Marketing Test 1 Notes 04 29 2015 The process of creating distributing promoting and pricing goods 1 Marketing services and ideas 2 Customers 3 Target Market The purchasers of organizations products A specific group of customers on whom an organization focuses its marketing efforts 4 Marketing Mix Variables Product o A good service or idea Distribution Promotion Price o Relates to activities used to inform individuals or groups about the organization and its products o Relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices 5 Value A customers subjective assessment of benefits relative to costs in determining the worth of a product Value Customer Benefits Customer Costs The provision or transfer of goods services or ideas in return for 6 Exchanges something of value 7 Stakeholders Constituents who have a stake or claim in some aspect of a company s products operations markets industry and outcomes 8 Marketing Environment Includes competitive economic political legal and regulatory technological and socio cultural 9 Marketing Concept An organization should try to provide products that satisfy customers needs through a coordinated set of activities that also allows the organization to achieve its goals 10 Customer Relationship Management using information about customers to create marketing strategies that develop and sustain desirable customer relationships Establishing long term mutually satisfying buyer seller 11 Relationship Marketing relationships 12 Customer Lifetime Value the worth of individual customers and estimates their lifetime value to the company 13 Socially responsible marketing Promoting the welfare of customers and stakeholders 14 Green Marketing A strategic process involving stakeholder assessment to create meaningful long term relationships with customers while maintaining supporting and enhancing the natural environment 15 Strategic Marketing Management The process of planning implementing and evaluating the performance of marketing activities and strategies both effectively and efficiently 16 Strategic Planning The process of establishing an organizational mission and formulating goals the corporate strategy marketing objectives and marketing strategy 17 Mission statement become A long term view or vision of what the organization wants to 18 Corporate strategy determines the means for utilizing resources in the functional areas of marketing production finance research and development and human resources to reach the organization s goals 19 Strategic business unit SBU is a division product line or other profit center within the parent company 20 Market A group of individuals and or organizations that have needs for products in a product class and have the ability willingness and authority to purchase those products 21 Market Share The percentage of a market that actually buys a specific product from a particular company is referred to as that product s or business unit s 22 Market growth market share matrix A helpful business tool based on the philosophy that a product s market growth rate and its market share are important considerations in determining its market strategy Products with a dominant share of the market and good prospects 23 Stars for growth 24 Cash cows 25 Dogs growth 26 Question marks Have a dominant share of the market but low prospects for growth Have a subordinate share of the market and low prospects for Have a small share of a growing market and generally require a large amount of cash to build market share 27 Core competencies Are things a company does extremely well which sometimes gives it an advantage over its competition 28 Market opportunity Is a combination of circumstances and timing that permits an organization to take action to reach a particular target market 29 Strategic windows Are temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market 30 Competitive advantage Is the result of a company matching a core competency to opportunities it has discovered in the marketplace 31 SWOT analysis Is a tool marketers use to assess an organization s strengths weaknesses opportunities and threats 32 First mover advantage Is the ability of an innovative company to achieve long term competitive advantages by being the first to offer a certain product in the marketplace 33 Late mover advantage Is the ability of later market entrants to achieve long term competitive advantages by not being the first to offer a certain product in a marketplace 34 Sustainable competitive advantage Is one that the competition cannot copy in the foreseeable future 35 Marketing Implementation The process of putting marketing strategies into action 36 Centralized organizations Authority is concentrated at the top level 37 Decentralized organizations Decision making authority is delegated as far down the chain of command as possible 38 Performance standard Is an expected level of performance against which actual performance can be compared 39 Sales analysis 40 Marketing cost analysis Uses sales figures to evaluate a firm s current performance Breaks down and classifies costs to determine which are associated with specific marketing efforts 41 Environmental Scanning environment 42 Environmental Analysis The process of collecting information about forces in the marketing The process of assessing and interpreting the information gathered through environmental scanning 43 Passive 44 Proactive 45 Competition Accepting them as uncontrollable Attempting to influence and shape them Other organizations that market products that are similar to or can be substituted for a marketer s products in the same geographic area Firms that market products with similar features and benefits to the 46 Brand Competitors same customers at similar prices 47 Product Competitors Firms that compete in the same product class but market products with different features benefits and prices 48 Generic Competitors Firms that provide very different products that solve the same problem or satisfy the same basic customer need 49 Total Budget Competitors Firms that compete for the limited financial resources of the same customers 50 Monopoly A competitive structure in which an organization offers a product that has no close substitutes making that organization the sole source of supply A competitive structure in which a few sellers control the supply