sem 1 book definitions Flashcards
What is marketing?
creates value, happiness out of nothing: through marketing transaction, all about transaction costs/ opportunity cost.
-Is about creating human happiness out of nothing.
-About creating marketing transactions.
The process in which companies create value for customers and build strong customer relationships in order to capture value from customer returns.
Selling is
Selling is a way to communicate with customers.
A state of felt deprivation of some basic satisfaction is termed a:
Need
Which of the following is/are existing demands
a holiday in france
Correct. Existing demands are those that exist, are known to exist, and are currently being satisfied. B, C, D and E are all demands that exist (many people want to holiday on Mars, live forever, live in a crime free society and travel instantaneously), but satisfying these demands is, for the moment, beyond human technology. These are therefore latent demands.
It has been said that free market economies are superior to command economies for which of the following reasons:
A.
market forces are more efficient at allocating resources than a system of central control
B.
market forces minimise waste of the planet’s natural resources by ensuring that they are always used as effectively as possible
C.
the state should not have the power to decide for the individual what he/she should do for a living, how much he/she can earn from doing so, and what he/she can then spend those earnings on: to do so is a denial of basic human rights
D.
market forces ensure that businesses are always accountable to ordinary people through “the democracy of the market”
Correct. Slightly paraphrased, A, B, C and D have all been said in support of free market based economies and market mechanisms
Which of the following are essential for marketing transactions to occur?
A. there must be at least two parties C. all involved must have something of value to offer D. communication E. A, C and D are all true
Correct. Money is not essential, just things of value to exchange and a means for at least two parties to communicate.
A “market” from a marketing perspective is:
a group of consumers willing and able to engage in exchange
Correct. A market is a group of consumers (customers or potential customers) with a demand, not any of the other things. (C) conforms more to the definition of an industry or supply chain.
Marketing management could be carried out by:
Correct. In marketing-led companies, all managers are marketing managers, indeed, all staff are marketers
The marketing philosophy suggests that the achievement of organizational goals is accomplished primarily through:
providing consumer satisfaction
Correct. The others may be important in providing customer satisfaction, for example innovation and product improvement, as long as they are customer led. Otherwise they might be signs of product orientation. Reducing costs may be important if offering the customer the lowest price is the key to providing customer satisfaction; however, being the lowest cost supplier of an unwanted product will provide neither customer satisfaction nor business success.
Which of the following is true of production orientation:
It is often associated with arrogance and conceit on the part of managers
It is a company led philosophy, and often results from managers making what they see as the “best” product, without analysing the market to see if their idea of “best” agrees with that of customers
Which one of the following statements best reflects the marketing philosophy?
“How much customer benefit will come from our new computer system?”
Correct. Marketing led firms evaluate everything they do from the customers point of view. The other statements are more indicative of product, production and sales led organisations.
The controlling function in a company should be:
customers
Correct. If it were otherwise, the company would eventually cease to exist, and all the other functions would vanish. Not even marketing is the controlling function: it is the channel through which customers exert their control.
Which of the following is a/are market oriented definition(s)?
We solve business problems
Correct. E defines itself in terms of the benefit it provides / the demand it supplies. The rest define themselves in terms of what they are or what they do.
Which of the following is/are true of demarketing
Demarketing is the use of marketing to reduce the demand for something. It may be useful to any organisation. It is used to reduce the demand for unhealthy things (like cigarettes). See core text for more detail, and don’t forget: core reading is examinable too.
Need
A state of felt deprivation of some basic satisfaction is termed a
Wants
the form human needs take as they are shaped by culture and individual personality
demands
human wants that are backed by buying power
market offerings
some combination of products, services, information or experiences offered to a market to satisfy a need or want.
