MIDTERM Flashcards
What is marketing (AMA definition)?
The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organisational objectives
How do firms achieve long term goals of doing good for the world at large while benefiting the firm and its customer?
Firms need to develop a marketing plan that specifies marketing activities for a specific period of timme
How is a marketing plan broken down?
how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer
What are core aspects of marketing?
- marketing affects stakeholders
- marketing is about satisfying customer needs and wants
- Marketing entails an exchange
- marketing creates value through product, price, place, and promotion decisions
- marketing can be performed by individuals and organizations
What is an exchange?
the trade of things of value between buyer and the seller so that each is better off as a result
What is the marketing mix aka 4 P’s?
Product, price, place, and promotion. Controllable set of decisions or activities that the firm uses to respond to the wants of its target markets
What is product? (4 P’s)
The goods or services offered by a business to meet customer needs.
Ex: Apple iPhone
What is the difference between goods & services?
Goods are tangible and services are intangible
What are ideas?
thoughts, opinions, and philosophies - intellectual concepts that can be marketed
Ex: groups promoting bicycle safety - exchange of value happens when children listen to the safety presentation & wear helmets
What is price? (4 P’s)
The amount customers pay for the product or service
What is place? (4 p’s)
All the activities necessary to get the product to the right customer when the customer wants it.
- Encompasses both supply chain & marketing channel management
What is promotion? (4 P’s)
The methods used to communicate the product’s value and persuade customers to purchase
Ex: Oatly began promotion by offering their milk at coffee shops and encouraging them to educate their customers about the superior properties of oat milk in coffee
What is the difference between supply chain management and marketing channel management?
Supply chain includes all the operational aspects of manufacturing & moving & storing merchandise, while marketing is concerned with developing and maintaining partners and relationships within the supply chain
What is the importance of supply chain management in regards to marketing?
Need a strong and efficient supply chain system to make sure company can keep up with consumer demand.
What is b2b?
business to business - selling merchandise to another business
ex: keurig selling machines for office use
What is b2c?
business to consumer - process of selling to consumers
What is c2c?
consumer to consumer
Ex: ebay, depop, poshmark
What is the production-oriented era?
believed a good product would sell itself. 1900s - 1920s. manufacturers were concerned with product innovation, not with satisfying needs
What is sales oriented era?
Happened between 1920 - 1950.. Production & distribution techniques became more sophisticated. Great Depression & WW2 conditioned consumers to consume less or manufacture stuff themselves. Firms overproduced so became sales oriented –> depended on heavy doses of personal selling & advertising
What is market oriented era?
1950s - 1990s. Post WW2 so manufacturers turned from focusing on the war effort toward making consumer products. Customer became king & firms discovered marketing
What is value-based marketing era?
Turn of the 21st century. Focus on building value (idea of what you get for what you give)
What is a way marketers have tried to build value?
They have used a relational orientation where they think of customers as relationships rather than transactions
What is customer relationship management?
A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm’s most valued customer
What is technology augmented era?
Last era. Firms are turnings to various digital, mobile, robotic, AI to augment their value. Turning point was possibly COVID-19
What is value cocreation?
Customers collaborate with other members of the supply chain to create a product/service that appeals mostly to them & offers optimal value
What are the four main activities that value stems from?
marketing analytics, social and mobile marketing, and ethical & societal dilemmas
What does a marketing strategy identify?
A firm’s target market, a related marketing mix, & the bases on which the firm plans to build a sustainable competitive advantage
What are the four macro strategies firms used to build their sustainable advantage?
Customer excellence, operational excellence, product excellence, locational excellence
What makes up a marketing plan?
composed of an analysis of the current marketing situation, its objectives, the strategy for the four P’s, and the appropriate financial statements
What does a marketing plan represet?
The output of a three-phase process: planning, implementation, and control
What does the planning phase in the marketing plan require?
For managers to define the firm’s mission & vision & assess the firm’s current situation - helps answer what business are we in now?
