MKT 320

What is eToys trying to communicate?

- Convenient ways to shop for toys - Convenient way to make your child happy (get a hug) - Combine them for the correct eToy's promise (convenient way to make your child happy)

Sources of information

- Internal Data - Marketing intelligence - Marketing research

With whom is eToys trying to communicate?

- Parents - With young children

Primary Research Decisions

- Research approaches (experimental) - Contact methods (surveys) - Sampling plan - Research instruments (questionnaires)

Macro-environmental Marketing Factors

1) Demographic 2) Economic 3) Political 4) Cultural 5) Natural 6) Technological

Micro Marketing Environment

1) The Company 2) Suppliers 3) Marketing intermediaries (Help to promote, sell and distribute goods to final buyers) 4) Customers: Consumer Business Reseller Government International 5) Competitors 6) Publics: Financial Media Government Citizen-action Local General Internal

Marketing process

1) Understand the marketplace; customer needs and wants 2) Design a customer-driven marketing strategy 3) Construct an integrated marketing program that delivers superior value 4) Build profitable relationships and create customer delight 5) Capture value from customers to create profits and customer equity

Four macro (overarching) strategies that focus on aspects of the marketing mix to create and deliver value and to develop sustainable competitive advantages

1. Customer Excellence: Focuses on retaining loyal customers and excellent customer service. 2. Operational excellence: Achieved through efficient operations and excellent supply chain and human resource management. 3. Product excellence: Having products with high perceived value and effective branding and positioning. 4. Locational excellence: Having a good physical location and Internet presence.

Profit

= revenue - cost

Marketing analysis

An evaluation proves that encompasses market segmentation, market research, and sales forecasting 1) Planning 2) Implantation 3) Control

Marketing

An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Consumer - company value match

Company provides services and products that consumer value. Consumers pay for these goods and services

25. eToys problem was that they did not understand the marketing place and consumer needs.

False

26. The customer is always right.

False

Cannibalize

From a marketing perspective, it is the negative impact on a firm's sales, profits, or market share when one product competes closely with a similar product offered by the same company.

Internal Data

Internal data is gathered via customer databases, financial records, and operations reports

Marketing environment

Involves micro and macro-environments.

Marketing Mix (4 P's)

Product, Price, Place, Promotion

Steps of the Marketing process

Step 1: Understand the marketplace and customer needs and wants. Step 2: Design a customer-driven marketing strategy. Step 3: Construct a marketing program that delivers superior value Step 4: Build profitable relationships and create customer delight Step 5: Capture value from customers to create profits and customer quality

Cash Discount

Tactic of offering a reduction in the invoice cost if the buyer pays the invoice prior to the end of the discount period.

Marketing intelligence

The systematic collection and analysis of publicly available information about competitors and developments in the marketing environment

27. Growing customer share means increasing the customer's purchasing of a company in its product categories.

True

Mission Statement

a broad description of a firm's objectives and the scope of activities it plans to undertake, attempts to answer two questions: 1. What type of business are we? 2. What do we need to do to accomplish our goals and objectives?

Standard definition of marketing

a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with other.".(exchange of value, essentially)

Marketing Information Systems

a system for managing marketing information that is gathered continually from internal and external sources

23. The marketing manager at Sunshine Car Washes is holding a training session for new employees. She stresses that perhaps the most important concept of modern marketing is _____. a. customer relationship management b. e-mail advertising c. a quality Web site d. properly trained sales people e. low prices

a. customer relationship management

9. The twofold goal of marketing is to attract new customers by promising superior value and to _____. a. keep and grow current customers by delivering satisfaction b. keep and grow current customers by delivering competitive pricing c. keep and grow current customers by delivering friendly service d. keep and grow current customers by delivering vast product assortment e. all of the above

a. keep and grow current customers by delivering satisfaction

8. The key difference between scanner and panel research is that scanner research typically focuses on a particular _____, while panel research typically focuses on a particular _____.

