
Has management considered reg and political envir of other countries
Can it offer competitively attractive products
Will it be able to adapt to local culture
Do the company managers have the experience
Can they deal w foreign nationals
What are the factors to consider when companies decide which market to enter? (4)
Define int mktg obj and policies
Foreign sales volume
How many countries to market to
Types of countries to market to based on
How to decide which countries to market? (3)
Geo
Income and population
Political climate
How to rank potential global market? (5)
Market size
Risk level
Market growth
Comp adv
Cost of doing business
From low to high, rank the amount of commitment, risk, control, profit potential of entering a market
Exporting, joint venturing, direct investment
What are the types of joint venturing? (4)
licensing, contract manufacturing, management contracting, joint ownership
What is strategic planning?
Maintaining a strategic fit between the org goals and capabilities and its changing market opp
What are the current global consumer trend ? (4)
AI
Greenwashed out
Wellness pragmatists
Value hackers
What are the 4 steps in strategic planning?
corporate level
1. defining company mission
2. setting company obj and goals
3. designing business portfolio
Business unit, product, market level
4. planning marketing and other functional strategies
What is a market oriented mission statement?
defines the business in terms of satisfying basic cust needs
How to set business obj? (3)
Build profitable cust relationship
Invest in research
Improve profits
How to set market objectives? (3)
Increase market share
Create local partnership
Increase promotion
How to analyse current business portfolio? (3)
- identify key businesses that make up the firm
- assess the attractiveness of its various SBUs
- decide how much support each SBU deserves
What is the product/market expansion grid used for?
identifying company growth opp through market penetration, market dev, product dev, diversification
(can be achieved through acquisition)
How does a business downsize? (3)
eliminating products
business units that aren’t profitable
no longer fit company’s overall strategy
What are the 4 types of cust value driven mktg strategy?
segmentation, targeting, differentiation, positioning
What is market segmentation?
Understand people have distinct needs, characteristics, or bhv and who might require separate products or mktg mix
Division of market of people into diff groups
What does threats stand for?
current and emerging external factors that may challenge the company’s perf
What is cust relationship management?
Overall process of building and maintaining profitable cust relationship by delivering superior cust value and satisfaction
What are the 3 levels of cust relationship?
Basic relationships (low margin cust)
Full partnerships (high margin cust)
Frequency mktg prog (reward cust)
What is customer engagement marketing? (3)
Makes the brand a meaningful part of consumer’s convo and lives
Create direct and continuous cust involvement
Shapes brand convo, experiences and community
What is consumer generated mktg?
Brand exchanges created by cust themselves (whether invited or not)
Shape own brand experiences
What is a value chain?
partners inside the company that carry out value creating activities to design, produce, market, deliver, support a firm’s product
What is a value delivery network?
Partners outside the company, how marketers connect w their suppliers channels and competitors
What does customer lifetime value equivalent to?
value of the entire stream of purchases that one would make over a lifetime of patronage
What is customer equity? (3)
Total combined of cust lifetime value of all of the company’s cust
Gives potential rev stream and profitability
To see how our business is doing
What does the suppliers do? (2)
Prov resources to produce goods and services
Treated as partners to prov cust values
What does marketing intermediaries do?
Firms that help company to promote, sell, distribute final products to final buyers
What are the categories for the demographic envir? (4)
baby boomers
gen x
millennials
net gen (gen z)
What are the characteristics of gen x? (6)
High parental divorce rate
Cautious economic outlook
Less materialistic
Fam comes first
Lags on retirement savings
Born between 1965-1976
What is generational marketing?
Segmenting people through lifestyle, life stage, common value instead of age
What are the trends in the current demographic envir? (7)
divorcing / separating
Choosing not to marry
Marry at a later age
Marrying w no intention to have kids
Increased no. of working women
Stay at home dads
Move from rural to city
What does value mktg involves? (2)
ways to offer financially cautious buyers greater value
Right combination of quality and service at a fair price
What are the trends in natural envir? (6)
Shortage of raw materials
Increased pollution
Increased gov
Intervention
Envir sustainable strategies
Pandemics
What are the 3 characteristics of tech envir?
Most dramatic force
Creates new products and opp
Concern for safety of new products
What are the 2 characteristics in social / political envir?
Legislation regulating business project
increased emphasis on ethics
What are the 2 characteristics in cultural envir?
Institutions / other forces that affect a society’s basic values, perceptions, bhv
Language complexities
What is buyer’s black box?
variety of factors that exist inside the person’s mind which influences their buying decisions
What is a subculture?
Grps of ppl within a culture w shared value system
Based on common life experiences / situations
eg, Fans of kpop, pop, etc
What are the two social characteristics affecting consumer bhv
family
social roles and status
What are the 6 different groups and social network
online social networks
buzz mktg
influencers / bloggers
virtual worlds
word of mouth
opinion leaders
What are the 4 psychological factors that determines customer purchase intention?
motivation, perception, learning, attitudes & beliefs
What is perception? How is it formed? (3)
Process which people select, organise, interpret info to form a meaningful pic of the world thru
Selective attention
Selective distortion
Selective retention
Why do we need customer insight teams? (4)
Incl all company functional areas
Collect info from wide variety of sources
To generate more value for cust
Incorporate AI
When will be the 7 times where customer and management will touch?
cust purchases
service / support calls
market research studies
satisfaction surveys
web / social media sites
sales force contacts
credit / payment interactions
