Exam #1 Flashcards
4 P’s
Product, Place, Price, Promotion
The Marketing Concept and its basic ideas (3)
An organization aims all of its efforts at satisfying its customers, at a profit.
3 Basic Ides:
1-Customer Satisfaction (The core objective)
2-Total Company Effort (The organization as a total system)
3-Profit as an Objective (The necessary condition for the system’s survival)
Needs
Are disparities between customers’ actual conditions and their desired conditions. (Needs create motivations to seek satisfaction. Without needs and the motivations to fulfill them, there would be no exchanges.)
Wants
Are the consumption choices people make to satisfy their needs
Utility (5 types)
The power to satisfy human needs 5 Types: Form Utility Task Utility Time Utility Place Utility Possession Utility
Types of Discrepancy (2)
Discrepancies of Quantity
Discrepancies of Assortment
Conditions for Exchange (5)
- Must be at least 2 parties
- Each party must have something that the other is interested in
- Each must be able to communicate and deliver
- Each must be able to reject the offer
- Each must believe the exchange in desirable to deal with the other party
Types of Marketing Exchange (3)
Pure Transactions
Repeated Transactions
Relationships
Eras in the History of Commerce (4)
Simple Trade Era
Production Era
Selling Era
Marketing Era
5-C’s
Customers Context Capabilities Chains/Channels Competitors
Components of Market Strategy (3)
Target Market
Market Position
Marketing Mix
Analysis Elements
External Analysis
Internal Analysis
Strategy Identification & Selection
Ansoff Matrix
Present Products New Products Present Markets (Market Penetration) (Product Expansion) New Markets (Market Expansion) (Diversification)
Draw it!
BCG Matrix
Draw it! Stars Question Marks Cash Cows Dogs Business Growth Rate (10%) Relative Market Share (1.0)
GE-McKinsey Matrix
Draw It!
Build
Hold
Harvest
Business Position
Industry AttractivenessFormulating a Competitive Strategy (4)
What is the business doing now?
Implied assumptions.
What is happening in the environment?
What should the business be doing?
Porter 5-Forces Model
Draw it!
New Entrants
v
Suppliers > Existing Competitors < Buyers
/\
SubstitutesGeneric Strategies
Draw it!
Differentiation Overall Cost Leadership
—————- Focus ——————————-
Porter Competitive Advantage Value Chain
Draw It! v Firm Infrastructure 2 Resource Management n Technology Development d Procurement Inbound Logistics, operations, outbound Logistics Marketing & Sales, Service (Primary) Margin
Economic
Disposable Income
Discretionary Income
Buying Power
Competitive Structures of Markets (4)
Monopoly
Oligopoly
Monopolistic Competition
Pure Competition
Components of American Culture (7)
Values Language Myths Customs Rituals Laws Material artifacts
Technological
Advanced Technology
Materials Science
Types of Separation (5)
Spatial Separation Separation in Time Separation in Information Separation of Values Separation of Ownership
Spatial Separation
Producers tend to locate where it is economical to produce.
Consumers are located in many scattered locations.
Separation in Time
Producers may require time to transport goods to consumers.
Consumers may not want to consume goods or services at the times producers would prefer to produce them.
Separation in Information
Producers do not know who needs what, where, when, and at what price.
Consumers do not know what is available from whom, where, when, and at what price.
Separation of Values
Producers value goods and services in terms of costs and competitive prices.
Consumers value goods and services in terms of utility and ability to pay.
Separation of Ownership
Producers hold title to goods and services that they themselves do not want to consume.
Consumers want goods and services that they do not own.
Discrepancies of Quantity
Producers prefer to produce and sell in large quantities.
Consumers prefer to buy and consume in small quantities.
