Marketing Exam 1- Chapter 1

what does marketing require?

-2 or more parties with unsatisfied needs -desire& ability to satisfy the needs -a way for the parties to communicate -something to exchange

corporate& business unit strategies

-lose fewer customers -benefits of customer retention: cost of acquiring new customers can be signif.

Mission Statement

-statement of what the org wants to be -demonstrates mgmts inability to think clear -clear, concise, long term -guides business strats -internal -guide employees on how to behave and managers how to make decisions

environmental forces (outer part of components of strategic marketing)

1. technological 2. legal& regulatory 3. political 4. economic 5. competitive 6. sociocultural

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

1000

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

25-33

marketing mix:

4 marketing activities -Product, Promotion, Price, Distribution a firm can control to meet the needs of customers within its target mix

value

A customer's subjective assessment of benefits relative to costs in determining the worth of a product

marketing concept

A managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

Stakeholders

Constituents who have a "stake," or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

evolution of the marketing concept

Production Orientation Sales Orientation Market Orientation

marketing environment

The competitive, economic, political, legal and regulatory, technological, and sociocultural forces that surround the customer and affect the marketing mix

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.

exchanges

The provision or transfer of goods, services, or ideas in return for something of value

customers:

The purchasers of organizations' products; the focal point of all marketing activities -FOCUS

customer lifetime value

a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing

target market

a specific group of customers on whom an organization focuses on its marketing

promotion

activities to inform individuals or group about the organization and its products

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

both customers and businesses

Sales Orientation

businesses viewed sales as the major means of increasing profits (pushy car sells man)

Components of strategic marketing

center: customers middle layer: Product, Price, Promotion, Distribution (PPPD)- marketing mix outer layer: environmental forces

Diversification

completely new products with completely new market ex: virgin brand - was a record label now there are virgin transportation and virgin energy shot

​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.

​The marketing mix is built around the

customer

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 mgmt

​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

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

deliver on promises made

product development

developing new product for the same customer target ex: rice cakes- quaker is known for oats and now they want to target their customers with a new snack and have expertise of customers and providing similar products

where did marketing come from?

economics

production orientation

electricity, rail transportation, division of labor, assembly lines, and mass productions made it POSSIBLE to produce goods more EFFICIENTLY

relationship marketing

establishing long-term, mutually satisfying buyer-seller relationships

market penetration

firm would attempt to grow by selling the same product to the same market ex: orange juice

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

focusing just on the marketing department

product

goods (tangible items: house, cars, purse, shampoo) service- haircut, oil change idea- politics (vote)

Place (Distribution)

making products available at the right time -retail store, online, directly from manufacturer (apple uses digital distribution to allow consumers to stream ad-free music online or off)

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

market development

market the same product to a new set of customers ex: main& tail shampoo- not just for horses, people started using it because worked so good on horses

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

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

value-driven marketing

nordstrom creates value for customers with its liberal return policies and strong customer service

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

marketing orientation

reflect what customers want- org wide commitment to researching and responding to customer needs example: bolt bus

SWOT analysis- Bolt bus

s: seats, tech, fares, service w: familiarity, bus perception o: younger consumers' needs t: other buses, fuel costs, bullet trains

goal

satisfaction for both parties

​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

green marketing

strategic process involving stakeholder assessment to create meaningful long term relationships with customers while maintaining, supporting and enhancing the natural environment

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

marketing

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

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.

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

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

Customer Relationship Management (CRM)

using information about customers to create marketing strategies that develop and sustain desirable customer relationships (80/20 rule)

price:

value that is exchange for a product

SWOT analysis

visual representation of strengths and weaknesses (internal to company) and opportunities& threats (external)