Exam 1 marketing

Customer-Focused Planning

All strategic decisions are centered on understanding and serving customer needs.

5W Model

Analyzes customer behavior: Who, What, Where, When, Why.

Product

Anything offered to satisfy a need or want, including goods, services, or ideas.

Patagonia's strategy to balance profit with environmental goals demonstrates what type of planning?

Balanced strategic planning

Relationship Advantage

Building loyalty through superior service and customer trust.

Strategic Planning Process

Define mission/vision → conduct situation analysis → set goals → develop strategy → implement → evaluate.

Mission Statement

Defines the organization's purpose and focus (Ex: Nike - "To bring inspiration and innovation to every athlete").

Vision Statement

Describes what the organization aspires to become in the future.

Positioning

Designing a product's image and identity to occupy a distinct place in the consumer's mind.

Strategic Focus Matrix

Determines strategy type based on SWOT: Aggressive, Diversification, Turnaround, or Defensive.

Strategic Planning

Developing and maintaining a fit between organizational goals, resources, and market opportunities.

Nike targets different groups (runners, basketball players, casual wearers). What targeting approach is this?

Differentiated strategy

A brand known for unique design and innovation, like Apple, uses what type of advantage?

Differentiation advantage

Market Segmentation

Dividing a broad market into smaller groups with similar needs or traits.

Possession Utility

Ease of purchase or ownership (Ex: mobile pay options).

Psychological Utility

Emotional or social satisfaction from a product (Ex: brand prestige).

The step where a customer decides between two products after comparing benefits is part of which buying stage?

Evaluation of alternatives

When a customer compares prices and features of products before buying, which step in the decision process is this?

Evaluation of alternatives

When two parties exchange something of value (like money for goods), what is this process called?

Exchange

Threats

External challenges that could harm the firm.

Opportunities

External conditions that could improve performance.

Concentrated Strategy

Focusing on one niche market (Ex: Rolex).

When a company designs packaging that makes a product easier to use, which type of utility does this improve?

Form utility

5C Model

Framework analyzing Company, Customers, Competitors, Collaborators, and Context.

A marketing department develops an advertising plan to support corporate goals. Which strategy level is this?

Functional strategy

Time Utility

Having a product available when customers need it (Ex: Amazon next-day delivery).

Turnaround Strategy

Improving weaknesses to take advantage of opportunities.

B2C Market

Individual consumers buying for personal use (emotional motives).

Balanced Strategic Planning

Integrates financial goals with customer and social responsibility goals.

Weaknesses

Internal limitations that hinder performance.

Strengths

Internal resources or abilities that provide an advantage.

Aggressive Strategy

Leverages strong strengths and good opportunities for growth.

Place Utility

Making products available where customers want them (Ex: Starbucks locations).

The process of dividing the total market into smaller, meaningful groups is known as what?

Market segmentation

Big Data

Massive data sets analyzed to find customer patterns and predict trends.

Spotify recommending songs based on your listening history is an example of what strategy?

Micromarketing (individualized)

A firm defines its purpose as "To deliver affordable energy worldwide." What type of statement is this?

Mission statement

Porter's Five Forces

Model assessing industry competition through rivalry, new entrants, substitutes, supplier power, and buyer power.

Primary Data

New data collected specifically for a marketing purpose.

Differentiation Advantage

Offering unique products or services competitors can't match.

Undifferentiated Strategy

One offer for the entire market (Ex: basic commodities).

B2B Market

Organizations purchasing goods for production or resale (rational decisions).

Corporate Strategy

Overall direction of the firm across all business units.

A company researching social trends, legal policies, and technology uses what external analysis tool?

PESTEL analysis

Collaborators

Partners such as suppliers or distributors that help create and deliver value.

Starbucks places shops in airports and college towns for convenience. What type of utility is this?

Place utility

Functional Strategy

Plan for how departments like marketing or finance support the broader strategy.

High rivalry, many competitors, and powerful suppliers describe what type of model for industry analysis?

Porter's Five Forces

The statement "For busy professionals, Starbucks is the coffee brand that fuels productivity" is an example of what?

Positioning statement

Allowing customers to pay for items through financing or mobile apps demonstrates which utility?

