MKT 230 1nd EditionExam # 1 Study Guide Lectures: 1 - 5Lecture 1 and 2 – Chapter 1 (January 12th and 14th)- What is marketing?o Marketing is the creating, distributing, promoting, and pricing of goods, services, and ideas to facilitate a satisfying exchange relationship with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment- What is the focal point of all marketing activities?o CUSTOMERS- What is a target market?o A specific group of customers on whom an organization focuses its marketing efforts.o Who does the company want to do business with? It’s the starting point of the marketing process.- What is a marketing mix?o The marketing mix is 4 elements that need to be combined and balanced in orderto determine how to market best. The four elements are Price, Promotion, Production, and Distribution (3 P’s and a D)- What is a marketing mix build around?o Customers- What are the 4 basic forms of products?o Good – physical objecto Service – repair, hair cut, etc. anything with human labor requiredo Idea – schools and churches, not for profits, retirement, etc.o Experience – Disney World, selling you the experience not the rides- What is a service?o A service is a product that requires human input and labor.- What are some examples of services/service organizations?o Hair cuts, car repair shops, someone doing your taxes for you- What is distribution? What are concerns relating to them?o Distribution is making products available to customers in locations and quantitiesdesired. They want to minimize costs by keeping inventory, transportation costs, and storage expenses low- How does a company increase its market awareness?o By staying aware on all of the external factors that surround the market and could impact the company in either a positive or a negative way- What are the uncontrollable factors in developing a marketing mix?o Economic forces, political forces, legal and regulatory forces, technological forces,socio-cultural forces, and competitive forces- What is the marketing concept?o A management philosophy that an organization should try to provide products that satisfy customer’s needs through a coordinated set of actions that also allows the organization to achieve its goals- What is the customer concept?o Putting the customer first – CRM (Customer Relationship Marketing) is using the information about customers to create a marketing strategy that develops and sustains desirable customer relationships- What are the primary ways a company can increase profits?o There are 3 ways: by acquiring new customers, by enhancing the profitability of existing customers, and extending the duration of customer relationships- What is value?o Value is perceived by the customer, they assess the benefits of a product relative to the costs and then determine the worth. It is very subjective.o VALUE = CUSTOMER BENEFITS – CUSTOMER COSTS- What are customer costs?o Customer costs in the equation above would be the negative aspects of the product and/or the actual price of the product. In the customer’s mind it is what the product would cost them if they were to buy it.Lecture 3 and 4 – Chapter 2 (January 21st and 26th)- What is customer satisfaction?o Customer satisfaction is making sure that the customer’s needs are met- What is strategic planning?o The process of establishing an organization mission and forming goals, corporate strategy, marketing objectives, marketing strategies, and marketing plan.o This should be guided by a marketing orientation and it looks at all parts of business (marketing, human resources, financial, etc.)- What is marketing strategy?o Plan of action for identifying and analyzing a target market and developing marketing mix to meet the needs of that market.- What is the strategic planning process? o The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy- What are the marketing concepts? o A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals- What are question marks and dogs?o Both refer to the Growth share matrixo A question mark is a product the company isn’t sure about. It could have good growth but the market share is currently low. On the matrix it is found in the upper right hand corner where high product market growth and low relative market share intersect.o A dog is a product that should probably be pulled because it has low product market growth and low relative market share. It is found in the lower right hand corner of the matrix.- What is marketing plan?o A written document that specifies actions to be performed to implement and control the organization marketing activities.- What is a core competency?o Things that a firm does extremely well which gives it an advantage over competition Ex: McDonalds is great at low prices and consistency- What is a strategic window?o A temporary period of optimal fit between key requirements of a market and the particular capabilities of a firm competing in the market.- What is a competitive advantage?o The result of a company matching a core competency to opportunity in the market place- What does SWOT stand for and what are the parts of it?o S – strength (internally, what do we do well?)o W – weakness (internally, what do we not do well?)o O – opportunity (external, what are we not taking advantage of?)o T – threat (external, what outside forces are affecting the company/market?)- What is a marketing niche?o A company’s specific place in the market - Where should business goals derive from?o Their mission statement- What is corporate identity?o Unique symbols, personalities, or philosophies that should support all corporate activities- What is an SBU?o SBU stands for Strategic Business Unit. It is a division, product line, or other profitcenter within a parent company.- What is a consumer?o A person that purchases a product or service from a company- What is the exchange process?o The provision or transfer of goods, services, or ideas in return for something of value- What is a sustainable market advantage?o An advantage that another company cannot easily copy in the foreseeable future- What is internal marketing?o This coordinates internal exchanges to achieve success, it is used to attract, motivate, and retain