Exam #1 Flashcards
(126 cards)
1
Q
AMA Marketing Definition
A
The activity, set of institutions and processes for creating, communicating, and exchanging offerings that have value for customers, clients, partners, and society at large.
2
Q
Relationship between Marketing and the key functions of a firm:
A
Marketing may be the most important function.
3
Q
Marketing’s role:
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to understand the organizations customers and markets in an effort to develop strategies to sell products or services that produce profit.
4
Q
Meeting customer needs
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Aim of marketing is to provide customer value by conducting research to understand needs
5
Q
Marketing environment
A
Internal and external factors that affect a firm’s ability to succeed and formatted to identify SWOT
6
Q
Strategic planning
A
the process of thoughtfully defining a firm’s objectives and developing a method for achieving those objectives; shifting conditions requires modification
7
Q
Marketing Strategy
A
the set of actions taken to accomplish organizational objectives
8
Q
Marketing Mix
A
a combination of activities that represent areas a firm can adjust to influence demand for its good, service, or idea (known as the 4P’s).
9
Q
Marketing manager
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responsible for short and long term marketing operations and strategy. Can be considered brand manager or segment manager.
10
Q
Strategy activity
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How to achieve objectives by developing product value propositions, marketing objectives, forecasts, and budgets, and monitoring results.
11
Q
Operational activity
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included implementing promotional campaigns, graphic design, social media, and marketing research.
12
Q
Selling Concept
A
Marketing belief that customers will not buy enough; focuses on transactions and use large-scale selling and promotions.
13
Q
Marketing Concept
A
Holds that achieving organizational goals depends on knowing the needs/wants of customers and delivering the desired satisfaction better than competitors.
14
Q
Marketing Myopia
A
Focusing on the specific products rather than the benefits/experiences produced.
15
Q
Customer Value
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Perceived benefits that customers received form a product compared to its cost.
16
Q
Value
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an equation of benefits that meet needs/wants minus costs
17
Q
Actual Costs
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Often more than the initial price.
18
Q
Value Creation
A
Occurs when customers use products or services that satisfy their wants and needs.
19
Q
Exchange
A
the act of obtaining a desired object from someone by offering something of value in return.
20
Q
With more value…
A
firms can gain a competitive advantage.
21
Q
Product
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Central element around which all others revolve. A specific combination of goods, services, and ideas that a firms offers to customers.
22
Q
Price
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The amount of something that a buyer exchanges with a seller to obtain a product.
23
Q
Place
A
Includes the activities of the firm to make its product available to customers.
24
Q
Promotions
A
What most people think of when they think of marketing; successful promotion involves the firm’s ability to integrate its promotional activities in a way that maximizes the value of each.
25
Needs
State of felt deprivation; marketers do not create needs
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Wants
the form human needs take; something you would like to have
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Value proposition
the set of benefits it promises to deliver to customers to satisfy their needs/wants; successful propositions include the applications of technology (Customer needs, technology, target market, benefits)
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Capturing Value
For firms to capture value, they must identify ways in which they can gain in some way through the exchange; primary way is price
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Ethics
Moral standards expected by society
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Marketing Ethical Issues
Clearly understand norms/values expected, act in a positive manner, consequences of not adhering can be serious, unethical practices hurt customers, employees and society.
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AMA Code of Ethics
Six core values: honesty, responsibility, fairness, respect, transparency, citizenship
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Decision Making framework
1. Determine the facts unbiasedly
2. Identify the ethical issues
3. Identify stakeholders impacted
4. Consider all available alternatives
5. Consider how decision affects stakeholders
6. Discuss the pending decision with stakeholders
7. Make the decision
8. Monitor
33
Corporate Social Responsibility
Refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society
34
Four dimensions of CSR
Economic, Legal, Ethical, Philanthropic
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Sustainable Marketing
The process of creating, communicating, and delivering value to customers through the preservation and protection of the natural systems that provide the natural resources upon which our society and economy depend.
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Tactical Greening
Involves implementing limited change within a single area of the organization.
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Quasi-Strategic Greening
Usually involves more substantive changes throughout the organization.
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Strategic Greening
Requires a holistic approach that integrates and coordinates all the firm's activities on environmental issues across every functional area.
