Marketing 300: Chapter 1 – 3

Marketing
the activity for creating and delivering offerings that benefit the organization, its stakeholders, and society
Exchange
the trade of things of value between a buyer and a seller so that each is better off
Market
people with both the desire and the ability to buy a specific offering
Target market
one or more specific groups of potential consumers toward which an organization directs its marketing program
Marketing mix
the controllable factors—- product, price, promotion, and place —- that the marketing manager can use to solve a marketing problem
Customer value proposition
a cluster of benefits that an organization promises customers to satisfy their needs
Environmental forces
the uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision
Customer value
buyers’ benefits, including quality, connivence, online time delivery, and before and after- sale service at a specific price
Relationship marketing
linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long- term benefit
Marketing program
a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
Market segments
relatively homogenous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action
Market orientation
focusing organizational efforts to collect and use information about customers’ needs to create customer value
Societal Marketing concept
the view that organizations should discover and satisfy the needs of consumers in a way that also provides for society’s well-being
Product
a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
ultimate consumers
the people who use the products and services purchased for a household
organizational buyers
manufacturers, wholesalers, retailers, and government agencies and buy products and services for their own use or for resale
utility
the benefits or customer value received by users of a product
Marketing concept
the idea that an organization should strive to satisfy the needs of customers while also trying to achieve the organization’s goals
To serve both buyers and sellers, marketing seeks to __________ and satisfy the needs and wants of prospective customers.
Discover
A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate?
Both the adjuster and the student are potential customers because in their own way, they both benefit from the smartphone.
The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda decided to donate a pint of blood. After she did, Amanda felt happy that she had performed a good deed. Did an exchange occur in a marketing sense?
Yes, because the donated blood was exchanged for a feeling of satisfaction.
Which of the following statements about marketing activities is most accurate?
Marketing is essentially developing the right product and convincing potential customers that they “need” it, not just “want” it.
Which answer reflects (in this order) a good, a service, and an idea that can be marketed?
a CD, a concert, and a souvenir T-shirt
Which of the following is an example of an ultimate consumer?
an office receptionist who renews the magazines that are found in the office waiting room
Effective marketing benefits society because it
enhances competition, which improves the quality of products and services and lowers prices.
Profit
the reward to a for-profit organization for the risk it undertakes in marketing its offerings
Strategy
an organization’s long-term course of action that delivers a unique customer experience while achieving its goals
core values
the fundamental, passionate, and enduring principles that guide an organization
mission
a statement or vision of an organization’s function in society
organizational culture
the set of values, ideas, attitudes, and behavioral norms that is learned and shared among the members of an organization
business
the underlying industry or market sector of an organization’s offering
goals (objectives)
statements of an accomplishment of a task to be achieved, often by a specific time
market share
ratio of a firm’s sales to the total sales of all firms in the industry
marekting plan
a road map for the marketing activities of an organization for a specified future time period
marketing dashboard
the visual computer display of essential marketing information
marketing metric
a measure of the value or trend of a marketing action or result
business portfolio analysis
a technique that managers use to quality performance measures and growth targets of their firms’ strategic business units
diversification analysis
a technique a firm uses to search for growth opportunities from among current and new products and market
strategic marketing process
an approach whereby an organization allocates its marketing mix resources to reach its target markets
situation analysis
taking stock of where a firm or product has been recently, where it is now, and where it is handed
SWOT analysis
an acronym describing an organization’s appraisal of its internal strengths and weaknesses and its external opportunities and threats
market segmentation
the aggregating of potential buyers into groups that common needs and will respond similarly to a marketing action
points of difference
those characteristics of a product that make it superior to competitive substitutes
marketing strategy
the means by which a marketing goal is to be achieved
marketing tactitcs
detailed day- to- day operational decisions essential to the overall success of marketing strategies
An industry refers to
the economic activity concerned with the selling of finished products to wholesalers and retailers
A strategic business unit (SBU) refers to
a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the __________ level, where groups of specialists actually create value for the organization.
functional
A key role of the marketing department is to “look outward.” This is accomplished by
listening to customers, developing and producing offerings, and implementing marketing program activities.
A firm’s __________ are timeless, capturing its heart and soul, and serve to inspire and motivate its stakeholders.
core values
__________ argued that senior managers of 20th century American railroads defined their business too narrowly, thus failing to create strategies to compete with airlines, barges, pipelines, and trucks.
Theodore Levitt
Regarding goals and objectives, which of the following statements would be most accurate?
Objectives convert an organization’s mission and business into long- and short-term performance targets.
A competitive advantage refers to
those characteristics of a product that make it superior to competitive substitutes
Business portfolio analysis refers to
a technique that managers use to quantify performance measures and growth targets to analyze their firm’s strategic business units (SBUs) as though they were a collection of separate investments.
environmental scanning
the process of acquiring information on events outside the organization to identify and interpret potential trends
social trends
the demographic characteristics and the culture of the population
demographics
description of a population according to characteristics such as age, gender, ethnicity, income, and occupation
baby boomers
the generation of children born between 1946 and 1964
Generation X
the generation of people born between 1965 and 1976
Generation Y
the 72 million Americans born between 1977 and 1994
multicultural marketing
marketing programs that select unique aspects of different races
culture
the set of values, ideas, and altitudes that is learned and shared among the members of a group
economy
pertains to the income, expenditures, and resources that affect the cost of running a business or household
technology
inventions or innovations from applied, science or engineering research
marketplace
an information- and communication- based electronic exchange environment occupied by digitalized offerings
competition
alternative firms that could provide a product a product to satisfy a specific market’s needs
regulation
restrictions that state and federal laws place on business
consumerism
a movement started to increase the influence, power, and rights of consumers in dealing with institutions
self-regulation
an alternative to government control, whereby an industry attempts to police itself
ethics
the moral principles and values that govern the actions and decisions of an individual or a group
Consumer bill of rights
codified the ethics of exchange between buyers and sellers,including rights to safety, to be informed, to choose, and to be heard
code of ethics
a formal statement of ethic principles and rules of conduct
moral idealism
a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the income
utilitarianism
a personal moral philosophy that focuses on the “greatest good for the greatest number.”
social responsibility
the idea that organizations are part of a larger society and are accountable to that society for their actions
green marketing
marketing effort to produce, promote, and reclaim environmentally sensitive products
cause marketing
tying the charitable contributions of a firm directly to sales produced through the promotion of one of its products
As the director of marketing for Littleton Hospital, you must conduct an environmental scan to help create a five-year marketing plan for the hospital. Which of the following environmental trends should you consider to be the most important?
By the year 2015, baby boomers will control more than 50 percent of all consumer expenditures in the U.S.
Pending federal legislation will require all online retailers to collect state sales taxes from customers. This would affect online sellers such as Virtual Vineyards, which now only collects state sales taxes from customers who reside in California – its home state. This pending legislation would be an example of which environmental force?
regulatory
The Sierra Club is the oldest continuously operating environmental organization. By 2001, its growth had plateaued. To rekindle interest in the organization, its members elected a new 23-year-old president who promised to use MTV artists to create public service announcements about the organization targeting his generational cohort, who are members of
Generation Y
During the holiday shopping season, many catalog retailers offer buyers price reductions, coupons, two-for-one deals, and/or free delivery. This is because these catalog retailers operate in a(n) __________ environment.
monopolistic competition
Which of the following is considered one of the major factors that influences an individual’s personal moral philosophy and ethical behavior?
societal culture and norms
Triple-bottom line refers to
the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.