Prelim 1 Flashcards
What are the five core customer and marketplace concepts?
(1) needs, wants, and demands; (2) market offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets.
What is a market?
the set of actual and potential buyers of a product or service; These buyers share a particular need or want that can be satisfied through exchange relationships
Define marketing
he process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return
What are the 5 steps of the marketing process?
- Understand the marketplace and customer needs and wants
- Design a customer value-driven marketing strategy
- Construct an integrated marketing program that delivers superior value
- Engage customers, build profitable relationships, and create customer delight
- Capture value from customers to create profits and customer equity
Define human needs
uman needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers did not create these needs; they are a basic part of the human makeup.
Define human wants
Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, fries, and a soft drink. A person in Papua, New Guinea, needs food but wants taro, rice, yams, and pork. Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs.
What are Maslow’s five hierarchical needs?
- physiological needs
- safety needs
- social needs
- esteem needs
- self-actualization needs
What are d-needs? b-needs?
- Maslow; deficiency needs
- ‘being needs’ or b-needs – existential or spiritual needs like creativity, aliveness, fulfillment and meaning.
What marketing concept focuses on d-needs?
D-needs are dynamic and contextual, which companies with the marketing concept focus on
What marketing concept focuses on b-needs?
Values (B-needs) are long-term and core, which companies with the societal marketing concept focus on
What is laddering?
- Laddering is a type of probing
- It is based around the idea that values determine the benefits that we seek, which in turn determines which features we seek when buying products
Are Maslow’s needs rigid?
The order of needs is not rigid but instead may be flexible based on external circumstances or individual differences
What are the 3 aspects of laddering?
1) feature 2) benefit 3) value
Define goal and objective
- A goal is a broad primary outcome
* An objective is a measurable outcome
Strategy vs. tactic
- A strategy is the broad approach you take to achieve a goal.
- A tactic is a concrete tool you use to pursue an objective.
Name and describe four BCG Growth Share Matrix metaphors
- Question marks: require a lot of cash to hold their share;
- Stars: require heavy investment to finance rapid growth, and will turn into cash cows;
- Cash cows: established and successful SBUs requiring less investment to maintain market share;
- Dogs: generate enough cash to maintain themselves but do not promise to be large sources of cash.
What are the four market expansion strategies?
market penetration, product development, market development (new customer segments), diversification
What is secondary data?
• Secondary data is information that already exists somewhere, having been collected for another purpose. • Ex: census, internet, library, reports
What is primary data?
• Primary data is information collected for the specific purpose at hand. • Ex: interviews, surveys, experiments
What is AIO? What is it used for?
- Psychographics measure a consumer’s AIOs to capture information about a person’s pattern of acting and interacting in the environment.
- Activities: someone’s daily routine and hobbies; • Interests: someone’s wants and passions on something; • Opinions: someone’s view or judgment about something.
What are the business buying situations?
- Straight rebuy is a buying situation in which the buyer routinely reorders something without any modifications;
- Modified rebuy is a buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers;
- New task is a buying situation in which the buyer purchases a product or service for the first time;
- Systems selling is buying a complete solution to a problem from a single seller.
What are the 8 steps of the business buying process?
- problem recognition
- general need description
- product specification
- supplier search
- proposal soliciation
- supplier selection
- order-routine specification
- performance review
What are features of the buyer market?
- Business buyer market structure: fewer but far larger buyers
- The key features of business market demand • inelastic • fluctuating • derived
Name the buying market participants
The buying center consists of all members of the organization who play any of five roles in the purchase decision process.:
• users are those that will use the product or service; • influencers help define specifications and provide information for evaluating alternatives; • buyers have formal authority to select the supplier and arrange terms of purchase; • deciders have formal or informal power to select and approve final suppliers; • gatekeepers control the flow of information
What are in vs out suppliers in business buying market?
- In Suppliers: suppliers already well known to an organization and from whom they will purchase with confidence;
- Out Suppliers: suppliers with whom the buying organization has not had dealings previously and therefore considers risky.
Major influencers on business buying (4 layers)
1) Environmental 2) Organizational 3) Interpersonal 4) Individual
What are the 5 steps of the consumer decision making process?
- Need Recognition
- Search for info
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
