MKT Test 1 Review

production
actually making goods or performing services
marketing
provides direction for production and helps make sure that the right goods services are produced and find their way to consumers
customer satisfaction
the extent to which a firm fulfills a customer’s needs, desires and expectations
true
T/F: marketing is more than selling and advertising
things managers need to worry about
-know needs of customers
-logistics of customers
-identify competitors
-predict design
-retailers or directly to consumers?
-promotion
-prices
-customer service
false (just directs path)
T/F: marketing controls everything else in the process of making and selling a product
50 cents
marketing costs about ____ of every consumer dollar
what it takes to satisfy the customer
marketing drives organizations to focus on _______
true
T/F: the basic principles of marketing are applicable to any career
using marketing in job hunt
-figuring out how to best satisfy needs and desires of prospective employer
innovation
the development of new ideas, goods and services
down
competition drives prices ______ (up or down?)
true
t/f: when firms develop products that really satisfy customers, fuller employment and higher incomes result
big
marketing has a _____ impact on consumers’ standard of living
micro-macro dilemma
when producers and consumers making free choices can cause conflicts and difficulties (what is good for some firms and consumers may not be good for society as a whole)
New York water- tap for environment vs plastic convenience
example of macro-micro dilemma
social responsibility
a firm’s obligation to improve its positive effects on society and reduce its negative effects
false
t/f: being socially responsible is easy and doesn’t require difficult trade offs
fracking
example of social responsibility dilemma
soda, bikes, roller blades
examples of products that don’t satisfy everyone (should all consumer needs be satisfied?)
false
t/f: all marketers act responsibly
add regulations to create a level playing field for firms to assure these benefits are provided (ex: laws preventing river pollution and child labor)
when a society feels that the social benefits are important, it may _____
true
t/f: socially responsible companies focus on immediate customer satisfaction and long range effects of actions
consumer
company
social interests
companies try to balance (3 things) when attempting to be socially responsible
marketing ethics
the moral standards that guide marketing decisions and actions
written code of ethics
what some companies have developed to make marketing ethics as clear as possible
marketing management process
process of (1) planning marketing activities, (2) directing the implementation of the plans, (3) controlling these plans
control job
which step in marketing management process gives feedback and leads to changes in plans or new plans?
planning job
which step in marketing management process sets objectives and guidelines for implementation
dynamic
markets are _____ (static or dynamic)
really attractive opportunities
________ are those that fit with what the whole company wants to do and is able to do well
strategic (management) planning
-the job of planning strategies to guide a whole company
-the managerial process of developing and maintaining a match between an organization’s resources and its market opportunities
false (its a top job)
t/f: anyone can do the strategic management planning
whole- company plans
market oriented
although marketing strategies are not ______, company plans should be _______.
marketing strategy
specifies a target market and related marketing mix (big picture of what a firm will do in some market)
target market
target market
a fairly HOMOGENEOUS group of customers to whom a company wishes to appeal
marketing mix
the controllable variables the company puts together to satisfy the target group
target marketing
a market strategy that specifies some particular target customers
(rifle approach)
mass marketing
typical product- oriented approach that vaguely aims at everyone with the same marketing mix
(shotgun approach)
true! (mass marketers are not same as mass marketing)
t/f: mass marketers have clearly defined target markets
false (just limited to fairly homogeneous market segments)
t/f: target marketing is limited to small market segments
so you can develop a marketing mix that satisfies customers’ specific needs better than competitors
the basic reason to focus on some specific target customers is _________.
marketing plan
a written statement of a marketing strategy and the time related details for carrying out the strategy
things to be included in marketing plan
1) what marketing mix will be offered, who target market is, and how long will be offered
2) what company resources will be needed and at what rate
3) expected results
purpose of control procedures in marketing plan
helps whoever is carrying out marketing plan to know if they’re wrong/off course
implementation
putting marketing plans into operation
operational decisions
SHORT RUN decisions to help implement strategies (not always needed)
product
place
promotion
price
4 Ps
true
t/f: marketing strategy is regularly evaluated and changed as feedback identifies what is working and what could be better
multiple
most companies use _____ marketing strategy/strategies at a time
marketing program
blends all the firms marketing plans into ONE BIG PLAN
success dependent on how well the pieces work together to create value for customers and firm
direct market environment
_____ is made up of customers, company and competitors
external market environment
______ is made up of the economic, technological, political and legal, & the cultural and social environments
false
t/f: managers can alter the variables of the market environment
company objectives
_____ should tape the direction and operation of the whole business
top management
the setting of objectives is the responsibility of _____
mission statement
-sets out the organization’s basic purpose for being
-focuses on key goals
-guides managers when determining which opportunities to pursue
new market needs arise or as market environment changes (not to be taken lightly)
mission statements may need to change when _____
false
t/f: if you have a mission statement, you don’t need to list specific objectives
nationalism
an emphasis on a country’s interests before anything else
true
t/f: nationalism affects how macro marketing systems work
free trade
refers to agreements between countries to not restrict imports and exports (drop barriers)
NAFTA
_____ was created in 1994 and has since shaped the rules of trade among the US, Canada and Mexico
30
the EU has ______ countries
criminal and civil
businesses and individual managers are subject to ____ and ____ laws
Pure Food and Drug Act
Congress passed the ______ in 1906 which marked the beginning of consumer protection laws
Consumer Product Safety Commission
the Consumer Product Safety Act set up the ______
broad power
the Consumer Product Safety Commission has _____ to set safety standards and impose penalties for failure to meet those standards
false (state and local laws)
t/f: companies just have to worry about national laws
market
a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and services
product oriented approach
the ________ ignores customers-> missed opportunities
generic market
a _____ is a market with BROADLY similar needs and sellers offer DIVERSE ways of satisfying those needs
product market
a ____ is a market with VERY similar needs and sellers offer CLOSE SUBSTITUTE ways of satisfying those needs
generic market
a ___ market looks at from a customer’s point of view
broader
______ (narrow or broad) market definitions help firms find opportunities
too narrow
______ (broad or narrow) of a market definition limits opportunities
too broad
_____ (broad or narrow) of a market definition makes company’s efforts and resources seem insignificant
bigger
the relevant market for finding opportunities should be ____ than the firm’s present product market
what
product type answers what question?
to meet what
customer needs answers what question?
for whom
customer types answers what question?
where
geographic area answers what question?
product type
describes goods and services customers want
customer needs
refer to needs product type satisfies for customer; must have good understanding of customers; start with basic needs then move to entertainment
customer type
final consumer or user of product (NOT NECESSARILY THE BUYER)
geographic area
where a firm competes for customers
product type (good or service)
generic market= product market- ____?____
market segmentation
two step process of
1) naming broad product markets
2) segmenting these broad product markets in order to select target markets and develop suitable marketing mixes
true
t/f: customer behavior is usually too complex to be explained in terms of just one or two demographic characteristics
disaggregating
all customer needs-> some generic market-> one broad product market-> homogeneous product markets
segmenting
an aggregating process that clusters people with similar needs into a market segment
market segment
relatively homogeneous group of customers who will respond to a marketing mix in a similar way
homogenous within
the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
heterogeneous between
the customer in different segments should be as different as possible with the respect to their likely responses to marketing mix variables and segmenting dimensions
substantial
segment should be big enough to be profitable
operational
segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables
place and promotion
____ and ____ (4Ps) decisions are difficult to make without demographic dimensions from operational category