Lecture 2: Marketing Basics Flashcards
(14 cards)
What are the needs, wants, and demands to satisfy in marketing?
- Needs: felt states of deprivation and three human needs are:
- Physical: food, safety and clothing
- Social: belonging and affection
- Individual: knowledge and self expression - Wants: how needs are shaped by culture and individual personality
- Demands: wants to be backed up by purchasing power
What is the 5 step marketing process?
- understand the marketplace and customers’ wants/needs
- design a customer-driven marketing strategy
- construct and integrate marketing program (4 ps)
- Build profitable relationships and customer delight
- capture value from customers in return (profits, loyalty)
What are Maslow’s hierachy of needs?
- Physiological: basic human needs like food and water
- Safety: security and stability
- Social: belonging and affection
- Esteem: status and recognition
- Self actualization: achieving one’s full potential
What is market myopia, its solution, and given an example?
Market myopia: is focusing too much on the company’s products and underlying customer needs.
Solution: think beyond the product to the benefits provided to consumers
Ex: kodak failed to adapt to digital photography trends
What are the 5 marketing concepts/ marketing management orientations or philosophies?
- Selling concept: focusers on aggressive sales techniques to convince customers. Emphasis on short-term sales.
- Product concept: focuses on improving product quality, performance, and innovation. Beleif that superior product will attract customers automatically.
- production concept: focuses on production and distribution efficiency and believes customers prefer affordability and widely available products.
- Marketing concept: focuses on understanding the customer needs better than its competitors
- Societal marketing concept: focuses on how the company balances its profits, customer satisfaction, and societal welfare.
What is marketing mangement?
is art and science of choosing target markets and building profitable relationships with them
Why can’t you always pick societal concept as it balance everything?
because as a manager your resources are limited like:
- limited budget
- limited personnel
- limited time
so you should focus on the best option that is most important to your customers
What steps can you take in managing the marketing process?
- Analysis: using SWOT (strengths, weakness, opportunities, threats)]
- Planning: develop strategies based on market analysis
- Implementation: execute marketing plans using 4 P’s (product, price, place, promotion)
- Control: measure performance and adjust strategies as needed.
What is SWOT analysis?
SWOT analysis can be used to analyze a company situation or a specific product:
Strengths (Internal): internal capabilities that may help a company reach its objectives like unique resources, good team
Weakness (internal): internal limitation that may stop a company from reaching its objectives like a bad reputation or a limited budget
Opportunities (External): external factors that may help a company reach its objectives like partnerships, new markets
Threats: (external): external factors that may stop the company from reaching its objectives like new economic situations, regulations, and competitors
What are strategic business units (SBU’s)
are companies that make up the business, can be a division, a product line, a single product, or a single brand.
What is portfolio analysis?
- the process of evaluating SBU’s
- helps guide decisions on how to allocate resources to current SBUs
- Some implications on how to use/ adjust marketing mix (4P’s) for individual SBUs
What is the BCG approach draw a diagram or in the head.
Boston consulting group growth matrix is a good tool for portfolio analysis as it classifies SBUs by market growth rate (y-axis) and relative market share (x-axis)
What are some decisions or options you can make when using the BCG approach?
when using the BCG growth-share matrix you can make decisions/options:
1. Build: increase market share (for question marks and starts)
2. Hold: maintain market share (for cash cows)
3. Harvest: increase cash flow (for cash cows, question marks, dogs)
4. Divest: sell or liquidate (for dogs and question marks)
What are some examples you can do to build, hold, and divest inthe BCG matrix?
- Build (increase MS): lower prices, improve product
- Hold (maintain MS): do what your competitors do
- Harvest (increase CF): raising prices, reducing services, reducing costs