Possession utility

After purchasing a phone, a buyer leaves a review describing satisfaction with the product. What stage is this?

Post-purchase evaluation

Secondary Data

Previously collected information used for research.

Marketing Mix (4 Ps)

Product, Price, Place, Promotion — controllable elements used to implement marketing strategy.

Defensive Strategy

Protecting current markets when threats and weaknesses are high.

A customer buys a car because of its high-end image and sense of status. Which utility is being emphasized?

Psychological utility

A company that uses superior customer service to keep buyers loyal is using which type of competitive advantage?

Relationship advantage

If a business identifies its strengths, weaknesses, opportunities, and threats, what framework is it using?

SWOT analysis

PESTEL Analysis

Scans Political, Economic, Sociocultural, Technological, Environmental, and Legal trends.

Target Marketing

Selecting segments to serve with tailored marketing strategies.

Differentiated Strategy

Separate strategies for multiple segments (Ex: Coca-Cola's product lines).

A company studies customer behavior, competitors, and the external environment before deciding its next move. What process is this?

Situation analysis

Consumer Decision Journey

Stages customers go through before, during, and after purchase: need recognition, info search, evaluation, purchase, post-purchase.

SWOT Analysis

Summarizes internal strengths/weaknesses and external opportunities/threats to guide strategy.

Micromarketing

Tailoring products or promotions to individual customers (Ex: Spotify playlists).

Positioning Statement

Template: "For [target segment], [brand] is the [concept] that [benefit]."

Marketing

The activity of creating, communicating, delivering, and exchanging offerings that have value for customers, partners, and society.

Exchange

The process where two or more parties give something of value to receive something else (Ex: paying money for a product).

Form Utility

The product's physical design or features that satisfy needs.

Value Proposition

The unique bundle of benefits a firm promises to deliver that differentiates it from competitors (Ex: Apple's "Think different").

Utility

The value or satisfaction a customer gains from a product: form, time, place, possession, and psychological.

A business offers 24-hour online ordering so customers can buy whenever they want. Which utility is being demonstrated?

Time utility

Amazon's delivery system ensures products arrive exactly when needed. What type of utility is this?

Time utility

VRIO Framework

Tool assessing if a resource provides sustainable advantage: Valuable, Rare, Inimitable, Organized.

A product designed for all consumers with one simple message (e.g., basic utilities) uses what strategy?

Undifferentiated marketing

Diversification Strategy

Uses strengths to offset external threats by entering new markets.

A firm recognizes its innovative culture and R&D skills as valuable, rare, hard to copy, and organized. Which framework is this?

VRIO framework

A company describes its desired future position as "To be the world's most sustainable energy provider." What is this called?

Vision statement

Segmentation Bases

Ways to divide markets: demographic, geographic, psychographic, behavioral.

Commoditization

When goods or services become indistinguishable, causing competition mainly on price.

Situation Analysis

Collection and interpretation of internal and external data to identify strengths, weaknesses, opportunities, and threats.

If a company competes only on price and not on differentiation, what marketing risk are they falling into?

Commoditization

Cost Advantage

Competing by offering lower prices or operating more efficiently.

If a marketer targets one specific segment like luxury watch buyers, which targeting strategy are they using?

Concentrated (niche) strategy

Netflix using data analytics to understand customer preferences is applying which marketing tool?

Core competency analysis

Walmart keeps prices low by operating efficiently. What competitive advantage is this?

Cost advantage

MASDA

Criteria for effective segmentation: Measurable, Accessible, Substantial, Differentiable, Actionable.

Goal

A broad, qualitative desired outcome (Ex: expand market share).

Market Share

A firm's percentage of total industry sales (Ex: Apple has over 50% of U.S. smartphone market share).

Market

A group of people or organizations with needs or wants and the ability and willingness to buy.

Objective

A specific, measurable target (Ex: increase sales by 10% in six months).

Core Competency

A unique firm ability providing value and hard for competitors to imitate.

Competitive Advantage

A unique strength (cost, innovation, brand, or quality) that allows a firm to outperform competitors.

Marketing Plan

A written document outlining marketing objectives, strategies, target markets, and control methods.