What does the implementation phase in the marketing plan require?
The firm specifies in more operational terms how it plans to implement its mission and vision, specifically to which customer groups does it wish to direct its marketing efforts & how does it use its marketing mix to provide good value?
What does the control phase in the marketing plan require?
Firm must evaluate its performance using appropriate metrics to determine what worked, what didn’t, and how performance can be improved in the future
What is SWOT analysis?
Strengths, weaknesses, opportunities, and threats. Occurs during the second step in the strategic planning process, the situation analysis. Internal (strengths & weaknesses), External (opportunities & threats)
How does a firm choose which consumer group to pursue with its marketing efforts?
Marketers must go through a segmentation, targeting, and positioning process. Segmentation tree, perceptual map, and segmentation grid
What is portfolio analysis?
A management tool used to evaluate the firm’s various products & businesses & allocate resources according to which products are expected to be the most profitable for the firm in the future - refers to the BCG matrix we reviewed in class
What are the four basic growth strategies?
market penetration, market development, product development, and diversification
What is market penetration?
directs the firm’s efforts toward existing customers & uses the present marketing mix. Attempt to get current customers to buy more
What is market development strategy?
Firm uses current marketing mix to appeal to new market segments - international expansion
What is product development growth strategy?
Involves offering a new product or service to the firm’s current target market
What is a diversification strategy?
Takes place when a firm introduces a new product/service to a new customer segment. Sometime relates to the firm’s current business (ex: women’s clothing selling to men)
What are the steps in the consumer decision process?
- Need recognition: consumers simply realize they have an unsatisfied need/want they hope to address
- Begin to search for information to determine how to satisfy that need
- Alternative Evaluation Stage: assess the various options available to them to determine which is the best for their purposes
- The purchase stage involves obtaining and using the product
- Post purchase stage: they determine whether they are satisfied or dissatisfied with their choice
What is the difference between functional and psychological needs?
Functional needs pertain to the performance of a product/service. Psychological needs pertain to the personal gratification consumers associate with a product and/or service
What are factors that affect information search?
The type of product/service dictates whether people can make an easy, quick decision or instead must undertake significant research to find their best purchase option.
Person’s perception of benefits vs costs also determine the effort they undertake
Locus of control influences their info search actions
What do marketers hope will happen after a purchase?
They are hoping customer will be satisfied, leading to customer loyalty a positive post purchase outcome
What are the factors that affect the consumer decision process?
Marketing mix elements, social factors (family, reference groups, and culture), psychological factors (motives, attitudes, perceptions, learning, and memory, and situational factors (specific purchase situation, a sensory situation, or temporal state)
How does involvement influence the consumer decision process?
More involved consumers tend to engage in extended problem solving - will gather lots of information, scrutinize it carefully, and then make their decisions with caution (trying to minimize any risk they may confront)
Less involved consumers often engage in limited problem solving, undertake impulse purchases, or rely on habit
Is there a best method to segment a market?
No, if a firm wants to identify its customers easily, demographic/geographic segmentation will probably work. If it’s trying to see why customer will buy offering - psychographic, but it all depends
How do firms determine whether a segment is attractive?
- customer should be identifiable
- market must be substantial enough to be worth pursuing
- market must be reachable
- firm must be responsive to the needs of customers in a segment
- the segment must be profitable
What is an undifferentiated strategy?
Uses no targeting at all and works only for products/services that most consumers consider to be commodities
What is the difference between differentiated and a concentrated strategy?
differentiated targets multiple segments, while concentrated only targets one
What kind of firms use differentiated strategy?
Larger firms w/ multiple product/service offerings
What kind of firms use concentrated strategies?
Smaller firms/those with a limited product/service offering
Explain micromarketing strategy
Marketing strategy that tailors their product/service offering to each customer (custom-made)
Large manufacturers are beginning to experiment with this
What does a value proposition communicate?
It communicates the customer benefits to be received from a product/service and thereby provides reasons for the customer to want to purchase it