Marketing 300 Quiz 1

Marketing
the process by which companies create value for customers and build strong customer relationships to capture value from customers in return
Value=
benefits (+)/ price (-)
Needs
States of felt deprivation
Wants
the form human needs take as they are shaped by culture and individual personality
Demands
human wants that are backed by buying power
Exchange
the act of obtaining a desired object from someone by offering something in return
Marketing Actions
try to create, maintain and grow exchange relationships
Market
the set of all actual and potential buyers of a product or service
Market Offerings
combination of products, services, information or experiences offered to a market to satisfy a need or want
Market Myopia
the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products
4 P’s
Product, Place, Price, Promotion
Value Proposition
the set of benefits or values a company promises to deliver to customers to satisfy their needs
Business Portfolio
the collection of business and products that make up the company
Portfolio Analysis
the process by which management evaluates the products and businesses that make up the company
Four types of Strategic Business Units (SBUs) according to the Boston Consulting Group (BCG) approach
(1) Stars- high market growth rate and high relative market share
(2) Cash Cows- low market growth rate and high relative market share
(3) Question Marks- high market growth rate and low relative market share
(4) Dogs- low market growth rate and low relative market share
Market 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 a new market segments for current company products (new customers)
Product Develeopment
company growth by offering modified or new products to current market segments (new products)
Diversification
company growth through starting up or acquiring businesses outside the company;s current products and markets (new customers and new products)
Market Segmentation
dividing the market into distinct groups of buyers who have different needs, characteristics, behaviors and who might require separate products or marketing programs
Market Segment
a group of consumers who respond in a similar way to a given set of marketing efforts
Market Targeting
the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Product
the goods and services combination the company offers to the target market
Price
the amount of money customers must pay to obtain the product
Place
the company activities that make the product available to target consumers
Promotion
activities that communicate the merits of the product and persuade target customers to buy it
4 C’s
(1) Customer solution
(2) Customer Cost
(3) Convenience
(4) Communication
SWOT analysis
(S) strengths
(W) weaknesses
(O) opportunities
(T) threats
4 Marketing management functions
analysis, planning, implementation and control
Marketing Environment
the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers
Microenvironment
the actors close to the company that affect its ability to serve its customers- the company, suppliers, marketing intermediaries, customer markets, competitors and publics
Macroenvironment
the larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political and cultural forces
Support functions of the Company
Top management
Finance
R & D
Purchase
Operations
Accounting
Marketing Intermediaries
firms that help the company to promote, sell and distribute its goods to final buyers
Demography
the study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics
Baby Boomers
the 78 million people born during years following World War II and lasting until 1964
Generation X
the 45 million people born between 1965 and 1976 in the “birth dearth” following the baby boom
Millennials (or Generation Y)
The 83 million children of the baby boomers, born between 1977 and 2000
Economic Environment
economic factors that affect consumer purchasing power and spending patterns
Natural Environment
natural resources that are needed as inputs by marketers or that are affected by marketing activities
Technological Environment
forces that create new technologies creating new product and market opportunities
Political Environment
laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society
Cultural Environment
institutions and other forces that affect society’s basic values, perceptions, preferences and behaviors
Core beliefs- passed down form parents/guardians
Secondary beliefs- not influenced by parents/guardians
Customer Insights
fresh understandings of customers and the marketplace derived from marketing informations that becomes the basis for creating customer value and relationshpis
Marketing Information System (MIS)
people and products for assessing information needs, developing the needed information and helping decision makers to use the information to generate and validate actionable customer and market insights
Internal Database
electronic collections of consumer and market information obtained from data sources within the company network
Marketing Intelligence
the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
Marketing Research
the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization
3 Types of Research
(1) Exploratory research- marketing research to gather preliminary information that will help define problems and suggest hypotheses
(2) Descriptive research- marketing research to better describe marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers
(3) Casual research- marketing research to test hypotheses about cause-and-effect relatinships
4 Types of Marketing Research
(1) Observational research- gathering primary data by observing relevant people, actions and situations
(2) Ethnographic research- a for of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments”
(3) Survey research- gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior
(4) Experimental research- gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group repsonses
Secondary Data
information that already exists somewhere, having been collected for another purpose
Primary Data
information collected for the specific purpose at hand
Focus Group
personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service or organization
Sample
a segment of the population selected for marketing research to represent the population as a whole
Questionnaires
most common instrument, whether administered in person, by phone, by e-mail or online; very flexible and carefully worded
Customer Relationship Management (CRM)
managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty