Chapter 01 Flashcards Preview

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Flashcards in Chapter 01 Deck (41):
1

The four Ps make up a marketing mix

product;
place;
promotion;
and price.

2

The customer is not part of the marketing mix. Why?

The four Ps are things that the marketer can control, but the marketer cannot directly control the customer’s behavior.

3

What is the Place Element of the Marketing Mix?

The objective for the place, or distribution, is to get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition.

4

Channel of distribution

any series of firms or persons used to move goods from producers to final users. Channels can be:
very long or very short;
simple or complex.

5

What do marketers do?

find the best kinds and types of channels for the product;
effectively manage the channel.

6

aspects of place

logistics or physical distribution;
roles of middlemen, such as wholesalers and retailers

7

The Promotion Element of the Marketing Mix

telling the target market about the product and selling the product

8

Promotion involves

telling the target market about the product and selling the product to the target customer

9

Personal selling-

direct communication between sellers and potential customers

10

customer service

a personal communication between a seller and a customer who wants the seller to resolve a problem with a purchase

11

Mass selling-

communicates with large numbers of customers at the same time

12

Advertising

any paid form of nonpersonal presentation of ideas, goods, and services by an identified sponsor

13

Publicity

unpaid, nonpersonal presentation of ideas, goods, or services.

14

Sales promotion-

promotion activities, other than advertising, publicity, and personal selling, that stimulate interest, trial, or purchase

15

Price is the ? of the marketing mix?

revenue-generating function

16

Pricing policies

price flexibility;
how price changes over the product life cycle;
various allowances, discounts, and geographic terms that affect the final price.
Other aspects of price include:
cost structure and demand;
price sensitivity; competition, available substitutes;
impact of the price of one product on any other products offered by the organization.

17

The Price Element of the Marketing Mix

Pricing Objectives
Price Flexibility
Price Changes Over the Life Cycle
Discounts and Allowances
Geographic Pricing Terms
Legal Environment
Cost and Demand
Price Sensitivity
Competition and Substitutes
Price of Other Products In the Line

18

Which of the 4 P's have an impact on satisfying the needs of consumers in the target market?

All of the four Ps--product, place, promotion and price- No single area is more important than the others--they are all interconnected.

19

Uncontrollable Environmental Forces

Social
Economic
Technological
Competitive
Regulatory

20

Stores with Customer Value Strategies

Best Price: Target
Best Service: Nordstrom
Best Product: Starbucks

21

Customer value

the difference between the benefits a customer sees from a marketing offering and the costs of obtaining those benefits.

22

Customer value

builds relationships

23

4 Eras is American business

Production era
Sales era
Marketing Concept era
Customer Relationship era

24

Relationship Marketing

Easy to Understand,
Hard to Do

25

Marketing

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large

26

Exchange

the trade of thingsof value between a buyer and a seller so that each is better off after the trade

27

Market

people with both the desire and the ability to buy a specific offering.

28

target market

one or more specific groups of potential consumers toward which an organization directs its marketing program.

29

marketing mix

the marketing manager’s controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

30

Market orientation focuses on

(1) continuously collecting information about customers’ needs,
(2) sharing this information across departments, and
(3) using it to create customer value.

31

Customer value proposition

the cluster of benefits that an organization promises customers to satisfy their needs.

32

Environmental forces

the uncontrollable forces that affect a marketing decision and consist of social, economic, technological, competitive, and regulatory forces.

33

Customer value

the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

34

Relationship marketing

links the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit.

35

marketing program

a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.

36

Market segments

the relatively homogeneous groups of prospective buyers that (1) have common needs and (2) will respond similarly to a marketing action.

37

marketing concept

the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization’s goals.

38

market orientation

occurs when an organization focuses its efforts on
(1) continuously collecting information about customers’needs,
(2) sharing this information across departments, and
(3) using it to create customer value.

39

Customer relationship management (CRM)

the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.

40

Customer experience

the internal response that customers have to all aspects of an organization and its offering.

41

Societal marketing concept

the view that organizations should satisfy the needs of consumers in a way that provides for society’s well-being.