Marketing 409 (Strategic Marketing Materials) Exam 1

You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus should be creating customer value. ​ Which of the following phrases best tells the story of what customer value is?

"Customer Value = Customer Benefits - Customer Costs"

A Conceptual Model of Marketing 1. Focus: 2. Marketing mix: 3. Environmental Forces:

1. Customer 2. Price, Product,Promotion, Distribution 3. Economic, Politcal, Competitve, Sociological, Technological, Legal and Regulatory.

What percent of all civilian workers in the United States perform marketing activities?

25 - 33

Promotion

Activities to inform individuals or groups about the organization and its products.

What do we do well?

Core Competencies: What we do best. Competitive advantage: Can our competency be copied? Is it valuable? Employee loyalty Operational focus that leads to short turnaround times, planes in air longer, efficient maintenance, secondary airports Southwest airlines competes with low-price, culture big of fun airlines. Corporate culture.

Strategy: how to grow your business? Benefits of customer Retention

Cost of acquiring new customers can be significant. Keep new inventions flowing.

Product Development:

Developing a new product for the same targeted customer market. Oatmeal, new raise products, new and related for the customers.

Why Study Marketing?

Firm success Economic growth Nonprofits Consumer awareness Personal skills Career opportunities

Southwest Airlines Agent:

Flight attendant raps the instructions into a rap form.

Products

Goods, servcies, or ideas. (consumer package foods, shampoo, cars, and haircuts)

Place (Distribution)

Making products available at the right time and place.

Honda conducts extensive consumer research and discovered that Latinos are reportedly 15% more likely to buy a Japanese auto brand, like Nissan, Honda, or Toyota, than any other group ethnic group. Honda is interested in the Latino market since it represents 20% to 30% of the brands' overall consumers. Due to its extensive use of research and customer insight, Honda has been the top-selling brand for Latinos for over 10 years thanks to effective marketing, like its partnership with the "La Reina de la Cancion" singing competition and an advertising campaign on Spanish-language TV. Based on this information, which orientation best applies to Honda?

Market orientation

Holden, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would NOT be a customer benefit considered in his determination of this product's value?

Monetary price

Evolution of Marketing Concept

Production Orientation: (industiralized) Enables products to be manufactured. Sales orientation: pushy sales men, making people buy their product. Marketing Orientation: Research of customer's needs.

Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. A new website has helped Green Hills' pre-planned funeral business grow. This would come under which of the following marketing mix variables?

Promotion

A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers' needs as well as the ability to provide quality products through its retail channel. The executive discussed the firm's capabilities regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As HP shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP's ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals. Refer to Scenario 1.3. Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a "build-to-order" computer and led HP to modify its business model to become a "make-to-stock" manufacturer?

Sociocultural

Components of Strategic Planning

Strategic planning helps an organization establish and organizational mission to determine business strategies, understand capabilities and achieve functional strategies of which companies is apart.

Which of the following is NOT a condition for an exchange to occur?

The exchange should provide a benefit or satisfaction to only the buyer.

Marketing

The process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment

Price

The value that is exchanged for a product.

The marketing concept

To provide products that: •satisfy customers' needs •through a coordinated set of activities that also allows the organization to achieve its goals

Marketing concept

an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals (ex. BoltBus)

BoltBus

bus company that meets the need of urban educated adventurous type of customers. Took a group of people to come up that they needed the customers be affordable WIFI and keep it simple. Customers can buy the ticket as fast as possible. Offer customers the best possible rate for the service. We customers from word of mouth. Presence is on twitter. BoltBus considers its customers (needs and wants) for satisfaction.

Diversification:

completely new markets with completely new products. EX. Virgin brand (lifestyle brand) virgin energy shots and virgin transportation VERY DIFFERENT PRODUCTS. The brand attracts two very different market consumers.

​Marketing is the process of

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

Long-term relationships with profitable customers is the key objective of

customer relationship management

Creating long-term relationships with customers is a key component to surviving and thriving in today's competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Best Western encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Best Western offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Best Western is utilizing

customer relationship management.

To fulfill customer expectations about a seller's future behavior, marketers must

deliver on promises made.

What branch of study does marketing come from?

economics, (exchange), psychology and sociology.

A market orientation is an organization-wide effort that includes all of the following activities except

focusing just on the marketing department.

Sara Lee introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Sara Lee was most likely following the ________.

marketing concept

Market penetration:

means company will sell same product to he same market and will tend to grow. EX orange juice, for breakfast, now slogan says that they drink the juice more than just breakfast.

Market Development:

product to a new set of customers (ex. shampoo for horses can be used on people and work wonders.)

During the Industrial Revolution, most firms operated using a(n) ____ orientation.

production

The element of the marketing mix used to increase awareness of a product or company is

promotion

Refer to Scenario 1.1. Green Hills' competitors, the traditional cemeteries, focus on advertising and personal selling of their services. This indicates a(n) ____ orientation.

sales

The marketing concept focuses on

satisfying customers' needs in a way that helps to achieve organizational objectives.

​The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)

service

Special K cereal is aimed at people concerned about their weight. These people represent the Special K

target market.

Amos Holden runs a successful wholesale business that sells equipment to restaurants throughout the Southwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about

the best way to distribute his products.

You will give the keynote address at the annual meeting of the American Cereal Makers Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. ​ You define marketing as:

the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers.

Exchange

the provision or transfer of goods, services, or ideas, in for something of value.

Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in

the sociocultural forces of the marketing environment.

If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

​$1,000

The definition of marketing implies that ____ should receive benefits from exchange relationships.

​both customers and businesses

The marketing mix is built around the

​customer.

Organizational Mission and Goals Mission Statement:

•A statement of what the organization wants to be •A long, awkward sentence that demonstrates management's inability to think clearly •(Scott Adams) Clear, concise, meaningful, inspirational, and long-term •Guides business strategies •Internal more than external

Customer Relationship Management

•Lifetime value of a customer •80/20 rule Favorable relationships: profit and business comes from repeat customers that extend info to friends.

Marketing requires and the goal

•Two or more parties with unsatisfied needs •Desire and ability to satisfy the needs •A way for the parties to communicate •Something to exchange Goal: Satisfaction for both parties.