Exam 01 Flashcards
(253 cards)
What is the definition of marketing according to the AMA in 2007?
Marketing is a function involving institutions and processes for creating, communicating, delivering, and exchanging offerings with value to various stakeholders.
How definition of marketing evoluted
back in 1960 marketing was seen as merely a process of directing the flow of goods and services to consumers. However, this definition didn’t account for marketing activities beyond the sale of tangible products. Now, the new definition sees marketing as a function involving institutions and processes for creating, communicating, delivering, and exchanging offerings with value to various stakeholder
What is the Marketing Concept?
The idea that the consumer is at the center of marketing efforts, focusing on identifying and understanding consumer needs, desires, and behavior. The consumer is #01
What is the Exchange Concept in marketing?
The foundation of marketing where two parties exchange something of value, such as goods, services, or information in return for money or other forms of value.
Describe the Self-Sufficient Era in marketing history.
Before the Industrial Revolution, people were mostly self-sufficient, producing goods for personal consumption and using bartering as the method of exchange.
What characterizes the Production Era?
Following the Industrial Revolution, the focus shifted to manufacturing large quantities of products to meet growing demand.
What is the focus of the Sales Era?
During the 1920s-1950s, businesses focused more on selling existing products, often using aggressive sales tactics.
What is the Marketing Era?
Starting in the 1950s, businesses recognized the importance of understanding consumer behavior and needs, becoming more consumer-focused.
What is the New Era in marketing?
Marketers focus on personalizing experiences, using digital channels, and emphasizing sustainability and the ‘Experience Economy.’
List the components of the Marketing Mix (4 P’s).
- Product
- Price
- Promotion
- Place (Distribution)
What does the Product component of the Marketing Mix involve?
The design, features, packaging, and brand identity tailored to consumer needs.
What is the significance of Price in the Marketing Mix?
Pricing strategies affect the perceived value of the product and can be influenced by competition, demand, and consumer willingness to pay.
What does Promotion encompass in marketing?
All communication methods used to inform, persuade, and remind consumers about the product, including advertising and public relations.
What is the role of Place (Distribution) in marketing?
Strategies focused on getting the product to the consumer in the right place and at the right time.
What is Strategic Marketing?
The integration of marketing with overall business strategy, aligning marketing efforts with objectives and the external environment.
Define Differential Advantage.
What makes a company’s products or services stand out from the competition.
What are Environmental Opportunities in marketing?
Trends such as demographic shifts and technological advancements that provide opportunities for marketers.
What are the four categories of the Growth-Share Matrix?
- Stars
- Question Marks
- Cash Cows
- Dogs
What is Market Segmentation?
The process of dividing a broad market into sub-groups based on shared characteristics.
Why is market segmentation important?
- Not all consumers are the same
- Efficiency in targeting specific groups
- Competitive advantage
What is Geographic Segmentation?
Dividing the market by location such as country, region, or city.
What does Demographic Segmentation involve?
Grouping consumers based on demographic variables like age, gender, income, and education.
Define Psychographic Segmentation.
Grouping people based on their lifestyles, values, and interests.
What is Benefit Segmentation?
Dividing the market based on the benefits consumers seek from the product.