a. product, person or household

20. Marketing managers are concerned with ways to deal with demand. They may need to find, increase, _____, or even _____ demand. a. avoid; slow b. change; reduce c. maximize; change d. change; modify e. maintain; ignore

b. change, reduce

15. The difference between customer value and customer satisfaction is that value is the difference between the values the customer gains from owning and using a product and the _____. a. cost of delivery of the product b. cost of obtaining the product c. cost of competing products d. cost of the lost experience e. all of the above

b. cost of obtaining the product

17. Marketing consists of actions taken to build and maintain desirable _____ with target audiences involving a product, service, idea, or other object. a. exchange transactions b. exchange relationships c. exchange processes d. exchange privileges e. exchange communication

b. exchange relationships

5. ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC's plant was one of the worst polluters in town. The new term for this practice is

b. greenwashing

2. The _____ consists of the product, price, place, and promotion of an offering. a. marketing exchange b. marketing mix c. channel of distribution d. value proposition e. marketing plan

b. marketing mix

7. Which of the following is not a disadvantage of using secondary research data?

b. the process is costly and time-consuming.

13. What do companies call a set of benefits that they promise to consumers to satisfy their needs? a. marketing offer b. value proposition c. demand satisfaction d. need proposition e. evoked set

b. value proposition

14. We must learn a valuable lesson in marketing. Many sellers make the mistake of paying more attention to the specific products they offer than to the _____ produced by those products. a. benefits b. experiences c. benefits and experiences d. value satisfaction e. customer loyalty

c. benefits and experiences

24. Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a ____. a. need b. necessity c. demand d. satisfier e. none of the above

c. demand

3. After a firm has conducted a SWOT analysis, it would typically progress to the next step of marketing planning, which is _______ and involves using STP (segmentation, targeting, and positioning).

c. identifying and evaluating opportunities

22. Shawn McCork has an interesting job. He is involved in getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. What is Shawn's job? a. general manager b. supervisor c. marketing manager d. sales manager e. top manager

c. marketing manager

11. Marketing is more than _____ and advertising. a. distribution b. promotion c. selling d. pricing e. customer service

c. selling

6. One of the goals of value-based marketing is

c. to offer greater value than competitors offer

Cause-related Marketing

commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign

Revenue generators

cost cutters

4. Which of the following is a marketing metric that might be used to evaluate the performance of a company's implementation of its marketing plan?

d. GM (gross margin)

1. Which of the following illustrates marketing's direct impact on consumers? a. Marketing advises production about how much product to manufacture. b. Marketing creates long-lasting relationships between the firm and its suppliers. c. Marketing helps firms expand globally. d. Marketing helps consumers learn about new products and services. e. Marketing advises logistics about when to ship products.

d. Marketing helps consumers learn about new products and services

18. Marketing is not carried on by sellers alone. _____ also carry on marketing. a. Suppliers b. Investors c. Web designers d. Buyers e. All of the above

d. buyers

16. We can safely say that when a customer's purchase lives up to his or her expectations, the customer is experiencing this state of being. a. customer value b. self-esteem c. self-actualization d. customer satisfaction e. euphoria

d. customer satisfaction

12. You have learned from experience as well as from this course that the most basic concept underlying marketing is that of _____. a. selling and advertising b. customer satisfaction c. retaining customers d. human needs e. fulfilling consumer wants

d. human needs

21. The five alternative concepts under which organizations conduct their marketing activities include the production, _____, selling, marketing, and societal marketing concepts. a. promotion b. pricing c. distribution d. product e. demarketing

d. product

10. Highly successful companies know that if they take care of their customers, _____ will follow. a. frequent word of mouth b. market share c. profits d. sales and profits e. increased competition

d. sales and profits

19. Marketers are not concerned with serving all customers in every way. Rather, they want to serve selected customers that they can serve _____. a. profitably b. with superior customer service c. well d. well and profitably e. efficiently

d. well and profitability

Value

reflects the relationship of benefits to costs, or what the consumer gets for what he or she gives

Supply Chain

the group of firms that make and deliver a given set of goods and services

B2C (business-to-consumer)

the process in which businesses sell to consumers

B2B Marketing

the process of buying and selling goods or services to be used in the production of other goods and services, for consumption by the buying organization, or for resale by wholesalers and retailers

Exchange

the trade of things of value between the buyer and the seller so that each is better off as a result