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Social Criticism of Marketing
Materialism, high prices, deceptive pricing, deceptive packaging, deceptive promotions, high-pressure selling, shoddy/unsafe products, planned obsolescence, marketing to children
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Strategic planning
the process of thoughtfully defining the firm's objectives and developing an approach for achieving those objectives. Conducted on a continual basis as conditions change. One of the most important marketing tasks.
41
Chain of Events in Strategic Planning:
Define company mission, set company objectives and goals, design a collection of businesses and products, marketing plan (strategies guided by mission, goals, objectives, and portfolio)
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Firms work to perfect their strategic plan so...
they can form a sustainable competitive advantage.
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Strategy
Set of actions undertaken to accomplish organizational objectives
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Objectives
Specific, realistic results marketers aim to achieve consistency with company goal and objectives
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Mission
the organizations purpose - what it wants to accomplish in the larger environment; should be market oriented (defined in terms of satisfying basic customer needs).
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Vision
Road map indicating what the company wants to become
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Values Statement
word, phrase, or sentence that conveys the core values of the company (what is important).
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Company goals
desired result you want to achieve, typically broad and long-term
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Company objectives
defines the specific, measurable, realistic actions that must be taken to achieve the overall goal
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Marketing objectives
objectives for a functional area (marketing)
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Competitive environment
direct and indirect competitors
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Direct Competitiors
firms that compete with products designed around the same or similar interests
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Indirect competitors
firms that compete with products that have different characteristics but serve a similar function.
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Sustainable competitive advantage
the superior position a product enjoys over competing products if customers believe it has more value than other products. Valuable, rare, costly to imitate, and non-substitutable.
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Customer Excellence
Strategy designed to put the customer at the center of all marketing activities; marketing goal is consistent delivery of value, satisfaction, and quality resulting in loyalty
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Product Excellence
strategy that focuses on the importance of high-quality and value-adding products
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Operational Excellence
Focusing on operational principles, systems, and tool on improving customer satisfaction with the firm's products and services
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Locational Excellence
focus on having strong physical location and/or internet presence
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Market penetration
Increase of sales of existing products to existing customers without product changes
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Product development
creating new or modified products for an existing market
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Market development
selling existing products to new customers
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Diversification
developing new products to new markets unrelated to an existing product
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Using data analysis for Strategic Planning
Establishing Systematic data collection processes, ID direct and indirect competitors (market scanning), and set objectives based on SWOT analysis
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SWOT drives the...
marketing mix
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Situation analysis
the process of gathering information on the internal and external environments to assess the firm's SWOT and to guide its goals and objectives
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Segmentation, targeting, and positioning
selecting target market, identifying target market needs and positioning the new product v. competition
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Macro environment
the act of monitoring developments that influence the marketing plan but outside of the firm's control with the goal of responding to threats and opportunities
68
Demographic
the statistical characteristics of human populations (population growth, gender distribution, income distribution, age, education, family structure)
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The Cohort effect
tendency of members of a generation to be influenced and bound together by significant events in their formative years (17 to 22)
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Economic
trends in these factors have a direct or indirect impact on a company since it affects the purchasing power of consumers, affecting pricing policy
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Social-Cultural
trends in these factors are the larger scale forces that affect the thoughts, feeling and behaviors of consumers
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Core Beliefs and Values
Beliefs and values are persistent and are passed on from parents to children
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Secondary beliefs and values
beliefs and values are more open to change and include other's views of themselves including people, organizations, society, nature, and the universe
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Legal/Political
trends in these factors overlap and are about how and to what degree a government intervenes in the economy, industry, or market
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Competitive
how a business is affected by its competition and how it adapts its businesses practices to enable it to compete effectively
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Technological
trends in these factors pertain to innovations in technology influencing industry operations and the market conditions. these may affect decisions to enter and industry, launch new products, or outsource abroad
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Micro Environment
the current internal environment where marketing is influenced by the firm's choices and firms may alter them
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Organizational Structure
degree to which the organizational structure facilitates market driven strategic planning
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Corporate Culture
shared values and beliefs that characterize members of the organization, define its nature and govern how people behave
80
Human resources
role played in workforce planning, employee and labor relations, training and development, etc.
