Marketing 12 mars Flashcards
(84 cards)
1
Q
What is the primary focus of management according to Theodore Levitt?
A
Providing customer value satisfactions
Management should continuously push this idea throughout the organization.
2
Q
What are the key components of marketing?
A
- Customer orientation
- Integrated effort
- Goal achievements (e.g. profits)
3
Q
What limitations exist in the pursuit of customer satisfaction?
A
- Not the only objective
- Focus on short-term satisfaction
- Modest improvements in new products
- Dull marketing campaigns
4
Q
What is the difference between marketing orientation and production orientation?
A
- Marketing orientation focuses on customer needs
- Production orientation focuses on production capabilities
5
Q
What distinguishes market-driven businesses from internally oriented businesses?
A
- Customer concern vs convenience
- Know customer choice criteria vs assumption of price and performance
- Segment by customer differences vs segment by product
- Marketing spend as investment vs luxury
6
Q
How is customer value created?
A
By maximizing perceived benefits and minimizing perceived sacrifice
Customer satisfaction occurs when perceived performance matches or exceeds expectations.
7
Q
What does the classical marketing mix consist of?
A
- Product
- Price
- Promotion
- Place
8
Q
What are the criteria for designing an effective marketing mix?
A
- Matches customer needs
- Creates a competitive advantage
- Well blended
- Matches corporate resources
9
Q
What are the criticisms of the 4-Ps approach to marketing management?
A
It oversimplifies reality.
10
Q
What is the relationship between business performance, market orientation, and marketing mix?
A
Research shows a positive relationship.
11
Q
What is the role of marketing planning within a business?
A
- Ensures product meets customer needs
- Allocates resources for multiple products
- Contributes to resource allocation for multiple businesses
12
Q
What are the key planning questions in marketing?
A
- Where are we now?
- How did we get there?
- Where are we heading?
- Where would we like to be?
- How do we get there?
- Are we on course?
13
Q
What are the steps in the process of marketing planning?
A
- Deciding the business mission
- Conducting a marketing audit
- Producing a SWOT analysis
- Setting marketing objectives
- Deciding core strategy
- Making marketing mix decisions
14
Q
What are the four characteristics of an effective mission statement?
A
- Solid understanding of the business
- Strong personal conviction of the leader
- Creates strategic intent
- Enabling
15
Q
What is a marketing audit?
A
A systematic examination of a business’s marketing environment, objectives, strategies, and activities.
16
Q
What does the external marketing environment consist of?
A
- Microenvironment (customers, competitors, distributors, suppliers)
- Macro-environment (economic, social, political, legal, physical, technological)
17
Q
What is the purpose of the external marketing audit checklist?
A
To assess market size, customer demographics, competitor analysis, distributor strengths, and supplier locations.
18
Q
What are the key forms of response companies have to environmental change?
A
- Ignorance
- Delay
- Retrenchment
- Gradual strategic repositioning
- Radical strategic repositioning
19
Q
What does SWOT analysis summarize?
A
Internal strengths and weaknesses, and external opportunities and threats.
20
Q
What are the components of core strategy?
A
- Target markets
- Competitor targets
- Competitive advantage
21
Q
What is the importance of organization in the marketing planning process?
A
Supports the strategies decided upon.
22
Q
What are the rewards of marketing planning?
A
- Consistency of decision-making
- Encouragement of monitoring change
- Stimulation of achievement
- Aiding resource allocation
- Promotion of competitive advantage
23
Q
What are the potential problems with marketing planning?
A
- Political issues
- High opportunity cost
- Lack of reward systems
- Lack of relevant information
- Cultural clashes
- Lack of managerial knowledge
24
Q
What are recommendations for overcoming marketing planning problems?
A
- Attaining senior management support
- Matching planning system to culture
- Creating long-term focused reward systems
- Clear communication
- Training in marketing knowledge
25
What is the distinction between consumer goods and organizational goods?
* Consumer goods are for personal consumption
* Organizational goods are for use in business activities
26
What dimensions of buyer behavior should be considered?
* Who is important in the buying decision?
