Part 1 Flashcards
What is the definition of marketing?
• AMA definition: Marketing is 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? What does marketing help create?
- The main concept of marketing is that it entails processes that focus on delivering value and benefits to customers, not just selling goods and services.
- Marketing helps create value
Define and describe the exchange that occurs when sellers and 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
Define each of the 4 P’s of marketing (the marketing mix). Provide an example of each.
• Product: two types
o Goods: items that you can physically touch (beverages, food, toys)
o Services: intangible benefits, may include the experience (tickets to a game)
• 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 (advertisements on racecars, Facebook pages)
What is an example of a B2B marketing transaction? A B2C marketing transaction?
- B2B: business-to-business (manufacturer to retailer)
* B2C: business-to-consumer (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 (McDonalds)
- Relational: buyers and sellers establish long-term relationship (5-star hotel)
What does the acronym CRM stand for? How is it useful?
• Customer Relationship Management; database used to gather and track customer data points (Salesforce.com, Sage Software)
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
List and define the three macro strategies for developing customer value. What are characteristics of each strategy?
• Operational Excellence: involves a firm’s focus on efficient operations and excellent supply chain management
o Performance is “good enough”
o To lower costs (monetary, acquisition, maintenance, and supply chain costs)
o To increase convenience
o To obtain reliability
o To become easy to use
o Tradeoffs: Lower performance, lower customization, lower level of service
•
Customer Intimacy (Excellence): involves a focus on retaining loyal customers and excellent customer service o Performance is “just right” o High level of customization o High levels of service o Offers a complete solution o Access to a wide selection o Feeling of an “experience” o Tradeoffs: high costs, somewhat lower performance •
Product Leadership (Excellence): involves a focus on achieving high-quality products
o Performance is “never good enough”
o Access to high performance (more features/functionality, latest technologies, complexity)
o Linked with aesthetics and style
o Portray sophistication
o Tradeoffs: higher costs, lower customization
Draw a graph of the macro strategies. Provide an example of a company at each level of the graph.
Price on the Y axis. Performance on the x axis. Harvard at the top, Wisconsin in the middle with Marquette, UW Oshkosh on the the bottom
What are the three phases of the marketing plan? List and define them.
• Marketing plan: includes an 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
• Three Phases:
o Planning Phase: define the mission and vision of the business, evaluate the situation both inside and outside of the organization
o Implementation Phase: identify and evaluate different opportunities, using: segmentation, targeting, positioning, and the 4 P’s
o 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?
• A broad description of a firm’s objectives and the scope of activities it plans to undertake.
o What type of business are we in?
o What do we need to do to accomplish our goals and objectives?
List and define each of the components of a SWOT analysis. Which are inward focused? Outward focused?
- Strengths: (Internal/Inward Focused) what your firm does well
- Weaknesses: (Internal/Inward Focused) where you are vulnerable, what you don’t do well
- Opportunities: (External/Outward Focused) possibilities not yet realized
- Threats: (External/Outward Focused) things you can’t control, but must be aware of
