S1 - Introduction and Marketing approach Flashcards

1
Q

What is marketing?

A

The activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, ans society at large.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Describe briefly the history of marketing.

A
  • Origins: can be traced back to ancient civilizations, where merchants would advertise their goods through word of mouth, sign and symbols.
  • Middle ages: the rise of guilds and the growth of trade fairs led to the development of more organized forms of marketing (ex.: the use of heraldry to identify businesses and the establishment of professional associations to regulate the trade of goods

18th/19th century: Industrial revolution and growth of consumer society led to the rise of modern marketing, with the development of advertising, branding, and market research.

Early 20th century: the growth of radio and television led to the rise of mass media advertising, which became a dominant form of marketing in the mid-20th century.

Late 20th and early 21st centuries: the rise of digital technology and the growth of the internet led to the development of new forms of marketing, such as online advertising, social media marketing, and mobile marketing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the 4 orientations of marketing? Describe them.

A

Product:
- supply creates demand
- “if you build it, they will come”
- if a product is good enough, people will buy it (at a reasonable price)

Production:
- low prices and excess supply create demand
- “if you build enough of them or if they’re cheap enough, they will come”

Sales:
- The rights sales pitch creates demand
- “If you sell them on it, they will come”

Marketing:
- Understanding the customers needs and wants creates demand
- “If you understand your customer and build what they need, they will come”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What’s the difference between a want and a need?

A

Needs: A state of lacking something (ex.: thirsty, cold, lonely) -> Maslow’s Hierarchy

Wants (desires): A way of meeting your need (drinking water, wearing a jacket, going to a music festival) -> insert brand (ex.: drinking smart water, wearing a canada goose jacket, going to Osheaga music festival)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the symbolic value?

A

Many products and services that fulfill our basic needs also provide symbolic value (and associations) that satisfy other, often higher order needs.

Brands don’t just fulfill our basic needs, they can also help us signal who we are to others and to ourselves.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the job of marketers?

A

“The marketer’s job is to identify the needs (and wants) of customers and to try to meet them with the right products, at the right prices, through the right distribution network, using the right communication tools and unparalleled customer service”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How is demand created? How do you define it? How can it be measured?

A

When customers want something to fulfill a need and have the purchasing power to do so, they create demand.

The quantity of a good or service that economic agents (ex.: consumers, companies) buy in a given market.

Can be measured in units or in dollars.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the different types of demand? How do you define them?

A
  1. Actual demand: a company’s actual sales/volume at a specific point in time.
  2. Potential demand: the maximum demand that can be reached at any point in time if every single customer is buying the product/service.
  3. Demand projection: based on consumer who might be receptive to the product (can afford it, meets their preferences, can be marketed to), what might demand be in the future.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How do you compute market share?

A

Market share = company demand / market demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is “the market”?

A

A set of customers (individuals or businesses) that express wants and needs by buying products, services or ideas.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Who do we sell to? (5 types)

A
  1. Consumer Goods Market (B2C)
  2. Business Market (B2B)
  3. Distribution Intermediaries
  4. Government Market (B2G)
  5. International market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the market exchange process?

A
  1. Customer has a Need/Want
  2. Business satisfies of that Need/Want
  3. Relationship develops between Business and Customer
  4. Optimization of Business Profits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How does a company manages customer service?

A

By creating value for their customers. They do this by:

  1. Analyzing the wants, needs, and behaviours of target customers.
  2. Creating a product that meets customer needs in a cost-effective way.
  3. Innovating beyond the needs and expectations explicitly formulated by customers.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the customer lifetime value?

A

In present-day money, the sum of all the profits that can be made from a particular customer over their lifetime.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the two aspects of customer loyalty? What is the fastest way to customer loyalty?

A
  1. Customer Retention
    - How long has the customer been buying from your brand?
    - Retention rate for the firm is also important
  2. Customer share
    - The proportion of a customer’s relevant pruchases that come from your brand (ex.: what percentage of someone’s cereal purchases are from General Mills)

The fastest way to customer loyalty is usually customer satisfaction. This can also lead to tremendous word-of-mouth marketing as loyal customers are highly likely to recommend brands and products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the benefits of loyalty?

A

Higher price
Word of mouth
Reduced costs
Income growth
Base profit
Reduce customer acquisition cost

17
Q

Describe the marketing mix.

A

Product: a tangible object, service, idea, or cause that consumers use to identify the firm.

Place: where do we sell

Price

Promotion

18
Q

Describe the marketing management process.

A

Analysis
Planning
Implementation
Control

19
Q

What is the AMA Code of conduct?

A
  • A product must be safe
  • The price must be fair (no price fixing)
  • Advertising may not use fraudulent or inaccurate arguments
  • Customer service quality must be consistent, no matter who the customer is