Marketing 111 Final

Define: Marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
Define: 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.
Define: Concept Of Exchange
The idea that people give up something to receive something they would rather have.
Concept Of Exchange Necessary
-At least 2 Parties
-Something of value
-Ability to communicate offer
-Freedom to accept or reject
-Desire to deal with other party

HOWEVER…
Exchange may not take place even if conditions met.
An agreement must be reached.
Marketing occurs even if exchange does not take place.

5 kinds of economic utility provided by marketing and production
1. Form utility
2. Task utility
3. Time utility
4. Place utility
5. Possession utility
define: social responsibility or societal marketing orientation
Marketing that preserves or enhances an individual’s and society’s long-term best interests.
define: Social Responsiveness
describes an organization’s philosophy to meet the minimum requirements established by law, culture or customer expectation.

Example: meeting automotive fuel economy standards or nutritional labeling.

define: social responsibility
describes an organization’s philosophy to exceed the requirements established by law, culture or customer expectation.

Example: Ben & Jerry’s Ice Cream Co.

define: customer value
It’s the ratio of benefits received to the sacrifice necessary to obtain those benefits.

-Related to the concept of economic “utility.”
-Five types of utility: Form, Task, Place, Time and Possession.

Define: product
The needs-satisfying offering of a firm.

Product includes everything, both favorable and unfavorable, that a person receives in an exchange.
It may be tangible and intangible.

define: physical goods
It is everything necessary to provide total customer satisfaction including physical features, quality, support services, warranty or guarantees, brand, etc. May be consumable or durable.
define: service goods
Intangible but may have physical elements (signage, equipment, waiting room, supplementary products, etc.). Involves buyer and/or buyers property.
Identify one type of “direct” force found in the marketing environment
Direct forces include customers, company, competitors, vendors/suppliers and key stakeholders.
The value or benefit associated with a purchase is called
utility
define: segmentation
The process used to breakdown a large group of homogeneous customers into smaller groups having similar characteristics.
Identify and describe one approach for target marketing
Undifferentiated or mass selling; Concentrated or Single segment; and, Multiple (multi-) segment targeting of two or more customer groups.
Name the two types (natures) of products
A physical good (tangible) and a service (intangible)
The sign, design or image associated with a particular brand (for example Mercedes Benz or Nike) is called
a brand mark
Name two of the five characteristics of a “service” product
1. Intangibility
2. Inseparability
3. Perishability
4. Heterogeneity
5. Direct Channel
Define: Test Marketing
a form of Marketing Research used to test a product offering and marketing strategy in isolated, local markets before full commercialization.
What is the process that describes how quickly a new product or idea spreads within a market?
Diffusion
are the stages a product category experiences over time
Product Life Cycle (PLC)
True or False: The marketing mix changes over the Product Life Cycle?
True
The marketing mix changes over the Product Life Cycle?
What name is given to a lower-priced version of a prestige brand?
A fighter or Flanker Brand
The process by which a new idea or product spreads throughout the marketplace is called
Diffusion
Identify and explain two factors which influence the adoption of a new product.
Relative Advantage; Compatibility; Complexity; Observability and Risk (Resources required).
Explain why packaging is an important decision in product design and development
Packaging not only protects the product from damage during shipment, storage and handling but it serves as an educational and advertising vehicle for the product and brand. Packaging also facilitates recycling
What are the key factors associated with successful product development in organizations?
Long-term organizational commitment that capitalizes on experience; senior management support for an environment/culture that promotes product development; a process to manage product development activity; a superior product (good or service); and, a product that benefits large numbers of customers.
What are the three characteristics that describe a distribution channel?
Division of Labor/Specialization of Labor; Ability to overcome discrepancies of quantity, assortment; time and geography; Contact and Information efficiency.
Identify one channel intermediary that “takes title” to the goods.
Merchant wholesaler or retailer.
Define: Direct Channel
A producer/marketer uses no channel intermediaries to make products available to customers.
Identify and define at least four of the key criteria used when selecting a mode (type) of transportation service.
Cost, Transit Time; Reliability, Capability; Accessibility; Traceability.
What is “distribution intensity”? Give an example.
Distribution Intensity is the number of retailers a marketer uses within a specific geographic market. Example are convenience products like snack foods which are intensively distributed meaning they’re made available through many retail channels: supermarkets; vending machines; convenience stores, etc.
“Reverse logistics” or “reverse channel” is used under what circumstances? Provide an example.
There are three primary situations: Gov’t or private safety recall; customer return due to damage or unwanted goods; and unsold inventory.