Marketing myopia
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
exchange
the act of obtaining a desired object from someone offering something in return
market
the set of all actual and potential buyers of a product or service
marketing management
the art and science go choosing target markets and building profitable relationships with them.
production conception
the idea that consumers will favour products that are available and highly affordable; therefore, the organisation should focus on improving production and distribution efficiency.
product concept
the idea that consumers will favour products that offer the most quality, performance and features; therefore, the organisation should devote its energy to making continuous product improvements.
selling concept
the idea that consumers will not buy enough of firms products unless the firm undertakes a large-scale selling and promotion effort.
marketing concept
a philosophy in which achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
societal marketing concept
the idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and societies long-run interests
customer relationship management
the overall process of building and maintaining profitable customer relationships by delivering superior customer value satisfaction.
customer perceived value
the customer evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
customer satisfaction
the extent to which a product’s perceived performance matches buyer’s expectations.
customer engagement marketing
making the brand a meaningful part of consumers’ conversations and lives by fostering directs and continuous customer involvement in shaping brand conversations, experiences and community
consumer generated marketing
brand exchange created by consumers themselves both invited and uninvited by which consumers are playing an increasing role in shaping the own brand experience and those of consumers.
partner relationship management
working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
customer lifetime value
the value of the entire stream of purchases a customer over a lifetime of patronage.
share of customer
the portion of the customer’s purchasing that a company gets in its product categories.
customer equity
the total combined customer lifetime values of all of the company’s customers.
digital and social media marketing
using digital marketing tools such as websites, social media, mobile apps and ads, online video, emails and blogs to engage consumers anywhere, at any time, via digital devices.
strategic planning
the process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and it’s changing marketing opportunities.
mission statement
a statement of the organisation’s purpose -what it wants to accomplish in the larger environment.
business portfolio
the collection of businesses and products that make up the company.
portfolio analysis
the process by which management evaluates the products and businesses that make up the company.
growth-share matrix
a portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share.
product/marketing expansion grid
a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, or diversification.
marketing penetration
company growth by increasing sales of current products to current market segments without changing the product.
market development
company growth by identifying and developing new market segments for current company products.
product development
company growth by offering modified or new products to current market segments.
diversification
company growth through starting up or acquiring businesses outside the company’s current products and markets.
downsizing
reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy.
value chain
the series of internal departments that carry to design, produce, market deliver and support a firm’s products.
value delivery network
the network made up of the company, its suppliers, its distributors and, ultimately, its customers who partner with each other to improve the performance of the entire system.
marketing strategy
the marketing logic by which the company hopes to create customer valued and achieve profitable customer relationships.
market segment
a group of customers who respond in a similar way to a given set if marketing efforts.
market targeting
the process of evaluating each market segment’s attractiveness ad selecting one or more segments to enter.
positioning
arranging for a product to occupy a clear distinctive and desirable place relative competing products in the mins of target consumers.
differentiation
actually differentiating the market offering to create superior customer value.
marketing mix
the set of tactical marketing tools - product, price, place and promotion - that the firm blends to produce the response it wants in the target market.
SWOT analysis
an overall evaluation of the company’s strength (S), weakness (W), opportunities (O) and threats (T).
marketing implementation
turing market strategies and plans into marketing actions to accomplish strategic marketing objectives.
marketing control
measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.
marketing return on investment (or marketing ROI)
the net return from a marketing investment divided by the costs of marketing investments.
marketing segmentation
dividing a market into smaller groups of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes.
market (targeting) (targeting)
evaluating each market segment’s attractiveness and selecting one or more segments to enter.
differentiation
differentiating the market offering to create superior customer value
positioning
arranging for a marketing offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of consumers.
geographic segmentation
dividing a market into different geographical units, such as countries, regions, cities or even specific neighbourhoods.
demographic segmentation
dividing the market into segments such as age group, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.
age and life cycle segmentation
dividing a market unto different age and life- cycle group.
gender segmentation
dividing a market into different segment based on gender.
incoming segmentation
dividing market into different incomes segments.
psychographic segmentations
dividing a market into different segments based on social class, lifestyle or personality characteristics.
behavioural segmentation
dividing a market into segments based on consumer knowledge, attitudes, uses of a product or responses to a product.
occasion segmentation
dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase or use purchased item.
Benefit segmentation
dividing the market into segments according to the different benefits that consumers seek from the product.
ACORN
A Classification Of Residential Neighbourhood.
-used to understand consumer’s lifestyle, behaviour
intermarket (cross-market) segmentation
forming segments of consumer who have similar needs and buying behaviours even though they are located in different countries.
target market
a set of buyers sharing common needs or characteristics that the company decides to serve.
