Quiz 1 Study Guide Flashcards
(12 cards)
What is Marketing, what is its function, when does it occur (Ch. 1)
Marketing is “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” It’s function is to discover the wants and needs of customers and to satisfy those needs. Marketing occurs all the time.
What the 4 P’s of the Marketing Mix are as well as examples of each (Ch. 1)
The 4 P’s of the Marketing Mix are product, price, promotion, and place. Product is a good, service, or idea to satisfy the consumer’s needs. Price is what is exchanged for the product. Promotion is a means of communication between the buyer and seller. Place is a means of getting the product to the consumer.
Product Ex: Coke makes a new flavor.
Price Ex: Coke prices the new flavor for a single bottle at $3.50, but a 12 pack of it will cost $11.99
Promotion Ex: Coke promotes this new flavor with a celebrity on TV advertisements.
Place Ex: Coke sells the new flavor in retail stores, but offers some sort of reward in Walmart locations across the country.
The difference between a market, a target market, and a market segment. (Ch. 1)*
Market is people with both the desire and the ability to buy a specific offering. Target Market is one of more specific groups of potential consumers toward which an organization directs its marketing. Market Segment is the relatively homogeneous groups of prospective buyers who (1) have common needs and (2) will respond similarly to a marketing action
What Core Values, Mission Statements, Organizational Culture and Goals are (Ch. 2)
An organization’s core values are the fundamental, passionate, and enduring principles that guide its conduct over time.
Mission Statements are statements of the organization’s function in society that often identifies its customers, markets, products, and technologies. It should be clear, concise, meaningful, inspirational, and long term.
Organizational Culture is the values, ideas, attitudes, and norms of behavior that are learned and shared among the members of an organization.
Goals are statements of an accomplishment of a task to be achieved, often by a specific time. They convert an organization’s mission and business into long- and short-term performance targets.
Definition of market share (Ch. 2)
The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
Definition of marketing plan (Ch. 2)
A road map for the marketing actions of an organization for a specified future time period, such as one year or five years
Know the BCG Matrix (Ch. 2)
Star - High Share, High Growth
Cash Cow - High Share, Low Growth
Dog - Low Share, Low Growth
Question Mark - Low Share, High Growth
Four Strategies of Diversification Analysis and examples (Ch. 2)
Diversification Analysis - a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
Market Penetration - a marketing strategy to increase sales of current products in current markets. (ex: selling more B&J Chocolate Chip Cookie Dough ice cream to US customers)
Market Development - a marketing strategy to sell current products to new markets. (ex: B&J in Brazil)
Product Development - a marketing strategy of selling new products to current markets. (ex: B&J selling children’s clothing in the US)
Diversification - a marketing strategy of developing new products and selling them in new markets. (ex: B&J selling clothing in Brazil)
The definition and purpose of a SWOT analysis (Ch. 2)
A SWOT analysis is an acronym describing an organization’s appraisal of its strengths, weaknesses, and its external opportunities and threats. The purpose of a SWOT analysis is to identify changes and trends in the organization’s industry, analyze the organization’s current and potential competitors, assess the organization itself (including available resources), and to research the organization’s present and prospective customers.
The Five Environmental Forces and examples of each (Ch. 3)*
The Five Environmental Forces refer to external factors that influence a company’s ability to achieve its marketing goals.
Social Forces - characteristics of the culture in the population
Ex: Increasing preference to younger consumers
Economic Forces - Inflation? Recession? Income?
Ex: A recession leading to spending on non- essential products
Technological Forces - Technological Advancements
Ex: Apple Pay or Google Wallet
Competitive Forces - Competitors in the industry
Ex: New competitors entering the market
Regulatory Forces - Laws and regulation that impact business operation
Ex: New data privacy regulations
The two most common types of unethical behavior in business including examples (Ch. 4)*
Economic Espionage - the clandestine collection of trade secrets or proprietary information about a company’s competitors. This practice is illegal and unethical and carries serious criminal penalties for the offending individual or business.
Corruption - involves unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. The giving and receiving of bribes, kickbacks, and graft are the most common forms of corruption.
Definition and examples of social responsibility in marketing (Ch. 4)
Social responsibility - means that organization are a part of a larger society and are accountable to that society for their actions. Like ethics, agreement on the nature and scope of social responsibility is often difficult to come by, given the diversity of values present in different societal, business, and corporate benefits.
Societal Responsibility - public interest groups, ecological environment, general public
Stakeholder Responsibility - supplies/distributors, employees, consumers
Profit Responsibility - owners/stockholders