* How they buy?
* What their choice criteria are?
* Where they buy?
* When they buy?
27
What roles are included in the buying center?
* Initiator
* Influencer
* Decider
* Buyer
* User
28
What stages are involved in the consumer decision-making process?
* Need recognition
* Information search
* Evaluation of alternatives
* Purchase
* Post-purchase evaluation
29
What is the difference between high-involvement and low-involvement situations in consumer behavior?
* High-involvement: extensive evaluation and information processing
* Low-involvement: simple evaluation and habitual behavior
30
What are the various types of choice criteria used by consumers?
* Technical (e.g. reliability)
* Economic (e.g. price)
* Social (e.g. status)
* Personal (e.g. self-image)
31
What are the characteristics of organizational buying behavior?
* Nature and size of customers
* Complexity of buying
* Use of economic and technical criteria
* Risky nature of transactions
* Buying to specific requirements
* Reciprocal buying
* Derived demand
* Negotiations
32
What are the developments in purchasing practices?
* Just-in-time purchasing
* Centralized purchasing
* Reverse marketing
* Leasing
33
What is just-in-time purchasing?
Aims to minimize stocks by organizing supply systems that provide materials as needed.
34
What does centralized purchasing encourage?
Concentration of purchasing specialists on a small group of products.
35
What is reverse marketing?
Places initiative with the buyer, persuading the supplier to produce exactly what the buyer wants.
36
What are potential gains from centralized purchasing?
Reduced purchasing inventory and inspection costs, improved product design, streamlined delivery, reduced production downtime, improved quality
37
What is reverse marketing?
A strategy where the initiative is with the buyer, persuading the supplier to produce exactly what the buyer wants
38
What is relationship marketing?
A shift from attracting customers to retaining current customers by building trust
39
What are the five stages in the development of buyer-seller relationships?
* Pre-relationship stage
* Early stage
* Development stage
* Long-term stage
* Final stage
40
What characterizes the pre-relationship stage?
Customer concern about the risk of change and distance from potential supplier
41
What is market segmentation?
The identification of individuals or organizations with similar characteristics that impact marketing strategy
42
What is target marketing?
The choice of specific segment(s) to serve in the market
43
How can consumer markets be segmented?
* Behavioral
* Psychographic
* Profile
44
What are the methods of segmenting organizational markets?
* Macrosegmentation
* Microsegmentation
45
What factors evaluate market segments?
* Market attractiveness
* Company's capability to compete
46
What are the four target market strategies?
* Undifferentiated
* Differentiated
* Focused
* Customized
47
What are the keys to successful positioning?
* Clarity
* Consistency
* Credibility
* Competitiveness
48
What is a product?
Anything that is capable of satisfying customer needs
49
What is brand equity?
A measure of the strength of a brand in the marketplace
50
What is the difference between manufacturer and own-label brands?
Manufacturer brands are created by producers; own-label brands are created by distributors
51
Why are strong brands important?
* Enhance company value
* Affect consumer perceptions
* Act as a barrier to competition
* Produce high profits
* Provide foundation for brand extensions
* Serve as quality certification
52
What is a brand extension?
The use of an established brand name on a new product
53
What are the four stages of the Product Life Cycle (PLC)?
* Introduction
* Growth
* Maturity
* Decline
54
What is the BCG Matrix?
A tool based on the product life cycle theory to assess product portfolio importance
55
What is direct cost pricing?
Pricing that considers only direct costs like labor and materials
56
What is going-rate pricing?
Setting price levels based on market rates rather than on company costs
57
What is marketing-orientated pricing?
Pricing that considers a wider range of factors, including customer willingness to pay
58
When should price increases be initiated?
When the value is greater than price (excess demand)
59
What are the key characteristics of advertising?
* Strong awareness building
* Brand positioning
* Impersonal and inflexible
* Limited ability to close a sale
60
What are the types of channels of distribution?
* Producer direct to consumers
* Producer to agent/intermediary to consumers
61
What are the factors influencing channel selection?
* Market factors
* Producer factors
* Product factors
* Competitive factors
62
What are Porter's 5 Forces?
