Marketing 101 Test 1

Definition of
Marketing
An orgazinational function that consists of 3 functions:

Creating Value

Communicating Value

Delivering Value

Key to creating value
Providing consumers with benefits that meet their needs and wants
% of new products that fail
80%
Members of the supply chain
Manufacturers, wholesalers, retailers, shipping companies
Stages in the evolution of marketing
Production orientation -> sales orientation-> Marketing Concept -> Relationship orientation
Marketing concept
The idea that a firm’s long term success must include a company wide effort to satisfy customer needs.
Most basic concept in marketing
Understanding the difference between needs and wants
1st point of discussion relative to the marketing mix
Product
Global marketing
Marketing strategy that consciously addresses customers, markets, and competition throughout the world.
Brand
Name, term symbol, design or combination of these that identifies and differentiates a firm’s products
Corporate social responsibility
A firm’s obligation to maximize positive impact on society (charities, supporting minorities, demanding responsible business practices, etc.) and minimize negative impact on society.
Primary strategic planning tool
Marketing plan
Key components of the marketing plan
Executive summary

situation analysis

Marketing strategy

Financials

Controls

Focus of good mission statement
To capture a shared purpose and provide motivation
Foundation of the marketing plan
Strategic planning (?)
BCG Matrix
One of the most popular analysis tools to describe the current market.

A 2-by-2 matrix that graphically describes the strengths and attractiveness of a market.

Positioning
How a firm’s products are perceived in the eyes of a target market.
Marketing Strategy
Set of actions taken to achieve organizational objectives
Competitive Advantage
Superior position a product has over competing products
Marketing Mix
A combination of activities that represent everything a firm can do to influence demand for its good, service or idea. (Product, promotion, pricing, distribution/place)
Break-even analysis
How much needs to be sold to cover expenses
Exporting
Selling domestically produced products to foreign markets (least risky)
Joint Venture
An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company’s market.
Direct Competition
A situation in which products that perform the same function compete against one another.
Environmental Scanning
External factors affecting the marketing environment.
GDP (Gross Domestic Product)
Market value of all officially recognized final goods and services produced within a country within a given period.
Inflation
Increase in general level of prices over a period of time.
Demographics
Characteristics of the population such as age, gender, ethnicity, and educational level.
Disposable Income
Amount of money available to households after paying taxes.
Consumer Protection Agency
Federal Trade Commision (FTC)

Regulates unfair or deceptive trade practices

Use of technology/Technological Applications
One of most significant challenges and also opportunities for marketing professionals.

Use of facebook and other social media to increase awareness and enhance relationships.

Key goals of NAFTA
Free trade zone among the US, Mexico and Canada.

No tariffs.

Consumer ethnocentrism
Belief by residents of a country that it is innapropriate or immoral to purchase foreign made goods or services.