Basic Marketing EXAM 1

SBU
Strategic Business Unit:
A subgroup of a single business or collection of related businesses within the larger organization.
Exchange
Giving up something, in order to receive something you would rather have.
How many and what are the conditions for an exchange?
Five.
1- At least 2 parties.
2- Must be something of value to each party.
3- Each party must be capable of communications and delivery.
4- Freedom to accept or reject offer.
5- Desire to deal.
What are the 4 marketing management philosophies?
Product Orientation
Sales Orientation
Market Orientation
Societal Marketing Orientation
What is Product Orientation?
A philosophy that focuses on the internal capabilities of the firm rather than the desires and needs of the marketplace.

Internal capabilities of the firm.
Doesn’t consider if what is produced meets market needs.

What is Sales Orientation?
Aggressive sales techniques and belief that high sales result in high profits.

Disregards market needs and consumer demand.
Despite the quality of sales force, often cannot convince people to buy what is neither wanted nor needed.

What is Market Orientation?
Satisfying customer needs and wants while meeting objectives.
What is the Marketing Concept?
The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.
What is Societal Marketing Orientation?
Satisfying customer needs and
wants while enhancing individual and societal well-being.
The Internet and use of social media have shift power from the manufactures and retailers to who?
Consumers and business users.
What are the 5 characteristics that differentiate Sales and Market Orientation?
1- The Organization’s Focus
2- The Firm’s Business
3- To Whom the Product Is Directed
4- The Firm’s Primary Goal
5- The Tools Used to Achieve the Organizational Goals
Why study marketing?
Important to Society
Important to Business
Good Career Opportunities
What can we make or do best?
Production
How can we sell more aggressively?
Sales
What do customers want and need?
Marketing
What do customers want/need, and how can we benefit society?
Societal
The Organization’s Focus;
Sales VS Market Orientation
Sales Orientation-
Inward looking
What the firm makes
Market Orientation-
Outward looking
What the market wants
What are the 6 Customer Value Requirements?
-Offer products that perform.
-Earn trust.
-Avoid unrealistic pricing.
-Give the buyer facts.
-Offer organization-wide commitment in service and after-sales support.
-Co-creation with customers.
Customer Satisfaction is…
The customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations.
Relationship Marketing is…
A strategy that focuses on keeping and
improving relationships with customers.
Successful strategies in Relationship Marketing need:
– Customer-Oriented Personnel
– Effective Training Programs
– Empowered Employees
– Teamwork
Firm’s Business:
Sales VS Market
Sales Orientation:
Goods and Services
Market Orientation:
Benefits that Customers Seek
What is the Primary Goal of Sales and Market Orientation?
Sales: Maximum Sales Volume
Market: Customer Satifaction
What are the Tools to Achieve for Sales and Market Orientation?
Sales- Primarily Promotion
Market- Coordinated Use of All Marketing Activities
What is the GOAL of Strategic Planning?
Long-term profitability and growth.
Strategic Planning is…
The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.
What are the 4 characteristics an SBU has?
A distinct mission and specific target market.
Control over its resources.
Its own competitors.
Plans independent of other SBUs.
What are the 4 parts of the Ansoff’s Opportunity Matrix?
Market Penetration
Market Development
Product Development
Diversification
What is Market Penetration?
Increase market share among existing customers.
What is Market Development?
Attract new customers to existing products.

Opening the same business in different areas.

What is Product Development?
Create new products for present markets.
What is Diversification?
Introduce new products into new markets.
What are the 4 parts of the Boston Consulting Group Model?
Stars
Cash Cows
Problem Children
Dogs
What are the 4 Portfolio Matrix Strategies?
Build
Hold
Harvest
Divest
What is a Marketing Plan?
A written document that acts as a guidebook of marketing activities for the marketing manager.
What is Planning?
The process of anticipating future events and determining strategies to achieve organizational objectives in the future.
What is Marketing Planning?
Designing activities relating to marketing objectives and the changing marketing environment.
Why Write a Marketing Plan?
Provides a basis for comparison of actual and expected performance.
Provides clearly stated activities to work toward common goals.
Provides an examination of the marketing environment.
Serves as a reference for the success of future activities.
Allows entry into the marketplace with awareness.
Break down the SWOT Analysis.
Strengths (Internal)
Weaknesses (Internal)
Opportunities (External)
Threats (External)
Environmental Scanning helps…
Identify opportunities and threats.
Designing a marketing strategy is based on what six major environmental forces?
Social
Demographic
Economic
Technological
Political/Legal
Competitive
What are the 3 types of Competitive Advantage?
Cost
Product/Service Differentiation
Niche
Cost Competitive Advantage
Obtain inexpensive raw materials.
Create efficient scale of plant operations.
Design products for ease of manufacture.
Control overhead costs.
Avoid marginal customers.
What are some Sources of Cost Reduction?
Experience Curves
Efficient Labor
No-frills Products
Government Subsidies
Product Design
Reengineering
Production Innovations
New Service Delivery Methods
What are examples of Product/Service Differentiators?
Brand names
Strong dealer network
Product reliability
Image
Service
What are the techniques for Effective Strategic?
Continual Attention
Creativity
Management Commitment
Effective Strategic Planning
What are the 4 P’s of the Marketing Mix?
Product
Place
Promotion
Price
Physical unit
Product
Package
Warranty
Service
Brand
Image
Value
Tangible Goods
Ideas
Services

are all examples of?

Product
Product availability where and when customers want them.
All activities from raw materials to finished products.
Ensure products arrive in usable condition at designated places when needed.

What P of the marketing mix is described?

Place