* Threat of new entrants
* Bargaining power of suppliers
* Bargaining power of buyers
* Threat of substitute products
* Degree of rivalry between competitors
63
What are the sources of competitive advantage?
* Superior skills
* Superior resources
* Core competences
64
What is the value chain?
A categorization of a firm's value-creating activities into primary and secondary activities
65
How can a differential advantage be maintained?
* Patent protection
* Strong brand personality
* Close relationships with customers
* High service levels
* Innovative product upgrading
66
What is cost leadership?
Achieving the lowest cost position in an industry
67
What is patent protection?
A legal right granted to an inventor to exclude others from making, using, or selling their invention for a certain period of time.
## Footnote
Patent protection encourages innovation by providing inventors a temporary monopoly on their inventions.
68
What contributes to a strong brand personality?
A unique and distinctive identity that resonates with consumers, often established through marketing and brand messaging.
## Footnote
Strong brand personality helps in building customer loyalty and recognition.
69
Why are close relationships with customers important?
They foster loyalty, improve customer satisfaction, and provide valuable feedback for product or service improvements.
## Footnote
Close customer relationships can lead to repeat business and referrals.
70
What is the significance of high service levels based on well-trained staff?
High service levels enhance customer experience and satisfaction, leading to increased loyalty and competitive advantage.
## Footnote
Well-trained staff can effectively address customer needs and resolve issues.
71
What role does innovative product upgrading play in business strategy?
It helps maintain competitiveness by keeping products relevant and appealing to consumers over time.
## Footnote
Continuous innovation can lead to increased market share and customer retention.
72
What are high entry barriers in a market?
Obstacles that make it difficult for new competitors to enter a market, such as high R&D costs or significant promotional expenditures.
## Footnote
High entry barriers protect established companies from new entrants.
73
What defines strong and distinctive internal processes?
Processes that effectively deliver products and services while being difficult for competitors to replicate.
## Footnote
Unique internal processes can provide a competitive advantage.
74
How can cost leadership be achieved?
By managing cost drivers such as:
* economies of scale
* learning effects
* capacity utilization
* linkages
* interrelationships
* integration
* timing
* policy decisions
* location
* institutional factors
## Footnote
Cost leadership allows a company to offer lower prices than competitors while maintaining profitability.
75
What are economies of scale?
Cost advantages that enterprises obtain due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units.
## Footnote
Larger production volumes can lead to lower costs per unit.
76
What are learning effects in cost management?
Improvements in efficiency and productivity that occur as employees gain experience in performing tasks.
## Footnote
Learning effects can reduce operational costs over time.
77
What is capacity utilization?
The extent to which an enterprise uses its installed productive capacity, expressed as a percentage.
## Footnote
Higher capacity utilization can lead to lower per-unit costs.
78
What are linkages in cost management?
Connections between different activities that can lead to cost reductions, such as improved quality assurance reducing after-sales service costs.
## Footnote
Effective linkages can enhance overall efficiency.
79
What are interrelationships in cost management?
The ability to share costs across different products or services, leading to overall cost savings.
## Footnote
Interrelationships can enhance resource efficiency.
80
What does integration refer to in a business context?
Owning the means of distribution or production, which can lead to lower costs and increased control over operations.
## Footnote
Vertical integration can enhance supply chain efficiency.
81
How does timing impact cost leadership?
Late entrants to a market may benefit from lower costs due to established infrastructure and market knowledge.
## Footnote
Timing strategies can influence competitive positioning.
82
What are policy decisions in managing costs?
Strategic choices made by management, such as controlling labor costs, that directly affect a company's cost structure.
## Footnote
Effective policy decisions can lead to significant cost savings.
83
What is the importance of location in cost management?
The geographical positioning of a business can affect transportation costs, access to resources, and labor availability.
## Footnote
Strategic location choices can enhance operational efficiency.
84
What are institutional factors in cost management?
External elements such as government regulations that can influence operational costs and business practices.
## Footnote
Understanding institutional factors is crucial for compliance and cost management.