Example: Christmas gift return or auto recall.

Name the type of distribution intensity likely used for luxury items:
Exclusive Distribution.
This form of marketing communications is often described as “mass selling;”
Advertising
This type of marketing communications is concerned with improving an organization’s image
Public Relations
Rebates, coupons and samples are examples of the _________ mode of marketing communications.
Sales Promotion
This type of marketing communications is the most expensive form of individual contact
Personal Selling
The _________ Marketing Mix (4P/Cs) variable generates revenue for the organization?
Pricing
Identify one of the four objectives associated with Pricing decisions?
Survival, Sales-Oriented, Competition-Oriented or Profit-Oriented.
______ describes the relationship between demand and price.
Elasticity
is the point where total revenue and total costs meet.
Break Even
The ______ strategy involves setting a high, initial price to maximize profits.
price skimming
The _____ method of pricing involves adding a % or $ amount to costs.
mark-up
pricing method is commonly associated with public utilities (ie., electricity companies) when establishing their prices.
Target Return
When a company prices its products according to competitors’ pricing, it is using ______ pricing.
Status Quo or Competition-Oriented
A cost that doesn’t change due to production levels is a ____ cost.
fixed
Identify and describe one illegal pricing activity.
Price Fixing-2 or more competitors agree to set prices

Price Discrimination- Offering different prices to customers that cannot be justified based on cost or market conditions

Predatory Pricing- Pricing designed to put competitors out of business

Unfair Trade Practices- Actions that cause harm or create a non-competitive situation

True or False: the key element of the marketing concept is establishing short-term, profitable customer relationships
False
True or False: marketing mix variables are only controllable factors within an organizations marketing strategy
True
True or False: researches have described needs as a basic force that motivates a person or group
true
True or False: a market penetration strategy is used when organizations want to increase purchases from existing customers
true
True or False: the demand for business products derives from the demand for final customer products
true
True or False: primary data is information collected for another purpose that can be used for marketing research project
false
True or False: production business philosophy is only concerned with selling
false
a marketer’s strategy to make its brand stand out from competitors offerings is
differentiation
data developed specifically for user’s purpose
primary
information that already exists somewhere, having been collected for another purpose
secondary data
includes the 5 stages of decision process and time and effort on external information and identifying and evaluating alternatives.
Extended problem solving
means that a firm selects a few retail outlets in a specific geographical area to carry its products.
Selective distribution
means that a firm tries to place its products and services in as many outlets as possible
Intensive distribution
A group of individuals within a organization responsible for the purchase of goods or a service is
buying center
a manufacturer sells through only 1 intermediary in an geographic area
exclusive distribution
a marketing strategy that is focused upon new markets and customers for existing products
market development
industry sales are highest at what life cycle stage?
market maturity
always take ownership (title) to the goods they carry
merchant wholesalers
stage of PLC shows highest industry profits/units sold for a specific product
market growth
coordination of all internal/external activities associated with the movement of goods
supply chain management
a manufacturer uses no intermediary to reach the final customer
direct selling/channel
a manufacturer sells through a few intermediary in an geographic area
selective distribution
establishment of mutually, beneficial relationships focused upon meeting customer needs and earning a profit
marketing concept
only factors under the control of the marketer
marketing mix
consumers willing to accept a new idea or try a new product or service
adoption