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Leadership
people in the organization that make major decision
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Marketing Research
Act of collecting, interpreting, and reporting information concerning a specific, clearly defined marketing problem
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Steps in Marketing Research Process (11)
1. Establish need
2. Understand Problem
3. Define problem and establish objectives*
4. Determine research design
5. Identify information sources
6. Methods to access data
7. Design data collection form
8. Sampling plan and sample size
9. Collect data
10. Analyze data
11. Prepare final report**
84
"Every process is perfectly designed...
to achieve the results it gets."
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Purpose of marketing research
to provide information the reduce uncertainty associated with decision making
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When is marketing research needed?
when manager must make a decision and if benefits outweigh costs
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Failure to meet objective (actual v. planned)
Control system: Key performance indicators
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Failure to identify opportunities (actual v. potential)
Control system: environmental scanning
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Symptoms
change in control system that alert managers to problems
90
Problem statement defined
summarizes the problem (what decision maker needs to accomplish) Most Important!
91
Research objectives defined
tell the researcher exactly what must be done to obtain the information necessary to solve the problem
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Research design
set of advanced decision specifying methods and procedures used to answer research questions or solve the research problem
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Exploratory
Unaware of the problem; to learn more about the problem (mostly qualitative)
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Descriptive
Aware of the problem; describe problem (quantative)
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Causal
Problem defined; experiments isolate cause and effect (quantative)
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Protocol Analysis
placing a person in decision making situation and asking them to verbalize everything considered in the decision
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Pluralistic
combination of quantitative and qualitative research methods
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Causal (experiments)
investigating how a change in an independent variable might cause changes in one or more dependent variables
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Internal Validity
the extent to which changes in the outcome variable were actually caused by manipulations of the independent variable conditions
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External Validity
the extent to which the results of the experiment can be generalized beyond the study sample
101
Form Design
used to request and record information gathered in marketing research; regardless of method, standardized forms called questionnaires record information
102
Sampling plan
process of selecting a predetermined number of elements from a population; sampling plan determines if sample is representative
103
Probability Sample
member of the population have a known changes of being selected (random); representative
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Simple Random
every member of population has equal chance of selection
105
Systematic random
skip interval
106
Nonprobability sample
Convenience, referral, quota; not representative
107
Sampling error
any error that occurs because a sample is used that can be measured
108
Nonsampling error
all errors that are not due to sampling error, cannot be measured
109
Data analysis
entering data into computer files, inspecting data for errors, tabulating and analyzing data
110
Coding
the process of assigning a word, phrase, or number to a selected portion of data so that it can later be easily sorted and summarized
111
Descriptive statistics
used to describe characteristics of research data and study sample
112
Final report
second most important step; must be communicated in a way that will be understood, should solve the marketing problem and answer questions, report limitations, and include a current report and historical document
113
Consumer behavior
the way individuals make decisions to spend resources
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Aspects of consumer behavior
complex, understanding processes, collect information, ethical issues
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Consumer decision process
1. Problem/need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Post-purchase behavior
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Internal information search
consumers use past experiences with items from the same brand or product class as sources or information
117
External information search
consumers seek information beyond their personal knowledge and experience
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Evoke set
consists of those brands which the consumer is aware of and considers for purchase
119
Cognitive dissonance
a mental conflict that occurs when consumers acquire new information that contradicts their beliefs or assumptions about the purchase
120
Attitudes
a consumer's overall evaluation of a product, which involves general feelings of like or dislike; brand switching requires changing attitudes
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Situation and personal influences on consumer behavior
time, personality, lifestyle, culture, surroundings
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Reference groups
made up of people to whom a consumer compares himself or herself
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Opinion leaders
individuals who exert an unequal amount of influence on the decisions of others
124
Purchase involvement
the level of concern for or interest in the purchase process; triggered by need to consider particular purchase; soap v. a house
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Noncompensatory decision making
used for routine problem solving; consumers buy whatever they did before
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compensatory decision making
used for novel problems that involve some level of risk; consumers assign weights to various criteria and the sum of these weights (weighted preference) will be used to make a purchase decision
