MKG 300 Test 1 Ch. 2

Mass-marketing
_____ Manager sees everyone as basically similar and practices “mass marketing”
target marketing
_____ Manager sees everyone as different and practices “target marketing”
Product, place, price, promotion
What are the 4 P’s?
Marketing management process
The __________ refers to the planning, implementation and control of marketing activities. These activities are continuous and decisions made in the past in one area can have implications on the other areas as well.
Marketing strategy
Specifies a target market and a related marketing mix; provides a picture of what the firm will do.
Target market
a fairly homogenous (similar) group of customers to whom a company wishes to appeal
Marketing mix
the controllable variables the company put together to satisfy the target market
Product
concerned with developing the correct product for the target market
place
concerned with all the decisions involved in getting the right product to the target market’s place
promotion
concerned with telling the target market or others in the channel of distribution about the right product
price
concerned with the kind of competition in the target market and the cost of the whole marketing mix
The 4 P’s are all things that the marketer can control, but the market cannot directly control the customer’s behavior.
The customer is not part of the marketing mix…why?
Channel of distribution
any series of firms or persons used to move goods from producers to final users; channels can be: short, complex.
Manufacturer/producer –> Wholesaler –> retailer
The distribution element of the marketing mix; what is a typical patter not distribution?
Personal selling, mass selling (advertising and publicity), and sales promotions
4 main types of promotion
Personal selling
direct spoken communication between sellers and potential customers; sometimes involves customer service
Advertising
any paid form of non personal presentation of ideas, goods, and services by an identified sponsor
Publicity
unpaid, nonpersonal presentation of ideas, goods, or services
sales promotions
promotional activities, other than advertising, publicity, and personal selling that stimulate interest, trial, or purchase.
price flexibility, price changes over the life cycle, discounts and allowances, geographic pricing terms, competition, pricing objectives.
Elements of price setting
product, place, promotion, price.

target market

All 4 P’s contribute to the whole: _____, ______, ______, ______. Understanding the ______ leads to good strategies!
Target market + marketing mix = marketing strategy.

Marketing strategy + Time-related details = marketing plan

Marketing plan + other marketing plans = a firm’s marketing program

Elements of a firm’s marketing program
Marketing strategy-> Target market and marketing mix.

Marketing plan-> time related details are added to the marketing strategy.

Marketing strategy vs. Marketing plan
Customer equity
The expected earnings stream or the profitability of a firm’s current and prospective customers over time. Marketing strategy planning should guide the firm to increasing customer equity.
Profit
The difference between revenues and total costs
Breakthrough opportunity
Helps innovators develop hard-to-copy marketing strategies that will be profitable for a long time.
Competitive advantage
A firm has a marketing mix that the target market sees as being better than the competitor’s mix.

This is viewed from the customer’s perspective, not the firm’s.

Smaller world, competitive advantage, risks involved, better trends?, early start.
What are some international opportunities that should be considered?
Growth & survival
What are 2 reasons for global marketing?
B. selection of a target market and development of a marketing mix.
Marketing strategy consists of two interrelated parts. These are:

A. selection of a target market and implementing the plan.
B. selection of a target market and development of a marketing mix.
C. selection and development of a marketing mix.
D. finding attractive opportunities and developing a marketing mix.
E. finding attractive opportunities and selecting a target market.

D. Tailors a marketing mix to fit some specific group customers.
Target marketing, in contrast to mass marketing:

A. Assumes all customers have the same needs.
B. Assumes everyone is a potential customer.
C. Focuses only on small market segments.
D. Tailors a marketing mix to fit some specific group customers.
E. Makes it more likely that a firm will face direct competition.

E. Product, Place, Promotion, and Price
The “four Ps” of a marketing mix are:
A. Production, Personnel, Price, and Physical Distribution
B. Promotion, Production, Price, and People
C. Potential customers, Product, Price, and Personal Selling
D. Product, Price, Promotion, and Profit
E. Product, Place, Promotion, and Price
B. The product “P” in the marketing mix stands for both physical goods and services.
Which of the following is true?

A. The product “P” in the marketing mix stands for only physical goods.
B. The product “P” in the marketing mix stands for both physical goods and services.
C. The product “P” in the marketing mix stands for only tangible merchandise.
D. The product “P” in the marketing mix stands for both physical goods and tangible merchandise.

B. Place
A firm’s decisions regarding channel type, market exposure and kinds of intermediaries would fall under the marketing mix variable of

A. Product.
B. Place.
C. Promotion.
D. Price.
E. People.

B. Designing new products
“Promotion” is NOT concerned with:

A. creating billboard ads.
B. designing new products.
C. publicity.
D. television commercials.
E. personal selling.

C. Promotion
The _____ area of the marketing mix includes decisions related to telling the target market or others in the channel of distribution about the “right” product.

A. product
B. place
C. promotion
D. price
E. communication

A. time-related details are included in a marketing plan.
The main difference between a “marketing strategy” and a “marketing plan” is that:

A. time-related details are included in a marketing plan.
B. a marketing plan includes several marketing strategies.
C. a marketing strategy provides more detail.
D. a marketing strategy omits pricing plans.
E. a marketing plan does not include a target market.