Module 1 Flashcards
ch1 & 3
What is marketing?
the process of creating, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment
how does the American Association of Marketing define 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.
Why are marketing mix variables views as controllable?
they can be modified
What is the easiest marketing mix variable to change?
price
How do companies define their products?
by what they do to satisfy their customers
What is the essence of marketing?
to develop satisfying exchanges from which both customers and marketers benefit
What is a target market?
A specific group of customers that organizations focus their marketing efforts on
What are the 4 variables of the marketing mix?
Product, price, promotion, distribution
What is a product?
A good, service, or idea
What is the “one brand” strategy used for?
To create a unified global presence
Why is price a critical component?
customers are concerned about benefits, roles, and costs
What is the world’s largest chain?
subway
What can promotion increase?
public awareness of the organization and of new or existing products
What does the promotion mix focus on?
integrated marketing communication to inform and persuade consumers to purchase a product
what is the important element of managing long-term customer relationships and implementing the marketing concept?
value
what is value?
a customer’s subjective assessment of benefits relative to costs in determining the worth of a product
what’s the customer value equation?
customer value = customer benefits - customer costs
what are customer benefits?
anything a buyer receives in an exchange
what are customer costs?
anything a buyer must give up to obtain the benefits the product provides
in developing marketing activities, it’s important to recognize that customers receive ______ based on their _______
benefits, experience
a product that demonstrates value usually has a feature or enhancement that provides…
benefits
the development of an effective marketing strategy requires understanding… (3)
1) the needs and desires of customers
2) designing a marketing mix to satisfy them
3) providing the value they want
individuals and organizations engage in marketing to facilitate _____
exchanges
what 4 conditions need to exist for an exchange?
- 2 or more individuals, groups, or organizations must participate & possess something of value that the other party wants
- exchange provides a benefit or satisfaction to both parties
- each party is confident in the promise of the “something of value” held by the other
- parties must meet expectations
to maintain an exchange relationship, both parties must be _____
satisfied
what does the marketing environment affect?
the marketing mix
what are the forces that that surround the customer & affects the marketing mix? what is this called?
the marketing environment includes the following forces
- competitive
- economic
- political
- legal & regulatory
- technological
-sociocultural
can we predict how the marketing environment might affect consumers?
no
although the marketing environment can pose threats to marketers, they also pose _____
opportunities
firms that fail to attract customers aren’t doing what?
helping potential customers satisfy their wants and needs
the marketing concept says that an organization should try to provide products that ______ customers _____ through a coordinated set of activities that also allows the organization to achieve its ____
satisfy, needs, goals
what is the major focus of the marketing concept?
customer satisfaction
the development of marketing can be divided into which 3 time periods?
- production orientation
- sales orientation
- market orientation
what is market orientation?
an organization-wide commitment to researching and responding to customer needs
a market orientation should recognize the need to…
create specific types of value-creating capabilities that enhance organizational performance
an organization can’t be market oriented with an _______ ______
information system
what does customer relationship management focus on?
using information about customers to create marketing strategies that develop & sustain desirable customer relationships
profits can be obtained through relationships in which 3 ways?
- acquiring new customers
- enhancing the profitability of existing customers
- extending the duration of customer relationships
what is relationship marketing?
establishing long-term, mutually satisfying buyer-seller relationships
as the customer’s confidence grows, what else grows?
the firm’s understanding of the customer’s needs.
customer relationship management provides a bridge between ______ ______ & ____ _____ aimed at long-term relationships
information technology, data analytics
how much of a consumer’s dollar goes towards marketing expenses for that product?
1/2
marketing helps create a successful _____ & contributes to the well being of society
economy
is marketing necessary to advance a global economy?
yes
marketers have new methods to store, communicate, and share information through advances platforms that access…
big data
can technology help marketers understand and satisfy more customers?
yes
companies are starting to use ____ ____ to connect with their customers
social media
_____ _______ & ______ ______ are part of strategic planning & the implementation of marketing activities.
social responsibility, ethical conduct
companies are starting to embrace ____ marketing
green
what is green marketing?
a strategic process that involves stakeholder assessment to create meaningful, long-term relationships while maintaining, supporting, and enhancing the natural environment
what are some example of green marketing?
- energy consumption reduction
- eco-friendly packaging
- recyclable products
what did Warby Parker establish?
selling cheaper designer-style perscription glasses made in house, and the Buy A Pair, Give A Pair program
determining value is a(n) _______ process, while in reality the process of assessing value is highly _______
subjective, objective
the _____ _____ consists of external forces that directly or indirectly influence an organization’s acquisition of inputs and creation of outputs
marketing environment
the process of collecting information about forces in the marketing environment is called..
environmental scanning
the process of assessing and interpreting the information gathered through environmental scanning is called…
environmental analysis
environmental analysis helps managers do what?
identify potential threats and opportunities linked to environmental changes.
Marketing managers take two general approaches to environmental forces: accepting them as _____ or attempting to _____ and _____ them
uncontrollable, influence, shape
An organization that views environmental forces as uncontrollable remains _____ and _____ toward the environment.
passive, reactive
marketing managers who believe that environmental forces can be shaped adopt a more _____ approach
proactive
how does a marketer define a firm’s competition?
other firms that market products that are similar to or can be substituted for its products in the same geographic area
competitors can be classified into which 4 types?
- brand competitors
- product competitors
- generic competitors
- total budget competitors
how do brand competitors market their products?
with similar features and benefits to the same customers at similar prices
what do product competitiors do?
compete in the same product class but market products with different features, benefits, and prices
ex) coke & iced tea
what do generic competitors do?
provide very different products that solve the same problem or satisfy the same basic customer need
what do total budget competitors do?
compete for the limited financial resources of the same customers
what are the 4 types of competitive structures?
monopoly, oligopoly, monopolistic competition, pure competition
when does a monopoly exist?
when an organization offers a product that has no close substitutes, making that organization the sole source of supply, they control the suppy completely
when does a oligopoly exist?
when a few sellers control the supply of a large proportion of a product
when does monopolistic competition exist?
when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its product
when does pure competition exist? (rare)
when there’s a large number of sellers, none of which could significantly influence price or supply
why would marketers need to monitor the actions of major competitors?
to determine what specific strategies competitors are using and how those strategies affect their own
what is buying power?
a person’s resources that can be traded in an exchange
marketers are most interested in which type of income? why?
disposable income because people use it for spending or saving
what is discretionary income?
Disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
what is wealth?
accumulation of past income, natural resources, and financial resources
people gain more buying power are their ____ increases
wealth
what is willingness to spend? what’s it related to?
inclination to buy because of expected satisfaction from a product, it’s related to their ability to buy
Fluctuations in the economy follow a general pattern, often referred to as the ____ ____
business cycle
what are the 4 stages of the business cycle?
prosperity, recession, depression, and recovery
During ____, unemployment is low, and total income is relatively high. Assuming a low inflation rate, this combination ensures high buying power
prosperity
During a _____, however, unemployment rises, while total buying power declines. Pessimism accompanying a ____often stifles both consumer and business spending.
recession
A prolonged recession may become a ____, a period in which unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy.
depression
During ______, the economy moves from depression or recession to prosperity. During this period, high unemployment begins to decline, total disposable income increases, and the economic gloom that reduced consumers’ willingness to buy subsides. Both the ability and the willingness to buy increase.
recovery
the _____ forces of the marketing environment have the potential to influence marketing decisions and strategies
political
which federal regulatory unit influences marketing activities the most?
The federal trade commission
which organization enforces regulations prohibiting the sale and distribution of adulterated, misbranded, or hazardous food and drug products
food and drug administration (FDA)
which is the local regulatory agency that’s supported by local businesses
better business bureau
which self regulatory entity considers cases in which an advertiser challenges issues raised by NAD about an advertisement
national advertising review board
which forces help determine what, where, how and when people buy products?
sociocultural forces
what is social responsibility?
an organization’s obligation to maximize its positive impact & minimize its negative impact on society
marketing ______ is the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders.
citizenship
